Homeowners and businesses are willing to invest in keeping their lawns lush and healthy, so starting a lawn care business can be a profitable venture.
There is a high, steady demand for professional lawn maintenance services, with the landscaping and lawn care industry showing considerable growth in recent years, generating billions of dollars annually.
As more people focus on enhancing their outdoor spaces, the potential for a successful career in lawn care is significant. If you’re thinking about it, take some time to explore our guide, covering what you need to know to start a lawn care business, including all the key points to consider before you take the leap.
A lawn care business provides services to maintain and improve the aesthetic appeal of lawns and outdoor spaces. These services may include lawn mowing, fertilization, weed control, landscaping, and more, so naturally, the cost to start a lawn care business will vary depending on the services you plan to offer and the scale of your operations.
Among the key costs to bear in mind are equipment, licensing, insurance, marketing, and any staff you’ll need to hire. Below, we’ve outlined a breakdown of potential expenses research for starting a lawn care business and some average estimates.
A lawn care business license typically costs around $100/year, but this varies by locality. The cost of pesticide applicator's licenses and vehicle registration varies significantly from state to state, so make sure you look into your local fees and regulations.
When it comes to marketing, it’s difficult to give a meaningful estimate of costs as it will depend entirely on the type and level of marketing tools, materials, and activities you decide to invest in.
For example, you could opt to build your own simple “DIY website” using a content management system like WordPress, which you can access for free at the most basic level or from around $48/year. If you need a larger, more complex, custom-built website with a bespoke design and advanced functionality, on the other hand, you could easily spend thousands of dollars both for build and ongoing maintenance.
Other marketing expenses to consider include business cards, promotional materials, online advertising, and print advertising. Again, these costs will vary wildly depending on factors such as whether you use a professional graphic designer, where you are based, and the amount of advertising you need to undertake.
Core operating costs to consider might include:
It’s also a good idea to invest in smart software for invoicing, accounting, work scheduling, and HR processes (if you’re hiring employees) to help automate your financial management and general business operations and ensure you stay tax compliant. If you join or get accredited by any industry associations, there will typically be annual fees for this as well.
Salaries or wages can vary drastically based on location and position. Entry-level positions might start at minimum wage, while experienced technicians or managers will earn more. Remember that you may also need to pay for training programs and certifications.
If you’re hiring a team, you’ll also need to cover payroll taxes, approximately 15-20% of total wages. If you opt to use a good payroll software solution, it will automatically process your payroll for you, calculating things like employee wages, deductions, overtime, and taxes.
So, what do you need to do to start a lawn care business, in terms of planning and preparation? We’ve outlined some of the key steps below.
Creating a well-researched and thought-out lawn care business plan is an essential early-stage task, providing you with a roadmap for your company's growth and development. It should include the following key elements.
When establishing your lawn care business, choosing the right legal structure is essential. The most common options include a limited liability company (LLC), sole proprietorship, or partnership.
Limited Liability Company (LLC)
Sole proprietorship
Partnership
Licensing
Research local and state regulations to determine which licenses you need to open up a lawn care business and how to obtain them. This may include a general business license and a pesticide applicator's license.
Investing in good quality lawn care business equipment is crucial for delivering efficient and effective services. Consider the following equipment:
Regular maintenance is essential to keep your equipment safe, prolong its lifespan, and ensure optimal performance.
Mitigate risks and save money by researching the best deals and getting the necessary insurance for your lawn care business.
Insurance not only safeguards your business but also instills confidence in clients.
Research your competition and decide on competitive and profitable pricing for your services. Consider factors such as:
Try to balance achieving a competitive edge and pricing that reflects the value and expertise you offer your customers.
Effective marketing is a key business tool to master to attract and retain customers. You could consider utilizing a mix of online and offline strategies.
Build a brand that communicates reliability and professionalism.
Consider the following when building your team.
Experience and training: look for individuals with relevant qualifications and experience in lawn care or provide thorough training.
Reliability: dependable employees are crucial for maintaining a consistent service schedule. Ask applicants for references and set clear expectations.
Professionalism: employees should represent your business well, interacting courteously with clients. Check-in with clients regularly to make sure they’re happy.
Create a positive working environment by treating your team well and offering working conditions and rewards that boost staff morale, foster employee satisfaction, and encourage loyalty.
You could potentially finance your new lawn care business in several ways if you don’t already have the capital secured.
If you have a good credit score and a solid credit history, you might be able to get an Small Business Administration (SBA) loan. The criteria for these loans can be restrictive, but they typically offer a high loan total and a low-interest rate.
Another option to consider is an equipment finance loan. This is often easier to secure than a SBA loan, which can cover up to 100% of your equipment cost. You can use this type of loan to buy or lease costly equipment, usually with a competitive interest rate. It’s worth bearing in mind that your equipment will normally serve as collateral, which means the lender could take possession of it if you don’t repay your loan.
You could also look into taking out a small business term loan. If successful, you can borrow a lump sum that you pay back with regular repayments at a fixed interest rate over an agreed time period.
Credit cards offer an alternative, possibly less admin-heavy, route to financing big purchases and expenses. But a loan with a reasonable interest rate can often be a more affordable, less risky option in the long run.
Pros include:
Cons include:
Starting a lawn care business can be a rewarding venture, provided you approach it with careful planning and execution.
From legal considerations to marketing strategies and employee management, each step plays a crucial role in the success of your business. You could build a thriving lawn care business in this growing industry by offering your clients quality services, building a strong brand, and adapting to market demands.
We've created a range of guides about startups and startup costs in a host of sectors and trades
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