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What is a Lawn care business?
Every property owner requires lawn care services to maintain the life and health of their lawn. This is typically the case with larger residential or commercial properties where maintaining a large lawn is not an easy task and would require professional service. Lawn care services are different from lawn maintenance services as it focuses on the health of the lawn and provides complete care to the lawn from fertilization, pest control, and irrigation to soil testing and management whereas lawn maintenance services include mowing the lawn, and fall and spring cleanups. A lawn care business can provide lawn care as well as maintenance services.
Why start a Lawn care business?
The IBIS World Landscaping Services Industry Report 2021, shows that the landscaping industry was worth $105.1 billion. It is one of the fastest-growing industries. According to the statistics, the report shows there are greater chances of success for someone starting a business in the lawn care industry. Moreover, the lawn care industry has a steady customer base that would need you to maintain and take care of their lawn on a weekly basis or more.
The startup costs are relatively low and you can start your business at a smaller scale and then keep growing your services with time by upgrading your equipment and adding more staff. It is a great opportunity for people wanting to start a side business as lawn care is also a seasonal business and does not require you to work all year round.
Lawn care business: Market analysis
Market Size: As of 2022 the market size is about $128.8bn in the USA, and has shown a 5.3% increase from 2017 to 2022
Project Annual Growth Rate in the USA: 2.3% in 2022
Key players in the market: BrightView Holdings Inc., TruGreen Inc., The F.A. Bartlett Tree Expert Company, Gothic Landscape, Landscape America, Liberty USA Landscaping, Park West Companies, and Yellowstone Landscape, among several others.
| Sources:
https://www.ibisworld.com/industry-statistics/market-size/landscaping-services-united-states/ |
Lawn care business: Startup Analysis
| Production equipment | $12,000 – $85,000 |
| Supplies | $3000-$12000 |
| Insurance | $0.50 – $2.00 per $100 (of the covered payroll) |
| Permits, licenses, and legal fees for the business | $100 |
| Business Software | $100 – $500 |
| Sources: (https://lawnlove.com/lawn-pro-resources/cost-of-starting-lawn-business) (https://www.zenbusiness.com/costs-start-lawn-service-landscaping/ |
| Disclaimer: These costs may vary, depending on location, competition, supplies, sources, market share & your personal decisions, but they do offer a good idea of what you will spend to start. Our data is purely informational and should not be taken as legal or financial advice. |
Start a Lawn Care Business in these 11 steps:
- Create a lawn care service business plan
- Legalize your lawn care business
- Set up your lawn care business for taxes
- Set up your lawn care business bank account and explore funding for your business
- Set up your lawn care business Accounting and Invoicing setup
- Acquire the necessary permits and licenses for your lawn care business
- Get the required business insurance
- Grow your lawn care business by creating a website and promoting it on social media
- Create an online business presence for your lawn care services
- Get leads and call for your lawn care business
- Get to know your lawn care business and research the local competitors
Step 1: Create a lawn care service business plan
Making a business plan at the very first step toward creating your business is a great strategic tool and will help you plan the future of your business. It will also manage and prioritize your goals while focusing on your short-term and long-term business objectives.
Essentials of what a lawn care business plan contains are:
- Executive summary of the overall business
- General description of the business
- Introduction
- Organizational structure
- Market research and competitor analysis
- Description of your services
- How you plan to market and sell your services
- Financial projections and funding plans
- Sales & Marketing Strategies
- Roadmap for your business
- Project growth based on your business plan
What are the costs involved in opening a Lawn care business?
A lawn care business would include the costs of supplies and equipment, advertisement, insurance, rent, licenses, and salaries if you plan to hire staff. The starting costs will depend on the size of the business and whether you are planning to buy or lease a truck as it is the most expensive item on the list. Therefore, keeping that in check the starting costs would be between $3000-$12000. The supplies/equipment would include the following:
- Truck – $10,000 – $75,000
- Lawn Mower – $500
- Edger – $100- $500
- Trimmer – $100 – $200
- Hedge Trimmer – $100 – $400
- Leaf Blower – $100 – $500
- Gas Containers – $20 – $50
- Spreader – $100 – $600
- Sprayer – $50 – $500
- Various Hand Tools – $100 – $500
- Various Landscaping Tools – $200 – $1,000
- Personal Protective Equipment – $50 – $500
Other required costs:
- Website – $500
- Insurance – $50-$200
- Permits/licenses- $50-$100
- Storage costs – $150-$300/month
What are the ongoing expenses for a lawn care business?
Operating expenses or ‘opex’ are expenses that your business will incur from its operational activities. The operating or ongoing expenses for a lawn care business include:
- Labor costs: If your business requires regular and sometimes part-time workers then they will receive a salary or wage for their services to the growth of your business. Salaries are also an ongoing cost of running your business.
- Supplies and Equipment: All businesses, regardless of size, require equipment and supplies to carry out the service.
- Fixtures: These include things such as partitions, signage, paneling, table stands, shelves, lighting, storage cabinets, showcases, and other materials for product display.
- Equipment Maintenance: With time, the equipment you use may develop faults. Expenses for periodic equipment maintenance, warranty coverage, or insurance are also operating costs of your business.
- Legal Compliance: One of the costs of starting a business is the registration of the business as a legal entity with the relevant tax and business regulatory agencies of the local council, state, or country where you intend to operate.
- Rents and Facilities: Purchasing, leasing, or renting an office, storage, or factory space is also another ongoing cost of running a business. You will have to pay for the storage unit or the office space that you may use to store your supplies and equipment.
- Marketing and Promotion: Businesses also spend money on marketing and promoting their goods and services on an ongoing basis.
Who is the target market?
An important step towards a successful business is to find and target the audience who would buy your product or service and make sure that you are using the right means to promote your business so that it reaches the target audience at the right time.
As a service provider, your goal must be to reach consistent customers who are most likely going to hire you frequently. Such customers may enter into a long-term contract and pay you in installments throughout the year. Contracts with businesses with commercial properties such as schools, hospitals, Â and malls, are expected to pay you a much higher rate than the owners of residential properties. Finding a reliable contractor for a commercial property might not be easy due to the high competition in the market and also because these businesses most of the time have their private staff to do the job. However, you could target multi-family residential communities or larger families with higher incomes.
How does a lawn care business make money?
A lawn care business will most likely charge a monthly service fee for the basic lawn maintenance service and can add to it additional charges for any special services provided such as installing new grass soil, fertilization, winter or spring cleanup, etc.
How much can you charge customers?
There are a lot of unregistered lawn care businesses that are paying their workers less than the minimum wage and have no insurance. You should keep in mind that you are competing against them.
How much you will charge your customers will depend on the services you are providing and the size of the lawn. The average cost of mowing the lawn is between $25 and $150 per week and the cleanup service charges range from $170.50 to $374.30. The overall average cost could range from $48 to $211.
Lawn care businesses usually charge at least 150% minimum wage for the amount of time each worker is on their customer’s site. So, for example, if the minimum wage is $10 per hour, the charges would be based on a rate of $15 per hour.
One way to determine how much to charge for your clients is to do a cost analysis. A cost analysis considers all the costs associated with making and selling a product or service. This includes things like the cost of materials, labor, shipping, and marketing. Once you have all this information, you can determine what your price should be to make a profit.
Several factors will affect the amount that you would charge your customers and these include the cost of labor (depending on how many workers are working on the site and for how many hours). The cost of the services will fluctuate depending on the services that you are providing. Along with the price of fuel and transportation, supplies and equipment costs must also be considered.
Additionally, you should look into the prices your competitors are charging so you can give your customers a good deal while still standing out in the market.
How much profit can a lawn care business make?
If you are planning to start your Lawn care business on a smaller scale you should not expect huge profits, as you will most likely be working on your own and offering limited services. There is a lot of competition in the market. It’s because entry costs are low and there are not many requirements for experience or skills.
On the other hand, if you are planning to start your business on a larger scale, targeting clients with commercial or large residential properties, you can make huge profits. You can hire more staff and upgrade your equipment, provide extra service which would eventually increase your production costs as well as your profits. How much profit your business will make will largely depend on the size of the business.
How can you make your lawn care business more profitable?
To make your lawn care business more profitable you can add additional services such as seasonal cleanups and installations. You can diversify your service lineup by expanding your customer base, seeking referrals, launching a website, and partnering with other businesses.
Moreover, identify new opportunities, hire more people, double down on established revenue sources, reduce risks, think ahead, and use social media. Nowadays, social media is the most effective form of promoting and growing your business. You can host events to create a community that will expand your business.
What will you name your business?
Naming your business should be one of the first things you decide when starting your lawn care business. This will give your business its own identity and will highlight the nature of the business. It could be a challenging but important step toward creating your business brand. The name of your business is the only information through which your clients will remember you and recommend you further which will eventually help your business grow. Your business name will have a great impact on the success of your business. Therefore, it must resonate with your business motives and what it stands for. A good business name will help you in marketing, registration, and creating a social media presence.
Step 2: Legalize your Lawn Care Business
To legalize your lawn care business, you should follow the following steps:
- First, you will need to decide on a business name.
- In case you are planning to hire staff, you will have to get an Employee Identification Number (EIN) you can find the process of obtaining an EIN in Step 3.
- You must open a business bank account which will help in managing taxes and will separate your business and private assets as well as expenses.
- You must register your business as a legal entity either as a sole proprietor or an LLC. Doing this can protect you from being held liable if your business is being sued.
- Lastly, you will have to get a business license for your company and get business insurance.
Step 3: Setup your Lawn Care Business for Taxes
The next important step is to set up your lawn care business for certain state and federal taxes. For this purpose you need EIN. An EIN is a tax ID, and as a business owner, it is important to have an EIN while filing business taxes. It can help you avoid tax penalties and identity theft. You will need an EIN to open a business bank account. You can also obtain business loans through EIN.
EIN builds trust among suppliers. It gives credibility to your business. It makes it easier to hire employees. Moreover, it is also important for getting a business license.
The simplest way to apply for your EIN is online via the IRSÂ EIN Assistant. It is free of cost process. On the completion of your application, you will be issued an EIN. To get your EIN, click here.
Step 4: Â Setting up your Lawn Care Business bank account & exploring funding for your business
A business bank account would be essential for your lawn care business. It will separate your personal and business expenses and you will be able to track and keep a record of your business finances which will eventually help your business in tax preparation. A business bank account, in particular, will make your business look more professional and legitimate. It will also increase its creditworthiness and increase your chances to receive business loans.
Similarly, getting a business credit card is also important, as it is easier to use than carrying cash. It will allow you to make your business purchases even when you are low on cash. Thus, it reduces cash flow issues and increases financial flexibility. A business credit card also offers perks such as cashback, discounts, and other rewards.
 Most common types of funding for your Lawn care business:
Step 5: Lawn Care Business Accounting & Invoicing Setup
Accounting and invoicing setup is another essential step for starting a new venture. You must keep a record of your Lawn care business expenses to control them, and monitor the financial progress of your business. A proper record of your business finances will prepare you for tax returns. Once you have a complete view of your business financial records you can manage and reduce unnecessary spending accordingly.
Invoicing can build trust with your employees as well as your customers. It will also reduce financial stress and will keep you focused and in control.
You can use the Quickbooks software to keep track of and manage your business expenses. It can be used for invoicing, paying employees and suppliers, taxes, and bills. The software also keeps a record of every transaction that you make and can be used to automatically control your business expenses and generate reports of your business’s financial records. It is a very easy and quick way to analyze your business’s progress and see where it stands.
Markate– a software that helps you manage everyday business activities, e.g., estimates, work orders, invoices & even scheduling
Step 6: Acquire the necessary permits & licenses for your Lawn Care Business
State & Local Business Licensing Requirements:
Step 7: Get the required Lawn Care Business Insurance
To protect your lawn care business from any kind of damage due to natural disasters or any workplace accident which may cause property or physical damage, you must get the required business insurance. It is extremely essential for your safety, the safety of your business, your employees as well as your customers. It will increase your business’s credibility and will save you from stress.
There are many types of business insurance policies available, so it is important to speak with an insurance agent to determine which type of coverage is right for your business.
Some common types of business insurance include:
- general liability insurance
- product liability insurance
- property damage insurance
- business interruption insurance
- worker’s compensation insurance
Get a Free Quote Here
Step 8: Grow your Lawn Care Business brand
There is always space to grow in the business industry. As a lawn care business, there is too much potential and with the right resources and strategies, you can grow your business within a matter of time. To do so you will find the following tips and recommendations very helpful.
How to promote your Lawn care business?
Your marketing strategy will determine the success of your business. There are many ways in which you can promote your business. You can customize the equipment with your business name.
You can add your business name to the equipment you are using. Another way to promote your business is by distributing business cards and flyers around the block. Create an online presence through social media and make sure that you have a user-friendly website.
What’s more, you must choose the right target market and provide your clients with high-quality services with well-trained staff. Also, make sure the customer satisfaction with your quality services. You can also offer discounts to new clients.
How to retain your Lawn care, business clients?
To retain your customers, you must ensure that they receive the best service possible so that they won’t consider your competitor’s services. Follow the customer’s instructions and suggestions. Make communication easier and more effective. Give better recommendation options to your customers but do not force them to agree. Deal with your client respectfully. Be punctual and always finish the task you started. Do not leave the place without cleaning up. Ask your clients to review your services on your website.
Step 9: Create an online Lawn Care Business presence
Creating an online presence for your lawn care business is another essential step toward creating the legitimacy of your business. The quality of your business website, along with various other factors, will determine the revenues that your business is expected to generate.
A business website will increase your business’s credibility. It will save your and clients time when they could easily access the information about the service, and the prices in one place. An SEO and user-friendly website will help you stand out in the market.
When creating a business website, you will need to choose a Webhosting to store all your business data (profiles, images, files, etc.). Just as a physical storage space you need for your business, you must have online storage space. The recommended web hosting for your website is BlueHost.
You must create social media accounts for your lawn care business to create a stronger online presence, on Facebook, Instagram, Twitter, and LinkedIn. Link these accounts to your business website so that people could have easy access and a clearer look at the type of services you are providing.
Furthermore, you must create a YouTube channel for your business where you can upload videos of your work. Because this is a great way to promote your business and attract potential customers. You can also add customer reviews of your services on your social media platforms, website, Google, and Yelp.
Step 10: Getting Leads & Calls for your Lawn Care Business
Another important step is to add your business contact number, business email address, and physical address (if any) on your website and social media. You can also advertise your contact number and addresses on your company trucks, in local directories, and on your website. Likewise, create business cards and flyers with your contact information. Ask your friends, family, and previous clients to spread the word. You can also network with other companies or people.
To expand the reach of your business, give out your contact details everywhere you can.
Separate Your Business Phone from your Personal Phone
Getting a virtual business phone will allow you to make and receive calls through the internet, rather than through a physical landline. You do not need to stick to your desk and wait for important calls.
A virtual phone system provides flexibility and allows users to make and receive calls on a desktop application, mobile phone, or desk phone from a single business phone number. It will also help automize your business and offer you and your customers a much more professional experience.
Moreover, there are various benefits of separating your business phone number from your personal phone number. In particular, it allows you to distinguish between your business and personal calls. Additionally, it helps create business legitimacy and results in effective communication with clients and suppliers, building trust and confidence among each other. You can also decide your business hours and set your availability.
Step 11: Get to know your Lawn Care Business and research your local competitors
The last step to take towards creating your lawn care business is to get to know your business and your local competitors.
Education in your Lawn care business is key, learn the market and trends
Do your market research and learn about the market and new trends. Find what services are highly demanded and upgrade those services accordingly.
Getting to know your local area and competitors
You must research and look at your competitors in the local market to get to know about them. For this reason, find out what they are charging, what is the quality of their services, and what type of services are being provided in your local area.
Network with other Businesses
Learn from the best lawn care businesses you can find on the internet and start networking with other businesses.
Seasonal Vs Year-Long Business: What is right for your Lawn Care Business?
Whether you want your lawn care business to operate seasonally or throughout the year will depend on your preference and priority. If you are a student or a working person who will have his summers off then starting a lawn care business on a seasonal basis is a great way to spend your free time during summer and earn throughout the season. On the other hand, if you plan to start your lawn care business full-time, you can also provide year-long services.
Is starting a Lawn care business right for you?
If you are working by yourself, you should be capable and physically able to finish the task. Because the job requires physical strength, which you should develop to perform heavy lifting and handle large pieces of equipment.
Only you can decide whether a lawn care business is right for you. Therefore, you should ask yourself whether you have the capabilities and stamina to do the job and how much time and resources are you planning to invest in your business.
 Tips for Your Lawn Care Business Success
- Always stay on top of your business and do not lose focus. You must make customer satisfaction, particularly, your top priority.
- Find a niche market in your lawn care business. Do your research and find out what the customers are most demanding. Try and offer services that make you stand out such as garden and plant designs, you can offer your customers sustainable options and increase the expertise of your business.
- Learn to Delegate. If you are working with employees, you must delegate tasks so that more can be done in less time. Above all, it will increase productivity and foster trust, which will help your business succeed.
- You must be patient. Success does not come overnight. You will have to work hard and stay consistent.
Frequently Asked Lawn Care Business Questions:
1. What type of services comes under Lawn care?
The service may include lawn mowing, pest and weed control, fertilization, trimming, irrigation, soil testing and management, lawn design, etc.
2. Why does the size of the Lawn matter?
The size of the lawn will determine the type of machinery and expertise you will need to carry out the services.
3. How often will the services be provided to the clients?
Generally, the services are provided on a weekly basis. However, it could be changed and set according to your requirements and how often your client needs the services.
4. What type of mowers should be used?
You can use push mowers for smaller lawns and riding mowers for larger lawns.
5. Are riding mowers better?
When working on larger and commercial properties it is better to use a riding mower. They are much more expensive than push mowers, however, if you are working on several commercial properties it is a good investment.
6. How much to charge for each service?
The average cost of mowing the lawn is between $25 and $150 per week and the cleanup service charges range from $170.50 to $374.30. The overall cost could range from $48 to $211.
7. How to stand out among the competitors?
You can stand out by increasing your expertise in the field and upgrading the equipment that you use for the services.
