How to Start a Lawn Care Business

Part 1 - How to start a Lawn Care business - Background

Starting a lawn care business can be an exciting and rewarding business venture for entrepreneurs who are passionate about landscaping and helping customers maintain beautiful, healthy lawns.

Having said that, you should keep in mind that launching a successful lawn care business requires careful planning, significant investment, and a wide range of skills.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own lawn care business, from conducting market research and securing funding to obtaining licenses, setting up operations, and attracting customers.

Our guide is in 3 parts:

• Part 1 - How to start a Lawn Care business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

Industry Overview

The lawn care and landscaping industry in the U.S. is a robust sector, with a market size of $153 billion as of 2024, according to the IBIS World Landscaping Services Industry Report.

The industry currently supports over 661,000 businesses and employs more than 1 million people across various roles — including groundskeeping, lawn service, and tree trimming. Companies in this space have also seen steady growth, with the 2023 Financial Benchmark Study reporting an average increase of 15.7%.

Despite challenges like high fuel prices and labor shortages, the demand for landscaping services remains strong, primarily driven by nonresidential construction and a resilient residential housing market.

Startup Costs

If you’re considering whether a lawn care business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own lawn care business?

Well, it depends. The initial investment for a lawn care business varies widely based on factors such as your business’s size, the type of equipment it needs, and the specialty of the services it offers:

• Equipment expenses will make up a large portion of your lawn care business’s initial startup costs. Typically, you can expect to spend anywhere from $1,000 to $4,000 — which should include a mower, trimmer, leaf blower, hand tools, and a gasoline can. It’s important to note that this figure can vary greatly depending on whether you opt for entry-level or commercial-grade equipment; as an example, you can spend well over $1,000 on a commercial mower alone.

• Marketing and promotion is another important area to mention when discussing your startup costs. Depending on the strategies you decide to invest in, typical costs for a new business can range up to nearly $2,000 initially — covering expenses such as flyers, business cards, and setting up a website. Remember that these costs can vary greatly depending on whether you choose more basic, DIY methods or hire professional services for branding and digital marketing efforts.

• Insurance and licensing will also make up a large portion of your upfront costs as a lawn care business. You shouldn’t be surprised if you need to spend anywhere between $400 and $2,000 on these two, which should be enough to cover a business license (between $50 and $200), special permits like a pesticide application license ($50 to $300), and zoning permits if you operate from home ($100 to $500). Additionally, you’ll need general liability insurance, commercial auto insurance, and possibly worker’s compensation insurance if you hire employees.

Ongoing Costs

Once your lawn care business is up and running, there will be several ongoing expenses to keep your operation running smoothly. A key part of managing your business effectively is understanding and budgeting for the following recurring costs:

• Labor costs are one of the most significant ongoing expenses, especially if you hire assistants. Wages for labor typically range from minimum wage up to $15 per hour, depending on your location and the experience of the worker. Additionally, you’ll need to account for employee taxes, which range from 7.65% to 15% of the wages paid, varying by state.

• Truck and equipment maintenance are also important to budget for, as reliable tools are essential to your daily operations. Expect to pay $299 per month for a truck lease, with an additional $100 per month for truck insurance. Fuel costs will likely amount to $200 per month, and regular equipment maintenance can cost around $50 per month to keep everything in top shape.

• General operational expenses include basic needs such as a telephone and internet connection (typically between $50 to $100 per month), as well as marketing efforts like regularly printing promotional flyers and business cards (up to around $75 per month). Insurance is another big one to pay attention to, with liability coverage generally ranging from $50 to $200 per month, depending on your coverage levels and business size.

By keeping track of these ongoing costs, you can better manage your budget and ensure your lawn care business remains profitable and sustainable over time.

Earning Potential

The earning potential of a lawn care business largely depends on the type of customers you serve and the services you offer. Residential customers may provide consistent work, but long-term customers who sign up for regular maintenance with automatic payments are the most reliable, as they allow you to plan your budget well in advance.

Local businesses, such as office buildings, schools, and hospitals, are also excellent clients, as they tend to require ongoing service and are willing to pay more than residential customers. However, securing contracts with larger operations can be challenging due to competition and the fact that many larger organizations maintain their own in-house crews.

A good way to generate consistent revenue as a lawn care business is by charging a monthly service fee for basic lawn maintenance, with additional income coming from special services like fertilization, sod installation, and winter preparation. You can typically charge residential customers around $25 per month for basic lawn care that takes under two hours per visit.

However, it’s important to note that competition is steep, particularly from undocumented workers who offer lower prices due to reduced labor costs. By expanding your range of services and taking on both residential and commercial clients, your lawn care business can grow and become more profitable over time.

How to Start a Lawn Care Business FAQs

Who is the target market?

Long-term customers who are willing to sign up for ongoing automatic payments are typically best as they allow you to plan your budget far in advance. Local businesses can also be excellent customers, as they typically are willing to pay more for your services than residential customers and are more likely to request regular service.

Large-scale clients with lots of lawns are another excellent customer, such as hospitals, office buildings, shopping malls, and schools. However, many will already have their own lawn maintenance crews, which can make landing a big contract like that quite difficult.

How much can you charge customers?

There are many undocumented workers in the lawn care business who are almost impossible to compete with if you want to generate significant profit. These companies are usually undocumented, pay workers less than minimum wage, have no insurance, and do not pay taxes.

Legitimate companies charge at least 150% of the minimum wage for the amount of time each worker is present on a customer’s site. So for example, if the minimum wage is $10 per hour, your business would typically charge a rate of $15 per hour.

A set charge per month is usually around $25 for a simple residential lawn that takes under two hours to cut, while a commercial business might pay more because of the time needed to cut the lawn.

How much profit can a lawn care business make?

Lawn care alone, on a small scale, is not a highly profitable business as competition is severe due to the low cost of entry and lack of sophisticated skills needed for this job.

Typical lawn care business owners — who work alone and are successful — need to work very hard to make $30,000 to $50,000 per year. To make more than this, a business owner will need to run more than a single crew and offer additional services to existing customers.

How can you make your business more profitable?

Besides cutting and maintaining lawns, a lawn service business may offer additional services such as snow removal (in colder climate areas) and landscaping.

Landscaping is a slightly different — yet related — business that includes the installation of pavers, walkways, sidewalks, and retaining walls. It also includes installing water features (ponds, fountains, and waterfalls) and planting trees, shrubs, and flowers.

Part 2 - Is a Lawn Care business the right fit for you?

Part 3 - Action plan to launch your Lawn Care business in 90 days