Lawn Care Business Plan
If you want to start a lawn care company or expand your current lawn maintenance business, you need a business plan.
The following sample lawn care business plan template gives you the key elements to include in a winning lawn care business plan.
Sample Lawn Service Business Plan
Below is an outline of a sample of each of the key sections of your lawn care business plan.
I. Executive Summary
Business Overview
[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its lawn maintenance services to various businesses in the area that need landscaping and lawn maintenance.
The company was founded by [Founder’s Name] in [Year established]. [First Name] started the company with a vision to help the local community see the beauty of professional landscaping and how important it is for the environment.
They are not only experts in decorative landscaping, but also in vegetable gardening and sprinkler systems. They also specialize in lawn problems; from weeds, crab gass, or dry grass in summer.
Products Served
Below is [Company Name]’s initial services list:
- Landscape design
- Arborist Services
- Tree Trimming and Stump removal
- Commercial Landscaping
- Residential lawn care
- Weed control
- Vegetable Gardening
- Lawn Sprinkler Services
Customer Focus
[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by moderate to high income families that live in residential houses who are in need of proper landscape maintenance. These residents are able to pay for quality lawn care and landscaping services any time of the year.
The location is also a prime spot for big hotels, resorts, golf clubs (clubhouses), recreational spaces, and companies that will need our services as well.
Management Team
The [Company Name] was founded by [Founder’s Name]. [First Name] has started working in the Landscaping industry at a very young age. His/her love for the environment and for design has pushed himself/herself to study at [insert university] and become a professional landscape architect. [First Name] also just finished taking up a second degree in business management.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- Our location is in a high-wealth area where customers are in need of lawn care services and have the disposable income to pay for these services.
- The management team has a track record of success in the lawn care business.
- The local area is currently under served and residents rely on independent lawn caretakers.
Financial Highlights
[Company Name] is seeking total funding of $295,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing equipment and materials needed, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $180,000
- Equipments and Materials: $115,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Topline projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its services to various businesses in the area that need landscaping and lawn care services.
The company was founded by [Founder’s Name] in [Year established]. [First Name] started the company with a vision to help the local community see the beauty of professional landscaping and how important it is for the environment.
They are not only experts in decorative landscaping, but also in vegetable gardening and sprinkler systems. They also specialize in lawn problems; from weeds, crab gass, or dry grass in summer.
[Company Name]’s History
[Founder’s Name], the founder of [Company Name] started very young in the landscaping and lawn care business. Ever since [First Name] was still in his college years, he was working part-time in a small landscaping company and earning a few bucks off of the lawnmower he has borrowed from his neighbor. Only in [Month and Year established], did he realize that this is what he wanted to pursue, to start his own lawn care business that cares for the environment and the community.
Through years of hard work and practice, he/she was able to grow his/her business to be one of the most popular all-season landscaping businesses in [Location] and is looking to expand to surrounding areas in the coming years.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website located at [Add Website]
- Built a local office in [Insert location]
- Determined equipment and inventory requirements
- Gathered local contacts and potential clients
- Employed a team that handles all the administrative and marketing aspects of the business.
- Employed full time expert landscapers
[Company Name]’s Products/Services
Below is [Company Name]’s initial services list:
- Landscape design
- Arborist Services
- Tree Trimming and Stump removal
- Commercial Landscaping
- Residential lawn care
- Weed control
- Vegetable Gardening
- Lawn Sprinkler Services
III. Industry Analysis
The Lawn Care industry is dependent on the health of the housing and property markets, both of which have grown steadily over the past five years. Additionally, because landscaping services are often discretionary, industry demand is dependent on levels of per capita disposable income and, thus, the high-income demographic, which generates a healthy portion of its revenue. The industry also relies on demand from institutional and commercial clients, which generally lead to higher per-service revenue.
Steady growth in the domestic housing market has underpinned the industry’s growth over the past five years. A healthier housing market has encouraged current homeowners to invest in their properties to increase their value amid growing disposable income.
Over the next five years, favorable economic conditions will benefit the industry, such as rising per capita disposable income that will boost households’ ability to purchase industry services. Nonresidential construction activity is expected to climb steadily, making this market a point of emphasis for growth
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by middle to upper-class families that live in residential houses who are in need of a lawn mowing business. These residents are able to pay for quality lawn care and landscaping services any time of the year.
The location is also a prime spot for big hotels, resorts, golf clubs (clubhouses), recreational spaces, and companies that will need our services as well.
The precise demographics of the town in which our location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The company targets the following customer segments:
- Homeowners and Renters: The majority of the population in (location) lives in residential houses with yards and lawns. Since most of these people have disposable income, they don’t usually do their lawn maintenance themselves and usually spend their money for services like ours. We expect to regularly acquire new customers from referrals.
- Businesses and Public Spaces: [Location] is known for being a city that values the environment. That’s why most, if not all of the establishments here have green spaces allocated only for plants and trees. We will get in touch with these companies and perhaps also the local government to propose our offer to take care of their landscaping needs. We expect to execute long-term contracts with these companies, thus having stable clientele.
- Recreational Spaces: The city is home to a lot of recreational spaces like resorts, hotels and golf clubs that depend highly on great landscaping. This is something [company name] specializes in and hence, can offer their services to these spaces as well.
V. Competitive Analysis
Direct & Indirect Competitors
Lawn Man
Established in 1970, Lawn Man is a locally owned and operated lawn care professional service providing environmentally responsible fertilization, weed control and integrated pest management services for customers in the Northeast. Services offered by Lawn Man Man include:
- Lawn Fertilization
- Weed Control Service
- Surface Insect Control
- Lawn Disease Control
H&K Landscaping
Founded in 1974, H&K Landscaping is a full-service lawn care, landscaping & irrigation company serving the East Coast. In addition to lawn care and irrigation installation, the company offers total lawn and landscape restoration and construction. Services offered by H&K Landscaping Landscaping include:
- Landscape Design and Installation
- Lawn Care
- Shrub & Tree Care
- Lawn Sprinkler Services
- Landscape Maintenance
Escamilla Landscaping
Established in 2007, Escamilla Landscaping is a family-owned and -operated landscaping company that specializes in creating elegant outdoor living spaces. It offers a variety of services for both commercial and residential clients, providing quality work at affordable prices. Services include:
Sodding, Irrigation, Tree trimming and Lawn maintenance.
Competitive Pricing
Competitor pricing is customized and highly dependent on property size and condition
Competitive Advantage
There are a lot of things that make [Company Name] at a vantage point from its competitors. These include:
- Open All-season: Most of the lawn care services in [Location] are only seasonal. [Company name], on the other hand, is open All-Season, as it is one of the companies that are well equipped to handle lawn services and landscaping all throughout the year.
- Expert Employees: We at [Company Name], assure all our clients that we only employ individuals who are excellent in what they do. Our landscapers are experts and can handle any lawn situation that our clients may have.
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
- Great Deals: Our company offers high-quality services at a reasonable price and we also have special offers for all our contract-based clients.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Expert landscaping and lawn maintenance services
- Year-round service
- Moderate price point
- Client-focused
- Environmentally conscious
Promotions Strategy
Social Media/ Online Marketing
With the majority of the people now online, the company will invest resources in online ads for different social media platforms to reach potential clients. We will create ads that will successfully create positive conversions. A company website will also be developed. This website should be able to direct traffic from search engines as much as possible. In order to do this, the company will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified landscaping service provider that it is.
Publications
[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.
Major Publications
We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Commute Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to purchase our services.
Ongoing Customer Communications
[Company Name] will maintain a website, social media accounts, and publish a monthly email newsletter to tell customers about new events, products and more.
VII. Operations Plan
Functional Roles
The Company intends to employ [X] landscape experts, [Y] administrative assistants, and [Z] landscape teams. The company may have to add more people during peak seasons. [Company name] anticipates having [X] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles:
Service Functions
- Lawn care and maintenance (cutting, edging, and trimming)
- Landscape design
- Arborist Services
- Commercial Landscaping
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sales Manager
- Customer service
Milestones
[Company name]’s long term goal is to become the number one landscaping provider in the [location] area. We seek to be the standard by which other providers are judged. We also would want to expand our reach by extending our services to nearby cities. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
The [Company Name] was founded by [Founder’s Name]. [First Name] has started working in the Landscaping industry at a very young age. His/her love for the environment and for design has pushed himself/herself to study at [insert university] and become a professional landscape architect. [First Name] also just finished taking up a second degree in business management.
Hiring Plan
[Founder’s Name] will serve as the company CEO and president. In order to launch the business we need the following additional personnel:
- Landscaping and lawn care experts
- Marketing and Admin Staff
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from landscaping services, especially from fixed contracts with bigger companies. Labor expenses are the key cost drivers. [Founder’s Name] and all of the company’s employees will earn a competitive base salary with good benefits.
The next largest cost for the company is the office lease and the monthly equipment maintenance check and possible repairs. The Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $295,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing equipment and materials needed, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $180,000
- Equipments and Materials: $115,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 20 |
| FY 2 | 25 |
| FY 3 | 35 |
| FY 4 | 45 |
| FY 5 | 65 |
| Average service contract | $75 |
| Annual Lease ( per location) | $50,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
