This summer, Independence Township teens Josh and Ryan Herrera had to turn down several invitations by friends to hang out ? they had to work. Complaining to the boss wouldn’t have helped. As owners of the Clarkston Lawnscaping business, they set the schedule themselves.
‘Our friends would want to hang out, but we’d have to work,? said Josh, 16. ‘It was difficult, but it helps you grow up.?
A healthy flow of revenue helps, they said.
Most goes back into the business, funding upgrades in equipment from two Toro push mowers to Honda quad cut mowers. They’re still push models, but a tractor is planned for the near future, maybe next spring.
‘Something to get the job done a little quicker while still making a good cut for the customer,? Josh said.
The high school students are the owners of Clarkston Lawnscaping, recently earning second place for Best Landscaper in The Clarkston News? Best of the Best contest.
Recently joinging the Clarkston Area Chamber of Commerce, the two break chamber President Stephen Hyer’s record for youngest member ? Hyer joined at 19.
They started three years ago.
‘We were talking about what jobs we’d like to do to get some money to buy a car and go to college,? Josh said.
Why not just have mom and dad pay for everything?
‘They want us to take responsibility and do it on our own ? prepare for real life,? Josh said.
‘Learn financial skills,? said Ryan, 14.
They started with three customers, quickly growing to 10, then 24. Expansion plans include buying out competitors to build their customer base. ‘We focus on quality lawn cuts,? Ryan said. ‘We use light mowers with quad-cut blades for improved mulching and cleaner cuts. And because the mowers are light, the wheels don’t tear up the lawns.?
‘We typically cost less than our competitors because we don’t use the expensive, oversized equipment that leave tire marks and debris,? Josh said.
To serve their customers takes a couple days a week. ‘It takes us about 4 1/2 hours to cut 12 yards in one day,? Ryan said.
The boys maintain their own checking accounts and credit cards and have multiple savings instruments including T-bills, a money market account and CD’s. They recently opened brokerage accounts and hope to buy stocks during the current market correction.
Even with that, they clear enough profit for their own Xbox 360 and PlayStation video game machines, iPOD’s, guitars, and bikes.
‘It’s nice to work only a few days a week and make money instead of working all day for minimum wage,? Ryan said.
‘The extra money is nice,? Josh said.
When it comes to cars, Josh wants a Jeep Wrangler, and Ryan likes the Mustang, although insurance may be too expensive.
They also invest earnings through a bank in Denver chartered for young adults. Young Americans Bank provides financial training and education for kids and encourages entrepreneurial skill development. Every summer they offer ‘camps? geared towards financial management. They distribute flyers every spring and rely on their customers to spread the word.
‘The best advertisement we have is our customers,? Josh said.
The flyer, a tri-fold, color pamphlet, lists services, prices, and illustrations. ‘Mom helped with the details, about how to explain the business,? Ryan said.
Equipment includes two mowers, weed whacker, leaf blower, and various fertilizers and weed killers, all packed on a trailer. Mom or dad drive, but only because Josh and Ryan are too young to get a driver’s license.
‘I’m in the process of getting my license,? Josh said.
‘They still let us do all the work,? Ryan said.
They offer a full variety of lawn care and landscaping services to individuals, neighborhood association common areas and commercial businesses including lawn fertilizing, weed control, aerating and seeding.
In addition to seasonal contracts, Clarkston Lawnscaping offers single lawn cuts for people on vacation or are unable to take care of their properties for a period of time, gift certificates, general yard clean-up and mulching.
To learn more about budgeting and billing Josh is taking an accounting course this year at Clarkston High School. ‘We pay ourselves a little over minimum wage and keep the profits,? explains Ryan. ‘The profits also help to invest and expand the business,? Josh adds.
‘Too many young adults lack the basic skills of money management. I believe it is important for the boys to learn about wealth creation and to develop solid investment habits while they are young? adds Kelly.
Clarkston Lawnscaping is incorporated in the State of Michigan and they pay local, state and federal taxes on earnings.
‘It keeps the kids busy and teaches them life skills too often kids don’t get in school,? said Kelly Irwin.
‘The boys are active in all areas of the business including promotion, advertising, sales, contracts, quality assurance, maintenance and operations. Business schools are still trying to figure out how to teach entrepreneurial skills. I believe they can only be conveyed through mentoring and hands-on apprenticeship. They assume full risk, responsibilities and all rewards.?
During their ‘off season,? Ryan is the starting wide receiver for the Clarkston Wolves freshman football team. He was named offensive MVP on last year’s team and also competes in track. Josh is entering 10th grade this year and is active in cross-country and track. He lettered in cross-county last year. Both boys are active skiers and dedicated Bronco fans as they were born in Colorado.
After college, Ryan wants to work in the music industry as a producer.
‘I enjoy music,? he said.
For more information, call 248-625-2104.