lawn care business plan

How To Write a Lawn Care Business Plan 

Are you considering opening a lawn care business? With low startup costs and ongoing demand, this home care niche has the potential to generate healthy profits quickly. 

However, there are a lot of elements you need to nail down before getting started. That’s where your lawn care business plan comes in. A good plan will help you avoid common business startup mistakes like overspending or failing to understand the market.  

Planning also helps you clarify exactly what you need to build a successful lawn care company. 

If you’re not sure how to write a business plan for a lawn care business, read on. This article covers all the information you’ll need to include. You’ll also get some valuable tips to help you prepare to write one.  

First, it helps to understand why you need a business plan. A solid idea of its purpose will get you in the right frame of mind for drafting yours. 

The Purpose of a Lawn Care Business Plan  

A business plan outlines the foundational aspects of starting and running a successful lawn care company. From figuring out your services to creating growth strategies, it’s your roadmap that takes you from the idea stage to profitability. 

With a well-structured business plan, you can count on: 

• Faster growth:  Your plan outlines your ideal customers and how you’ll promote your services to them so you can start bringing in business and building your reputation from day one. 
• Better cash flow management: Approximately one in four businesses fail in their first year. The number one reason? Cash-flow problems . Your business plan will help you better manage your cash flow. 
• Progress tracking: You can use the goals you identify in your plan to track progress. Knowing your goals each quarter or other timeframe helps you stay focused. 
• A stronger brand: As you establish your mission, vision, and values, you define the “why” behind your lawn care business. This helps to carve out a clear brand identity that resonates with your market. 
• Access to financing: If you apply for a small business loan, the bank will review your business plan to understand your earning potential. A thorough, well-researched plan can increase your chances of getting a loan. 

Ultimately, your business plan isn’t just a nice-to-have document. It’s something you’ll need to start a lawn care company. 

RELATED ARTICLE: How to Start a Lawn Care Business  

Initial Steps To Starting a Lawn Care Business Plan  

Ready to get started? The first steps involve information gathering. It’s time to research, ideate, and make decisions. 

Decide on Your Type of Lawn Care Business.  

Who will you provide lawn services for? Residential or commercial customers? Will you provide specialized services, such as sustainable lawn care or lawn pest management? 

Professional lawn care services can include the basics like weed control and grass cutting. You can also offer a full suite of services, from fertilization and edging to seeding and leaf removal. 

Figure out what you want to offer. This will determine the size of your team, the equipment you’ll need to buy or lease, and your income potential. 

Scope Out the Competition.  

Who are your main competitors? What services do they offer? Note things like their pricing, branding, and online reviews. Then, do an analysis to determine what works and what doesn’t in your market.  

Research Your Market.  

How many potential customers are there in your service area? What are their pain points—cost, convenience, a need for specific services? 

Identify demographic information such as age group, income bracket, and location. You’ll use this information to develop your ideal customers. It can also inform major decisions like your pricing strategy and marketing channels. 

Look for Differentiation Opportunities.  

Use the information from your competitor and customer analysis to identify gaps in your market. Are there problems customers complain about in reviews? Is there a shortage of a specific type of lawn care? 

What angle can your business use to out-compete other companies in your region? Here are some ideas: 

• Exceptional customer service 
• Professional branding 
• Lower prices 
• Add-on services, such as landscaping design, mosquito control, or tree removal 

Differentiation will help your lawn care company stand out. That can lead to more business and a more recognizable brand. 

FROM ONE OF OUR PARTNERS: 13 Lawn Care and Landscaping Industry Trends  

Lawn Care Business Plan Development  

The next stage of writing a plan is establishing the nuts and bolts of your business. These are covered by the standard sections of a business plan, which are: 

• Executive summary 
• Mission and vision statements 
• Business structure 
• Service overview 
• Pricing strategy 

You’ll also add your marketing strategies and financial information before presenting your plan to lending institutions. Let’s dive into what you need to flesh out each section. 

Craft a Compelling Executive Summary.  

The executive summary details the following: 

• Company history:  What’s the background of you or anyone else involved in starting your lawn care company? Share any related experience and the reason you decided to start the company. 
• Values:  Is your business trustworthy? Highly skilled? Family-owned? Prompt and courteous? Choose three or four core values. 
• Mission and vision:  Write a statement detailing your mission, i.e., your objectives and how you hope to achieve those objectives. Include your vision, which details your long-term aspirations. 

Give an Overview of Your Business.  

Write out your business name, what you offer, and your market.  

Here’s an example: Ted’s Lawn and Plant Care offers residential lawn care and landscaping services to the town of Middlebury. We’re a small team of lawn care experts who are passionate about helping our customers achieve healthy, beautiful lawns. 

Also, list your ownership structure. Do you have a sole proprietorship, partnership, LLC, or corporation?  

Detail your existing assets as they apply to starting your business. These include lawn care equipment, vehicles, office equipment, and software. 

Detail Your Services.  

List your specific services. Here are some of the most popular lawn care services: 

• Grass cutting 
• Edging 
• Fertilization, seeding, and weed control 
• Mulching and aeration 
• Leaf removal and yard cleanup 
• Irrigation 
• Mosquito control 
• Tree and ornamental plant care 

Determine Your Pricing Strategy.  

Once you’ve listed your service menu, decide how much you’ll charge for each service. Review your competitors’ prices to better understand what competitive pricing will be in your market.  

Will you charge lower prices to attract new customers? Or will you offer more value and charge a premium? 

For example, if your lawn care business offers more expertise, factor that skill and experience into your pricing. 

Profitability also matters when figuring out your pricing strategy. What price do you need to make a profit from your services?  

Calculate labor, materials, and other expenses to find out how much each service costs your business. Then, determine a reasonable price to ensure you’re generating enough revenue. This is your expected profit margin . 

Financial Planning for a Lawn Care Business Plan  

One of the most important parts of your business plan is your financial plan. This section is where you explain how you’ll make money and avoid financial pitfalls. Lenders will want to see that you’ve run the numbers and have a solid base to build your business on.  

Many startups benefit from working with a CPA on this section to ensure accuracy. However, it does help to have the following information ready for their review.  

Project Revenue Growth.  

Using your pricing strategy and sales goals, determine how much revenue you’ll make in the first quarter, six months, and year. Your projected revenue is crucial for determining your budget. 

Budget for Equipment and Staff.  

Establish how much you need to pay staff and invest in your initial equipment. Consider different ways to save money, such as leasing equipment instead of buying and starting with a small team. You need a good budget to avoid running into cash flow issues. 

Insure Your Business.  

Risk is a part of doing business. You can reduce risk with business insurance. Look into what types of insurance you need, such as general liability and auto insurance for your company vehicles. You may need a separate commercial policy even if you plan to use your personal car or truck, you may need a separate commercial policy . 

Having the right insurance doesn’t just save your business from financial catastrophe. It also shows your customers your company is professional. 

Consider Diversifying Your Income Streams.  

Lawn care businesses can earn income in different ways. You can provide lawn care services. But you can also use your assets to make money in other ways.  

For example, if you invest in high-quality equipment, you can lease that equipment to other small businesses. You can offer landscape design consulting or installation services if you have landscaping expertise. 

Diversifying will help your business bring in revenue even when one side of your business slows down. 

FROM ONE OF OUR PARTNERS: 5 Spring Season Landscape Maintenance Services to Offer  

Lawn Care Business Plan Marketing and Growth Strategies  

A well-structured business plan also includes sections on marketing and sales. How will your business promote your services? What sales tactics will you use to grow? Investors want to see that you have a strategic plan to promote yourself as part of long-term success. 

Here are the steps to complete this section of your lawn care business plan: 

Use Digital Marketing Channels To Engage Your Audience.  

Set up a website to establish your position online. It should be uncluttered and easy to navigate since most of your other channels will point back here. 

You should also build a presence on the social media channels your target audience uses. Content and frequent interaction will be driving factors for social success. 

For example, you might create a Facebook page for your business. If you have the budget, you could create how-to content on YouTube to drive traffic to your site and engage your audience. 

Decide How To Promote Your Business Locally.  

If you have service vans or trucks, you can promote your business by having a professional paint your logo and phone number on the vehicles. You may also want to consider vehicle wraps . They turn your transportation into a rolling billboard.  

Consider mailing out promotional flyers to your target audience. You can also place your business card in local establishments with a board or table to promote local businesses, such as libraries, cafes, and bookstores. 

Prioritize Customer Satisfaction To Drive Repeat Business.  

Decide how you’ll train your team to deliver top-notch customer service. Develop processes around cleaning up after services, communicating with customers, and getting feedback from them. 

The goal is to ensure your business offers exceptional service to encourage repeat business and referrals. 

Develop a System for Encouraging Online Reviews.  

In the lawn care industry, online reviews are one of your most powerful marketing tools. A recent survey found that 91% of consumers say online reviews impact their perception of local brands. 

Build a system for managing reviews. This can include sending an email or SMS after services requesting a review.  

However, if you’re going to ask for them, you must monitor them. Thank people for the positive ones and address any negatives to find a suitable solution. 

FROM ONE OF OUR PARTNERS: 6 Tips and Tricks to Effectively Manage a Landscaping Business  

Top Tips for Writing a Lawn Care Business Plan  

An effective business plan is jam-packed with detail, analysis, and research. That’s why writing a lawn care business plan can feel a little daunting. 

But if you break down the different sections into the individual steps outlined above, you’ll create a well-structured document that supports your success. Here are three tips that can help you get the ball rolling: 

• Find lawn care businesses you admire. Use these companies for inspiration. Check out their branding. See what they’re up to on social media. And read their reviews. You’ll learn a lot of information to help you craft your mission, vision, and values. 
• Evaluate your current assets. Take stock of what you have. Lawn mowers. Hedge trimmers. Leaf blowers. Make a list of everything so you know what you’re working with. 
• Decide what software you’ll use. Scheduling tools, accounting software, invoicing— the right software can help you save money from the start. Figure out what you’ll need and start comparing options. 

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Lawn and Garden Services Business Plan

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Fescue & Sons Yard Care

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Fescue & Sons Yard Care is a residential lawn care service targeting rural middle-class homes with large yards which the owners cannot care for well on their own. Over the last three years, the prices for homes in the nearby urban area have skyrocketed. Many families in our targeted income bracket have chosen to buy larger parcels in the nearby countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large lawns require, and end up with small gardens near the house, and overgrown acreage further away.

Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. For the last five years, Red has worked as head landscaper at ABC Landscaping. He now has the design and lawn-care expertise, as well as the management experience, to begin his own business. Kikuyu is a graphic designer and master gardener. Her skills will be extremely useful in creating the look of our marketing materials, from brochures to business cards to newspaper ads. She will continue to work in her current job while Red manages the day-to-day details of the company.

Over the first summer, Red will be the primary employee, with some part-time help from his son, Rye. Rye has worked with Red at ABC landscaping and will continue to help out at Fescue & Sons in the summers.

In the coming spring, we will hire an additional landscaper for seasonal work, and may hire another if demand warrants. In mid-summer of Year 2 we will purchase additional equipment, including a second trailer or used truck.

As a business with largely seasonal profits, we will use the high summer revenues to support the business through the winter’s leaner months. We will have a modest profit in the first year, but expect profits over $8,000 in the second fiscal year and over $10,000 in the third year.

1.1 Objectives

Our objectives for the first three years of operation are to:

• Create a service-based company whose primary goal is to exceed customers’ expectations.
• Obtain contracts for yard service in at least 30 different residential homes.
• Increase our number of clients served by 3% per year.
• Develop a sustainable home business, being maintained by its own cash flow.

1.2 Mission

The mission of Fescue & Sons Yard Care is to provide top-quality residential and commercial yard care service.  We will strive to attract and maintain customers by providing services in the most timely manner to provide 100% customer satisfaction. Our services will exceed the expectations of our customers.

1.3 Keys to Success

• Experienced landscaper with excellent customer-service skills
• Commitment to high quality and professionalism in every task and encounter
• Small size, allowing direct management oversight of every project and employee

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Fescue & Sons Yard Care will offer residential and commercial lawn care service, including lawn cutting, trimming, edging, and removal of the clippings. Most of our customers will use our services once every week or every two weeks, depending on the amount of rain we get. In this area, lawn care needs vary greatly depending on the weather, and while this year is likely to be dry, future years will probably see a return to normal rain levels, meaning faster-growing grass and weeds and more frequent lawn care.

2.1 Company Ownership

Fescue & Sons Yard Care will start out as a partnership, owned jointly and equally by Red and Kikuyu Fescue. As the business grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

2.2 Start-up Summary

Fescue & Sons Yard Care’s start-up costs include:

• Home office equipment: file cabinet, computer system (including printer, scanner, and fax software)

Long-term assets:

• Vehicle: The owners are contributing a 1998 Toyota pickup to the business

Short-term assets

• Standard tool box with tools for simple repairs

Fescue & Sons Yard Care will provide residential lawn care service which includes lawn cutting, edging and trimming. Optional services will be available upon customers’ requests. The service is typically offered once a week in season, but we can create a custom schedule for clients if they have beginning of the season projects, or if the weather changes their lawn care needs.

Market Analysis Summary how to do a market analysis for your business plan.">

Fescue & Sons Yard Care will target rural middle-class families with larger lawns or parcels of property. This population is the most likely to use a lawn care service such as ours, since they often have more acreage than they can easily care for.

Red will be canvassing neighborhoods and posting flyers to develop a clientele. We will also place advertisements in the local rural newspaper to develop visibility for Fescue & Sons Yard Care.

In the second year, Red will expand service beyond the small rural town to the urban area located 15 miles east. 

4.1 Market Segmentation

Fescue & Sons Yard Care will be targeting families with annual income over $50,000. The median income of $50,000 and above is targeted because they tend to have more disposable income for the care of their lawn, whereas lower income families will tend to provide their own lawn care. 

Over the last three years, the prices for homes in the nearby urban place advertisements have skyrocketed. Many families in our targeted income bracket have chosen to buy larger parcels in the nearby countryside, rather than spending huge amounts on small lots in the city. However, many of them are unprepared for the level of care such large lawns require, and end up with small gardens near the house, and overgrown acreage further away.

By targeting customers with large lawns and parcels of property, we will fill the niche created by urban flight, as well as keep our margins higher than we could with small lawns. Transportation time and costs for all the equipment make it more profitable to do a few large lawns than many smaller ones.

By doing a superb job on these rural lawns in the first year, we hope to build a positive reputation which will carry over with recommendations to co-workers and friends in our customers’ former urban neighborhoods. Since we want to maximize lawn size cared for in both settings, our eventual outreach to urban dwellings will focus on high-end houses and lawns on large, often older, lots.

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4.2 Target Market Segment Strategy

Initially, we will canvass nearby homes in our rural town. Red will be basing the business out of our home, very close to the target market. Red will start by speaking with his own neighbors. Although some people are put off by solicitors, Red is their neighbor, so they will be more comfortable with him and he will be able to make his sales pitch. We will also put some small signs on our own lawn advertising our service.

Once Red has built up a steady list of customers he will begin to run advertisements in the local paper to gain access in different neighborhoods. In the second year, we will continue running ads and begin outreach to the more affluent city customers with large lawns.

4.3 Service Business Analysis

Fescue & Sons Yard Care will be working in the lawn care industry. The industry includes both residential areas (individual homes) and commercial areas (apartment complexes, business parks, schools, etc.).

The commercial side is generally serviced by larger landscaping services. The residential side is serviced by both landscaping companies and basic lawn care service companies.

The lawn care business is made up of many small companies. This occurs because of the high labor intensity and low start-up costs of the industry. The industry is vulnerable to recession, as lawn care is a luxury. Lastly, the lawn care industry is seasonal, with the high season being spring through fall. There is usually little activity in the winter, but some can be achieved by acquiring a clientele that will utilize monthly maintenance through the winter months.

4.3.1 Competition and Buying Patterns

The lawn care business can be divided into two types, residential and commercial. As a start up or one person business, it is much easier to enter into the residential market compared with the commercial market. The commercial market is dominated by larger, established companies.

Within the residential market, there are two competitors: full-scale landscaping companies and basic lawn care services. The full-scale landscaping companies will generally be handling jobs outside of Fescue & Sons’ range. They are servicing even larger homes that require other landscaping activities that need more equipment and multiple employees. The margins are therefore larger for the full-scale companies because they can charge more for the higher-skilled work. The other competitor is the basic lawn care services, not unlike Fescue & Sons Yard Care. In the residential market, the current competition is underwhelming and often lacks basic quality and professionalism.

The trend with the residential customers is that they are making their purchasing decisions based on referrals and perceived professionalism and quality of service.

Strategy and Implementation Summary

Fescue and Sons will rely on Red’s knowledge of the local community and top-quality landscaping skills. Initial outreach will involve direct canvassing of the neighborhood. This will be supplemented by ads, showing properties we have worked on, and brochures and fliers hung up in local businesses.

We will also rely on word of mouth, so part of our strategy is to treat every job as if it were the most important client we have ever had. Phone calls will be returned promptly, services will be done professionally and on time, and customers will be treated with respect.

5.1 Competitive Edge

Fescue & Sons Yard Care’s competitive edges will be our high quality work and unflagging professionalism.

During the first summer, Red will do all of the lawn care and other work, with some help from his son, Rye. Starting in May of 2006, we will hire a second, part-time employee as a landscaper. Red, Rye, and the landscaper will always work as a team, allowing for direct supervision of all workers and direct involvement with the job at hand, to ensure customers receive the high quality they expect.

Fescue & Sons Yard Care’s second competitive edge is professionalism. In our business, this means returning customer inquiries promptly, showing up on time, bringing all necessary equipment, reserving breaks for times away from the customers’ yards, and cleaning up thoroughly after ourselves when we leave. To facilitate communication, Red will have a cell phone at all times, where he can be reached directly or receive messages, if he’s in the middle of a job. Cell phone reception in most of the town is quite good, despite being a rural area.

All of these sound like simple things, but they will help us stand out from the local competition.

5.2 Marketing Strategy

Our marketing strategy in the first year relies largely on face-to-face contact between Red and potential customers, and word-of-mouth from satisfied clients. In the second year, we will place more ads, and in different papers (such as in the nearby city), as well as trying to generate more word-of-mouth from our customers. 

5.3 Sales Strategy

Fescue & Sons Yard Care sales strategy will be based on one-on-one communications with potential customers. By going door to door in his own neighborhood, Red can become more familiar to these folks and take advantage of his outgoing personality. 

In the start-up period (the month of June), we will set up the office, and purchase the necessary lawn care equipment. At the same time, Red will spend three to four afternoons a week, especially on weekends, going around the neighborhood to scout out problem lawns and talk to potential customers. There are at least two weekends coming up that are likely to be scorchers, when potential customers will look outside and think that the last thing they want to do is go out and mow the lawn – these are our best days to canvass the neighborhood, offering a service many do not even realize they want.

After getting in the door, Red’s challenge will be to effectively communicate his experience and skills in lawn care and related work. He will bring a portfolio of some of the nicest lawns he has worked on in the past, when working as head landscaper for ABC landscapers, and photos of our own lawn, which is more similar to the ones in the neighborhood. He is also willing to offer a free estimate and cutting for those that are interested in a possible contract. Although some of the free cuttings will not turn out to be long-term customers, our competitive prices and superior service will turn most of the leads into customers.

By year two, the business will be ready to expand outside of the neighborhood. At that point, we will place more advertisements in the local paper to generate business. When people call with questions, Red will have already built up a loyal following of customers who can serve as an effective referral system.

5.3.1 Sales Forecast

In September, we will begin advertising our end-of-year garden prep and winter maintenance services, which will supply revenue over the winter. Since the climate here is mild, many gardeners put off their seasonal clean-up and garden prep until it is too late. Weeds continue to grow all winter, long past when gardeners want to be out in the yard, and uncompleted garden prep forces them to do much more labor in the spring to get the garden back in shape.

Winter maintenance includes things like trellis and shed repairs, helping gardeners organize their supplies and seeds, and fixing or building cold frames for early vegetables.

Direct cost of sales for all of these projects includes gas for powered equipment and transportation costs, most equipment repair and maintenance, and the cost of any items used up in the process, like mower blades or edging strings. Unlike most big lawn care services, we are tracking direct labor costs as operating expenses, not direct cost of sales. These amounts can be found in the Personnel plan, and are reflected in the Profit and Loss statement.

We also plan to do occasional tree stump removal, for which the direct cost of sales is higher, since it includes the cost to rent the equipment. If this becomes a larger part of our business, we may buy our own equipment.

5.4 Milestones

We have established some basic milestones to keep the business plan priorities in place. Red is in charge of all goals directly related to yard care and employee practices, while Kikuyu will oversee our marketing materials – brochures, business cards, ads, etc.

We have sketched out only a few milestones past the first year, as details of that implementation will become more clear in the spring of 2006. For now, we are focused on setting up the office and collecting customers.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Red and Kikuyu have been involved in landscaping and outdoor design for over 10 years. For the last five years, Red has worked as head landscaper at ABC Landscaping. He now has the design and lawn-care expertise, as well as the management experience, to begin his own business. Red will oversee the work of his son, Rye, and a second landscaper, to be hired in the spring of 2006.

Kikuyu is a graphic designer and master gardener. Her skills will be extremely useful in creating the look of our marketing materials, from brochures to business cards to newspaper ads. She will continue to work in her current job while Red manages the day-to-day details of the company.

6.1 Personnel Plan

Rye has worked part-time at ABC Landscaping alongside his dad for over a year now, and will help out the family business during his summer breaks. His strengths include topiary design, hedge work, and edging and trimming.

In the spring of 2006, we will hire a second landscaper, and possibly a third, depending on how busy we are. We are seeking someone with at least two years of experience in the lawn care industry, with attention to detail and a good work ethic. Rye is already talking to some of his friends about possibly applying for this job, and they are good candidates. This will probably be a seasonal position, unless winter work ends up having a higher demand than expected.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

7.1 Start-up Funding

The owners are contributing a truck worth $3,500 as a long-term asset to the business, plus $1,500 cash toward purchasing the short-term assets needed (mowers, trimmers, safety equipment, etc.). In addition, we are seeking a loan of $11,000 to fund the rest of the start-up requirements. This loan will be backed by the Fescues’ equity in their home.

7.2 Important Assumptions

The following table highlights some important financial assumptions of Fescue & Sons.

7.3 Projected Balance Sheet

The following table indicates the projected balance sheet. As we retain earnings and repay the long-term loan, our net worth will increase from $1,200 at start-up to over $21,000 by year three.

7.4 Break-even Analysis

The Break-even Analysis indicates $3,830 is needed in monthly revenue to break even.

7.5 Projected Profit and Loss

The following table and charts show our projected profit and loss. After paying reasonable salaries, we will make a modest profit in the first year, with increasing profits in future years. Our gross margins will remain around 91 or 92%. Our largest expenses as a service business are payroll and payroll taxes.

7.6 Projected Cash Flow

The following chart and table show our projected cash flow. We will repay the loan over ten years (interest payments can be found in the Profit and Loss, above). The table also shows planned purchases of additional equipment as long-term assets in the second fiscal year.

7.7 Business Ratios

The following table outlines some of the more important ratios from the Lawn and Garden Services industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 0782.

The major difference between our ratios and the industry standard is in gross margin. The Lawn and Garden Service industry is labor intensive, and most businesses include manual labor expenses in their direct cost of sales. As a small, family-owned business without a large staff of workers, I am treating these as operating expenses, instead. If personnel costs are included, our gross margin in the first year falls around 23%, and by year three it is up around 32%, roughly the industry average.

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How to Start a Lawn Care Business: A Step-by-Step Guide [2023]

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Anyone with a yard knows that maintaining it is a lot of work. So it's no surprise that there are so many landscaping businesses out there to help eliminate the need for mowing, weeding, treating and doing more lawn maintenance yourself.

If you, however, are someone who loves to do yard work and the smell of freshly cut grass or a newly mulched garden is your favorite, you may have wondered how to start a landscaping business of your own.

The landscaping business is booming; and if you live somewhere with a warm climate, you may be able to work nearly year-round. The landscape services industry makes $93 billion in revenue each year and employs more than 1 million people, according to the National Association of Landscape Professionals.

If this sounds like the right move for you, keep reading to find out how to start a landscaping business of your own.

How to start a landscaping business in 5 steps

Considering the range and depth of landscaping — from residential to commercial, maintenance to removal and designing to tree care — the economics of starting your own landscaping business are remarkably simple. It can be as easy as renting a lawnmower and knocking on doors.

“My previous company was a lawn care business that I grew from myself and a push mower to over 125 employees,” says Bryan Clayton, the founder of GreenPal, an online lawn care ordering service that is a bit like the Uber of landscaping.

“Most customers have to deal with shoddy and unprofessional competitors,” says Clayton. “Creating a successful landscaping business is almost easy if you simply answer the phone when your customer calls, return their voicemails promptly, and do the work that you agree to with your clientele.”

Sounds simple enough, right? But what else can a landscaping business owner do to move beyond the basics? Here are some tricks of the trade as you start your landscaping business.

1. Decide what services you want to offer and whether you want to rent or buy equipment

The first step to starting a landscaping business is to acquire your arsenal of landscaping equipment. Once you decide which actual services you want your landscaping business to offer, you'll know what equipment you need. Then it'll be time to decide whether you want to buy it outright or opt for the cheaper option of renting.

Starting out, you have the option to rent your equipment or to buy lower-grade equipment. But as your landscaping business grows, so will equipment needs and costs — and you could easily spend the same amount on maintaining cheap equipment as the price of purchasing higher-grade machines.

“Most landscape contractors will need to spend five to 10 hours a week maintaining their equipment at first by sharpening blades or changing oil, spark plugs, air filters, fuel filters, and so on,” says Clayton.

So what are the basics of good landscaping equipment you'll need to know when starting a landscaping business?

There are a handful of manual tools any good landscaper should have at their disposal: shovels (such as square-mouth, spade, and trench), wheelbarrows, tillers (such as rear-tine tillers or cultivators), and more powerful items like chainsaws and drills. But this isn’t where the real expenses lie. The cost of larger equipment might surprise you.

“Most people don't know this, but the riding lawnmowers that you see commercial landscape operators running cost over $12,000 themselves,” says Clayton.

Landscape contractors need to make even bigger investments, according to Clayton:

“Landscape contractors also need to purchase or finance a decent truck, which costs at least $10,000 used, and a trailer, which costs $5,000+,” Clayton says. “Also, for landscape construction, you will need in most cases a front-end loader, which will cost $10,000 to $50,000 by itself.”

All told, Clayton estimates that landscape construction and maintenance businesses need to bring between $40,000 to $50,000 worth of equipment to a customer’s property. That’s why you might want to start off with rentals — which puts set-up costs at a more reasonable ballpark of $3,000, according to Clayton — but don’t depend on them forever.

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2. Get the required business insurance, licenses and EIN

There are a few necessary forms of business insurance you need to obtain to conduct business at all. The most important is general liability insurance, which covers everything from the cost of repairs to legal fees to damages that need to be paid out if you or an employee accidentally causes damage. Accidents — like running over a sprinkler head with the mower, for example — happen, and you want to be covered when they do.

You might also need workers' compensation insurance , depending on what state you’re operating in, though as Clayton puts it, “Many states require both insurances to operate a legitimate business regardless of whether you have employees or not.” Workers' comp covers you in the event an employee is injured on the job, from medical expenses to court costs.

Other forms of insurance that aren’t required, but may come in handy, include inland marine insurance (for coverage of goods damaged in transit), commercial auto insurance (you can’t use your personal vehicle for most of what you lug around and your personal policy won’t cover your commercial vehicles) and commercial umbrella insurance (which expands your coverage in case you’re hit with a major settlement).

Additionally, if you’re looking to apply pesticides as part of your services, most states have a pesticide charter that needs to be acquired. Clayton calls this “a very involved process” and doesn’t recommend it until you’re well-established in your field.

Before you start operating your business, make sure you also have any business licenses you need for the state you're operating in and that you've registered to pay taxes and received your employer identification number, also called a business tax ID number.

The rules around which business licenses you need and where to get them vary from state to state, so check the specifics for the state where your business will be operating before you start your landscaping business.

3. Get employment law liability insurance before you scale

Another form of insurance you'll need when starting a landscaping business is employment law liability insurance, which covers your business in case you make mistakes around calculating overtime and wage and hour violations.

Considering the uncertainty around the future of overtime wages, and the fact that many small-business owners tend to go it alone at first without the aid of a lawyer or an accountant, this insurance could be a life-saver — or more accurately, a business-saver.

Clayton describes his “personal nightmare” that resulted from not having this insurance as follows:

“In 2009 my company was audited by the Department of Labor and they determined that our crew leader managers could not be paid a salary — they needed to be paid as hourly wage employees,” he says. “This, in turn, kicked in additional overtime charges that were due to 80 employees, and it resulted in a $450,000 fine that my company had to pay.”

Not having that insurance almost killed Clayton’s company. Take his experience as a lesson that having that insurance in place — particularly before you scale — is crucial to your landscaping business.

4. Develop a marketing plan and decide on prices

When it comes to marketing your landscaping business, you already know where to start: Facebook and other social media, as well as SEO tactics, will increase your search visibility on Google and other search engines.

Of course, word-of-mouth marketing is always the best, especially in hyper-local markets, but that comes with doing good work overtime. So while you wait for the glowing reviews to be passed around town, consider setting up your social accounts first as you start your landscaping business.

Clayton says that mastering all of the typical marketing channels, and putting a starting budget of $500 to $2,000 in place to acquire your first 10 to 100 customers, is the best way to start. A digital marketing expert may be necessary to bring your game to the next level once you expand your landscaping business.

When you're first starting your landscaping business, you should also decide on the prices of your services so you can include those in your marketing efforts. Any potential customers will want to know what they'll be charged for the various landscaping services your business will offer.

When you're deciding on your rates, it's a good idea to check out the competition and see what prices similar businesses are offering, then go from there. But remember, you can always adjust rates as you go.

5. Get your business financials in order

When you're starting a landscaping business, it's crucial that you keep your finances on track. And we're probably past the days of using a pen and paper to keep track of all your business expenses, schedules, and accounts. Even spreadsheet applications, though capable of handling large quantities of information, are a bit outdated.

Luckily, there are plenty of business apps out there that can help your landscaping business operate more smoothly. There are apps and software to help with everything from inventory management and payroll to employee timesheets so you can focus on the important things — like actual landscaping work.

Clayton also recommends accounting software for new landscape contractors. You'll be able to manage invoices and, depending on the program, even automate fixed asset management.

Start Your Dream Business

Starting a landscaping business: The economics

Most lawn care operators make between $30 and $50 per hour. If you’re interested in going further — if you feel like you have the work ethic, dedication, people skills and willingness to learn (be it about new technologies like management software or small-business marketing) — little is stopping you from starting your own landscaping business.

Clayton went on to sell his business in 2013, in the largest acquisition in the lawn care industry in a decade, before starting GreenPal. And remember: He got started on his own, with just a push mower to his name. Success isn’t guaranteed to everybody who gets into landscaping, but it’s a field that shows no sign of disappearing anytime soon. And there’s no time like the present to capitalize on people’s love of a well-manicured lawn.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Get Going → Landscapers

How to Start a Lawn Care Business in 6 Steps

March 21, 2022

Step 1: Decide what lawn care services to offer

Step 2: set up a legal lawn care business, step 3: purchase lawn care equipment, step 4: protect your lawn care business, step 5: price your lawn care services, step 6: grow your client base with savvy marketing, a fresh cut awaits, subscribe to greenlight by thimble..

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When it comes to our image of the quintessential home, a perfectly maintained lawn is right up there with a white picket fence. For homeowners, there’s nothing like the scent of freshly cut grass, or the pride that comes with an even, bright green lawn. If you’re considering starting a lawn care business, you already know that lawn care takes time and energy that most homeowners don’t have.

While it might seem like all you need is a lawn mower and the time to start selling your services, proper preparation can help your business grow. With the right planning, you can extend well beyond just mowing and move into other in-demand services. In this short guide, we’ll cover the steps towards starting a successful lawn care business.

While most households need their lawns cut, a little know-how and the right equipment can help when starting a lawn care and landscaping business that’s truly full-service. In addition to mowing, consider offering the following services:

• Sale of fertilizer, insecticide, and other lawn care products directly to clients
• Weeding, mulching, and other gardening work
• Lawn installation
• Planting native lawns
• Planting native species and pollinators in and alongside grass lawns
• Seasonal services (snow removal in the winter, raking leaves in the fall)

If there’s a demand for green and eco-friendly practices in your area, building your knowledge and offering specialized services can help you compete with other lawn care providers and attract more customers. You may also be able to charge more for your expertise. Likewise, a little basic landscaping knowledge goes a long way towards finding new streams of revenue.

The services you offer will strongly affect your startup costs. If you’re only offering mowing, you may just need a lawnmower and a vehicle for transport. However, other services will require specialized tools including wheelbarrows, hoes, etc.

Once you’ve secured startup money to purchase any necessary equipment, you can begin setting up your business. Even if lawn care is a part time, seasonal job, organizing your business can help it succeed in the years to come.

Consider taking the following steps to start your lawn care business legally:

Check on business licensing requirements – You may not need a license to offer mowing services. However, if you apply pesticides and herbicides, there’s a chance your city or county will require a permit.

Set up a legal lawn care business – If you need a federal tax ID to pay employees or independent contractors, you will need to create a legal business entity for your lawn care business, like a Limited Liability Company (LLC), S corp, or partnership. If you’re an independent contractor, you don’t have to take this step, legally speaking. Still, separating your business assets from your personal assets (with a sole proprietorship or LLC) provides you some legal protection in the case that something goes wrong.

While you won’t have to purchase office space like some other businStarting a lawn care business requires some startup costs — namely, to purchase the lawn care equipment you’ll use to provide your services. At a minimum, most lawn care businesses require the following equipment to get started:

• String trimmer
• Leaf blower
• Mowing goggles
• Safety ear muffs
• Gardening gloves

You’ll also need a truck or trailer to transport your equipment to and from your clients’ homes and businesses. If you don’t have one you can use, invest in a work vehicle (and make sure it’s protected with a commercial auto policy).

Once you start providing lawn care services, make sure your business is legally protected. Having a legal business entity is not enough. While an LLC, for example, can protect you from some liability, it’s called a limited liability company for a reason. If your personal finances and your business finances aren’t rigorously separated, you could find your personal assets liable in the case of a claim made against you.

“Wait,” you might ask, “what can go wrong with lawn care?”

Imagine your client has asked you to install a new lawn and treat it with pesticides. You’ve sprayed the one-acre expanse as requested. Should this practice lead to your client’s child suddenly breaking out in a rash, they could claim it’s from exposure to the pesticide and sue you for bodily injury and medical costs. If this happened, you could be held liable.

Bodily injury isn’t the only thing you could be held liable for, either. If you get distracted while riding your mower and this leads to you damaging a part of your client’s property, you could be liable for the replacement or repairs.

That’s why lawn care professionals need general liability insurance. General liability insurance can protect you in the event of a client or third party’s claim of bodily injury, medical costs, or property damage related to your lawn care work.

Note: General liability insurance does not cover you in the case of your employees’ injuries or medical costs. If you have employees, you may also need a workers’ compensation policy.

Lastly, you may want to consider Business Equipment Protection insurance to cover your equipment, and a commercial auto policy for your work vehicle. Lawn care equipment, especially higher-end mowers, can get expensive. If an accident happens and yours gets damaged or broken, you want to know you’re covered for a replacement or a repair.

Bonus: Lawn care insurance on your schedule

As you start your lawn care business, make sure that a client or third party’s claim doesn’t cut your business off at the root.

Getting lawn care business insurance with Thimble is fast, easy, and best of all, flexible. Lawn care is a seasonal business in most areas. If your city doesn’t have year-long balmy weather, you don’t need a year-long policy. With Thimble, your policy lasts only for as long as you need it: choose between daily, weekly or monthly policies.

When you’re ready to sign up, enter your ZIP code, crew size, and a few details related to your business, you can get an instant quote, purchase your policy, and get proof of insurance in just 60 seconds.

Let Thimble take care of your insurance needs so that you can take care of your community’s lawns, worry-free.

Figuring out what to charge for your services can feel like a riddle to any new business owner. Fortunately, it is possible! Consider the following to hone in on the right pricing for your lawn care business:

• Identify your target customers. Will you be primarily serving commercial or residential clients, or a bit of both? Both audiences have different expectations when it comes to pricing, with commercial clients typically being comfortable paying more.
• Understand the market. What are your competitors charging? Research how much your competitors charge for the same services you’ll be offering, as you’ll want to stay in a similar range. Charge too low, and clients may not trust you.
• Will you charge per hour or flat rate? Again, this is where market research can be helpful. Many clients prefer to be quoted a flat rate for lawn care services, since that helps them prepare for the final bill. Of course, you can base that flat rate on the hourly rate you need to be profitable.
• Factor in ongoing expenses. It costs money to run a lawn care business! Consider overhead costs like taxes, health insurance, business insurance, marketing materials, cell phone, gas, vehicle and equipment maintenance, software (accounting, scheduling, website hosting, etc.), and employees (if you plan to hire any).
• Add in profit. Pricing isn’t about breaking even. It’s about being profitable. Tack on a healthy percentage to your rates to pay yourself and help your business become profitable. With a profitable business, you’ll be better positioned to weather any unexpected costs, and to grow your lawn care business over time.

Pro Tip: When clients want to hire you for multiple services, itemize your quote with the cost for each service. This way, they can pick and choose different services without saying no to everything.

Just like your clients’ lawns need regular watering to grow and stay green, your business needs marketing. Bring in new clients with these marketing tips.

Design a logo – A logo not only makes your business look professional, it’s a key promotion tool. You can add your logo to your invoices, quotes, email signature, and marketing materials. You can print it on the t-shirts or hats you and your employees wear. You can even print a decal for your truck or trailer! Create a logo using a free design tool like Canva, or hire a freelance designer via Fiverr or Upwork.

Check out your competitors – What marketing channels do they leverage? What are they doing well that you can copy, and what are they doing poorly that you can avoid?

Network through word of mouth – Many small lawn care businesses start with only a single customer. Consider offering discounted services to family, friends, and neighbors as you start out. You can even run a promotion: if someone refers a friend, offer them a one-time discount.

Ask for reviews – Speaking of word of mouth, customers reviews are one of the best marketing tools for lawn care companies. Ask happy clients to leave you a review on Google and Yelp.

Print flyers and business cards – Printed materials like flyers and business cards are an affordable way to promote your new lawn care business throughout your city or town. You can post flyers in local businesses, and share business cards with potential clients.

Build a website – Website building tools like Wix and Squarespace make it easy to build a professional-looking website . All you need is a simple, one-page website to describe your services, post your contact information, and share happy client testimonials.

Set up your social media presence – Make it easy for people to find you on Instagram and Facebook. Consider adding photographs of any landscaping jobs, as well as positive customer testimonials.

Now that we’ve covered the basics, you’re ready to mow ahead and start your lawn care business. Remember, you need to:

• Decide what services to offer
• Set up your business structure
• Purchase lawn care equipment
• Protect your business with insurance
• Price your services
• Grow your client base with marketing

At the end of the day, you’re providing a valuable service for your community. Treat your business with the same care, and it’ll be as squared-away as the lawns you tend to.

Get started now by protecting your lawn care business with Thimble’s Lawn Care Insurance . Just tell us your zip code and a few details about your business. Sixty seconds later, and bam — you’ve got proof of insurance.

Written on March 25, 2020 | Last updated: March 21, 2022

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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