Fescue & Sons Yard Care will provide residential lawn care service which includes lawn cutting, edging and trimming. Optional services will be available upon customers’ requests. The service is typically offered once a week in season, but we can create a custom schedule for clients if they have beginning of the season projects, or if the weather changes their lawn care needs.
Fescue & Sons Yard Care will target rural middle-class families with larger lawns or parcels of property. This population is the most likely to use a lawn care service such as ours, since they often have more acreage than they can easily care for.
Red will be canvassing neighborhoods and posting flyers to develop a clientele. We will also place advertisements in the local rural newspaper to develop visibility for Fescue & Sons Yard Care.
In the second year, Red will expand service beyond the small rural town to the urban area located 15 miles east.
Fescue & Sons Yard Care will be targeting families with annual income over $50,000. The median income of $50,000 and above is targeted because they tend to have more disposable income for the care of their lawn, whereas lower income families will tend to provide their own lawn care.
Over the last three years, the prices for homes in the nearby urban place advertisements have skyrocketed. Many families in our targeted income bracket have chosen to buy larger parcels in the nearby countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large lawns require, and end up with small gardens near the house, and overgrown acreage further away.
By targeting customers with large lawns and parcels of property, we will fill the niche created by urban flight, as well as keep our margins higher than we could with small lawns. Transportation time and costs for all the equipment make it more profitable to do a few large lawns than many smaller ones.
By doing a superb job on these rural lawns in the first year, we hope to build a positive reputation which will carry over with recommendations to co-workers and friends in our customers’ former urban neighborhoods. Since we want to maximize lawn size cared for in both settings, our eventual outreach to urban dwellings will focus on high-end houses and lawns on large, often older, lots.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Rural Family Income Above $50,000 | 3% | 300 | 309 | 318 | 328 | 338 | 3.03% |
City Family Income above $50,000 | 3% | 14,500 | 15,000 | 15,450 | 15,914 | 16,391 | 3.11% |
Total | 3.11% | 14,800 | 15,309 | 15,768 | 16,242 | 16,729 | 3.11% |
Initially, we will canvass nearby homes in our rural town. Red will be basing the business out of our home, very close to the target market. Red will start by speaking with his own neighbors. Although some people are put off by solicitors, Red is their neighbor, so they will be more comfortable with him and he will be able to make his sales pitch. We will also put some small signs on our own lawn advertising our service.
Once Red has built up a steady list of customers he will begin to run advertisements in the local paper to gain access in different neighborhoods. In the second year, we will continue running ads and begin outreach to the more affluent city customers with large lawns.
Fescue & Sons Yard Care will be working in the lawn care industry. The industry includes both residential areas (individual homes) and commercial areas (apartment complexes, business parks, schools, etc.).
The commercial side is generally serviced by larger landscaping services. The residential side is serviced by both landscaping companies and basic lawn care service companies.
The lawn care business is made up of many small companies. This occurs because of the high labor intensity and low start-up costs of the industry. The industry is vulnerable to recession, as lawn care is a luxury. Lastly, the lawn care industry is seasonal, with the high season being spring through fall. There is usually little activity in the winter, but some can be achieved by acquiring a clientele that will utilize monthly maintenance through the winter months.
The lawn care business can be divided into two types, residential and commercial. As a start up or one person business, it is much easier to enter into the residential market compared with the commercial market. The commercial market is dominated by larger, established companies.
Within the residential market, there are two competitors: full-scale landscaping companies and basic lawn care services. The full-scale landscaping companies will generally be handling jobs outside of Fescue & Sons’ range. They are servicing even larger homes that require other landscaping activities that need more equipment and multiple employees. The margins are therefore larger for the full-scale companies because they can charge more for the higher-skilled work. The other competitor is the basic lawn care services, not unlike Fescue & Sons Yard Care. In the residential market, the current competition is underwhelming and often lacks basic quality and professionalism.
The trend with the residential customers is that they are making their purchasing decisions based on referrals and perceived professionalism and quality of service.
Fescue and Sons will rely on Red’s knowledge of the local community and top-quality landscaping skills. Initial outreach will involve direct canvassing of the neighborhood. This will be supplemented by ads, showing properties we have worked on, and brochures and fliers hung up in local businesses.
We will also rely on word of mouth, so part of our strategy is to treat every job as if it were the most important client we have ever had. Phone calls will be returned promptly, services will be done professionally and on time, and customers will be treated with respect.
Fescue & Sons Yard Care’s competitive edges will be our high quality work and unflagging professionalism.
During the first summer, Red will do all of the lawn care and other work, with some help from his son, Rye. Starting in May of 2006, we will hire a second, part-time employee as a landscaper. Red, Rye, and the landscaper will always work as a team, allowing for direct supervision of all workers and direct involvement with the job at hand, to ensure customers receive the high quality they expect.
Fescue & Sons Yard Care’s second competitive edge is professionalism. In our business, this means returning customer inquiries promptly, showing up on time, bringing all necessary equipment, reserving breaks for times away from the customers’ yards, and cleaning up thoroughly after ourselves when we leave. To facilitate communication, Red will have a cell phone at all times, where he can be reached directly or receive messages, if he’s in the middle of a job. Cell phone reception in most of the town is quite good, despite being a rural area.
All of these sound like simple things, but they will help us stand out from the local competition.
Our marketing strategy in the first year relies largely on face-to-face contact between Red and potential customers, and word-of-mouth from satisfied clients. In the second year, we will place more ads, and in different papers (such as in the nearby city), as well as trying to generate more word-of-mouth from our customers.
Fescue & Sons Yard Care sales strategy will be based on one-on-one communications with potential customers. By going door to door in his own neighborhood, Red can become more familiar to these folks and take advantage of his outgoing personality.
In the start-up period (the month of June), we will set up the office, and purchase the necessary lawn care equipment. At the same time, Red will spend three to four afternoons a week, especially on weekends, going around the neighborhood to scout out problem lawns and talk to potential customers. There are at least two weekends coming up that are likely to be scorchers, when potential customers will look outside and think that the last thing they want to do is go out and mow the lawn – these are our best days to canvass the neighborhood, offering a service many do not even realize they want.
After getting in the door, Red’s challenge will be to effectively communicate his experience and skills in lawn care and related work. He will bring a portfolio of some of the nicest lawns he has worked on in the past, when working as head landscaper for ABC landscapers, and photos of our own lawn, which is more similar to the ones in the neighborhood. He is also willing to offer a free estimate and cutting for those that are interested in a possible contract. Although some of the free cuttings will not turn out to be long-term customers, our competitive prices and superior service will turn most of the leads into customers.
By year two, the business will be ready to expand outside of the neighborhood. At that point, we will place more advertisements in the local paper to generate business. When people call with questions, Red will have already built up a loyal following of customers who can serve as an effective referral system.
In September, we will begin advertising our end-of-year garden prep and winter maintenance services, which will supply revenue over the winter. Since the climate here is mild, many gardeners put off their seasonal clean-up and garden prep until it is too late. Weeds continue to grow all winter, long past when gardeners want to be out in the yard, and uncompleted garden prep forces them to do much more labor in the spring to get the garden back in shape.
Winter maintenance includes things like trellis and shed repairs, helping gardeners organize their supplies and seeds, and fixing or building cold frames for early vegetables.
Direct cost of sales for all of these projects includes gas for powered equipment and transportation costs, most equipment repair and maintenance, and the cost of any items used up in the process, like mower blades or edging strings. Unlike most big lawn care services, we are tracking direct labor costs as operating expenses, not direct cost of sales. These amounts can be found in the Personnel plan, and are reflected in the Profit and Loss statement.
We also plan to do occasional tree stump removal, for which the direct cost of sales is higher, since it includes the cost to rent the equipment. If this becomes a larger part of our business, we may buy our own equipment.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Yard work/landscaping | $34,954 | $55,000 | $65,000 |
Winter maintenance | $5,500 | $8,000 | $10,000 |
Garden Prep/Cleanup | $7,000 | $10,000 | $11,000 |
Tree Stump Removal | $1,750 | $2,500 | $3,000 |
Total Sales | $49,204 | $75,500 | $89,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Yards/Winter Maint/Gardens | $3,322 | $5,110 | $6,020 |
Other | $700 | $1,000 | $1,200 |
Subtotal Direct Cost of Sales | $4,022 | $6,110 | $7,220 |
We have established some basic milestones to keep the business plan priorities in place. Red is in charge of all goals directly related to yard care and employee practices, while Kikuyu will oversee our marketing materials – brochures, business cards, ads, etc.
We have sketched out only a few milestones past the first year, as details of that implementation will become more clear in the spring of 2006. For now, we are focused on setting up the office and collecting customers.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Design brochures | 4/15/2005 | 5/15/2005 | $0 | Kikuyu | G&A |
Print brochures and cards | 5/15/2005 | 5/25/2005 | $150 | Red | G&A |
Set up the office | 6/1/2005 | 6/30/2005 | $3,100 | Red | G&A |
Begin customer contacts | 6/1/2005 | 6/15/2005 | $0 | Red | G&A |
Sign up the 10th client | 6/1/2005 | 6/25/2005 | $0 | Red | G&A |
Ads every other month | 6/1/2005 | 6/30/2006 | $175 | Kikuyu | G&A |
Sign up 20th client | 6/25/2005 | 7/15/2005 | $0 | Red | G&A |
Sing up 30th client | 7/15/2005 | 8/15/2005 | $0 | Red | G&A |
Switch to fall/winter work | 10/15/2005 | 10/31/2005 | $0 | Red | G&A |
Switch to spring work | 2/15/2006 | 3/15/2006 | $0 | Red | G&A |
Interview potential landscapers | 3/1/2006 | 4/30/2006 | $0 | Red | G&A |
Begin city clients | 4/1/2006 | 4/30/2006 | $50 | Red | G&A |
Purchase additional equipment | 4/15/2006 | 5/15/2006 | $7,000 | Red | G&A |
Second landscaper starts | 5/1/2006 | 5/10/2006 | $1,500 | Red | G&A |
Rye returns from school | 6/1/2006 | 6/10/2006 | $0 | Red | G&A |
Totals | $11,975 |
Red and Kikuyu have been involved in landscaping and outdoor design for over 10 years. For the last five years, Red has worked as head landscaper at ABC Landscaping. He now has the design and lawn-care expertise, as well as the management experience, to begin his own business. Red will oversee the work of his son, Rye, and a second landscaper, to be hired in the spring of 2006.
Kikuyu is a graphic designer and master gardener. Her skills will be extremely useful in creating the look of our marketing materials, from brochures to business cards to newspaper ads. She will continue to work in her current job while Red manages the day-to-day details of the company.
Rye has worked part-time at ABC Landscaping alongside his dad for over a year now, and will help out the family business during his summer breaks. His strengths include topiary design, hedge work, and edging and trimming.
In the spring of 2006, we will hire a second landscaper, and possibly a third, depending on how busy we are. We are seeking someone with at least two years of experience in the lawn care industry, with attention to detail and a good work ethic. Rye is already talking to some of his friends about possibly applying for this job, and they are good candidates. This will probably be a seasonal position, unless winter work ends up having a higher demand than expected.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Red | $29,500 | $35,000 | $40,000 |
Rye | $1,300 | $2,000 | $2,500 |
Landscaper | $2,700 | $8,000 | $10,000 |
Total People | 3 | 3 | 3 |
Total Payroll | $33,500 | $45,000 | $52,500 |
The following sections will outline important financial information.
The owners are contributing a truck worth $3,500 as a long-term asset to the business, plus $1,500 cash toward purchasing the short-term assets needed (mowers, trimmers, safety equipment, etc.). In addition, we are seeking a loan of $11,000 to fund the rest of the start-up requirements. This loan will be backed by the Fescues’ equity in their home.
Start-up Funding | |
Start-up Expenses to Fund | $3,800 |
Start-up Assets to Fund | $12,200 |
Total Funding Required | $16,000 |
Assets | |
Non-cash Assets from Start-up | $6,000 |
Cash Requirements from Start-up | $6,200 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $6,200 |
Total Assets | $12,200 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $11,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $11,000 |
Capital | |
Planned Investment | |
Owners | $5,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $5,000 |
Loss at Start-up (Start-up Expenses) | ($3,800) |
Total Capital | $1,200 |
Total Capital and Liabilities | $12,200 |
Total Funding | $16,000 |
The following table highlights some important financial assumptions of Fescue & Sons.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The following table indicates the projected balance sheet. As we retain earnings and repay the long-term loan, our net worth will increase from $1,200 at start-up to over $21,000 by year three.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $13,048 | $19,632 | $37,538 |
Other Current Assets | $2,500 | $2,500 | $2,500 |
Total Current Assets | $15,548 | $22,132 | $40,038 |
Long-term Assets | |||
Long-term Assets | $3,500 | $10,500 | $10,500 |
Accumulated Depreciation | $1,152 | $3,704 | $6,256 |
Total Long-term Assets | $2,348 | $6,796 | $4,244 |
Total Assets | $17,896 | $28,928 | $44,282 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $1,925 | $1,244 | $1,455 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $1,925 | $1,244 | $1,455 |
Long-term Liabilities | $9,896 | $8,796 | $7,696 |
Total Liabilities | $11,821 | $10,040 | $9,151 |
Paid-in Capital | $5,000 | $5,000 | $5,000 |
Retained Earnings | ($3,800) | $1,076 | $13,888 |
Earnings | $4,876 | $12,812 | $16,242 |
Total Capital | $6,076 | $18,888 | $35,130 |
Total Liabilities and Capital | $17,896 | $28,928 | $44,282 |
Net Worth | $6,076 | $18,888 | $35,130 |
The Break-even Analysis indicates $3,830 is needed in monthly revenue to break even.
Break-even Analysis | |
Monthly Revenue Break-even | $3,374 |
Assumptions: | |
Average Percent Variable Cost | 8% |
Estimated Monthly Fixed Cost | $3,098 |
The following table and charts show our projected profit and loss. After paying reasonable salaries, we will make a modest profit in the first year, with increasing profits in future years. Our gross margins will remain around 91 or 92%. Our largest expenses as a service business are payroll and payroll taxes.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $49,204 | $75,500 | $89,000 |
Direct Cost of Sales | $4,022 | $6,110 | $7,220 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $4,022 | $6,110 | $7,220 |
Gross Margin | $45,182 | $69,390 | $81,780 |
Gross Margin % | 91.83% | 91.91% | 91.89% |
Expenses | |||
Payroll | $33,500 | $45,000 | $52,500 |
Marketing/Promotion | $125 | $200 | $300 |
Depreciation | $1,152 | $2,552 | $2,552 |
Insurance | $1,200 | $1,200 | $1,200 |
Licenses + bonded fees | $1,200 | $1,200 | $1,200 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $37,177 | $50,152 | $57,752 |
Profit Before Interest and Taxes | $8,005 | $19,238 | $24,028 |
EBITDA | $9,157 | $21,790 | $26,580 |
Interest Expense | $1,040 | $935 | $825 |
Taxes Incurred | $2,090 | $5,491 | $6,961 |
Net Profit | $4,876 | $12,812 | $16,242 |
Net Profit/Sales | 9.91% | 16.97% | 18.25% |
The following chart and table show our projected cash flow. We will repay the loan over ten years (interest payments can be found in the Profit and Loss, above). The table also shows planned purchases of additional equipment as long-term assets in the second fiscal year.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $49,204 | $75,500 | $89,000 |
Subtotal Cash from Operations | $49,204 | $75,500 | $89,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $49,204 | $75,500 | $89,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $33,500 | $45,000 | $52,500 |
Bill Payments | $7,752 | $15,816 | $17,494 |
Subtotal Spent on Operations | $41,252 | $60,816 | $69,994 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $1,104 | $1,100 | $1,100 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $7,000 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $42,356 | $68,916 | $71,094 |
Net Cash Flow | $6,848 | $6,584 | $17,906 |
Cash Balance | $13,048 | $19,632 | $37,538 |
The following table outlines some of the more important ratios from the Lawn and Garden Services industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 0782.
The major difference between our ratios and the industry standard is in gross margin. The Lawn and Garden Service industry is labor intensive, and most businesses include manual labor expenses in their direct cost of sales. As a small, family-owned business without a large staff of workers, I am treating these as operating expenses, instead. If personnel costs are included, our gross margin in the first year falls around 23%, and by year three it is up around 32%, roughly the industry average.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 53.44% | 17.88% | 9.12% |
Percent of Total Assets | ||||
Other Current Assets | 13.97% | 8.64% | 5.65% | 32.14% |
Total Current Assets | 86.88% | 76.51% | 90.42% | 51.33% |
Long-term Assets | 13.12% | 23.49% | 9.58% | 48.67% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 10.75% | 4.30% | 3.29% | 25.79% |
Long-term Liabilities | 55.30% | 30.41% | 17.38% | 24.81% |
Total Liabilities | 66.05% | 34.71% | 20.67% | 50.60% |
Net Worth | 33.95% | 65.29% | 79.33% | 49.40% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 91.83% | 91.91% | 91.89% | 32.95% |
Selling, General & Administrative Expenses | 81.92% | 74.94% | 73.64% | 18.41% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.34% |
Profit Before Interest and Taxes | 16.27% | 25.48% | 27.00% | 2.04% |
Main Ratios | ||||
Current | 8.08 | 17.79 | 27.51 | 1.38 |
Quick | 8.08 | 17.79 | 27.51 | 0.88 |
Total Debt to Total Assets | 66.05% | 34.71% | 20.67% | 62.84% |
Pre-tax Return on Net Worth | 114.64% | 96.91% | 66.05% | 4.79% |
Pre-tax Return on Assets | 38.92% | 63.27% | 52.40% | 12.89% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 9.91% | 16.97% | 18.25% | n.a |
Return on Equity | 80.25% | 67.83% | 46.23% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 5.03 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 38 | 28 | n.a |
Total Asset Turnover | 2.75 | 2.61 | 2.01 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.95 | 0.53 | 0.26 | n.a |
Current Liab. to Liab. | 0.16 | 0.12 | 0.16 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $13,624 | $20,888 | $38,582 | n.a |
Interest Coverage | 7.70 | 20.58 | 29.14 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.36 | 0.38 | 0.50 | n.a |
Current Debt/Total Assets | 11% | 4% | 3% | n.a |
Acid Test | 8.08 | 17.79 | 27.51 | n.a |
Sales/Net Worth | 8.10 | 4.00 | 2.53 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Yard work/landscaping | 0% | $3,000 | $3,254 | $4,000 | $1,500 | $0 | $0 | $0 | $0 | $2,000 | $6,000 | $7,200 | $8,000 |
Winter maintenance | 0% | $0 | $0 | $0 | $0 | $1,500 | $2,000 | $1,500 | $500 | $0 | $0 | $0 | $0 |
Garden Prep/Cleanup | 0% | $0 | $0 | $0 | $2,000 | $1,000 | $0 | $500 | $1,000 | $2,500 | $0 | $0 | $0 |
Tree Stump Removal | 0% | $0 | $250 | $0 | $250 | $0 | $250 | $0 | $250 | $0 | $250 | $0 | $500 |
Total Sales | $3,000 | $3,504 | $4,000 | $3,750 | $2,500 | $2,250 | $2,000 | $1,750 | $4,500 | $6,250 | $7,200 | $8,500 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Yards/Winter Maint/Gardens | 7% | $210 | $228 | $280 | $245 | $175 | $140 | $140 | $105 | $315 | $420 | $504 | $560 |
Other | 40% | $0 | $100 | $0 | $100 | $0 | $100 | $0 | $100 | $0 | $100 | $0 | $200 |
Subtotal Direct Cost of Sales | $210 | $328 | $280 | $345 | $175 | $240 | $140 | $205 | $315 | $520 | $504 | $760 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Red | 0% | $2,000 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Rye | 0% | $300 | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500 |
Landscaper | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,500 | $1,200 |
Total People | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 3 | |
Total Payroll | $2,300 | $3,000 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $4,000 | $4,200 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $3,000 | $3,504 | $4,000 | $3,750 | $2,500 | $2,250 | $2,000 | $1,750 | $4,500 | $6,250 | $7,200 | $8,500 | |
Direct Cost of Sales | $210 | $328 | $280 | $345 | $175 | $240 | $140 | $205 | $315 | $520 | $504 | $760 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $210 | $328 | $280 | $345 | $175 | $240 | $140 | $205 | $315 | $520 | $504 | $760 | |
Gross Margin | $2,790 | $3,176 | $3,720 | $3,405 | $2,325 | $2,010 | $1,860 | $1,545 | $4,185 | $5,730 | $6,696 | $7,740 | |
Gross Margin % | 93.00% | 90.65% | 93.00% | 90.80% | 93.00% | 89.33% | 93.00% | 88.29% | 93.00% | 91.68% | 93.00% | 91.06% | |
Expenses | |||||||||||||
Payroll | $2,300 | $3,000 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $4,000 | $4,200 | |
Marketing/Promotion | $25 | $0 | $0 | $25 | $0 | $0 | $25 | $0 | $25 | $0 | $25 | $0 | |
Depreciation | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | |
Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Licenses + bonded fees | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $2,621 | $3,296 | $2,796 | $2,821 | $2,796 | $2,796 | $2,821 | $2,796 | $2,821 | $2,796 | $4,321 | $4,496 | |
Profit Before Interest and Taxes | $169 | ($120) | $924 | $584 | ($471) | ($786) | ($961) | ($1,251) | $1,364 | $2,934 | $2,375 | $3,244 | |
EBITDA | $265 | ($24) | $1,020 | $680 | ($375) | ($690) | ($865) | ($1,155) | $1,460 | $3,030 | $2,471 | $3,340 | |
Interest Expense | $91 | $90 | $89 | $89 | $88 | $87 | $86 | $86 | $85 | $84 | $83 | $82 | |
Taxes Incurred | $23 | ($63) | $250 | $149 | ($168) | ($262) | ($314) | ($401) | $384 | $855 | $688 | $948 | |
Net Profit | $55 | ($147) | $584 | $347 | ($391) | ($611) | ($733) | ($936) | $895 | $1,995 | $1,604 | $2,213 | |
Net Profit/Sales | 1.82% | -4.19% | 14.61% | 9.25% | -15.65% | -27.16% | -36.66% | -53.46% | 19.90% | 31.92% | 22.28% | 26.04% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $3,000 | $3,504 | $4,000 | $3,750 | $2,500 | $2,250 | $2,000 | $1,750 | $4,500 | $6,250 | $7,200 | $8,500 | |
Subtotal Cash from Operations | $3,000 | $3,504 | $4,000 | $3,750 | $2,500 | $2,250 | $2,000 | $1,750 | $4,500 | $6,250 | $7,200 | $8,500 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $3,000 | $3,504 | $4,000 | $3,750 | $2,500 | $2,250 | $2,000 | $1,750 | $4,500 | $6,250 | $7,200 | $8,500 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,300 | $3,000 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $4,000 | $4,200 | |
Bill Payments | $18 | $550 | $564 | $819 | $790 | $294 | $261 | $136 | $120 | $1,030 | $1,654 | $1,516 | |
Subtotal Spent on Operations | $2,318 | $3,550 | $3,064 | $3,319 | $3,290 | $2,794 | $2,761 | $2,636 | $2,620 | $3,530 | $5,654 | $5,716 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,410 | $3,642 | $3,156 | $3,411 | $3,382 | $2,886 | $2,853 | $2,728 | $2,712 | $3,622 | $5,746 | $5,808 | |
Net Cash Flow | $590 | ($138) | $844 | $339 | ($882) | ($636) | ($853) | ($978) | $1,788 | $2,628 | $1,454 | $2,692 | |
Cash Balance | $6,790 | $6,652 | $7,496 | $7,835 | $6,953 | $6,317 | $5,464 | $4,486 | $6,274 | $8,902 | $10,356 | $13,048 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $6,200 | $6,790 | $6,652 | $7,496 | $7,835 | $6,953 | $6,317 | $5,464 | $4,486 | $6,274 | $8,902 | $10,356 | $13,048 |
Other Current Assets | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Total Current Assets | $8,700 | $9,290 | $9,152 | $9,996 | $10,335 | $9,453 | $8,817 | $7,964 | $6,986 | $8,774 | $11,402 | $12,856 | $15,548 |
Long-term Assets | |||||||||||||
Long-term Assets | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Accumulated Depreciation | $0 | $96 | $192 | $288 | $384 | $480 | $576 | $672 | $768 | $864 | $960 | $1,056 | $1,152 |
Total Long-term Assets | $3,500 | $3,404 | $3,308 | $3,212 | $3,116 | $3,020 | $2,924 | $2,828 | $2,732 | $2,636 | $2,540 | $2,444 | $2,348 |
Total Assets | $12,200 | $12,694 | $12,460 | $13,208 | $13,451 | $12,473 | $11,741 | $10,792 | $9,718 | $11,410 | $13,942 | $15,300 | $17,896 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $531 | $536 | $792 | $780 | $285 | $256 | $133 | $87 | $975 | $1,604 | $1,450 | $1,925 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $531 | $536 | $792 | $780 | $285 | $256 | $133 | $87 | $975 | $1,604 | $1,450 | $1,925 |
Long-term Liabilities | $11,000 | $10,908 | $10,816 | $10,724 | $10,632 | $10,540 | $10,448 | $10,356 | $10,264 | $10,172 | $10,080 | $9,988 | $9,896 |
Total Liabilities | $11,000 | $11,439 | $11,352 | $11,516 | $11,412 | $10,825 | $10,704 | $10,489 | $10,351 | $11,147 | $11,684 | $11,438 | $11,821 |
Paid-in Capital | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Retained Earnings | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) | ($3,800) |
Earnings | $0 | $55 | ($92) | $492 | $839 | $448 | ($164) | ($897) | ($1,832) | ($937) | $1,058 | $2,662 | $4,876 |
Total Capital | $1,200 | $1,255 | $1,108 | $1,692 | $2,039 | $1,648 | $1,036 | $303 | ($632) | $263 | $2,258 | $3,862 | $6,076 |
Total Liabilities and Capital | $12,200 | $12,694 | $12,460 | $13,208 | $13,451 | $12,473 | $11,741 | $10,792 | $9,718 | $11,410 | $13,942 | $15,300 | $17,896 |
Net Worth | $1,200 | $1,255 | $1,108 | $1,692 | $2,039 | $1,648 | $1,036 | $303 | ($632) | $263 | $2,258 | $3,862 | $6,076 |
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March 25, 2020
Step 2: set up a legal lawn care business, step 3: purchase lawn care equipment, step 4: protect your lawn care business, step 5: price your lawn care services, step 6: grow your client base with savvy marketing, a fresh cut awaits, subscribe to greenlight by thimble..
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When it comes to our image of the quintessential home, a perfectly maintained lawn is right up there with a white picket fence. For homeowners, there’s nothing like the scent of freshly cut grass, or the pride that comes with an even, bright green lawn. If you’re considering starting a lawn care business, you already know that lawn care takes time and energy that most homeowners don’t have.
While it might seem like all you need is a lawn mower and the time to start selling your services, proper preparation can help your business grow. With the right planning, you can extend well beyond just mowing and move into other in-demand services. In this short guide, we’ll cover the steps towards starting a successful lawn care business.
While most households need their lawns cut, a little know-how and the right equipment can help when starting a lawn care and landscaping business that’s truly full-service. In addition to mowing, consider offering the following services:
If there’s a demand for green and eco-friendly practices in your area, building your knowledge and offering specialized services can help you compete with other lawn care providers and attract more customers. You may also be able to charge more for your expertise. Likewise, a little basic landscaping knowledge goes a long way towards finding new streams of revenue.
The services you offer will strongly affect your startup costs. If you’re only offering mowing, you may just need a lawnmower and a vehicle for transport. However, other services will require specialized tools including wheelbarrows, hoes, etc.
Once you’ve secured startup money to purchase any necessary equipment, you can begin setting up your business. Even if lawn care is a part time, seasonal job, organizing your business can help it succeed in the years to come.
Consider taking the following steps to start your lawn care business legally:
Check on business licensing requirements – You may not need a license to offer mowing services. However, if you apply pesticides and herbicides, there’s a chance your city or county will require a permit.
Set up a legal lawn care business – If you need a federal tax ID to pay employees or independent contractors, you will need to create a legal business entity for your lawn care business, like a Limited Liability Company (LLC), S corp, or partnership. If you’re an independent contractor, you don’t have to take this step, legally speaking. Still, separating your business assets from your personal assets (with a sole proprietorship or LLC) provides you some legal protection in the case that something goes wrong.
While you won’t have to purchase office space like some other businStarting a lawn care business requires some startup costs — namely, to purchase the lawn care equipment you’ll use to provide your services. At a minimum, most lawn care businesses require the following equipment to get started:
You’ll also need a truck or trailer to transport your equipment to and from your clients’ homes and businesses. If you don’t have one you can use, invest in a work vehicle (and make sure it’s protected with a commercial auto policy).
Once you start providing lawn care services, make sure your business is legally protected. Having a legal business entity is not enough. While an LLC, for example, can protect you from some liability, it’s called a limited liability company for a reason. If your personal finances and your business finances aren’t rigorously separated, you could find your personal assets liable in the case of a claim made against you.
“Wait,” you might ask, “what can go wrong with lawn care?”
Imagine your client has asked you to install a new lawn and treat it with pesticides. You’ve sprayed the one-acre expanse as requested. Should this practice lead to your client’s child suddenly breaking out in a rash, they could claim it’s from exposure to the pesticide and sue you for bodily injury and medical costs. If this happened, you could be held liable.
Bodily injury isn’t the only thing you could be held liable for, either. If you get distracted while riding your mower and this leads to you damaging a part of your client’s property, you could be liable for the replacement or repairs.
That’s why lawn care professionals need general liability insurance. General liability insurance can protect you in the event of a client or third party’s claim of bodily injury, medical costs, or property damage related to your lawn care work.
Note: General liability insurance does not cover you in the case of your employees’ injuries or medical costs. If you have employees, you may also need a workers’ compensation policy.
Lastly, you may want to consider Business Equipment Protection insurance to cover your equipment, and a commercial auto policy for your work vehicle. Lawn care equipment, especially higher-end mowers, can get expensive. If an accident happens and yours gets damaged or broken, you want to know you’re covered for a replacement or a repair.
Bonus: Lawn care insurance on your schedule
As you start your lawn care business, make sure that a client or third party’s claim doesn’t cut your business off at the root.
Getting lawn care business insurance with Thimble is fast, easy, and best of all, flexible. Lawn care is a seasonal business in most areas. If your city doesn’t have year-long balmy weather, you don’t need a year-long policy. With Thimble, your policy lasts only for as long as you need it: choose between daily, weekly or monthly policies.
When you’re ready to sign up, enter your ZIP code, crew size, and a few details related to your business, you can get an instant quote, purchase your policy, and get proof of insurance in just 60 seconds.
Let Thimble take care of your insurance needs so that you can take care of your community’s lawns, worry-free.
Figuring out what to charge for your services can feel like a riddle to any new business owner. Fortunately, it is possible! Consider the following to hone in on the right pricing for your lawn care business:
Pro Tip: When clients want to hire you for multiple services, itemize your quote with the cost for each service. This way, they can pick and choose different services without saying no to everything.
Just like your clients’ lawns need regular watering to grow and stay green, your business needs marketing. Bring in new clients with these marketing tips.
Design a logo – A logo not only makes your business look professional, it’s a key promotion tool. You can add your logo to your invoices, quotes, email signature, and marketing materials. You can print it on the t-shirts or hats you and your employees wear. You can even print a decal for your truck or trailer! Create a logo using a free design tool like Canva, or hire a freelance designer via Fiverr or Upwork.
Check out your competitors – What marketing channels do they leverage? What are they doing well that you can copy, and what are they doing poorly that you can avoid?
Network through word of mouth – Many small lawn care businesses start with only a single customer. Consider offering discounted services to family, friends, and neighbors as you start out. You can even run a promotion: if someone refers a friend, offer them a one-time discount.
Ask for reviews – Speaking of word of mouth, customers reviews are one of the best marketing tools for lawn care companies. Ask happy clients to leave you a review on Google and Yelp.
Print flyers and business cards – Printed materials like flyers and business cards are an affordable way to promote your new lawn care business throughout your city or town. You can post flyers in local businesses, and share business cards with potential clients.
Build a website – Website building tools like Wix and Squarespace make it easy to build a professional-looking website . All you need is a simple, one-page website to describe your services, post your contact information, and share happy client testimonials.
Set up your social media presence – Make it easy for people to find you on Instagram and Facebook. Consider adding photographs of any landscaping jobs, as well as positive customer testimonials.
Now that we’ve covered the basics, you’re ready to mow ahead and start your lawn care business. Remember, you need to:
At the end of the day, you’re providing a valuable service for your community. Treat your business with the same care, and it’ll be as squared-away as the lawns you tend to.
Get started now by protecting your lawn care business with Thimble’s Lawn Care Insurance . Just tell us your zip code and a few details about your business. Sixty seconds later, and bam — you’ve got proof of insurance.
Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.
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How to start a lawn care business in 8 steps (2024 guide).
There’s a growing demand for lawn care in the U.S., making it a great field for new opportunities. Businesses and homeowners are looking for professional lawn care services that can create a well-maintained outdoor space and keep it looking fresh.
Discover how to turn that demand into a profit with this simple guide on starting a lawn care business. In addition to the potential for profitability, running your own lawn care company offers plenty of flexibility to set your own hours, hire a great team, and expand your business.
Key Takeaways
Table of Contents
Launch your lawn care business today.
Starting a lawn care business requires a few business decisions, equipment purchases, and marketing plans. Follow these 8 steps to get started setting up your own lawn care company today.
Having a clear vision for your new lawn care business makes it easier for customers to understand the services you offer. It also helps you focus on productive growth so you can put your energy into the most profitable parts of your company.
Under the umbrella of lawn care, there’s a lot of room to customize your business’ services. Do you want to offer a broad range of services to reach as many customers as possible, or specialize in just a few services to carve out a market niche?
Some common lawn care services include:
Choosing where to base your new business is key to a successful lawn care company. Your lawn care business’ physical headquarters are important, even though customers are unlikely to visit the building. You’ll need to store all your equipment there, so having easy access to the highway and being near your customers will save you money on fuel and transportation costs.
You’ll also need to think about which areas or neighborhoods you’ll service. Look for a location that has plenty of demand but not too many well-established competitors. New home developments can be a good source of untapped markets, especially if they include larger green spaces like parks and wide lawns.
Choosing a location based on other competitors will also depend on what services you offer. Lawn care companies that choose a broad array of services will likely be in direct competition with other companies, so you’ll have to rely on pricing to stay competitive or find an area without many other companies. If you’ve chosen to specialize, you may be able to pick a spot where your specialties don’t overlap too much with your competitors.
One of the first steps to starting any new business is to make sure you’ve taken care of all the legalities. Learning how to start a lawn care business legally isn’t too complicated, but there are a few key steps to take care of.
If you’re running the company by yourself, a sole proprietorship is usually the simplest business structure. If you’re running the company with other people you might register as a partnership, or you can choose to register as a limited liability company (LLC) to protect yourself from personal liability. When you’re registering your business structure, you’ll also register your business name so customers can start finding your company.
To legally operate your lawn care company, you’ll need the proper business license. The easiest way to manage this is to contact your municipal business administration or Chamber of Commerce, and they can advise you on the exact license you’ll need for your area. You might need a state business license as well as a license for the city you operate in.
Depending on the services you offer, you may also need additional licensing. For example, if you use chemicals like pesticides, you may need a license, and in some states, a certification to spray.
Several types of insurance are generally recommended for lawn care companies. Since you’ll be transporting equipment, insuring your vehicles and equipment helps protect your assets.
You’ll also be working on-site, so having liability insurance and worker’s compensation to protect against any property damage or injury is important. Although lawn care isn’t especially risky, there’s always a small chance of damage or injury so it’s best to be covered for anything.
If you’re planning to hire any employees, you’ll need to get an employee identification number (EIN) so you can accurately report your tax responsibilities as an employer to the IRS.
To delve deeper into the legal requirements of starting a business, including essential steps beyond those mentioned here, check out this comprehensive guide: Legal Requirements for Starting a Small Business .
There are some basic equipment and tools you’ll need to start your new lawn care business. Depending on what services you offer, you may also need to purchase specialized equipment. Some common equipment and tools for lawn care companies include:
If you offer specialty services like spraying, you’ll also need to purchase specialty equipment. In many cases buying good second-hand equipment can save you money, so it’s worth checking out used vehicles and second-hand items from other lawn care companies.
You’ll need to find reliable software to help you with the management side of your business. Good lawn care business software helps you keep track of employee hours, manage payroll, create estimates and invoices for customers, and prepare all your financial records for tax season. You might also want to think about an automatic lead capture system where potential customers can enter their information and let you know what they need.
FreshBooks accounting software makes small business financial management easy. Browse time-tracking features, invoice templates for lawn care , expense reports, profit and loss sheets, and more to get started with your lawn care accounting today.
Setting the right prices is key to your success—you want to price low enough to be competitive but high enough to still make a profit. A good place to start is by browsing competitor rates so you can get a sense of what others are changing in your area.
The lawn care industry uses 3 common pricing schemes: hourly, flat rate, and square footage.
Free lawn care estimate templates make it easy to provide customers with an accurate estimate so you can build trust and establish positive relationships that can lead to recurring work. Once the job is done, send the final bill with lawn care invoice templates for quick, professional invoicing.
Labor is one of the biggest expenses in the lawn care business, so hiring the right people is key to success. Hiring great employees and employee retention can also help you grow your business in the future.
You don’t necessarily need to hire for experience in this industry since you’ll be able to train people in lawn mowing, weeding, and other skills fairly quickly. Instead, look for employees with great character—people who are hardworking, punctual, and dependable. If you’re planning to scale your business, it’s also a good idea to look for good team players and people with leadership skills.
Since your employees will need to travel to the job site, you’ll also need at least one person on each team who has a valid driver’s license.
When you decided on your location and services, you started narrowing down your customer base. You’ll need to make sure your business is reaching those people by creating a solid marketing strategy.
The foundation for your marketing is your website—this is where all your other marketing will drive customers to visit. Your website should be clear and easy to use so customers can quickly find your contact information and pricing. Including testimonials from existing customers also helps build trust with potential clients.
Once you have a website, make sure it’s SEO-friendly so that search engines like Google will display your company as a top result when people search for lawn care in the area.
It’s also a good idea to have a broad range of marketing strategies to reach a larger audience. These can include:
There are many advantages to starting a lawn care business. Even if you don’t have a ton of experience or a large start-up financial fund, you can still build a business with plenty of growth potential. Just a few of the pros to starting your own lawn care business include:
Low Start-Up Needs
At the outset, all you need is a truck, a lawnmower, and some hard work. This low initial cost makes lawn care a business that’s fairly easy to enter. You have the option to purchase more equipment and hire employees to grow your business down the line.
Recurring Business
Lawns need regular maintenance, so you can build a base of repeat customers. During the on-season, this makes lawn care a fairly stable means of income.
Potential For Off-Season Work
Depending on where you live, lawn care may only apply for part of the year. However, you can still use your vehicle and some tools to provide other services like fall leaf removal or winter snow removal.
Growth Potential
Even if you just start with the basics, you can offer additional services as you grow. You can also reach more customers by adding more service areas, giving you a lot of room to develop your business.
Flexibility
Owning your own business allows you to set your hours and gives you plenty of flexibility. Although you’ll want to be available for recurring customers, you have a lot more freedom to set a schedule that works for you.
Starting your own lawn care business is a great way to build a reliable career with plenty of growth potential. You don’t need too much to get started—basic equipment, strong customer service skills, and hard work can build client relationships and gain recurring customers.
The right lawn care business software can help you move from a new business to a thriving, scalable company. FreshBooks accounting software makes it easy to track work hours, manage expenses, and send professional estimates and invoices on the go. Try FreshBooks free and discover how the right accounting software can help you grow your lawn care business today.
Explore this helpful article on how to start a landscaping business . It provides valuable guidance to help you kickstart and expand your lawn care business effectively.
Learn more about the basic requirements for starting a lawn care business, as well as profit margins, vehicles, and more with these answers to frequently asked questions about lawn care companies.
When you first start out, you’ll need a vehicle, a small trailer, and a commercial lawn mower, which often total around $20,000, though you may be able to save by purchasing second-hand equipment. It’s also a good idea to budget about $5,000 for your business registration, licensing, and marketing.
The typical profit margin for lawn care ranges from 5 to 20 percent. This will depend on your expenses and the rates in your area. Knowing where you can reduce your expenses—for example, buying second-hand equipment or having a location that’s close to your customers—can help increase your profit margin.
The best vehicle will depend on the equipment you have. If you only have a few things—for example, a small mower and shovels, trimmers, etc., a van with a bulkhead can be a great fit. If you have larger equipment, you’ll need a truck and a small trailer.
There are a couple of potential downsides to starting a lawn care business. Since lawn care is a labor-intensive industry, you’ll often face high labor costs. If you’re in an area with seasonal weather changes, you may also have to manage seasonal labor turnover. You can offset this by offering other services like snow removal in the off-season.
About the author
Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.
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Create a well-researched business plan and set a budget. Decide on a business structure, such as sole proprietorship or limited liability company (LLC). Research required licenses and...
Having a well-crafted lawn care business plan is crucial for success in the industry. This comprehensive guide will provide all the necessary guidance and tools to create an effective plan. We’ll be covering market research, financial projections, and everything in between.
If you want to start a lawn care company or expand your current lawn maintenance business, you need a business plan. You can download our Lawn Care Business Plan Template (including a full, customizable financial model) to your computer here.
A lawn care business plan is a guide that shows how your lawn care business will run. It includes plans for getting customers and making money. It’s also the best way to prepare for the future and get the funding you need to grow—whether you’re new to the industry or a seasoned professional.
Learn how to start a lawn care business, get registered and insured, price your services, and attract customers in 9 steps.
1.1 Objectives. Our objectives for the first three years of operation are to: Create a service-based company whose primary goal is to exceed customers’ expectations. Obtain contracts for yard service in at least 30 different residential homes. Increase our number of clients served by 3% per year.
But before you begin, it’s important to lay the groundwork for building a successful lawn care company. Here, we’ll provide a step-by-step guide about how to start your own lawn care business. Step 1: Planning. Business owners who take the time to plan obtain a greater chance of success.
Grow your lawn care business with our customizable plan template. Streamline your path to a flourishing enterprise. Get started today.
Step 1: Decide what lawn care services to offer. While most households need their lawns cut, a little know-how and the right equipment can help when starting a lawn care and landscaping business that’s truly full-service. In addition to mowing, consider offering the following services:
Starting a lawn care business requires a few business decisions, equipment purchases, and marketing plans. Follow these 8 steps to get started setting up your own lawn care company today. 1. Choose Which Lawn Care Services You Want to Offer.