When entrepreneurs first decide to get into the lawn care business, one of the first decisions they have to make is whether to buy an existing business or start their own independent company from scratch. There are advantages and disadvantages to buying an existing lawn care business versus starting your own. It is necessary to consider the following pros and cons:
Advantages of Buying an Existing Lawn Business:
1) Naturally, there is less risk in buying an existing successful business than in starting your own business that has no reputation.
2) With an existing business, staff generally remain with the business and therefore would not need to do any job selection or training. This offers peace of mind as employees know their responsibilities and the day-to-day running of the business and the new owner can slowly adjust to the way things are done and decide if changes are necessary.
3) Suppliers to the business are also often in place and therefore you don’t need to worry too much at first about who would be the best companies to contact when it comes to buying lawn maintenance equipment.
4) If the existing business is well known and established, it can usually continue to turn a profit fairly soon after property acquisition without the obstacles or setbacks that new businesses that are less established often experience.
5) The equipment is in place and apart from a few services or upgrades, business can continue without much delay from delivery.
6) Contracts and paperwork are usually in place and apart from a few changes, you won’t need to have this paperwork written from scratch.
7) The procedures and fiscal documentation of the company must be registered and up to date.
8) Lastly, and perhaps most importantly, with an existing lawn mowing business, you will typically inherit a strong base of customers who should stay with you if you make sure you continue to provide them with the same level or improve the service of the customers. previous owners. level.
Disadvantages of buying an existing lawn business:
1) If the existing business does not have a very good reputation or the owner does not have a professional style, it might make it difficult for the new owner to market and advertise to break the mindset of customers.
2) Current employees may have bad habits and not work well as a team, which will only be realized in time after the takeover is complete. This would mean implementing new procedures or replacing some staff, which could be a long and costly exercise for the business.
3) Old equipment could be a drain on the company’s cash flow. Repairs and replacement of equipment could hinder job performance and delivery time.
4) If the buyer is inexperienced in this industry, they could pay too much for the business, resulting in lower profits and higher expenses than expected. It’s important to get a new lawn care business for the right price, otherwise you might as well use the money you have to invest in your own independent business.
5) If you want to change your company logo or slogan, it could be a very expensive affair, as you would need to print new documentation, business cards, equipment branding and labeling, etc.
6) There may be an outstanding debt or taxes owed by the business that you were not aware of at the time of delivery. Make sure the seller is transparent in all aspects of the business and that he is fully informed of what he is doing.
As discussed above, there are pros and cons to everything. It is very important to make sure you have done your research and know what risks are involved in starting your own lawn mowing business or buying an existing one. Professional advice and sound independent research are always highly recommended either way.