Cost To Start A Lawn Care Business – According to IBIS World, there are more than 615,000 lawn and landscaping companies in the United States alone. The industry ranges from high school students with lawnmowers pushing to get accounts in their neighborhood to large, complex commercial enterprises with thousands of accounts and employees.
In this article, I’m going to explain how to start a lawn care business for real profit.
Cost To Start A Lawn Care Business
The first question is whether you are looking to start a low cost residential lawn care business where your start up costs can be very low or you want to start a commercial lawn care business. Commercial? We researched the startup costs for both.
Ultimate Guide To Starting A Lawn Care Business
Based on 3 different sources (LawnLove, Lawnmowing101, yourgreenpal), you can expect the following startup costs to start your own home lawn care service:
Based on 3 different sources (taskeasy.com, nerdwallet.com, krain.com) you can expect the following startup costs to start your own lawn care business:
In this video, I show you how to enter your start-up and lawn care costs into a lawn care financial forecast form.
A lawn care business can be started with little or no money. This can be acquired by renting, leasing, exchanging or borrowing. Supplies such as fuel, lawnmowers, and lawnmowers can be purchased through these avenues. Additionally, there are a variety of financing options for small businesses, including small business microloans, grants, and personal loans. If it were me, I’d borrow a friend or family member’s lawnmower and pay them my sales commission after getting paid. So if you want to borrow a lawnmower and some gas for the day, and you can move 5 lawns and pocket $400, you can reimburse your friend for the original gas tank and let them use the lawnmower. Give me a bonus. If you do this in a few days, you will have enough money to rent a lawnmower or save some money for a lawnmower.
Why Hire Professional Lawn Mowing Services?
The income potential for your lawn care business depends on a variety of factors including your capacity/the number of customers you can serve with your team and equipment and factors such as what customers do and how many times a year maintenance is required. ? If you live in a community with long winters, your mowing season is likely to be much shorter than a lawn care business in the South.
Pricing your lawn care services is a very important aspect of your business. There are two approaches to pricing your lawn care services.
A simple approach to pricing your lawn care services is to simply find out what your competitors are charging and price your services accordingly. A simple Google search can give you some good information:
Another approach is to target a specific gross margin. For example, Turf Books estimates the average gross profit for a lawn care business to be between 50 and 55 percent. So, to quote a customer that earns a 50% profit margin, you need to know:
Customizable Landscaping Estimate Template
If we have 1 acre of land and estimate that it will take two employees 1 hour to complete the work, and you pay the employee a total hourly cost of $15 and estimate the cost of fuel at $5 for the work, the total variable cost is 35 It is dollars. To get a 50% profit margin, you need to multiply your variable costs by 2 to give the customer a quote. In this example it would be $70.
The average yard should be mowed once a week to every two weeks during the mowing season.
After you determine how much you should charge the customer for each lawn service, you need to estimate how often the customer will need to mow each year. A simple Google search for a major city near you will yield several results. There is a significant difference between a prairie in Texas and a prairie in northern Michigan. For example, I looked up how often a lawn should be mowed in Texas and found a range from once a week to once a week.
Once you’ve done this work and research, you should be able to estimate your potential earnings by getting your # of customers X # of lawn service calls per year for X amount per mowing.
Free Lawn Care Service Contract
A one-person lawn mowing business can earn about $75,000 during an 8-month mowing season based on the following assumptions.
According to Lawnmowing101, one person can mow up to 12 yards per day. If we consider the same equation, but assume 12 yards instead of 8, the expected revenue would be $115,000.
A $75,000-a-year business might be a great start, but it’s probably not a long-term sustainable business, which is why most lawn care businesses will outgrow that with more than just one person and a lawnmower.
According to 3 different sources (lawncrack.com, greenindustrypros, Landscape experts.org), you can expect the following annual income for your home lawn care startup:
What Does It Cost To Start A Lawn Care Business?
Getting the first 100 customers for your lawn care business will probably be the hardest part. To get 100 lawn care customers, you need to advertise your services widely. Consider placing an ad in your local newspaper or local radio or television station. Be sure to list the services you offer, prices, and any special offers or discounts you may have. Use social media and use sites like Facebook, Twitter and Instagram to promote your business. Create a website, with a regularly updated blog, specifically highlighting the services you offer. Another option is to approach local business and property owners to ask if they would be willing to service their lawn.
You can also offer promotions to existing customers as a way to attract more lawn care customers. Offer discounts to customers who refer you to friends and family, or if you book multiple services. Word of mouth advertising can be one of the most powerful tools for attracting 100 lawn care customers. Prepare your client brochures and make sure who you have served. Additionally, customer loyalty rewards are a great way to show appreciation and build strong relationships with existing and potential customers. By implementing these strategies, you will continue to grow your customers and reach your goal of the first 100 customers.
Operating costs for your lawn care business are divided into variable costs and fixed costs. Variable costs are costs that increase or decrease with the amount of mowing. Meanwhile, whether 1 lawn or 50 lawns, the fixed cost will be the same. Here are some of the most common fees.
We calculated this by taking the average annual revenue of a lawn care business of $297,000 x the average profit for a lawn care business of 14% to come to $41,580.
Do I Need A Lawn Business License/llc?
Obviously, the amount of profit you can make in your lawn care business can vary significantly depending on the size, equipment, customer base, etc. of your industry.
According to 3 different sources (Military Care Millionaire, Lawnandlandscape.com, Lawnsite.com), you can expect the following startup costs to start your own lawn care service:
We have now filled out our form with initial costs, projected revenue and operating costs. In this video I will show you how to calculate expected profit for your startup lawn care business.
Hopefully you now have all the information you need to create a financial forecast for your lawn care business. Be sure to use our lawn care financial model to create your projections and let me know if you have any questions along the way. The luckiest!
How To Start A Lawn Care Business: The Complete Guide
Adam is the co-founder of a SaaS web application that helps entrepreneurs create financial projections for their businesses. Since 2012, more than 40,000 entrepreneurs from around the world have used it to help create financial projections. Adam is also the CEO of Bankable. Bankable is a Small Business Administration (SBA) lending company that provides loans of $500,000 to $250,000 to Indiana small businesses that cannot obtain financing from a traditional bank.
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