If you have been looking to start a new business, lawn care may be the one for you. A lawn care business can be quite profitable if you get started properly. Housecall Pro can help you build the foundation for a successful business and begin your business venture on the right note.
Why Start a Lawn Care Business?
Starting a successful lawn care business can be quite beneficial. Depending on the services you plan to offer, it is possible to start with little overhead, allowing more room for profit. There is also massive potential for growth depending on your service area and the services that you can provide. Most importantly, it is a relatively simple business that doesn’t require higher education or even a ton of experience.
Pros vs. Cons of Starting a Lawn Care Business
Before you start a lawn care business, it is important to know the pros and cons of getting started. As is the case with any business, there are a lot of things to like and some that aren’t so great. Let’s check out the pros and cons of starting a lawn care business before you decide to make the jump.
Pro: Freedom
Perhaps the most attractive part of owning a lawn care business is knowing that you can set your own schedule. That’s not to say that you can work 10 hours a week and still be successful, but there is flexibility to it that many other jobs cannot offer. That flexibility can be invaluable to some.
You can also decide what clientele to service. Choose what areas you work in, how much you charge, what services to offer, and so much more. That freedom can wind up being the most valuable aspect of starting a lawn care business to some.
Pro: Simple and Relatively Inexpensive
Starting a business can feel complicated and expensive. Some require extensive knowledge and even larger checkbooks to get going. A lawn care business is wonderful because it is relatively inexpensive and simple to start. While having experience in landscaping services is nice, it isn’t even necessarily required.
Starting out small, you can have minimal overhead and spend under $1,000 on equipment. With little startup capital, you can be on your feet and build a customer base in no time. For those who like to get going quickly, a lawn care business can be the perfect option for some.
Pro: Set Your Rates
One of the most important aspects of running a lawn business is setting your own worth. Some simply try to provide the lowest rates possible in order to garner a larger customer list. While that does work, it also means that you are doing more work for less than you might feel you are worth.
When starting a lawn care business, you can set your own worth. Analyze your services, labor rate, and overhead to create a better idea of what your services are worth. Tweaks will come at various points but the beauty of running your own business is that you can adjust your prices and find what works for both you and the customer.
Con: Growing is Difficult
No matter where you start – whether it is just you or a team of other people – growing is easier than it sounds. There are plans that can certainly aid the process of growing, but it can be quite difficult to build your business when there are a million competitors out there offering the same things.
Most lawn care businesses start out as a one-person show. While that keeps costs to a minimum, it puts all of the work on one person. That can be overwhelming and quickly lead to burnout. It is a fine path to walk and can be tough to manage if you don’t quite know what you are getting into.
Con: Seasonal Struggles
It might go without saying, but the lawn care industry is a seasonal business. Unless you live in a place that offers sunshine most of the year, there are going to be lulls in business. That can have a seriously negative impact on the bottom line and be difficult to navigate in the short term.
For lawn care businesses, it is important to find recurring work to keep the business going. Getting diverse services is a good idea, but there is some balance to be achieved. It can take a small lawn care business by surprise to go from being relatively busy during the summer and fall to quiet when the weather turns.
Con: Accountability
While it is nice to have freedom and to call the shots, there is no one to blame if things go south. You run the show, so you are accountable for every aspect of the business. If things go wrong, you will be the one who has to provide the answer. Being held accountable is tricky when you run a business.
You are responsible for pricing, buying equipment, dealing with customers, and managing employees, among a laundry list of other things. Before starting a lawn care business, be ready to tackle all of the tough decisions and the consequences that come with the territory.
How to Start a Lawn Care Business: Step-by-Step
Wondering how you can go about starting a lawn care business? In this guide, we will help you get started, figure out what equipment is needed, determine the profit margin you should be aiming for, how to bid on jobs, and so much more.
1. Gather Experience
While it might feel like a good idea to start a lawn care business, you can’t really be great at it without experience. The good news is that you don’t necessarily need formal training, but you do need to get some hands-on experience to make yourself effective at things like aerating, trimming, mowing, etc.
The only way to get a good feel for this kind of equipment is to actually use it. The better versed you can be, the more diverse you can be, the better the level of service you will be able to provide. At the end of the day, the best businesses are the ones who provide quality work at all levels.
If you haven’t really done any work with these tools, it is a good idea to take a few months to get familiar. Spending a year working for a lawn care company would be most ideal and would leave you best prepared to get out there on your own and begin offering services to customers.
2. Register Your Business
Before you can worry about things like how much to charge for lawn mowing or what kind of equipment you need to invest in, you need to create a lawn care business. Starting a lawn care business might seem like a big, complicated deal but it is actually a lot easier than meets the eye.
To start a legitimate business, you will need to register with either your local or state government. You’ll need to pick a business structure – sole proprietorship, partnership, or limited liability company – and then apply for an employer identification number (EIN).
The final step to starting a lawn care business is to register your business name. Pick a name that is easy to remember and also reflects your company values. Depending on where you live, you can trademark and register a website for your business as well. Getting a business license is the final step and is a minor investment to get going officially.
3. Get Insurance
In order to be considered as a serious business, you absolutely need business insurance. Having insurance offers protection for both you and the business in the event of property damage, injury, or any other sort of unexpected accident. Even if you think yourself to be safe and efficient, things can go wrong at any time.
For the most part, small lawn care businesses will choose between four different insurance types. There is commercial auto insurance to protect company vehicles, general liability insurance to cover personal injury and property damage, commercial property insurance for equipment and commercial property damage, and workers’ compensation for injuries on the job.
There are flexible business owner’s policies out there that create customized insurance based on your business needs. Talk to insurance providers to compare quotes and create an insurance package that fits your business specifically.
4. Set up Banking and Accounting
Now that you have a business license and insurance, it is time to set up your business bank account. It is critical to keep your personal and business finances separate from one another. The bank account will ensure that you build a credit profile, that your business is taxed properly, and you can monitor your business’s cash flow.
When you set up an account, it is time to budget out monthly expenses. Things like insurance, overhead, supplies, payroll, and marketing all are commonplace. You can also adjust your budget to better fit your situation as things start to move.
The most important part of setting up your business bank account and having proper accounting is so you can file taxes properly. Doing so can feel complicated but is easier with proper record keeping. There are always accounting firms out there that can help navigate taxes as well.
5. What Services Will You Offer?
Perhaps the most critical aspect when starting a lawn care business is knowing what kind of services you offer. When you check lawn care service apps out there, the first thing you will notice is convenient access to a list of lawn care services that the business provides.
Choosing the right services will also tell you what equipment you need to provide, how to set pricing, and how to properly market your services. It is a good idea to offer a few basics to start. Basic lawn and mowing maintenance are a fantastic place to start. Fertilization and seasonal services as well.
As you begin to garner customers and gain positive cash flow, expanding into other services is a good idea. Slowly but surely, you can start to buy supplies and new equipment. Adding things like grading, lawn aeration, leaf blowing, returfing, and more will expand your profile and grow your potential client list down the line.
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6. Buy Equipment
When you have a good idea of what kind of services you want to provide in your lawn care business, it is time to buy equipment. You will definitely need a truck or trailer to transport all of your equipment from job to job, but even that can depend on how much equipment you have. There is always the potential to grow your equipment list later down the line.
Start out with the basics like lawn mowers, edgers, string trimmers, gardening gloves, gas cans, lawn bags, a leaf blower, and more. Depending on the scope of your services, you may have to decide between a riding mower, a push mower, or a walk-behind mower. It comes down to the number of jobs you have and personal preferences.
Initially, it is possible to spend around $1,000-$1,500 on equipment for basic services. As you grow, equipment gets more expensive. If you plan to start offering a litany of services from the jump, expect to spend $30,000 or more on equipment. The more niche the tool, the more it is likely to cost in the long run.
7. Set Your Prices
With lawn care services in place, you now need to price out those services. It is a good idea to have lawn service software to help price out those services, determine the profitability of each service, and know where to make adjustments. It is important to price your services fairly but to keep profitability in mind.
Start by checking out lawn care rates of competitors in the area. Calculate the cost of your labor, add in equipment, overhead, and material costs, and then decide on your lawn care profit margins. This will help you determine what to charge hourly. You can also go with flat rate pricing, which is great if you know how long it is going to take to do the job.
When you have prices in mind, make a pricing chart. It should list your service costs per hour, with flat rate pricing, or per square foot. Having a pricing chart will help you calculate job costs faster, allowing you to get quicker quotes out to potential customers.
8. Find Customers
The hardest part of starting a lawn care business is finding customers. There is so much competition in the niche that it can feel impossible to stand out. The key is to find marketing and advertising ideas that will help to grow your client list.
Make sure that you have a logo (brand) for your customers to recognize. Create a website that lists your services, pricing, and relevant contact information. Have social media accounts, specifically a Facebook account so that customers can interact with and leave reviews regarding the business.
Most importantly, ask for referrals. Great businesses grow because they build a solid reputation with customers. The more you can do to get the word out about your services, the more likely a new customer is to at least look into it. That starts the path necessary to acquire new customers.
9. Hire Employees
Depending on the scope of your services, it might be entirely possible for you to start a lawn care business with yourself as the only employee. If you continue to achieve growth, there comes a time when you will need to expand and hire employees to help out.
Depending on the structure of your business, you can decide to add to the management of the business, marketing team, scheduling, sales, or lawn care technicians. It depends on the specifics of your business and what you are trying to achieve.
Create job postings, write descriptions regarding the responsibilities of employees, and decide whether you want your own employees or to hire out subcontractors. When you hire someone, prepare to run a background check and train them to work within the boundaries of the business.
10. Deliver Quality Service
In order to stand out in the lawn care industry, it is imperative that your business provide quality service. The work itself is common and there are so many competitors out there. When you provide a quality level of service, customers remember that.
At each level of business, customer satisfaction should be paramount. Address customers with kindness and courtesy, listen to their needs and wants, strive to do the job correctly, and make certain that all of your bases are covered.
Make sure that any employees understand the message. It is important for every staff member to know how to act, what to do, and what the goal of the business is. Though it is impossible to please everyone, the best businesses have a ton of repeat business because they do the job right and treat customers kindly and with respect.
Grow Your New Company With Lawn Care Business Management Software
As you embark on your journey to start a successful lawn care company, it’s crucial to stay organized, efficient, and customer-focused. By following the steps outlined in this guide, you can set a strong foundation for success. Leveraging the right tools and software can make a huge difference in streamlining your operations, building trust, and boosting profitability.
Housecall Pro’s lawn care software is designed to help you manage all aspects of your business effortlessly. From scheduling and dispatching to invoicing and customer communication, Housecall Pro’s provides everything you need to run a smooth, efficient lawn care operation. As you grow your new business, having a reliable software solution can free up your time to focus on delivering high-quality services and expanding your client base.
Ready to take the next step? Discover the full potential of your lawn care business with Housecall Pro today.
Lawn Care Business FAQs
- What is the most profitable part of landscaping?
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Mowing maintenance and landscaping is generally the most profitable part. That is because it requires the smallest investment in equipment and maintenance while also being the most common service that customers request. Consider it the bread and butter of the lawn service industry.
- How profitable is a lawn mowing business?
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The profitability of a lawn care business depends on the person running it. Overhead is critical in any business and keeping overhead to a minimum is key. For effectively managed businesses, earning a profit margin of 25% isn’t out of the realm of possibility. Many operate around 5% or less because of expenses, however.
- What is a good profit margin for lawn care?
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The “average” range of net profit margin for a lawn care business can run anywhere from 5% to 20%. Ideally, falling in the 10-20% range is more ideal, but it depends on your expenses. The fewer overhead expenses your business has, the greater the potential for profit margin there will be.
- How much should you invest in landscaping?
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Though there is no set amount to invest, it is important to know what services you want to offer before starting a lawn care business. It can be less than $1,000 to start a business or more than $30,000 depending on the kind of equipment you need, and the services offered. Sit down and decide these things before beginning to look for capital.
- Is a landscaping business a good idea?
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A lawn care business can be a great idea depending on the size, services provided, etc. Keeping it small and to a limited number of services requires less of a capital investment, meaning there is more room for profit before long.
