Lawn care businesses maintain the health and appearance of grass and turf through regular mowing, fertilization, and weed control services. Many people confuse lawn care with landscaping, but they are separate services. Lawn care focuses solely on grass maintenance and health – like mowing, edging, fertilizing, and weed control. Meanwhile, landscaping involves designing and installing new outdoor features like gardens, trees, patios, and hardscaping elements.
Small lawn care businesses often start with basic mowing services and expand their offerings as they grow.
Related: Checklist To Start A Business
How Do Lawn Care Businesses Make Money?
The primary source of revenue for lawn care businesses comes from recurring service contracts. Most companies establish weekly or bi-weekly mowing schedules with their clients during the growing season, typically charging a fixed rate based on the size of the lawn and scope of services. These regular maintenance contracts provide steady, predictable income streams, with many clients signing season-long agreements that secure ongoing work from spring through fall.
Additional revenue sources for lawn care businesses include:
- Chemical Applications: Providing fertilizer treatments, weed control, and pest management services throughout the growing season
- Seasonal Cleanup: Offering spring and fall yard cleanup services, including leaf removal and grass preparation
- Aeration and Seeding: Performing specialized turf improvement services at premium rates
- Small Tree and Shrub Care: Basic pruning and trimming of ornamental plants as add-on services to regular lawn maintenance
- Equipment Rental: Renting specialized lawn care equipment to homeowners for one-time projects
Industry Statistics
Lawn care services are part of the Landscaping Services industry, NAICS code 561730. Here are some statistics that highlight the lawn and landscaping market.
Lawn Care Industry Size & Growth: The lawn care and landscaping industry generated $158.9 billion in revenue last year. The industry grew by 4% annually over the past five years. Growth is expected to continue at 3.6% annually over the next five years, reaching $189.7 billion, driven by increasing residential construction and rising household incomes. (IBISWorld)
Number of Lawn Care Businesses: There are approximately 675,000 lawn care and landscaping businesses operating across the country. The industry remains highly fragmented, with the largest company, BrightView Holdings, controlling less than 2% of the market share. Most businesses are small, locally-owned operations serving specific geographic areas. (IBISWorld)
Lawn Care Profit Margin: Lawn care businesses typically see net profit margins of 10.4% after accounting for operating expenses. These margins vary based on services offered, business size, and operational efficiency. (IRS)
Startup Stories
Also See: Ideas for Naming a Lawn Care Business
Why Start a Lawn Care Business?
As you’re researching whether to start a lawn care business, here are some positive aspects of starting a lawn care business:
- Stable demand: Lawns are everywhere and grass is always growing, which makes lawn care a constant need.
- Earning potential: Lawn care is not a one-time service. Lawns need regular care and maintenance, which means your customers will likely need your services on an ongoing basis. This can provide a steady stream of income.
- Low startup costs: You don’t need a physical store for a lawn care business, drastically reducing startup costs.
- Easy to expand: Scale up when you’re ready. You can choose to take on larger projects or expand into areas like tree and bush pruning, landscaping, or pest control.
- Freedom and flexibility: Being your own boss offers you the flexibility to work the hours you want.
Reasons For Not Starting A Lawn Care Business
Starting a lawn care business can be challenging for several reasons:
- Competition: The lawn care industry is highly competitive, with many established businesses already operating in most areas. New businesses may struggle to attract customers away from these industry veterans.
- Liability risks: There are inherent risks in lawn care work, including potential damage to a client’s property and accidents that can happen on the job. This risk makes insurance especially important, which is an additional cost.
- Labor shortage: The lawn care industry often faces labor shortages, which can make it difficult to find and retain reliable employees.
- Physical demands: Lawn care is physically demanding work, often requiring long hours in various weather conditions. It can be taxing on the body, especially if you are not accustomed to physical labor.
- Seasonal fluctuations: Depending on your location, lawn care can be highly seasonal. In colder climates, there might be little to no work during the winter months unless you diversify services.
Costs To Start a Lawn Care Business
Starting a lawn care business typically costs between $5,000 and $25,000. This range accounts for both small operations starting with basic equipment and larger businesses with multiple crews and commercial-grade machinery.
There are several expenses to consider when starting a lawn care business, but here are some of the more expensive items:
Equipment: Basic commercial-grade mowers cost between $1,000 and $8,000 each. Additional equipment like trimmers, edgers, and blowers add $500 to $1,500. A trailer to transport equipment costs between $1,000 and $3,500.
Vehicle: A reliable used truck capable of towing equipment and hauling supplies costs between $5,000 and $15,000.
Insurance: Business liability insurance and vehicle insurance for lawn care operations ranges from $1,500 to $4,000 annually. Coverage amounts vary based on the size of operation and types of services provided.
Initial Supplies: Starting inventory of fuel, fertilizers, herbicides, and basic maintenance supplies typically costs between $500 and $1,500.
These estimates represent average costs, and actual expenses will vary.