A lawn care business can give you substantial profit if well managed. However, not everyone can successfully start a lawn business from scratch and see it thrive.
There are many requirements such as business registration, and investing in tools, among other things. This can provide an opportunity for you to take over an established business, where the owner wants to retire or change fields.
Below we take you through everything you need to know about buying a lawn care business.
Why Should I Buy a Lawn Care Business?
Some amazing pros of buying an established lawn care business include:
- Flexible Management: Having a lawn care business gives you the flexibility to decide how involved you want to be in its day-to-day operations. For instance, you can work by yourself, hire someone else to run it for you, or choose a specific department to focus your skills on.
- Part-time Option: If you have a full-time job, you can still run a lawn care business on the side. The good thing is that you don’t have to run it daily, but seasonally, especially in summer. So, if you’re mostly free during summer, this is a business you can pick up and earn a good profit margin.
- Reliable Workflow: Once you buy an established law business, you can be sure to have consistent income through your services. The secret is to buy one with an already established customer base.
- Expandable: Growing a lawn business is easy since there are other services you can include to complement your primary services. From pest control to fertilizing, you can only keep thriving.
What to Look at Before you Buy a Lawn Care Business
1. Analyze the Losses and Profits
First, before settling for a lawn business to buy, you need to assess the health of the entire business. For instance, has the current owner been paying taxes? Are there any billing records? What is in the expense accounts? Can you access company bank statements? This will help you determine whether the business is bringing in losses or profits. Get a professional to help you check the company records.
2. Understand the Reason for Selling
Generally, a lawn care business is a good business in most locations. You would want to find out why the owner is selling it in the first place. Why would they want to sell a stable profit-making business? Is it because of health issues? Retirement perhaps? Some personal financial issues?
You need to understand to make an objective choice. Ensure to confirm the details from someone reliable such as an attorney or accountant.
3. Investigate the Business Reputation
Yes, the owner might have given you their reasons for selling, but due diligence is necessary to ensure everything about the company is as great as it looks on paper. Go through some online reviews (Google, Yelp, social media pages, Glassdoor), and even the Better Business Bureau for some useful information.
4. Customer Retention
The business might have been a success to the previous owner, but it might not go well with you if most customers pull out. So, ask the owner if customers will be comfortable with the new management. What has the current owner told them?
Bonus: Buy a Franchise
The benefits to buying an established business are there, but it’s often costly. Plus, transitioning owners may leave you without necessary help, potentially causing the business to flounder.
A franchise is a new business, but far from starting with nothing. It’s often more cost effective than buying an established service, but you also get all of the perks of an established business.
Plus, there is much-needed assistance for a new business owner. You benefit from established processes, marketing help, and even direct assistance to get started.
Buying a lawn care business is better than starting one from scratch. (Franchising is another solid option.) However, ensure the current owner is selling it for the right reasons, and you at least have a guarantee of majority customer retention.