Ask a Pro   Lawn & Garden | Join us for a live Q&A + discussion event > Learn More

  • svg]:stroke-accent-900"> 826K
  • svg]:stroke-accent-900"> 622K
  • svg]:stroke-accent-900"> 246K
  • svg]:stroke-accent-900"> 45K

How to Start a Lawn Care Business: A Step-by-Step Guide for Budding Entrepreneurs

By Amber Guetebier

Updated on Mar 19, 2024 9:56 PM EDT

10 minute read

We may earn revenue from the products available on this page and participate in affiliate programs. Learn More ›

When it comes to types of businesses an entrepreneur can start, opting for a lawn care business can be full of benefits. Overall, lawn care business start-up costs are relatively low and the industry has the potential for high revenue; some lawn care businesses can bring in six figures annually. Add to that the perks of independence and spending time outdoors, and starting a lawn care business becomes even more appealing. To offer customers individualized, reliable lawn care, the best lawn care services start with a comprehensive, executable lawn care business plan. Those interested in starting a lawn care business will find the steps listed can help them on their path to a flourishing lawn care business.

Before You Begin…

When entrepreneurs are researching how to start a lawn care business, there are a number of key factors to take into consideration. Before launching a new venture, aspiring business owners will want to consider any existing lawn care businesses in their marketplace, what those businesses have done to be a success, and how a new lawn care business can compete.

In many locations, lawn care isn’t a year-round business, so taking the weather and climate into consideration will help an entrepreneur formulate the right plan. Many lawn care businesses offer winter snow or ice removal in areas with heavy snowfall. Those with milder winters may be able to work nearly year-round if they plan to offer lawn care preparation and seasonal cleanup as part of their services.

Tips for Starting a Lawn Care Business

  • 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 permits, such as those required for pesticide application.
  • Invest in necessary equipment and software.
  • Create a targeted marketing plan to create brand awareness and reach a wider client base.
  • Recruit and hire employees to help the lawn care business scale.

STEP 1: Write a comprehensive lawn care business plan.

Writing a business plan is a logical first step for any entrepreneur, and it’s no different for a lawn care business. In order to create a robust, actionable business plan for lawn care companies, the owner needs to start off with market research and make decisions about the scope of the lawn care business they want to run. Many lawn care companies begin as a small lawn care business but may scale into a larger operation, so thinking about company structure is important. For example, will this be an LLC or a sole proprietorship? Is the goal to be a solo operation or to eventually become a franchise? A strong lawn care business plan includes a list of the equipment and tools the owner will need from the start, the start-up and operational budget for the business, and a marketing plan that includes outreach to let new customers know that the business is up and running.

STEP 2: Choose a business structure and register your business name.

There are several different structures an entrepreneur can choose for their business, including a sole proprietorship, a partnership, a corporation, an S corporation, or a limited liability company (LLC). For each of these structures, there are different requirements to register with the state or local government. Business structure affects taxes, paperwork requirements, personal liability, and where potential funding comes from. Aspiring entrepreneurs will want to consider their lawn care business structure carefully, as choosing to restructure in the future may come with restrictions and complications. The U.S. Small Business Administration (SBA) website offers business owners information to help them determine which structure is best for their company. Entrepreneurs can also choose to work with a professional to register their business; for example, they may choose to work with one of the best LLC services , such as LegalZoom or Northwest Registered Agent , to register their business as an LLC.

STEP 3: Get the necessary business licenses and permits as required by your state or local government.

Business owners typically need to register their lawn care business name with state and local governments. They’ll also want to consider the adjacent states where the company may conduct business and research whether the business needs to be registered there as well. Generally, if the company is an LLC, corporation, or partnership, the business owner may be required to register in any state where the company will regularly conduct business. Business names do not need to be registered on a federal level, but paying taxes to both state and federal tax agencies is a requirement.

In addition, the business owner will likely need to get a business license , though the specifics will depend on their location. There are a number of different types of business licenses , and new lawn care business owners will want to research what licenses are required in their area. For example, some states may only require a general business license for lawn care companies to operate legally. Others, however, may require lawn care businesses to obtain special pesticide application certification or permits.

STEP 4: Obtain business insurance coverage.

Lawn care companies frequently work with equipment such as riding lawn mowers or rototillers on clients’ property. They may work on drainage and irrigation as well as lawn care and maintenance. Because of this, purchasing the best insurance for lawn care businesses (such as a policy from NEXT Insurance or Thimble ) is a critical investment for any lawn care business. In many cases, a certain amount of insurance coverage is required by law in order for a business to acquire a license and operate legally in the state in which it’s located.

The good news is, the cost of lawn care business insurance is relatively affordable, with the national average at about $45 a month. Having lawn care business insurance can help protect the company in the event of an accident, damage to a client’s property, injuries to a client, and in some cases, stolen or damaged equipment.

STEP 5: Get financing and open a business bank account.

The national average lawn care business start-up cost is $6,900, which includes a business license, taxes, insurance, equipment, and operating supplies. This amount can fluctuate depending on location, existing equipment, and other factors such as number of employees and vehicles. Commercial lawn care companies may need to invest in larger and more powerful equipment, such as one or more of the best riding lawn mowers , rather than basic push mowers, and this can be a larger investment up front. Creating and finalizing a budget, possibly with the help of an accountant, will help a business owner see the profit they need to succeed and help secure the right amount of financing. It’s also essential to have a business bank account to help manage income and outgoing expenses.

STEP 6: Invest in software to help run and organize the business.

With so many moving parts involved in starting a lawn care business, investing in accounting or other business management software can provide a new business owner with the support they need to manage the daily operations of a lawn care business, including scheduling, invoicing, and budget tracking. The best lawn care scheduling software programs (such as Jobber ) can help address the specific needs associated with operating a lawn care business.

STEP 7: Purchase quality lawn care tools and equipment. 

Starting a lawn care business requires a business owner to invest in certain types of equipment, not the least of which is a lawn mower. Purchasing the best lawn mowers will help any new lawn care business operate successfully. If the lawn care company will operate as a commercial business, with clients that could include golf courses, sports stadiums, or parks, the owner may want to consider larger mowing equipment such as a zero-turn or tractor-style riding lawn mower . Riding lawn mowers are a greater initial investment, but they enable the lawn care business to serve more clients in less time. Entrepreneurs will want to keep in mind that some equipment, such as rototillers or skid-steer loaders, can be rented on an as-needed basis until the business grows.

“Investing in quality equipment and tools will allow you to apply [lawn care products] faster and more efficiently while putting less wear and tear on your body,” says Mark Marino, owner of Lawn Phix , a lawn care company based in Bellingham, Massachusetts. “I now primarily use a ride-on spreader/sprayer with a walk-behind fertilizer spreader and two battery backpack sprayers (one for herbicides and one for liquid nutrition). This setup has instantly doubled the number of properties I complete daily…compared to [using] the push spreader and battery backpack sprayer alone. Plus, I’m less tired at the end of the day, and it’s a lot of fun to ride around, too.”

STEP 8: Invest in top-quality lawn care products.

In addition to having quality tools, a new lawn care business will need to have a selection of quality lawn care products, such as fertilizer, weed control, and pest control products. Lawn care businesses can keep these types of products on hand to make it easier to maintain and beautify clients’ yards.

There are several factors for aspiring lawn care business owners to keep in mind while researching the best lawn care products for their company. First, they’ll want to consider safety. There is a lot of value in choosing a company that offers environmentally friendly products, and doing so could give a lawn care company an edge against the competition if other companies in the area aren’t using eco-friendly products. Second, they’ll want to think about the reputation of the company providing the lawn care products they’re considering. Entrepreneurs can research the different brands available, asking local companies what products they recommend and reading reviews on the effectiveness of each type of product.

Lawn care products are a critical component of any lawn care business, so it’s vital that an entrepreneur include them in their budget and shop around to find the best products for their money.

STEP 9: Choose and price the services your lawn care business will offer.

It’s common for many lawn care companies to offer up-front pricing on their website and on flyers or advertisements. By researching the lawn care cost in the area in which the lawn care business will operate, new lawn care companies can remain competitive in their local market. The national average cost for lawn care services is $124, with a range between $48 and $206. Pricing can be dependent on many factors including geographic location, frequency of service, lawn size, and any additional services the lawn care business will offer, such as pesticide application, additional landscaping services, or seasonal cleanups. In areas with heavy snowfall, many lawn care businesses pivot to offer snow removal and holiday lights installation.

STEP 10: Create a marketing plan to build a solid client base.

A marketing plan is an integral part of cultivating and maintaining a client base. Marketing includes everything from lawn care business cards to a dynamic website. It also includes targeted advertising, such as flyers and door hangers, in neighborhoods businesses wish to serve. The use of social media outreach is also important to build brand identity and interact with customers.

Another way for a lawn care business owner to get more clients is to tap into their existing customer base. “Something that’s worked really well for us is simple word-of-mouth advertising,” says Jeremy Yamaguchi, founder of Lawn Love . “We’ve gathered tons of new customers simply through being recommended by satisfied customers. We make it a habit to always ask our satisfied customers to recommend us after completing a job for them, and we also run lots of promotions where we will offer discounts to people who recommend and get others to do business with us. Lawn care is one of those services that is inherently personable and connection-focused, which is why this has always been an effective approach for us.”

Additionally, entrepreneurs will want to consider purchasing vehicle wraps or magnets with their business name, logo, and contact information and place them on their business vehicles. This helps the business become more visible in the community, which can attract more customers. Finally, business owners can ask their current customers if they can place a yard sign with their business info on the customer’s property—this way, passersby can see the business’s contact information while also admiring their handiwork.

STEP 11: Hire employees to help you run your lawn care business.

While a small lawn care business may start out with a single owner and operator, the workload will grow alongside the client base. In order to effectively scale a business, many lawn care companies will reach a point at which they will need to hire employees. Investigating the average wage and benefits will be a big step in the process for the business owner. Offering employees a fair wage and good benefits will help with employee retention, and it can help ensure trust and loyalty between employer and employee.

“I have seen wages increase steadily over the past 10 years. For instance, an inexperienced crew member started at about $11 per hour in 2014 compared to $18 per hour today,” says Jennifer Nichols, president of GreenWeaver Landscapes in Lenni, Pennsylvania. “Along with wage increases, benefits have grown over the years, and we now offer health and dental insurance, a retirement plan, and liberal vacation and education benefits for all new hires…Landscaping is a skilled profession and our employees deserve a living wage, just like all the other trades. I believe the public is beginning to understand and accept this. This simply means that wages will most likely continue to increase in the near future, and they should.”

When learning the ins and outs of how to start a lawn care business, from writing an initial business plan and securing funding to marketing and hiring employees, entrepreneurs can create a thriving business that helps beautify the neighborhood while earning a living wage. By dedicating the time up front to create a well-researched business plan, the grass really will grow greener.

Join Us for the Very First BobVila.com Webinar: “How a More Eco-Friendly Yard Can Beat the Summer Heat” Join Us for the Very First BobVila.com Webinar: “How a More Eco-Friendly Yard Can Beat the Summer Heat”

By Sophie Kaemmerlé

Your Biggest Questions About Heat Pumps, Answered Your Biggest Questions About Heat Pumps, Answered

By Tony Carrick

Lawnmowing101

Successful Lawn Care Business Plan: A Comprehensive Guide.

lawnmowing101

Lawn Care Business Plan

Affiliate Disclaimer

As an affiliate, we may earn a commission from qualifying purchases. We get commissions for purchases made through links on this website from Amazon and other third parties.

Successful Lawn Care Business Plan: A Comprehensive Guide

Welcome to my comprehensive guide on creating a successful  lawn care business plan . As a professional in the industry, I’ve seen firsthand how critical it is to have a thoughtful and well-crafted plan in place before starting your business. In this guide, I’ll be sharing my expertise and providing you with all the necessary tools and advice to help you create an effective  lawn care business plan .

Whether you’re a seasoned business owner or a novice entrepreneur, this guide will provide you with the guidance and direction you need to succeed in the lawn care industry. We’ll cover everything from  market research  to financial projections, so you’ll be fully equipped to create a strong and sustainable business plan.

Key Takeaways:

  • 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.

Starting a Lawn Care Business

If you’re considering starting a lawn care business , you’re in the right place. As someone who has been building and selling lawn care businesses for over thirty years, I know firsthand the challenges and rewards of this industry. Here are some important steps to consider as you begin your journey:

If you would prefer a template, check out the course below .

Screenshot 2023 09 08 194856

Business Plan Course

  • Template supplied
  • Simple 7-step system
  • How to work out your costs
  • Know what kind of business you want to build

Do Your Market Research

Before you start your business, you need to know your market.

Who are your potential customers? What landscaping needs do they have? What are their pain points? By conducting thorough  market research , you’ll be able to identify your target audience and tailor your services to meet their needs.

You should also research your competition. Who are they? What services do they offer? What are their strengths and weaknesses? Understanding your competition will help you differentiate yourself and develop a competitive advantage.

Remember that it is going to be a lot harder if you want to start a lawn care business in areas with a lower population. Whenever I work with lawn care businesses myself, I always prefer to target areas with a population of over ten thousand. I’m not saying that you cannot build a successful business in a low-population area. It just takes longer. 

Create a Unique Selling Proposition

Your unique selling proposition (USP) is what sets you apart from the other lawn care companies. It’s the reason why customers should choose your  lawn care service  over others. Your USP should address a specific customer need or pain point and highlight the benefits of working with your company.

Understand Legal Requirements

Starting a lawn care business requires various legal and licensing requirements, depending on your state and local laws. This may include obtaining a business license, registering for taxes, and obtaining insurance. It’s essential to ensure you have the proper legal documentation in place to avoid any legal issues down the road.

You can find out more about business structures here .

Starting a lawn care business can be a fulfilling and profitable venture, but it requires careful planning and execution. By conducting thorough market research, creating a unique selling proposition, and understanding legal requirements, you’ll be on your way to success. Stay tuned for the next sections of this comprehensive guide on writing a lawn mowing business plan, where we’ll explore additional steps to help you build a successful lawn care business.

Video A Lawn Mowing Business Partnership – Is It A Good Idea?

Developing Your Business Model

Before starting a  lawn mowing business , it’s essential to determine the right  business model  for your goals and resources . There are various business models to choose from, each with its pros and cons.

Here are some common business models used in the lawn care industry:

Business ModelProsCons
The owner-operator modelLow overhead costs, flexible schedule, easy to manageLimitations on growth and scalability, limited capacity for expansion, potential burnout
The franchise modelEstablished brand recognition, proven  , access to training and supportHigh startup costs, ongoing royalty fees, limited control over business operations
The partnership modelShared resources and responsibilities, potential for growth and expansion, diversified skill setsChallenges in decision-making, potential disagreement over business direction, shared risks and liabilities
The employee-based modelAbility to scale business, the potential for diversification of services, delegated responsibilitiesHigh labor costs, challenges in finding and retaining quality employees, potential for conflict or mismanagement

Ultimately, the right  business model  for your lawn care business will depend on your unique circumstances, goals, and resources.

21 13323 6826

Key components of a business model

When developing your business model, there are several key components to consider:

  • Your target customers: Who are they, and what are their needs and preferences?
  • Your value proposition: What sets your lawn care business apart from the competition?
  • Your pricing strategy: How will you price your services to remain competitive while maintaining profitability?
  • Your marketing strategy: How will you reach and attract your target customers?
  • Your operations strategy: How will you manage the day-to-day operations of your business, including equipment and supply management, scheduling, and quality control?

Answering these questions will help you create a solid foundation for your lawn care business model. It’s essential to regularly review and adjust your business model as your business grows and the market evolves.

Creating a Lawn Care Business Plan

If you want to start a successful lawn care business, having a well-crafted business plan is crucial. A comprehensive business plan will help you define your goals, outline your strategies, and anticipate potential challenges. Here’s a step-by-step guide to creating a winning business plan for your lawn care business.

Screenshot 2023 09 08 200004

Legal Forms

Legal Forms for Starting & Running a Small Business:

65 Essential Agreements, Contracts, Leases & Letters

As a small business owner, you can’t afford to farm paperwork and contracts out to a lawyer—you have to deal with them yourself. With  Legal Forms for Starting & Running a Small Business , you can act with confidence.

Executive Summary

The executive summary is a brief overview of your lawn care business plan. It should give readers a clear understanding of what your business is about, what sets it apart from competitors, and what your goals are. This section should include your mission statement, company description, products and services, target market, and financial projections. Keep it concise and compelling.

Company Summary

The company summary section should provide more detailed information about your lawn care business. This includes your business structure, legal status, management team, and any partners or investors. You should also outline your business location and equipment needs.

Market Analysis

Your market analysis should showcase your understanding of the lawn care industry and your target market. This includes a description of your ideal customers, their needs and preferences, and how you plan to reach them. You should also analyze your competitors and identify what sets your business apart from theirs.

Services and Pricing

In this section, you should provide a detailed description of your lawn care services and how you plan to price them. You should also outline your pricing strategy and how it compares to competitors. Make sure to include any seasonal pricing changes or discounts you plan to offer.

Marketing Plan

Your  marketing plan  should define how you plan to promote your lawn care business to your target market . This includes your marketing channels, such as social media, email marketing, and advertising. You should also describe your branding strategy and how you plan to differentiate your business from others in the industry.

Financial Projections

Your financial projections should include your revenue and expense estimates, as well as your cash flow statement, balance sheet, and income statement. You should also include your break-even analysis and any funding requirements you may have.

Creating a comprehensive business plan can seem daunting, but taking the time to plan now can save you time and money in the long run. Use this guide as a starting point for creating a successful lawn care business plan.

Conducting Effective Market Research

For an aspiring  landscaping business  owner, I know that conducting thorough market research is a crucial step in creating a successful lawn care business plan. Market research helps you identify target markets, understand customer needs and preferences, and analyze your competitors.

To start, I recommend defining your target market. Consider factors such as demographics, geographic location, and income level. Additionally, think about what your potential customers value and what motivates them to hire a landscaping service. This information can help you develop a marketing strategy that resonates with your target audience.

Next, gather data on your competitors. Analyze their pricing strategies, service offerings, and target markets. This information can help you identify gaps in the market and develop a unique selling proposition that sets your  landscaping business  apart from others.

You can gather market data through surveys, focus groups, and online research. I suggest using a combination of these methods to obtain a well-rounded understanding of your target market and competitors.

Once you have collected data, analyze it and use it to inform your business decisions. Determine what services to offer, how to price them, and how to market them effectively. Remember to regularly revisit and update your market research as your business evolves and the market changes.

Lawnmowing101 Membership

Untitled design 4 1

Build a six-figure lawn care business

  • How to get customers fast
  • Systemize your business
  • Work less and earn more
  • Build a lifestyle business

Lawn Care Software

Untitled design 5

Get Your Lawn Care Business Running Smoothly

Easier for you and your customers. Jobber helps you quote, schedule, invoice, and get paid—all in one place.

Crafting an Effective Marketing Strategy

In order to attract and retain customers for your  lawn care service , it is essential to create a well-crafted  marketing plan . Your  marketing plan  should outline your unique value proposition and differentiate your business from competitors. Here are some key steps to consider when creating your marketing plan:

Identify Your Target Customers

First, you need to identify your target customers. This includes understanding their demographics, needs and preferences, and purchasing behaviour. Knowing your target customers will help you tailor your marketing messages and channels to reach them effectively.

Develop Your Branding Strategy

Next, you need to develop your branding strategy. This includes creating a unique brand identity, such as your business name, logo, and color scheme. Your branding should reflect your business values and convey a professional image to attract and retain customers.

Diversify Your Marketing Channels

When it comes to marketing your  lawn care service , it’s important to use a mix of online and offline channels. This may include social media advertising, Google Ads, local print publications, and direct mail. Experiment with different channels to determine which ones work best for your business.

Dont forget to have a section of the business plan that talks about how you will utilise your free Google Maps listing. It is pure gold when it comes to lawn care marketing. 

Emphasize Customer Service

Excellent customer service is essential for building a loyal customer base. Emphasize your commitment to providing exceptional service and communicate this message in all of your marketing materials. Consider offering referral or loyalty programs to incentivize your customers to refer new business to you.

Good old-fashioned service can be an excellent term to use in your business description. People love to work with small business owners who believe in good service. That is something that the lawn care industry seems to be missing these days and it’s a great selling point for your lawn company. 

Monitor Your Results

Finally, it’s important to track and analyze the results of your marketing efforts. Use tools such as Google Analytics to monitor website traffic and conversion rates. Ask new customers how they heard about your business to determine which marketing channels are most effective. Use this information to refine your marketing strategy and optimize your return on investment. If you don’t know what is working, then you don’t know where to spend your money. 

Managing Your Finances

One of the most crucial aspects of starting a  lawn care startup  is managing your finances effectively. Without a solid  financial plan  in place, you risk quickly burning through your available resources and failing to turn your business into a profitable enterprise. Remember, when your business is a sole proprietorship then the buck stops with you. 

Creating a  financial plan  is a critical first step in ensuring the financial stability and growth of your lawn care business. It involves estimating startup costs, projecting future revenue, and outlining a budget that will help keep your expenses in check.

When developing your  financial plan , consider all possible costs associated with your business, such as equipment purchases, marketing expenses, employee salaries, and maintenance costs. By accurately estimating your expenses, you can create a realistic budget, make a profit and avoid overspending.

It’s also essential to continuously track your finances and ensure you’re hitting your revenue and profitability targets. Tracking key financial metrics, such as your operating costs and cash flow, can help you make informed decisions and identify areas for improvement.

Remember, a well-executed financial plan is critical to the success of your lawn care business. Take the time to create a thorough plan and continually monitor your progress to ensure you’re on track to meet your goals.

70 31471 6986

Building a Strong Team

When starting a lawn care business, building a strong team is crucial for success. With a well-crafted  personnel plan , you can ensure that you have the right people in place to help your business thrive.

It’s important to hire individuals who are passionate about the  lawn service  industry and are willing to work hard to achieve common goals. Look for individuals with relevant experience, a strong work ethic, and a positive attitude.

RecruitingHiringTraining
Advertise your job openings through job search websites and social media platforms.Conduct interviews and background checks to ensure that the candidates meet the requirements for the job position.Develop a training program that covers the necessary skills and knowledge needed to perform the job duties effectively.
Offer referral incentives to current employees who bring in strong candidates.Provide a thorough job orientation to new hires to ensure they understand the company’s mission, values, and expectations.Offer opportunities for ongoing training and development to improve skills and knowledge.

When building your team, make sure to also prioritize creating a positive work culture. A supportive work environment can lead to increased productivity, employee satisfaction, and even customer loyalty. Empower your team to share ideas, provide feedback, and collaborate on projects.

Overall, building a strong team is an essential component of creating a successful lawn care business. With a solid  personnel plan  in place, you can attract and retain top talent that will help take your business to the next level.

Listen to audiobooks while you work.

Untitled design 8 1

With a sixty-day free trial

Discover millions of ebooks, audiobooks, and so much more for just $9.99/month.

  • Titles you love
  • Exclusive originals
  • Tailored for you

Ensuring Efficient Operations

One of the key aspects of running a successful lawn care business is maintaining efficient operations. This involves managing equipment and supplies, scheduling and routing jobs, and ensuring quality control in every aspect of the business.

A  maintenance business plan  is crucial to achieving efficient operations. This plan should include detailed procedures for equipment maintenance, including regular servicing and cleaning. It should also outline a system for inventory management, with clear guidelines for ordering and restocking supplies.

Another important element of efficient operations is developing a scheduling and routing system that takes into account factors such as location, job requirements, and seasonality. This can help ensure that every job is completed on time and within budget.

To maintain the quality of services offered, a  lawn maintenance  plan should be implemented. This plan should outline quality control procedures, such as regular inspections and ongoing training for employees. It should also include customer feedback mechanisms to ensure that customer satisfaction is maintained.

Streamlining processes is another way to ensure efficient operations. This can include creating checklists for daily tasks, automating certain processes, and using technology such as GPS tracking to optimize routing and scheduling.

Overall, implementing efficient operations is key to the success of a lawn care business. By following a  maintenance business plan , developing effective scheduling and routing systems, and prioritizing quality control, entrepreneurs in the industry can build a strong reputation and ensure satisfied customers.

Financial Projections and Performance Evaluation

Creating financial projections for a  new lawn care business  is an essential step in creating a comprehensive business plan. These projections help you identify your expected revenue and expenses for the coming years, so you can develop a realistic budget and make informed decisions about your business. In this section, I will guide you through the key components of financial projections and performance evaluation for your lawn care business.

Business Plan Content

When creating financial projections for your business plan, it’s essential to include the following components:

ComponentDescription
Income StatementThis statement shows your revenue, expenses, and net income for a particular period, usually a year. It helps you assess the profitability of your business.
Balance SheetThis statement shows your assets, liabilities, and equity at a specific point in time. It helps you evaluate your business’s financial health and assess its ability to pay off debts and fund future growth.
Cash Flow StatementThis statement shows the cash inflows and outflows of your business. It helps you assess your company’s liquidity and evaluate its ability to pay bills and meet other financial obligations.

Additionally, it’s crucial to include detailed explanations of your revenue streams, cost of goods sold, operating expenses, and capital expenditures. These details help you analyze your revenue and expenses and make informed decisions about your business.

Screenshot 2023 09 08 200428

Creating a Business Plan For Dummies

Everything you need to know to design a profitable business plan

Whether you’re starting a new business or you’ve been trading for a while,  Creating a Business Plan For Dummies  covers everything you need to know.

New Lawn Care Business

When evaluating your lawn care business’s financial performance, it’s essential to consider key financial ratios, such as profitability, liquidity, and solvency ratios. Here are some of the most critical ratios to track:

  • Gross profit margin: This ratio shows the percentage of revenue that is left over after deducting the cost of goods sold. It helps you assess your business’s profitability.
  • Current ratio: This ratio shows your company’s ability to pay off short-term debts with short-term assets. It helps you evaluate your business’s liquidity.
  • Debt-to-equity ratio: This ratio shows the proportion of debt to equity in your company. It helps you assess your business’s solvency and level of financial risk.

By regularly assessing your business’s financial performance, you can make informed decisions about pricing strategy, investment in equipment and personnel, and other aspects of your business that impact your bottom line. Don’t be afraid to make adjustments as needed to ensure your business’s long-term success.

I have found that as a ballpark figure, our own running costs sit at around 40% of turnover so you may want to consider that when writing your business plan cashflow projection. 

Adapting to Market Trends and Innovations

As a  lawn and garden services business  owner, it’s essential to stay up-to-date with market trends and innovations to remain competitive.  Creating a lawn  care business plan can help to allow for flexibility and adaptation to changing industry demands is crucial for success.

One way to adapt to market trends and innovation is by embracing emerging technologies. From robotic mowers to irrigation sensors, new technology is transforming the lawn care industry. Investing in these tools can help boost efficiency, reduce costs, and improve service quality.

I have always said that if someone invented a no-grow lawn, I would be out installing it tomorrow. Dont get stuck in your ways and refuse to move with the times. 

Another trend to keep an eye on is the growing demand for sustainable lawn care practices. As more customers become environmentally conscious, offering sustainable solutions such as organic fertilizers, native plants, and water-saving strategies can differentiate your business from competitors. You could be known as the green lawn care company. 

Expanding your service offerings is also a way to stay relevant in the industry. Adding hardscaping, tree care, or outdoor lighting services to your business can attract new customers and increase revenue streams.

Continuous learning and adapting to changing customer demands are also critical. Attending industry conferences, workshops, and networking events can provide insights into emerging trends, best practices, and new opportunities for growth.

Creating a lawn  care business plan that takes into account industry trends and innovations can position your business for long-term success. By staying ahead of the curve, you can provide exceptional service, attract new customers, and maintain a competitive edge in the market.

In  conclusion , creating a successful lawn care business plan is crucial for anyone starting a lawn care business. It sets the foundation for a well-thought-out and profitable business that can thrive in a competitive industry. By following the comprehensive guide outlined in this article, you’ll be able to navigate the initial steps of starting a lawn care business, developing a business model, creating a business plan, conducting effective market research, crafting an effective marketing strategy, managing your finances, building a strong team, ensuring efficient operations, making financial projections, and adapting to market trends and innovations.

As you embark on your journey to start and grow your lawn care business, remember that it takes hard work, patience, and dedication to succeed. There will be challenges along the way, but with a solid business plan, a strong team, and a commitment to providing exceptional service to your customers, you can achieve your goals and realize your dreams.

So go ahead, create that lawn care business plan, and watch your business bloom!

Thank you for reading this comprehensive guide on creating a successful lawn care business plan.

We hope you found it helpful and informative.

Good luck on your entrepreneurial journey!

162 1750 15887

Q: What is the importance of having a lawn care business plan?

A: Having a well-thought-out lawn care business plan is crucial for success in the industry. It helps you outline your goals, strategies, and financial projections, providing a roadmap to guide your business decisions.

Q: What initial steps should I take when starting a lawn care business?

A: To  start a lawn care  business, you should begin by conducting market research to understand your target customers and competition. You should also create a unique selling proposition to differentiate yourself in the market. Additionally, make sure to meet all the legal requirements and obtain any necessary licenses for operating your business.

Q: What business models are available for a lawn care business?

A: There are different business models you can consider for a lawn care business, such as a solo operator, partnership, or franchise. Each model has its pros and cons, so it’s important to choose one that aligns with your goals and resources. You should also consider pricing strategies and conduct a competitive analysis to position your business effectively.

Q: How do I create a comprehensive lawn care business plan?

A:  Creating a lawn  care business plan involves several key steps. You should include sections such as an executive summary, company summary, and management plan. Additionally, a marketing plan and financial projections are crucial components of a comprehensive business plan.

Q: Why is market research important for a lawn care business?

A: Market research helps you understand your target markets, customer needs, and preferences. It also allows you to analyze your competitors and identify opportunities for growth and differentiation. By gathering market data, you can make informed business decisions and tailor your services to meet the demands of your customers.

Q: How can I develop an effective marketing strategy for my lawn care business?

A: Crafting an effective marketing strategy involves identifying your target audience, choosing the right marketing channels, and creating a strong brand. You should also focus on customer acquisition strategies and customer retention techniques to build a loyal customer base for your lawn care services.

Q: How should I manage the finances of my lawn care business?

A: Managing your finances involves creating a financial plan, budgeting, estimating startup costs, and forecasting revenue. It’s important to track key financial metrics and conduct profitability analysis to ensure the financial health of your business. You should also seek professional advice when needed and make strategic adjustments to achieve your financial goals.

Q: What is the importance of building a strong team for a lawn care business?

A: Building a skilled and dedicated team is essential for the success of a lawn care business. It allows you to provide quality services and maintain customer satisfaction. Recruiting, hiring, and training employees should be a focus, as well as fostering a positive work culture and providing opportunities for growth and development.

Q: How can I ensure efficient operations for my lawn care business?

A: Efficient operations are crucial for maximizing productivity and customer satisfaction. This involves proper equipment and supply management, effective scheduling and routing, and maintaining quality control. Streamlining processes and providing exceptional customer service are also important factors to consider for efficient operations.

Q: How do I create financial projections and evaluate the performance of my lawn care business?

A: Creating financial projections entails estimating revenue, expenses, and profits over a specific timeframe. It helps you assess the financial viability of your business and make informed decisions. Evaluating performance involves tracking key financial ratios and making adjustments as needed to achieve your business goals.

Q: Why is it important to adapt to market trends and innovations in the lawn care industry?

A: Staying up-to-date with market trends and embracing innovations is essential for the long-term success of a lawn care business. It allows you to offer new services, incorporate emerging technologies, and adopt sustainable practices. Continuous learning and adapting to changing customer demands help you stay ahead of the competition and grow your business .

Man mowing lawn

Get tips & tricks on how to grow a profitable lawn care business delivered to you inbox every week. 

About the author

' src=

Stuart Clifford is founder of Lawnmowing101 He has been building and selling lawn care businesses for over thirty years. These days he works with other independent lawn care business owners and helps them maximise returns and grow their businesses though his lawnmowing101 membership. https://www.skool.com/lawnmowing101

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest posts

Are Daisies Weeds or Flowers?

Are Daisies Weeds or Flowers?

Are Daisies Weeds or Flowers? Daisies look great and can give the lawn a lovely carpet of white flowers with a yellow center come Spring. But are they a weed or a flower? It depends on who is looking at them and where they are. As a lawn care business owner, many customers constantly ask…

Can You Run a Lawn Care Business Without a Trailer?

Can You Run a Lawn Care Business Without a Trailer?

Can You Run a Lawn Care Business Without a Trailer? These days, you see a lot of vehicles on the road pulling trailers packed with lawn care equipment. Pulling a trailer all day is hard work, and you must worry about parking or getting in and out of driveways. I have spent years towing a…

Dealing with Dogs on Lawns  Lawn Care Business Tips

Dealing with Dogs on Lawns Lawn Care Business Tips

Dealing with Dogs on Lawns Keeping safe around dogs on the job. If you own a lawn mowing business, chances are you’ve had to deal with dogs at some point. After all, many homeowners have dogs, and you need to manage dogs while you’re working safely.  This blog post will share our top tips for safely…

lawn care business plan

No thanks, I’m not interested!

BusinessPlanTemplate.com - The World's Leading Business Plan Template Directory

Lawn Care Business Plan Template [Updated 2024]

 width=

Lawn Care Business Plan

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.

The following sample lawn care business plan template gives you the key elements to include in a winning lawn care business plan. It can be used to create a business plan for a landscaping business, a lawn mowing business plan and a landscaping design business plan.

Sample Lawn Service Business Plan

Below is a free sample of each of the key sections of your lawn care business plan.

I. Executive Summary

Business overview.

[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its lawn maintenance services to various businesses in the area that need landscaping and lawn maintenance.

The company was founded by [Founder’s Name] in [Year established]. [First Name] started the company with a vision to help the local community see the beauty of professional landscaping and how important it is for the environment.

They are not only experts in decorative landscaping, but also in vegetable gardening and sprinkler systems. They also specialize in lawn problems; from weeds, crab gass, or dry grass in summer.

Products Served

Below is [Company Name]’s initial services list:

  • Landscape design
  • Arborist Services
  • Tree Trimming and Stump removal
  • Commercial Landscaping
  • Residential lawn care
  • Weed control
  • Vegetable Gardening
  • Lawn Sprinkler Services

Customer Focus

[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by moderate to high income families that live in residential houses who are in need of proper landscape maintenance. These residents are able to pay for quality lawn care and landscaping services any time of the year.

The location is also a prime spot for big hotels, resorts, golf clubs (clubhouses), recreational spaces, and companies that will need our services as well.

Management Team

The [Company Name] was founded by [Founder’s Name]. [First Name] has started working in the Landscaping industry at a very young age. His/her love for the environment and for design has pushed himself/herself to study at [insert university] and become a professional landscape architect. [First Name] also just finished taking up a second degree in business management.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
  • Our location is in a high-wealth area where customers are in need of lawn care services and have the disposable income to pay for these services.
  • The management team has a track record of success in the lawn care business.
  • The local area is currently under served and residents rely on independent lawn caretakers.

Financial Highlights

[Company Name] is seeking total funding of $295,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing equipment and materials needed, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Store design/build: $180,000
  • Equipments and Materials: $115,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

II. Company Overview

You can download our Landscaping Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its services to various businesses in the area that need landscaping and lawn care services.

[Company Name]’s History

[Founder’s Name], the founder of [Company Name] started very young in the landscaping and lawn care business. Ever since [First Name] was still in his college years, he was working part-time in a small landscaping company and earning a few bucks off of the lawnmower he has borrowed from his neighbor. Only in [Month and Year established], did he realize that this is what he wanted to pursue, to start his own lawn care business that cares for the environment and the community.

Through years of hard work and practice, he/she was able to grow his/her business to be one of the most popular all-season landscaping businesses in [Location] and is looking to expand to surrounding areas in the coming years.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo and website located at [Add Website]
  • Built a local office in [Insert location]
  • Determined equipment and inventory requirements
  • Gathered local contacts and potential clients
  • Employed a team that handles all the administrative and marketing aspects of the business.
  • Employed full time expert landscapers

[Company Name]’s Products/Services

Iii. industry analysis.

The Lawn Care industry is dependent on the health of the housing and property markets, both of which have grown steadily over the past five years. Additionally, because landscaping services are often discretionary, industry demand is dependent on levels of per capita disposable income and, thus, the high-income demographic, which generates a healthy portion of its revenue. The industry also relies on demand from institutional and commercial clients, which generally lead to higher per-service revenue.

Steady growth in the domestic housing market has underpinned the industry’s growth over the past five years. A healthier housing market has encouraged current homeowners to invest in their properties to increase their value amid growing disposable income.

Over the next five years, favorable economic conditions will benefit the industry, such as rising per capita disposable income that will boost households’ ability to purchase industry services. Nonresidential construction activity is expected to climb steadily, making this market a point of emphasis for growth

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by middle to upper-class families that live in residential houses who are in need of a lawn mowing business. These residents are able to pay for quality lawn care and landscaping services any time of the year.

GlendaleHighland
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

The company targets the following customer segments:

  • Homeowners and Renters: The majority of the population in (location) lives in residential houses with yards and lawns. Since most of these people have disposable income, they don’t usually do their lawn maintenance themselves and usually spend their money for services like ours. We expect to regularly acquire new customers from referrals.
  • Businesses and Public Spaces: [Location] is known for being a city that values the environment. That’s why most, if not all of the establishments here have green spaces allocated only for plants and trees. We will get in touch with these companies and perhaps also the local government to propose our offer to take care of their landscaping needs. We expect to execute long-term contracts with these companies, thus having stable clientele.
  • Recreational Spaces: The city is home to a lot of recreational spaces like resorts, hotels and golf clubs that depend highly on great landscaping. This is something [company name] specializes in and hence, can offer their services to these spaces as well.

V. Competitive Analysis

Direct & indirect competitors.

Lawn Man Established in 1970, Lawn Man is a locally owned and operated lawn care professional service providing environmentally responsible fertilization, weed control and integrated pest management services for customers in the Northeast. Services offered by Lawn Man Man include:

  • Lawn Fertilization
  • Weed Control Service
  • Surface Insect Control
  • Lawn Disease Control

H&K Landscaping

Founded in 1974, H&K Landscaping is a full-service lawn care, landscaping & irrigation company serving the East Coast. In addition to lawn care and irrigation installation, the company offers total lawn and landscape restoration and construction. Services offered by H&K Landscaping Landscaping include:

  • Landscape Design and Installation
  • Shrub & Tree Care
  • Landscape Maintenance

Escamilla Landscaping

Escamilla Landscaping is a family-owned and -operated landscaping company that specializes in creating elegant outdoor living spaces. It offers a variety of services for both commercial and residential clients, providing quality work at affordable prices. Services include: Sodding, Irrigation, Tree trimming and Lawn maintenance.

Competitive Pricing

Competitor pricing is customized and highly dependent on property size and condition

Competitive Advantage

There are a lot of things that make [Company Name] at a vantage point from its competitors. These include:

  • Open All-season: Most of the lawn care services in [Location] are only seasonal. [Company name], on the other hand, is open All-Season, as it is one of the companies that are well equipped to handle lawn services and landscaping all throughout the year.
  • Expert Employees: We at [Company Name], assure all our clients that we only employ individuals who are excellent in what they do. Our landscapers are experts and can handle any lawn situation that our clients may have.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
  • Great Deals: Our company offers high-quality services at a reasonable price and we also have special offers for all our contract-based clients.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Convenient location
  • Expert landscaping and lawn maintenance services
  • Year-round service
  • Moderate price point
  • Client-focused
  • Environmentally conscious

Promotions Strategy

Social Media/ Online Marketing With the majority of the people now online, the company will invest resources in online ads for different social media platforms to reach potential clients. We will create ads that will successfully create positive conversions. A company website will also be developed. This website should be able to direct traffic from search engines as much as possible. In order to do this, the company will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified landscaping service provider that it is.

Publications [Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.

Major Publications We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.

Commute Advertising We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.

Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to purchase our services.

Ongoing Customer Communications [Company Name] will maintain a website, social media accounts, and publish a monthly email newsletter to tell customers about new events, products and more.

VII. Operations Plan

Functional roles.

The Company intends to employ [X] landscape experts, [Y] administrative assistants, and [Z] landscape teams. The company may have to add more people during peak seasons. [Company name] anticipates having [X] customers on a weekly basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles:

Service Functions

  • Lawn care and maintenance (cutting, edging, and trimming)

Administrative Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Sales Manager
  • Customer service

[Company name]’s long term goal is to become the number one landscaping provider in the [location] area. We seek to be the standard by which other providers are judged. We also would want to expand our reach by extending our services to nearby cities. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

VIII. Management Team

Management team members, hiring plan.

[Founder’s Name] will serve as the company CEO and president. In order to launch the business we need the following additional personnel:

  • Landscaping and lawn care experts
  • Marketing and Admin Staff

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from landscaping services, especially from fixed contracts with bigger companies. Labor expenses are the key cost drivers. [Founder’s Name] and all of the company’s employees will earn a competitive base salary with good benefits.

The next largest cost for the company is the office lease and the monthly equipment maintenance check and possible repairs. The Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

Key assumptions.

Number of customers per dayPer location
FY 120
FY 225
FY 335
FY 445
FY 565
Average service contract$75
Annual Lease ( per location)$50,000
Yearly Lease Increase %2.50%

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

Comments are closed.

download business plan template

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Lawn and Garden Services Business Plan

Start your own lawn and garden services business plan

Fescue & Sons Yard Care

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Fescue & Sons Yard Care is a residential lawn care service targeting rural middle-class homes with large yards which the owners cannot care for well on their own. Over the last three years, the prices for homes in the nearby urban area 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.

Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. 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. 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.

Over the first summer, Red will be the primary employee, with some part-time help from his son, Rye. Rye has worked with Red at ABC landscaping and will continue to help out at Fescue & Sons in the summers.

In the coming spring, we will hire an additional landscaper for seasonal work, and may hire another if demand warrants. In mid-summer of Year 2 we will purchase additional equipment, including a second trailer or used truck.

As a business with largely seasonal profits, we will use the high summer revenues to support the business through the winter’s leaner months. We will have a modest profit in the first year, but expect profits over $8,000 in the second fiscal year and over $10,000 in the third year.

Lawn and garden services business plan, executive summary chart image

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.
  • Develop a sustainable home business, being maintained by its own cash flow.

1.2 Mission

The mission of Fescue & Sons Yard Care is to provide top-quality residential and commercial yard care service.  We will strive to attract and maintain customers by providing services in the most timely manner to provide 100% customer satisfaction. Our services will exceed the expectations of our customers.

1.3 Keys to Success

  • Experienced landscaper with excellent customer-service skills
  • Commitment to high quality and professionalism in every task and encounter
  • Small size, allowing direct management oversight of every project and employee

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Fescue & Sons Yard Care will offer residential and commercial lawn care service, including lawn cutting, trimming, edging, and removal of the clippings. Most of our customers will use our services once every week or every two weeks, depending on the amount of rain we get. In this area, lawn care needs vary greatly depending on the weather, and while this year is likely to be dry, future years will probably see a return to normal rain levels, meaning faster-growing grass and weeds and more frequent lawn care.

2.1 Company Ownership

Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. As the business grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

2.2 Start-up Summary

Fescue & Sons Yard Care’s start-up costs include:

  • Home office equipment: file cabinet, computer system (including printer, scanner, and fax software)

Long-term assets:

  • Vehicle: The owners are contributing a 1998 Toyota pickup to the business

Short-term assets

  • Standard tool box with tools for simple repairs

Lawn and garden services business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal/LLC $500
Ad $50
Brochures/Business Cards $150
Home Office $3,000
Accounting Software $100
Other $0
Total Start-up Expenses $3,800
Start-up Assets
Cash Required $6,200
Other Current Assets $2,500
Long-term Assets $3,500
Total Assets $12,200
Total Requirements $16,000

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.

Market Analysis Summary how to do a market analysis for your business plan.">

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. 

4.1 Market Segmentation

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.

Lawn and garden services business plan, market analysis summary chart image

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%

Pro Tip:

4.2 Target Market Segment Strategy

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.

4.3 Service Business Analysis

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.

4.3.1 Competition and Buying Patterns

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.

Strategy and Implementation Summary

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.

5.1 Competitive Edge

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.

5.2 Marketing Strategy

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. 

5.3 Sales Strategy

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.

5.3.1 Sales Forecast

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.

Lawn and garden services business plan, strategy and implementation summary chart image

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

5.4 Milestones

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.

Lawn and garden services business plan, strategy and implementation summary chart image

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

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

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.

6.1 Personnel Plan

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

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

7.1 Start-up Funding

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

7.2 Important Assumptions

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

7.3 Projected Balance Sheet

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

7.4 Break-even Analysis

The Break-even Analysis indicates $3,830 is needed in monthly revenue to break even.

Lawn and garden services business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $3,374
Assumptions:
Average Percent Variable Cost 8%
Estimated Monthly Fixed Cost $3,098

7.5 Projected Profit and Loss

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.

Lawn and garden services business plan, financial plan chart image

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%

7.6 Projected Cash Flow

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.

Lawn and garden services business plan, financial plan chart image

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

7.7 Business Ratios

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

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

lawn care business plan

How to Start a Lawn Care Business: A Step-by-Step Guide [2023]

how to start a lawn care business image

Get Going → Landscapers

How to Start a Lawn Care Business in 6 Steps

March 25, 2020

lawn care professional

Step 1: Decide what lawn care services to offer

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..

Join a community of 50,000+ small business owners and get insights and inspo every other week

Related Articles

landscaper trimming shrub

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:

  • Sale of fertilizer, insecticide, and other lawn care products directly to clients
  • Weeding, mulching, and other gardening work
  • Lawn installation
  • Planting native lawns
  • Planting native species and pollinators in and alongside grass lawns
  • Seasonal services (snow removal in the winter, raking leaves in the fall)

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:

  • String trimmer
  • Leaf blower
  • Mowing goggles
  • Safety ear muffs
  • Gardening gloves

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:

  • Identify your target customers. Will you be primarily serving commercial or residential clients, or a bit of both? Both audiences have different expectations when it comes to pricing, with commercial clients typically being comfortable paying more.
  • Understand the market. What are your competitors charging? Research how much your competitors charge for the same services you’ll be offering, as you’ll want to stay in a similar range. Charge too low, and clients may not trust you.
  • Will you charge per hour or flat rate? Again, this is where market research can be helpful. Many clients prefer to be quoted a flat rate for lawn care services, since that helps them prepare for the final bill. Of course, you can base that flat rate on the hourly rate you need to be profitable.
  • Factor in ongoing expenses. It costs money to run a lawn care business! Consider overhead costs like taxes, health insurance, business insurance, marketing materials, cell phone, gas, vehicle and equipment maintenance, software (accounting, scheduling, website hosting, etc.), and employees (if you plan to hire any).
  • Add in profit. Pricing isn’t about breaking even. It’s about being profitable. Tack on a healthy percentage to your rates to pay yourself and help your business become profitable. With a profitable business, you’ll be better positioned to weather any unexpected costs, and to grow your lawn care business over time.

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:

  • Decide what services to offer
  • Set up your business structure
  • Purchase lawn care equipment
  • Protect your business with insurance
  • Price your services
  • Grow your client base with marketing

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.

Get Greenlight in your inbox.

It's not every other newsletter. It's every other week, four minutes long, and just for small businesses.

thimble spin logo

Quick-thinking insurance for fast-moving businesses.

Backed by A-rated Insurance i

Best Insurance for the Smallest Businesses

Accredited Business

What do you do?

Hot Summer Savings ☀️ 60% Off for 4 Months. Buy Now & Save

60% Off for 4 Months Buy Now & Save

Wow clients with professional invoices that take seconds to create

Quick and easy online, recurring, and invoice-free payment options

Automated, to accurately track time and easily log billable hours

Reports and tools to track money in and out, so you know where you stand

Easily log expenses and receipts to ensure your books are always tax-time ready

Tax time and business health reports keep you informed and tax-time ready

Automatically track your mileage and never miss a mileage deduction again

Time-saving all-in-one bookkeeping that your business can count on

Track project status and collaborate with clients and team members

Organized and professional, helping you stand out and win new clients

Set clear expectations with clients and organize your plans for each project

Client management made easy, with client info all in one place

Pay your employees and keep accurate books with Payroll software integrations

  • Team Management

FreshBooks integrates with over 100 partners to help you simplify your workflows

Send invoices, track time, manage payments, and more…from anywhere.

  • Freelancers
  • Self-Employed Professionals
  • Businesses With Employees
  • Businesses With Contractors
  • Marketing & Agencies
  • Construction & Trades
  • IT & Technology
  • Business & Prof. Services
  • Accounting Partner Program
  • Collaborative Accounting™
  • Accountant Hub
  • Reports Library
  • FreshBooks vs QuickBooks
  • FreshBooks vs HoneyBook
  • FreshBooks vs Harvest
  • FreshBooks vs Wave
  • FreshBooks vs Xero
  • Partners Hub
  • Help Center
  • 1-888-674-3175
  • All Articles
  • Productivity
  • Project Management
  • Bookkeeping

Resources for Your Growing Business

How to start a lawn care business in 8 steps (2024 guide).

How to Start a Successful Lawn Care Business

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 

  • You can start a lawn care business with relatively low start-up costs.
  • Consider whether you want to offer many services or specialize only in lawn upkeep.
  • Some pros of working in lawn care include having recurring customers and growth potential.
  • You can begin with basic equipment and expand your services and team as you grow your business.

Table of Contents

  • Choose Which Lawn Care Services You Want to Offer
  • Analyze Your Location and Competitors
  • Legal Steps To Start a Lawn Care Business
  • Get Lawn Care Equipment
  • Get Lawn Care Business Software
  • Price Your Lawn Care Services
  • Hire and Train Employees
  • Create a Marketing and Sales Strategy

Pros of Starting a Lawn Care Business

Launch your lawn care business today.

  • Frequently Asked Questions

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

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:

  • Lawn Mowing (Residential And Commercial)
  • Weed Removal
  • Lawn Fertilizing
  • Lawn Spraying
  • Lawn Aeration
  • Turf Removal And Installation
  • Landscape Installation
  • Landscape Maintenance
  • Tree, Shrub, And Flower Planting
  • Tree Trimming
  • Seasonal Services (Leaf Raking, Snow Removal)

Fresh Starts Deserve FreshBooks

2. Analyze Your Location and Competitors

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.

3. Legal Steps To Start a Lawn Care Business

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.

Register Your Business Structure and Name

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.

Apply for Your Business License

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.

Get Business Insurance

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.

Apply for Your Employer Identification Number (EIN)

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 .

4. Get Lawn Care Equipment

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:

  • Vehicle (usually a truck) that can tow a small trailer
  • Small equipment trailer
  • Lawn mower (push mower or riding mower)
  • Leaf blower
  • Pruning shears
  • Tree trimming equipment
  • Wheelbarrow
  • Shovels 
  • Rakes 
  • Safety equipment (goggles, gloves, safety earmuffs)

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.

5. Get Lawn Care Business Software

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.

6. Price Your Lawn Care Services

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. 

  • Hourly Rate: If you’re not sure how long a job will take, pricing by the hour ensures you’ll be paid fairly for your labor.
  • Flat Rate : If you have a general sense of how long the job will take, a flat rate is a transparent system that’s appealing to customers.
  • Square Footage: For larger spaces like parks and business lawns, charging by the square foot allows you to provide your customers with a clear pricing quote.

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.

7. Hire and Train Employees

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.

8. Create a Marketing and Sales Strategy

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:

  • Designing a logo for your website, uniforms, invoices, and merchandise
  • Building a social media presence on Instagram and Facebook and sharing pictures and videos of your work
  • Distributing flyers in your area
  • Asking customers for reviews that you can publish online

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.

Hit The Ground Sprinting

FAQs About Starting a Lawn Care Business

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.

How much money do you need to start a lawn care business?

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.

What is the profit margin for lawn care?

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.

What is the best vehicle for a lawn mowing business?

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.

What are the cons of starting a lawn care business?

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.

Sandra Habinger headshot

Sandra Habiger, CPA

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.

RELATED ARTICLES

How to Start a Digital Marketing Agency in 5 Steps

Save Time Billing and Get Paid 2x Faster With FreshBooks

Want More Helpful Articles About Running a Business?

Get more great content in your Inbox.

By subscribing, you agree to receive communications from FreshBooks and acknowledge and agree to FreshBook’s Privacy Policy . You can unsubscribe at any time by contacting us at [email protected].

IMAGES

  1. Lawn Care Business Plan Template Free

    lawn care business plan

  2. Lawn Care Business Plan Template Free

    lawn care business plan

  3. Lawn Care Business Templates

    lawn care business plan

  4. 5+ Lawn Care Business Plan Templates

    lawn care business plan

  5. Lawn Care Business Plan Template Free

    lawn care business plan

  6. Lawn Care Business Plan Template Free

    lawn care business plan

VIDEO

  1. Lawn Care Customer Lifetime Value Calculator

  2. How Many Lawn Care Employees Do I Need?

  3. How Much Money Should My Lawn Company Make Per Hour?

  4. 20 Lawn Care Business Questions Answered (11/11)

  5. Job Cost: How Much Should I Charge for Lawn Care?

  6. Can a Painting Business Help Grow my Lawn Care Business?

COMMENTS

  1. Lawn Care Business: A Step-by-Step Guide for Budding ...">How to Start a Lawn Care Business: A Step-by-Step Guide for...

    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...

  2. Lawn Care Business Plan: A Comprehensive Guide.">Successful Lawn Care Business Plan: A Comprehensive Guide.

    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.

  3. Lawn Care Business Plan Template [Updated 2024]">Lawn Care Business Plan Template [Updated 2024]

    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.

  4. Lawn Care Business Plan [With Free Template] - Jobber">How to Write a Lawn Care Business Plan [With Free Template] -...

    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.

  5. Lawn Care Business Legally in 9 Steps - Jobber">How to Start a Lawn Care Business Legally in 9 Steps - Jobber

    Learn how to start a lawn care business, get registered and insured, price your services, and attract customers in 9 steps.

  6. Lawn and Garden Services Business Plan Example | Bplans">Lawn and Garden Services Business Plan Example | Bplans

    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.

  7. Lawn Care Business: A Step-by-Step Guide [2023]">How to Start a Lawn Care Business: A Step-by-Step Guide [2023]

    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.

  8. Lawn Care Business Plan Template | Customize a Free Sample - PandaDoc">Lawn Care Business Plan Template | Customize a Free Sample -...

    Grow your lawn care business with our customizable plan template. Streamline your path to a flourishing enterprise. Get started today.

  9. Lawn Care Business - Thimble">Guide to Starting a Lawn Care Business - Thimble

    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:

  10. Lawn Care Business in 8 Steps (2024 Guide) - FreshBooks">How to Start a Lawn Care Business in 8 Steps (2024 Guide) - ...

    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.