How to Start a Lawn Business
It's Not What You Think
You don't need to learn how to start a lawn business. WHY? Because you aren't starting a lawn buisness, you are opening a marketing company instead.
Confused? Don't be!
If you discover how to start a lawn business, what would be your goal? To make a profit, right? Profit is the end game of any business, unless you're starting this company for the fun of it. ;-)
What is the key component to profit? A full bank of well paying customers, right? How do you suppose you gather those great paying customers? You must first have a plan to market your goods and services to potential prospects.
The reality is, most businesses are really nothing more than small, highly effective marketing companies. Without the ability to attract and maintain a basic customer relationship, your business will not be able to prosper. This creates a BIG problem for most companies.
Most people starting a lawn business don't realize (at least until it's too late) that they are really starting a marketing company. I don't want that to happen to you or your new lawn company. It's essential you understand from the outset that your lawn business is actually a marketing company in disguise.
What Are You Selling?
Now that you understand what type of business you are about to open, let's discuss precisely what you're selling. What is it you actually offer through your lawn business? If you said "beautiful lawns," you're on the right track but will have to keep walking.
What you are actually selling is TIME! The one thing none of us can ever make more of. You provide your customers with more minutes to do those things they would prefer to do instead of maintaining their lawn. Most of your clients will be fully capable of maintaining their own lawns, but would rather trade a little money for a lot of time.
This is an essential component to remember, because it will effect your Lawn Marketing.
You will be acquiring two different types of clients once you open your lawn company, either clients who have been using a competitor, or people just thinking about outsourcing their lawn maintenance.
Both clients are willing to trade their money for extra time. However, one client has already made the decision to do so. The other client hasn't yet decided their time is more valuable than their money. It is you job to convince them. You do this by demonstrating the value in trading your minutes for their money.
Before You Learn How To Start A Lawn Business.....First....
You Must Determine if Starting a Lawn Business is Right for You?
How do you know if the lawn care industry is right for you? Latest figures show the lawn care service industry in 2008 was worth over $22 billion. This year the industry is expected to grow to over $25 billion, and growth is expected to continue at this rapid rate for the next 10-15 years.
Can you guess what is fueling this rapid growth? Over 75 million aging baby boomers, most of whom are home owners. Think for a minute about the people you know who are the most concerned with the appearance of their lawns. Typically it is older people who give more time and attention to their lawns than any other age group. This is tremendous news for people who own lawn companies. As they age baby boomers become less able to maintain their lawns and become more reliant on others to do this work for them.
Another factor contributing to this rapid growth is the fact most Americans are working more now than ever before. This means they have less free time on their hands. The less free time they have the more they are willing to pay for extra. Remember, time is what you are really selling.
I have seen first hand how truly unlimited the income potential is for people in the lawn service industry. My mentor has owned his lawn company for more than 20 years. His gross sales were in the multi-million dollar range. He admitted that if he desired, he could grow his business even more. I have another friend who maintains a few lawns in his spare time and is able to generate an extra $1000.00 a month by working one day a week maintaining lawns.
Whether you are looking to begin doing lawn work full time or part time, there will be plenty of work either way. I began building my business on a part time basis. As my clientele grew I made the decision to make it a full time job.
Do you have to love working outside to start a lawn company? No, you do not have to love working outside in order to begin a lawn maintenance business. Yes, you will have to work outside a lot during your first year or two, unless you have enough start-up capital to begin hiring others to run the outside work required.
My first year in business I worked 50+ hours a week, outside in the hot and humid Louisiana weather, maintaining my growing lawn accounts. As I said earlier, by my second year in business I was able to hire others to do the outside work. If you can make the commitment to work 1-2 years outside, you should be able to decide if outside is where you want to be.
Starting a Lawn Business - One Step At a Time
When I started my lawn business I had no idea you had to have a license to operate and maintain a business. I didn't know I needed insurance of any kind. In this section we will discuss what licenses and insurances you will need to operate and run your business successfully.
When selling a perspective client on why they should use your company, you can use your license and insurances as a selling point. When you have the proper legal paperwork in place it is a benefit for both of you.
Here are few of the basic things you may need:
 Occupational & Business License - Your occupational license is a certificate granting you permission to operate a business in your particular city. It is important to have this license to prevent incurring unnecessary fines or penalties.
The easiest way to find out how to obtain your occupational license is to call your city or town hall and ask were you can obtain an occupational license and which additional licenses you will need to open a business.
Another excellent contact is your local chamber of commerce. Tell them you are opening a lawn company and you require licensing information. In my city, the fee for an occupational license is $50 per year, though I understand the range is anywhere from $25 to $200.
General Liability Insurance - If you intend on working by yourself during your first year this may be the only insurance you need. General liability insures any damage you may cause to someone else or their property.
This insurance however, does not cover you or your property. Check with your insurance agent to see it they offer general liability insurance for lawn companies. Your insurance agent will be able to give you all the information you need in regard to coverage. I recommend you carry at least $300,000 of coverage.
A policy with $300,000 of coverage in my state typically runs from $450 - $900 per year. The amount of the policy can vary from agency to agency so shop around for the best rate with the best coverage. Most insurance companies offer financing for these policies. My first year in business I paid around $200 down and about $40 per month.
Workers Compensation Insurance - In most states you do not have to carry this type of insurance until you hire workers (some states may require it at all times so check with your insurance agent). Workers Comp. Insurance covers your employees in case they are injured on the job. Unfortunately, the lawn care business is considered a high-risk business in effect rendering the rates higher than most other businesses.
In my state my insurance rate began at $11 for ever $100 of payroll. In other words for every $100 you pay an employee you have to pay $11 in workers compensation insurance. My state does not require the owner to carry insurance on themselves. Your insurance agent will be able to tell you what laws apply in your individual state.
Landscape Contractors License - A landscape contractor's license allows you to do landscaping for money. This license is not required to do general lawn maintenance such as mowing, weed-eating and edging. To receive this landscape contractor license in the state of Louisiana you must pass a test on landscaping and bed preparation. Check with your state department of agriculture or wildlife and fisheries for state lawn care licensing laws.
Horticultural Services License - A horticultural service license allows you to do general maintenance on plants and flower beds. This license also requires passing a test in Louisiana and involves further questions concerning how to prune and hedge bushes and shrubs.
Turf Application Pesticide License - This license allows you to apply lawn chemicals and fertilizers. It can also be obtained by passing a test on chemical application and proper application rates.
What's In a Name?
When I say the name Microsoft, what comes to mind? How about when I say the name Coke? Or Enron? I believe a name and the reputation associated with it can either make or break your company.
Your goal should be to have a company name that will grow synonymous with your service. When people think and talk about lawn services your name should immediately come to mind. We will discuss how to keep your name at the front of your customers mind in just a little bit.
While coming up with a name you want a name that portrays the quality of work you do. I personally do not believe using your name in your company's title is good for business. Others may disagree, but unless your name already has the power to persuade in your area, I would come up with another. You will need to check with your state to see if the name you have chosen is being used by someone else in your state. I checked with our Secretary of State office.
The next step in learning How to Start a Lawn Business, is determining your business type.
 Sole Proprietor - A sole proprietorship is the simplest form of business you can start. The only thing requirement is a business occupational license. Sole proprietorship is also know as a DBA (Doing Business As). For example, John Doe, doing business as "Quality Lawn Care." As a sole proprietorship you are able to use your personal credit for your business while still enjoying the benefits of business tax deductions. The major down side to this strategy is that you are personally liable for any law suits or claims against your business.
Partnership - A partnership is as simple to form as a sole proprietorship. Partnerships can allow two persons split the start up cost as well as the work load. You need to be extremely cautious when entering into partnerships as you might find yourself liable for the actions of your partner.
I highly advise having an attorney draw a partnership agreement clearly detailing the roles and responsibilities of each partner.
Limited Liability Company - This is a fairly new form of legal entity allowing for protection from personal liability while still providing the benefits of a tax structure similar to that of a sole proprietorship. Most attorneys and some accountants can assist you in creating a LLC for your business. In Louisiana the fee charged ranges from $250 - $450 depending on who does the work.
Corporation - A corporation is the last type of business entity we will discuss. A corporation has a separate identity from the owner of the business. Forming a corporation removes you personally from liability of law suits or claims filed against your company.
One disadvantage of a corporation is you may be double taxed, depending on the type of corporation you estimate.
I recommend you sit down with an accountant and attorney to discuss what business form would be the most beneficial to you. Everyone has different needs according to their current financial status and type of work they will be performing.
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