Does it make sense to buy an existing lawn care business?
The answer to that question has a lot of variables that will depend on your personal circumstances:
How soon do you need to be turning a profit?
Buying an existing lawn service will usually have you generating revenue the first month. The only problem is you have to drop some cash in the beginning. If you already have the cash for purchase on hand, it might make sense.
Are you doing it full or part time?
If you are planning on going full bore and doing it full time, then having the accounts to get you started will help. If you will be part time and trying to work yourself out of your day job, it might not be the best idea. A business needs your full attention.
Can you be patient and build your own clientele instead?
If your not in any rush, why not wait and just build your own. Then you can focus on getting the type lawn accounts that you want, not what someone else is getting rid of.
Did you lose a job and are in emergency mode trying to survive?
That’s what happened to me. The company I worked for went bankrupt ad I was out of a job without notice. Buying an existing business got me though it.
Are you POSITIVE you are going to stick with it?
Know beyond a doubt you are going to stick with it before you drop that hard earned cash down for a business.
These are just some of the factors that might have an impact on whether buying an existing lawn care business makes sense.
I started out by purchasing a small lawn business with only 15 accounts, plus the basic equipment.
I grew it fast, was up to 70 accounts the first year, and ended up needing to upgrade the equipment as the business grew. Mainly because I did not know squat starting out, and bought the wrong stuff for the size I was going to end up at.
Buying the small existing company did help, as it turned into referrals, and I was instantly out in the field and “in play”.
Do your homework,and look at several lawn companies for sale, there’s a big difference in prices.
I would suggest start small if you don’t have experience running a lawn business. Also make sure what type equipment y0u will need before you buy anything. Your growth plan should help determine what type equipment you’ll need.
Your anticipated customers will also have an impact on what type equipment you’ll need. Generally, big commercial accounts will require different mowers than residential properties with small gates.
There is definitely a learning curve. I would have simply been overwhelmed if i had started with 75 or 100 accounts.
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