The lawn care industry is thriving, with an expected growth rate of 5.2% over the next five years. Couple that with your already successful pest control business, and you can diversify for success.
If you are considering expanding your pest control company, adding a lawn care business might be a logical progression. You’re already halfway there if you think about it. You likely have many of the tools and possibly even the clients needed to hit the ground running.
Clients would likely appreciate not having to contract with two separate companies when they could schedule both services at once.
This article covers everything you need to know to start a lawn care business, including start-up costs.
We’ll discuss the essentials of lawn care business and market research. We’ll break down upfront, ongoing, and hidden costs. Finally, we’ll give you practical tips on starting immediately.
The Essentials of a Lawn Care Business
Lawn care and pest control services have a lot in common. Both need similar skills and tools. For example, sprayers used in pest control can apply lawn treatments, too.
Both services target the same areas of a property. If you already serve customers with pest control, they might also need someone to take care of their lawns.
Offering both can make your business a one-stop shop for outdoor home care, separating you from the competition.
Here are some of the other advantages:
- More revenue opportunities: Adding lawn care services opens up a new revenue stream. This means more money coming into your business. You can even offer package deals that include both pest control and lawn care.
- Faster business growth: Lawn care services can attract new customers who might not need pest control. This can grow and diversify your customer base. Plus, happy lawn care customers might later decide to use your pest control services.
- Better resource optimization: If your pest control business has slow periods, lawn care can help keep your income steady.
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Understanding Your Market
Market research defines your customers, highlights their needs, and shows how much they will pay.
Here’s how it works:
- Collect relevant data. Pull together information from surveys, local business listings, and online reviews. This data will tell you what services are in demand and what customers think.
- Assess the information. Look at what the data tells you about trends and customer needs. This helps you understand what services you should offer.
- Identify competitors. Find out who else is offering lawn care services in your area. See what they do well and what they don’t.
- Make decisions. Use what you’ve learned to decide how to position your business. This includes choosing services to offer and planning marketing strategies.
Market research is also key to setting the right prices.
If you price your services too high, you might drive customers away. If you price them too low, you could lose money.
Use averages as a benchmark. For example, lawn mowing services generally cost between $45 and $185.
In addition, consider your location. For instance:
- In Atlanta, GA, the cost of lawn care services can range from $110 to $450.
- In Miami, FL, it ranges from $100 to $400.
Lawn care prices vary by region due to differences in lawn types, common pests, and local economic conditions.
Finally, market research gives you a clear and in-depth understanding of your target demographic. This helps with:
- Brand messaging: Your marketing should speak directly to your ideal customer.
- Growth tactics: Different demographics use different media channels and respond to different types of promotions. For example, younger homeowners might be more responsive to online ads than older ones.
- Pricing strategy: Knowing what your customers can afford and expect helps you set prices they are willing to pay.
How Much Does It Cost to Start a Lawn Care Business?
Starting a lawn care business requires an initial investment. You’ll need to think about several key costs to get your business up and running.
After that, you’ll have ongoing costs. These are regular expenses that keep your business active and growing.
Then, there are hidden costs—lesser-known or unexpected expenses you should account for, too.
Let’s break all this down.
Lawn Care Business Start-Up Costs
Here are all the costs you’ll need to cover when starting your business.
Admin and Business Setup
If you already run a pest control business, you may have some of this groundwork in place. But it’s still important to check the following:
- Business license: Even if you already have a pest control business, you might need a separate license for lawn care, depending on local laws. Check your local requirements.
- Taxes: Register with the federal government and IRS to handle employee taxes and withholdings.
- and withholdings.
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Insurance
Insurance is a must to protect your business, employees, and the public:
- General liability insurance: This covers accidents or damages that might occur on a client’s property.
- Workers’ compensation insurance: This is mandatory if you have employees. It covers work-related injuries.
- Vehicle and equipment insurance: This covers the transportation and operation of your lawn care equipment.
Equipment
Depending on the services you plan to offer, your basic needs might include:
- Mowing equipment: A reliable commercial lawn mower can cost from $1,000 to $10,000.
- Edgers and trimmers: This is essential for finishing jobs professionally. They cost around $200 to $600.
- Safety gear: Consider goggles, gloves, and hearing protection. All this is usually $100 to $200 total.
- Transportation: Depending on condition and size, a used truck and trailer could cost between $5,000 and $20,000. You may already have a suitable vehicle.
Launch Promotions
Launch promotions build hype and can help you win those first few clients:
- Advertising: Budget for online ads, flyers, and local newspaper listings. Start with a budget of around $500 to $1,000 to determine what works best.
- Promotional offers: Consider introductory pricing or bundled services.
Other Expenses
Additional costs might include:
- Software for scheduling and billing: This makes tracking appointments and finances so much easier. Prices vary, but basic packages can start at around $30 per month.
- Business bank account: You’ll need a business account to look after your finances. Setup fees are generally low, but make sure you have enough to cover minimum balance requirements.
Total Initial Investment
Lawn care business start-up costs total around $8,000 to $30,000. This will be on the lower end if you can use resources from your pest control business.
Ongoing Costs
Your lawn care business has launched. Now, you need to manage ongoing costs.
Staff Costs
If you plan on hiring additional employees, paying them will be one of the most significant ongoing expenses:
- Salaries: Depending on the region, the average hourly rate for lawn care workers is about $17.
- Benefits: Offering health insurance, paid time off, and other benefits can help retain good employees. This adds to the cost but reduces turnover.
Materials and Supplies
Regular purchases will include:
- Lawn care products: You’ll need to stock up on fertilizer, weed killers, and other lawn treatments.
- Small equipment and tools: Replacing small tools like shears, rakes, and personal protective equipment can cost about $50 to $200 per month.
Equipment Maintenance
To minimize downtime, keep your equipment in good working order:
- Routine maintenance: Invest in servicing your mowers, edgers, and other machinery.
- Repairs: Unexpected repairs can occur, so budget an additional $100 to $200 monthly, depending on the age and condition of your equipment.
Marketing
Continuous marketing efforts are worth the ongoing expense. They attract new customers and keep you top of mind:
- Digital marketing: Ongoing online advertising, social media campaigns, and website maintenance can cost around $200 to $500 monthly or more.
- Print and local ads: Flyers and local newspaper ads might run another $100 to $300 per month.
Fuel Costs
Fuel is a major expense for any mobile service like lawn care:
- Vehicle fuel: Depending on the size of your service area, expect to spend $300 to $600 monthly on gasoline.
- Equipment fuel: Gas for mowers, trimmers, and other powered equipment will add about $100 to $300 per month.
Total Estimated Ongoing Costs
The total ongoing costs for running a lawn care business can range from $1,000 to $3,000 per month. This estimate varies based on the size of your operations, the number of employees, and the intensity of your marketing efforts.
Hidden Costs
Hidden costs can sneak up on you. They can affect your profits and how smoothly things run. Here are some you should be aware of:
Equipment Depreciation
Lawn care equipment depreciates over time. This means it loses value with each use. This isn’t an immediate out-of-pocket expense. But it impacts your financial planning. You will eventually need to replace it.
Seasonal Fluctuations
Lawn care demand can be seasonal. You’ll experience peaks in spring and summer and lows in fall and winter.
You may need to save extra profits to cover expenses during slower months. Or diversify your services. Add options like fall cleanups, winterizing, snow removal, or holiday decorating.
Unplanned Downtime
Even with regular maintenance, equipment can fail. This means unexpected repair costs and operational downtime. To combat this, build an emergency fund.
Licensing and Permit Renewals
Business licenses, permits, and any specific certifications may need annual renewals. This sometimes comes with fees.
Insurance Premium Increases
Insurance premiums can increase. Review your insurance coverage and shop around for competitive rates.
Total Impact of Hidden Costs
While these expenses may not occur monthly, they will accumulate over time. Be proactive. Set aside about 10% of your monthly earnings to cover unexpected costs.
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How You Can Start Planning a Lawn Care Business Right Now
Ready to start planning your lawn care business? Get started now:
- Write a business plan. Outline the services you’ll offer, and plan your marketing strategies. Decide whether to operate seasonally or year-round.
- Identify your ideal customer. Determine whether your customers are residential homeowners, commercial businesses, or both.
- List the equipment you already have. Review the tools you own. Identify the equipment you need to start your new business.
- Set clear goals. Define short-term goals, like securing your first five customers or launching your website. Set long-term goals, too. This might be expanding your services or increasing revenue.
- Take advantage of online resources. Use resources like Bplans for business plan templates. Join your local chamber of commerce for business advice, start-up guidelines, and networking opportunities.