Sunday, August 23, 2009

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.

1 comment:

  1. Great post, can't wait to read part two. You are correct, you have to know how quickly you want to scale your lawn business or you run the risk of failing. Thanks again, moving on to part two.
    Thanks
    Ron

    ReplyDelete