How to start a lawn care business - Part 2, Lawn Care Business Plan II

Marketing Strategy

As of now, the lawn care business plan is slowly taking shape and all areas pertaining to setting up the business should have been covered. From here on the business plan will be focused on revenue generation.

Armed with knowledge gleaned from the market research about the targeted market and the competitors, a winning marketing strategy could be formulated. In the course of identifying the target market, the USP ( unique selling proposition ) or competitive advantage that the new lawn care business has over the competition had already been identified. Following through from there the strategy is to exploit that to your advantage. It could be a particular service that has not been offered by the competitors, using environmentally friendly fertilizers or even price advantage. However, competing on price is seldom a good strategy as the other competitors can just as easily slash their prices and it will only drive down the profit margin for everyone in the long run.

With the above in mind, it's time to include in the lawn care business plan, the methods by which

the targeted market can be reached effectively. Choices range from advertising in gardening magazines, local newspapers, distributing fliers in mailboxes or even door-to-door promotion. One could perhaps offer an obligation free trial service to potential clients in exchange for their recommendations to 2 neighbors.

At this juncture, the lawn care prices for the various services or packages of services to be provided would have been calculated. Things to consider will be the competitors' pricing and the cost of running the business. It goes without saying that the lawn care prices must be at a level that is profitable enough to give the owner an income after deducting all costs. Following from that, monthly client acquisition targets can be established. These targets must include an element of growth that is in line with meeting the targeted goals mentioned in the earlier post.

Daily Operations

Though mundane, daily operational issues has its place in the lawn care business plan as well. Typical issues like :

1) liaising between clients and service crews

2) invoicing

3) payment collection

4) manpower allocation

5) equipment allocation

6) handling customer queries

7) equipment maintenance, etc.

Needs to be dealt with systematically.

Business Expansion

No lawn care business plan is complete without planning for the future growth or direction of the business. The time horizon for the plan would typically be for the next 1, 3 or 5 years from day 1 when the business is established. Expansion could come in various forms as in within the existing market, from one market segment, location or product line to another.

For example:

a) Within the same market.

As the business grows, the company could enjoy economies of scale, more bargaining power with suppliers or perhaps established a good brand name in the industry. This in turn could lead to cost reduction or acquisition of more resources which allows it to be more aggressive in expanding its market share within the same market at the expense of the competitors.

An idea that can be explored to entice new customers to sign on the dotted line is to offer discounts to adjoining properties or neighbors when they use your services collectively. Better yet, recruit an existing customer in the neighborhood to be your “salesperson”. The cost of providing lawn care to 5 clients located in 5 locations is much more than 5 in 1 location. Imagine the time and gas wasted in traveling from one location to another. Loading and unloading of the equipment, etc.

b) Expansion from one market segment to another.

Instead of just doing residential properties which require lesser resources to taking on commercial properties that requires more resources.

c) Expansion from one location to another.

Providing the same services but in another town/city.

d) Expansion from one product line to another

Perhaps from doing just lawn care to include tree pruning or landscaping design.

With that, the lawn care business plan is complete. Continue to measure the performance of the business against the business plan and tweak it as often as required.

Other Tips

There is a lot of information available on the Internet and many ideas can be found that might prove beneficial in expanding the business. Or just go out and talk to people like your clients or suppliers on the latest trends in the market. You will be surprised what useful information can be had by just talking to people.

There are also a few books which I've found to be very informative. The first one titled

"Turn High Grass into Cold Cash - How to Start the Ultimate Lawn Business" is an extremely concise step-by-step guide in helping anyone with a burning desire to start a lawn care business.

It covers topics from "how to choose a name for the business" to "how to land

those residential and corporate accounts". It even has truckloads of templates ranging from lawn care contracts to fliers. The author has been in the lawn care business for more than 18+ years so is very knowledgeable on the subject.

The second book is "How to Double Your Lawn Business in the next 30 Days" is more for existing lawn care business owners whose existing clientele are mostly residential properties and would like to expand their

businesses into commercial properties instead.

"Lawn Tricks" is on improving lawn care techniques. It dishes out shortcuts that halves the work on lawn care, water saving tips that reduces watering by 60%, etc. Quite an eye-opener for both professionals and hands-on home owners.

The last book is slightly off topic as it's on "How to Build Your Own Lawn Sprinkler System" it's a step-by-step guide for novices on installing their own sprinkler system in 6 days or less. Suitable for lawn care business owners who would like to expand into this lucrative niche charging $3,000-$5,000 or more enterprising home owners who finds satisfaction in building their own stuff and in the process save 50-60% on the usual cost.

Hope the information was useful. Good luck in the business!

How to start a lawn care business - Part 2, Lawn Care Business Plan I

As in anything in life, a plan is a MUST to prepare oneself for any eventualities that could hamper the efforts to succeed. More so for starting a lawn care business or any type of business for that matter. The process of preparing the business plan is by itself a good thinking exercise as it forces the self-starter to go through the thought process and become more aware of the situation that is being addressed. A lawn care business plan that is well thought and prepared will serve as a road map, guide book, compass, etc. which will most certainly increase the chances of success. Additionally, if funds are required to finance the startup of the lawn care business, more likely than not, a well written lawn care business plan will be mandatory in securing the funding either from banks or other investors. More on that later on.

What's in the Lawn Care Business Plan

Most people would perceive drawing up a business plan to be a daunting task but it need not be if a a few things are kept in mind. The purpose of the business plan is to determine where the business is at the moment, what are the goals to be achieved in the required time frame and how to go about achieving the goals. It's like cooking, decide on what to cook, obtain the ingredients & utensils required and start cooking up a storm. In this case, the ingredients for the lawn care business plan will be the results of the market research.

Goal Settings

Begin with a set of goals or targets. Whatever it is, it has to be specific, measurable and achievable with a known dateline as well. Just stating to make money is not specific enough and certainly not measurable. It could go somewhere along the lines of perhaps generating monthly revenue of $20,000 within 6 months and/or be the dominant company with a 51% market share in a particular market segment. This will be the foundation of the business plan as subsequent parts of it will be geared towards achieving these goals.

Identifying the target market or niche

Upon analysing the information derived from the market research, a niche in the market would have been identified. The size of this niche in the market should be substantial enough to support the business in achieving the stated goals. If there are more than one target market, state clearly what's the potential revenue from each segment. It should also be the ones that matches your capabilities or resources. That is to say, it will not be a wise idea to target the business of a golf course if your setup is going to be a one man show with a pair of garden shears. One of the most important factor to be considered when deciding on a niche is that your business must have an advantage or USP (unique selling proposition) which will pave the way for winning clients over easily. Without the advantage, fighting for a piece of the pie with the competitors will be a tedious and onerous ordeal that could very well result in failure.

Resources

From identifying the niche market, the type of services needed in this market will determine the type and amount of resources that will be required to complete the jobs. Resources could be in the form of manpower, equipment or even certain specialized skills. There are some tactics that can be employed to lower the cost of acquiring these resources. For example, instead of hiring permanent staff, hire college students and pay by the hour in the event that there are not enough jobs, the worker will not be sitting around idle while you are still required to pay the salary. Equipment which will probably form the bulk of the initial start-up cost could be purchased new; alternatively go for something used or even leased. This will reduce the cost substantially. For information on equipment, have a look at stackyard. It's an agricultural themed site that has many interesting articles and information that is relevant to lawn care too.

Insurance, Legal matters & Lawn Care Contracts

Due to the nature of the business, purchasing an insurance policy is essential in safeguarding the business from large claims owing to damages and repairs to properties which might occur in the course of providing the service. There are many types available in the market, so shopping around for one well suited to the business will be necessary. Similarly, legal counsel is a must especially in drawing up lawn care contracts. The main purpose of the lawn care contracts is to set out in writing the terms and conditions by which the service will be provided. Items like the job scope, warranties, inclusion/exclusion clauses,etc, are part and parcel of what will be laid out in the service contract. There might be some standard terms pertaining to the industry which must be included, so seeking out legal advice to cover all bases will do the business a whole lot of good in the long run. Especially if any disgruntled clients decides to pursue any legal proceedings against the company for whatever reasons. A couple of things that could be done to familiarise oneself with the lawn care contract is to approach any associations or governing body related to the industry. Or just whip out the competitor's lawn care contract which was obtained during the market research phase and modify it to suit the business' needs.

Financing

With the necessary administrative issues sorted out in the lawn care business plan. It's time to look into the financial needs of the business venture. Start-up costs is but just one part of the puzzle that makes up the financial requirements. Adequate funds must also be budgeted for monthly recurring expenses like rental, gas, utilities, etc. Short term insolvency or insufficient cash flow had been the major cause of many otherwise healthy businesses foldups, a direct result of poor budgeting by the owners. To ensure that the business does not form part of the statistic, it would be wise to budget at least 6 months to a years worth of funds to meet the running costs of the business.

After arriving at the figure for the needed funds, it's time to look for a source. It could be your own savings, loans from family, mortgaging the home or a business loan from the bank. In which case, the lawn care business plan will have to be very detailed and be able to to convince the financiers that the business is a profitable venture.

This concludes the part of the Lawn Care Business plan that covers setting up the business. The next post will touch on including marketing and business expansion plans to complete the lawn care business plan.

How to start a lawn care business - Part 1, Market Research

So you are interested in starting a lawn care business and free your fellow countryman from slaving to have a decent looking lawn. Kudos to you. Let's start cracking by asking yourself a couple of questions first.

How big do you want the business to be ?

When do you want to see the results ?

Both questions will determine the scale of things and speed at which it needs to be done. For instance, if the objective is to make a quick buck that is enough to cover the cost of a short holiday then you could probably borrow a decent looking lawn mower, some shears and start asking neighbors or acquaintances to use your services while "stocks" last. The amount of resources (time, effort and equipment) required is minimal and success can be easily achieved without much planning. That is of course provided you know how to handle the equipment and do a decent job without turning your clients into ex-friends and ex-neighbors. On the other hand, if this is going to be a full blown business with expansion plans to even become listed on the stock exchanges then a little more work will be the order of the day.

First and foremost, a bit of market research to understand what you are up against in terms of the target market and the competitors is a must. Identify the target market, that is, will it be residential properties, commercial, government owned or a combination. Next, pay a visit to the area to examine the current state of the properties and better yet, do a survey at the same time. Speak to the owners or management to find out what services are required and who are their existing service providers. Ask about the price that they are paying and what is needed but lacking in the existing service. This could open the door to converting the client to yours if you can meet a need that the competitor is unable or not aware of. Heck, you could even ask for a copy of the lawn care contract signed with the existing service provider if possible. Remember to always get the name and the contacts of those you have spoken to so that a follow-up to win the business can be made.

Check out the promotion materials of competitors and one could even call them up pretending to be a prospective client and ask a lot of questions. Or ask for a representative to visit and provide a quotation for your own property or friends' or relatives'. In this way you could find out how the competition operates and their price setting strategy. Remember, it's a dog eat dog industry and certain tactics needs to be employed in order to ensure success.

OK, with market research completed, it's time to sort out the data that was gathered. It might be a good idea to create a spreadsheet so that the information can be tabulated for easy referencing. Crucial information would go along the lines of :

Number of properties that makes up the target market

Types of properties (residential, commercial, governmental)

Average plot size of the lawns

Type of services that are required

How many households have engaged lawn care contractors

How many lawn care companies are already in the target market

Prices that are being charged

What services are needed but not provided by the existing providers

Are there any new properties being developed in the area

The list is not exhaustive and all information should be recorded as it might come in handy later on.

With all the legwork done, it's time to put the thinking cap on and analyse these bits of information nuggets in preparation for the next phase which is to draw up a lawn care business plan. With a carefully thought out business plan will, the journey in starting a successful lawn care business will have less risk of being derailed.

Lawn Care Business

Most people would like to have the best looking lawn that is the envy of all the neighbours. But that would mean many hours of back breaking, manual hard labour. Hardly the best choice for chill time well spent for the majority of us. Enter the lawn care businesses to save the day (or lawn for that matter.)

You just need to look at the types of housing in the neighborhood and across the country to appreciate why there are so many companies providing this service and the bulk of them are thriving. As in a hair salon where the patrons returns repeatedly to have their tresses trimmed, lawn care companies enjoys recurring businesses too, thanks to overgrown lawns and hedges that necessitates a snip. Although in the current economic situation what with unemployment, foreclosures and evictions having certainly impacted the number of households engaging their services, it is still a viable business in the long run if one can survive the current glut.

Looking from a different angle, it could also be a good opportunity to get into this evergreen industry that is worth $11.6 billion in 2003 (Harris interactive survey)according to a survey done (it's definitely worth much more now.) Another factor which could contribute to the boom of this industry once the green shoots of the economy starts germinating and grow is the increasing concern of the adverse effects of global warming by world governments including the Obama administration. With this renewed focus and urgency in countering the growth in greenhouse gases, the options available to most countries are limited. The most economically viable choice is probably to plant more greenery where ever space allows. All these means lawn care companies are well positioned to reap the benefits of this new phenomenon.

If this post on lawn care business have got you all excited, you will want to read the next post on how to start a lawn care business.