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The Top Reasons Why Lawn Care Businesses Fail.

Updated on July 31, 2012

Lawn Care Business

Lawn Mowing Stripes
Lawn Mowing Stripes | Source

Lawn Care Business

Every year, many new entrepreneurs throw their hat into the ring and start up their new business. A large majority of these businesses are going to fail within the first year for few simple reasons. Knowing what these reasons are can help you look out for trouble, avoid it, and move forwards. For those that fail to read about the lawn care industry, they will more than likely find big trouble ahead and not know how to deal with it. Let's look into this further.

90% of new lawn care businesses fail each and every year. The reasons why they fail may seem simple to you once you read this article yet it seems the simple reasons always trip us up.

  • Reason number 5

Checking in on our top 5 countdown why lawn care businesses fail in their first year is that they simply don't keep track of their records. If only more new start up mowing and landscaping businesses utilized some sort of lawn care business software that kept track of their mowing schedules and helped create monthly invoices, they would be so far ahead of the game. The reason it seems most start ups don't bother with this is because they think they don't need to. They think they can create a system, save some money, and do it all in their head or on a few sheets of paper. The truth of it though is, they simple can't. After your customer count is greater than a handful, you will start getting mixed up and will lose important information.

  • Reason number 4

The next step up in reasons why lawn care businesses fail is that they don't have a constant cash flow. Invoices tend to get out slow early on when you don't have a system in place to handle it, so therefore customers get their bills late. Then they tend to pay late. This ultimately leads to a lawn care business owner getting paid for work they performed 6 to 8 weeks later. Such a lag time in payment can lead to business failure for the simple reason that you run out of cash. Instead of billing late, these landscapers should be billing half their customers mid month and the other half at the end of the month to improve cash flow. Another option they could utilize is pre-billing at the beginning of each month. Or better yet, getting lawn care customers to pre-pay for their entire mowing season at a discount.

  • Reason number 3

They try to utilize consumer grade lawn care equipment that was designed to be used by a single home owner, for a single lawn, each week. Instead, these new start up mowing business owners, use this equipment 10 to 20 times more than it was ever intended to work. Over using such equipment leads to constant breakdowns. These equipment breakdowns lead to slower service, which then leads to unhappy customers that cancel service and move on to other service providers.

Instead of using consumer grade lawn care equipment, professionals need to use commercial grade mowing equipment that was built to last.

  • Reason number 2

New business owners don't have a support staff so they don't have someone to answer their phones. When you don't answer your business line, the new potential lawn care customer, is going to simply call someone else until they get a human on the other end that can give them what they want. Even if you try to call back the person within an hour, such a lag time usually is too late.

  • Reason number 1

Lack of start up funding. You would be amazed at all the costs associated with starting a new lawn care business. From licenses, to insurance, to equipment, to lawn care marketing. Each and every step you take early on to get started will cost you double what you expected. To combat this, new business owners need to save up more money before they get started and create a realistic lawn care business plan before they get started.

I hope these top five reasons why new lawn care businesses tend to fail has opened your eyes and got you to think about the steps you need to take to ensure your new business can succeed where others haven't. If this topic interests you, please continue your reading and investigation of the subject through the links I provided below.

Lawn Care Business

Lawn Care Business

Lawn Care Business
Lawn Care Business | Source


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