There are plenty of reasons one would want to buy a lawn care business- perhaps you are already a lawn care business owner yourself and want to expand your business by buying another already-existing one, or maybe you’re even taking over a competitor. Perhaps you’re looking to get into the landscaping and lawn care business, and want to get a head start by purchasing a company that’s already established, with employees, equipment, material, and- most importantly- customers! No matter what your reasoning may be, there is some important information to know when buying a lawn care business so that you can get a head start.
The most important pieces of info you can get when buying an existing lawn care business are its financial records. This will let you know if the business is stable or not! You’ll also want to dig into its online reputation and inventory. You may also need to engage in some public relations activities, as your new customers may not trust you as much as they trusted the old ownership.
There are plenty of things to know when buying an existing lawn care business, including important information before, during, and after the sale. Read on to find out more, so you can make the best of your purchase, and get started on your lawn care and landscaping business adventures!
The Basics of Lawn Care
If you’re entering an industry, especially at the highest level- that being, of course, owner- you would do well to know the basics of the industry! Luckily, the basics of lawn care are just that- basics, and they’re very easy to learn! The most important thing to know is that soil composition and nutrients, plant hardiness, and grass types can vary from region or region, or even from lawn to lawn- in some extreme cases, it can even vary between a backyard and a front yard! It also helps to know how to push a mower. Depending on the size of the lawn care business you would be purchasing, and simply how much you value hard work, your duties as the owner can be anything from sitting in a nice, air-conditioned office to being out there in the field and cutting grass yourself.
Skills You Need For Landscaping
You Should Ask Questions!
When buying any business, especially a lawn care or landscaping business, it’s a good idea to ask questions! While asking about somebody’s business might be considered slightly rude in your personal life, when it comes to the professional world, it’s expected! When buying an existing lawn care business, you’re going to want to ask as many relevant questions as you can think of. Good things to inquire about include things like the following:
- Financial information
- Customers and customer retention rates
- Equipment and inventory
- Insurance policies
- Number of employees
And, of course, anything else you can think of! Just make sure to keep it professional- ‘ask questions’ doesn’t mean to be pushy about the soon-to-be-previous owner’s parents or kids!
Avoid Scams
Remember the age-old adage; ‘if something sounds too good to be true, it probably is!’ This rings just as true with purchasing a business, if not more so than ever. Purchasing a business can cost a lot of money, and you want to make sure it’s going toward a legitimate business. You don’t want your hard-earned cash lining the pockets of some con man, do you?
The best way to spot a scam is if the business doesn’t seem to have any online presence, or seems to have a shady one. While not all businesses have websites, almost all of them have reviews somewhere on the internet, though it’s important to know that reviews can be bought. Do thorough research- if a company is registered with the Better Business Bureau, it’s a great indicator that the business is legit! Don’t simply pay big money for a list of names and addresses- you could be getting ripped off, and these so-called ‘customers’ could have no idea who you even are.
If somebody seems to be in a hurry, or overly eager to sell you their company- or they’re doing something shady, like selling the business because they are leaving town in a hurry- it’s a big red flag that the sale may not be legit. Do you want to be wrapped up in whatever somebody leaving town in a hurry has going on?
‘Bad business’ extends beyond downright scams- a legitimate company can polish itself up all nice and fancy for a potential buyer when in reality, it’s a barely-functioning, money-losing wreck of a business. Asking for financial records can minimize this, but financial records can be falsified- hence bank statements are a great way to be sure that a business is legitimate. If you’re still worried, ask to spend a day doing a sort of ‘ridealong’ with somebody in the business. Along with seeing if the business is doing well financially, you’ll be able to make sure the employees do good work!
The Different Job Positions In A Landscape Business
Decide What To Do With The Company
If you don’t own a lawn care or landscaping business, then you have your work cut out for you- simply get to work! If you do already own one, you have to decide whether to integrate the old company, make it a branch of your current one, or decide what to do with its logo and branding- you get the idea.
More importantly, you will have to decide what to do with the company’s employees and equipment. No matter what your situation is going into the purchase, once the purchase is complete, you will have a veritable fleet of lawn care technicians and equipment at your disposal. While this could be good to get you properly started, it also comes with a price tag. Equipment requires maintenance, and employees require payment! While it’s likely not a good idea to buy a company and then immediately fire all the employees and sell all the equipment- after all, you can’t run a lawn care business if you have no employees to care for lawns- you will have to decide if you want to keep all the employees and equipment under your belt or let some of them go. It’s not an easy decision, but you have to think about what size business you want to run and work towards that.
You Will HAVE to Make Their Customers Happy
When you buy an existing lawn care or landscaping business, the odds are that you’re also buying their previous contracts and customers- and as a business that provides a service, particularly a service that directly has an impact on a customer’s home, you will have to keep them happy.
A good way to start with this is to introduce yourself and the new ownership of the company to your customers. Whether it is via sending out an email blast, printed welcome packets, or personally going door-to-door to all your customer’s homes, you’re going to want to be personable as you address any concerns and answer any questions your new customers may have. You will have to welcome them, and that means making them feel welcome! Many businesses say they treat their employees and customers like family, and for good reason- this makes your customers feel more welcome, and more likely to stay with your company’s services instead of going to a competitor.
An acquisition can be a challenging time for everybody involved, but that doesn’t mean you have to pass it on to your customers! Your customers are your income, and the very foundation of your business. You need to make sure that they’re taken care of!
In Conclusion
There is plenty of information out there about buying an existing lawn care business, and it can be a headache sorting through it all. In a nutshell, the best things to know are things like the basics of lawn care, and that asking questions is a good thing. You will want to win over the purchased company’s customer base and get them to trust you as much as possible. You will have to know your options for what to do with the company you’ve purchased and decide what to do with them. You should know how to avoid scams, and you should also know that grass, as a plant, always grows- and with it, so does your opportunity to expand your company and your profits! Seize the opportunity, and start your lawn care ventures today!
Frequently Asked Questions
Is buying an existing lawn care business better than starting my own?
That depends on your goals. If your budget is lower, or you’re the type of person who likes to build something from the ground up, you may want to start your own lawn care business. If you want to jump right into an already-operating business, buying an existing lawn care business is the route for you!
If I buy an existing lawn care business, and I already own a lawn care business, should I merge the two?
If you feel that would be the best bet to increase your business, yes. If you want to centralize more customers and lower fees, it may be wise to consolidate into a single business, while keeping the businesses separate- or operating under a ‘DBA’ (Doing Business As)- may help retain customers who have had bad experiences with the other company.
To learn more on how you can start your own landscaping business, check out my startup documents here.
The information provided by LandscapingBusinessBoss.com (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and reliance on any information on the Site is solely at your own risk. This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Meet Shawn Chun: Entrepreneur and Landscape Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a landscape business owner at a job site, driving down the road or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Landscaping Business Boss: I want to help landscape business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.