subject: How to Start a Lawn Business [print this page] How to Start a Lawn Business How to Start a Lawn Business
There are several things to remember when starting a lawn business. This checklist can help you remember things you may otherwise have forgotten in your excitement to start a new business. A little extra work up front can save you a lot of trouble going forward, so don't neglect any of these!
There is a rule of thumb in the lawn care industry that the value of a customer is equivalent to approximately 4 to 6 weeks of the income that the customer in question represents. This value can vary wildly though depending on how competitive the local market is. A signed contract committing the customer to services in advance can also increase the value of that customer.
Pricing is a sticky issue. Nobody has a set formula that is easy to apply. It all depends on your location, competition, customer, and the job. I personally have a $25 minimum that I charge for extremely small yards that take 15 minutes or less to finish. The price can go up to as much as several hundred dollars depending on the size and difficulty of the job. The key with pricing is to get the job and charge enough to make it a profitable job.
The main thing that needs to be considered when designing such packages is that the lawn mowing business is essentially season oriented. For instance, on the arrival of spring, you need to have attractive packages to reshape and set your clients' lawns afresh for the season. Similarly, in fall, you need to offer services to winterize lawns and performing jobs such as raking leaves.
You should also not make the mistake of pricing to low to compete. Low pricing at rates that are barely profitable is bad for the industry overall. If you start pricing low it will be hard to raise prices in the future and when you do raise prices you would not like it if some newcomer to the industry undercut you. Competing on quality service instead of price is the best approach.
Consider sending out small crews of two men instead of solo workers. There are times when two workers can be much more productive than one such as when it is necessary to lift heavy objects. People are usually happier working with others and customers may feel like they are getting 'twice the value' from having two people servicing their property.
Finally, you need to have business integrity. When you make a commitment to mow, make sure to be there on time ready to go. Set prices and stick with them. Don't be afraid to charge extra for additional work, such as picking up animals droppings, but be clear about your rules up front.
Create a business plan. A business plan is a written proposal. It describes your business and it's environment and forecasts it's future. More importantly, the process of creating a business plan identifies the challenges and opportunities to come and details the key result areas for success. It determines how much money you'll need and where it will be found. With a business plan you are prepared to win.
