Lawn maintenance company massive expansion

[SeanKelly]

After a number of threads I've gained some very valuable knowledge from some incredibly brilliant entrepreneurs. I have decided to act on a particular piece of advice and attempt to scale my landscaping business. I'd like to do this by focusing on the management aspect and also by acquiring other businesses in the area. My question for you guys is how do I go about properly doing this? How am I supposed to amass the money necessary to acquire another business? How should I enhance my business as it sits today? Should I be actively seeking customers or are they supposed to come on their own? Please help me make this this expansion a reality.

 

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[PatrickP]

As to how to get the funding I have NO idea and am interested in the replies here.

As for how to get more customers how did you get all the customers you have now? Do more of that maybe?

 

[SeanKelly]

As for how to get more customers how did you get all the customers you have now? Do more of that maybe?

I have gotten them from strictly world of mouth advertising since I pride myself in high quality work. However, I feel that I need to take a more aggressive approach in order to accelerate my growth. I'm going to need at least $40,000 to purchase another business in the area.

 

[PatrickP]

Ah yes definitely agree.

I will be following along with your thread. Very interesting and GOOD luck!

 

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[dochustle]

Offered them a leveraged buyout.

Basically paying out through profits over a specific amount of time- Say $5000 down with payments every month of $500 or something like that.

You could offer a bit higher payments in return for them accepting the leveraged buyout, as oppose to a full cash payment. This benefits you as well because it keeps them motivated to help in the transition period of customers.

I have actually ran and sold a landscaping company via leveraged buyout, and receive monthly passive payments every month for an asset I built!

 

[Mike39]

I'm going to need at least $40,000 to purchase another business in the area.

Just beat them out, provide better service at better rates with better employees, you don't need to buy them, then all you are doing is making some other guy rich instead of yourself!

 

[SeanKelly]

Offered them a leveraged buyout.

Basically paying out through profits over a specific amount of time- Say $5000 down with payments every month of $500 or something like that.

You could offer a bit higher payments in return for them accepting the leveraged buyout, as oppose to a full cash payment. This benefits you as well because it keeps them motivated to help in the transition period of customers.

I have actually ran and sold a landscaping company via leveraged buyout, and receive monthly passive payments every month for an asset I built!

That's a very interesting idea! I may have to see if anyone is open to it though. It seems that the owners I have contacted overvalue their businesses. It will not be an easy feat, but I am motivated to turn this business into a behemoth and prove my parents wrong.

 

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[SeanKelly]

Just beat them out, provide better service at better rates with better employees, you don't need to buy them, then all you are doing is making some other guy rich instead of yourself!

I am in the process of significantly upgrading the operation as a whole. All employees recieved vibrant, eye catching uniforms complete with premium eye and ear protection. We now do several forms of pr in order to keep all customers overjoyed with our service. Our service is now top notch with all new techniques and equipment. I've bought all new equipment, mowers, trailers etc. THE GROWTH FROM QUALITY ALONE IS NOT ENOUGH.

 

[dochustle]

That's a very interesting idea! I may have to see if anyone is open to it though. It seems that the owners I have contacted overvalue their businesses. It will not be an easy feat, but I am motivated to turn this business into a behemoth and prove my parents wrong.

This is something I found difficult as well, valuing the business. I think we did something like profit X 2-3 years and assets as face value with a discount because he was buying the whole company. Just go out and talk to owners. A lot of them are older who are looking to retire but don't anyone to pass the business down to/or the know how of finding someone to buy it. You would be surprised at what people have to say when you just talk to them about their situation!

 

[The-J]

You sound like you don't have many employees. I found a post of yours that said you do work yourself alongside employees.

How massive are you thinking? How many towns do you currently operate in? How much market share % do you have in the areas you work in (by neighborhood)? How many jobs do you do a month? What about your employees?

Are you trying to franchise it in your region? Who do you mostly do jobs for: homes or businesses? What kind of landscaping do you actually do; mowing the lawn and trimming hedges and weeds, or do you do more?

What's your unit profit per job? How are your margins?

You can increase unit profit per job, increase amount of jobs or increase market share in areas you operate, among other things. What do you most want to do; decrease your personal workload or keep on growing your business?

Answer these questions for yourself.

 

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[PatrickP]

he has answered those questions in another thread.

He makes some GOOD money already and is looking to expand.

 

[mapaul04]

After a number of threads I've gained some very valuable knowledge from some incredibly brilliant entrepreneurs. I have decided to act on a particular piece of advice and attempt to scale my landscaping business. I'd like to do this by focusing on the management aspect and also by acquiring other businesses in the area. My question for you guys is how do I go about properly doing this? How am I supposed to amass the money necessary to acquire another business? How should I enhance my business as it sits today? Should I be actively seeking customers or are they supposed to come on their own? Please help me make this this expansion a reality.

Not positive where you live but around here the winter is a great time to acquire customers for the next spring. Get out and do some snow shoveling and plant the seed early for your grass cutting business the following spring. Stay in touch with anyone you work with over the winter and see how many people you can get to commit to using you for the next spring that should tell you how many trucks and people you need to hire for the following year.

Why exactly would you buy a grass cutting business at this stage? I would imagine since you are small you would be buying small grass cutting businesses. Spending 40k for some equipment and maybe 50(?) potential customers. I don't know much about the industry but it doesn't seem like buying another business is the right move for you at this point.

 

[SeanKelly]

You sound like you don't have many employees. I found a post of yours that said you do work yourself alongside employees.

How massive are you thinking? How many towns do you currently operate in? How much market share % do you have in the areas you work in (by neighborhood)? How many jobs do you do a month? What about your employees?

Are you trying to franchise it in your region? Who do you mostly do jobs for: homes or businesses? What kind of landscaping do you actually do; mowing the lawn and trimming hedges and weeds, or do you do more?

What's your unit profit per job? How are your margins?

You can increase unit profit per job, increase amount of jobs or increase market share in areas you operate, among other things. What do you most want to do; decrease your personal workload or keep on growing your business?

Answer these questions for yourself.

Tough words from you haha. I am no slacker and a heavy workload does not phase me. I am not interested in franchising at this point in the least. I'd simply like to grow as large as possible as a privately held company.

 

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[PatrickP]

I am in the process of significantly upgrading the operation as a whole. All employees recieved vibrant, eye catching uniforms complete with premium eye and ear protection. We now do several forms of pr in order to keep all customers overjoyed with our service. Our service is now top notch with all new techniques and equipment. I've bought all new equipment, mowers, trailers etc. THE GROWTH FROM QUALITY ALONE IS NOT ENOUGH.

How VERY smart all the way around.

Bright clothing, the premium protection, new equipment etc.

Really liking this Sean. I also like the idea of just expanding with the crew you have now by getting new accounts. Then increase employees as needed. As well as buying out other companies if the terms are right for you.

Any possibility of offering discounts to your current customers for referring new accounts? OR maybe giving some extras for free if they get you a new account. This way you are getting full payment for the jobs you are doing now but just doing a few minutes extra work in exchange for a new account. eg. Premium trimming for 3 months for referring a new account.

What is premium trimming? Ahhhh I don't know you figure out something lol

 

[JEdwards]

This is something I found difficult as well, valuing the business. I think we did something like profit X 2-3 years and assets as face value with a discount because he was buying the whole company. Just go out and talk to owners. A lot of them are older who are looking to retire but don't anyone to pass the business down to/or the know how of finding someone to buy it. You would be surprised at what people have to say when you just talk to them about their situation!

Exactly, rich old lady next doors husband died last year, and she just unloaded his old landscaping biz.

I do not know how much she sold it for but Looking at the number of trucks she had. Probably a pretty penny.

But I bet the buyer got a great deal.

 

[The-J]

he has answered those questions in another thread.

He makes some GOOD money already and is looking to expand.

Expand is a blurry word. He said he wants more jobs and more employees so he can grow his business. But everyone wants that.

I think he needs to answer those questions as a group and see how the pieces fit together in his own instance. Every situation is different. I don't even know if he should even be thinking about buying out others. He could simply just overtake them by literally stealing the jobs from under their nose.

It seems to be in a position to take over one of his competitors, he needs to have a strong enough brand. People need to know and trust him to the point where they wouldn't switch if someone charged 20% less (number doesn't matter here, all that matters is the point).

EDIT: read the thing you posted about your branding. Brilliant move and money well spent.

 

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[PatrickP]

Expand is a blurry word. He said he wants more jobs and more employees so he can grow his business. But everyone wants that.

I think he needs to answer those questions as a group and see how the pieces fit together in his own instance. Every situation is different. I don't even know if he should even be thinking about buying out others. He could simply just overtake them by literally stealing the jobs from under their nose.

It seems to be in a position to take over one of his competitors, he needs to have a strong enough brand. People need to know and trust him to the point where they wouldn't switch if someone charged 20% less (number doesn't matter here, all that matters is the point).

EDIT: read the thing you posted about your branding. Brilliant move and money well spent.

Here you go buddy.

https://www.thefastlaneforum.com/fastlane/41910-what-do-10-000-cash.html

 

[SeanKelly]

How VERY smart all the way around.

Bright clothing, the premium protection, new equipment etc.

Really liking this Sean. I also like the idea of just expanding with the crew you have now by getting new accounts. Then increase employees as needed. As well as buying out other companies if the terms are right for you.

Any possibility of offering discounts to your current customers for referring new accounts? OR maybe giving some extras for free if they get you a new account. This way you are getting full payment for the jobs you are doing now but just doing a few minutes extra work in exchange for a new account. eg. Premium trimming for 3 months for referring a new account.

What is premium trimming? Ahhhh I don't know you figure out something lol

I always love reading your posts hahah! It has come to the point where the only possible way to further improve our service is to bring up newspapers we find in the driveway, dispose of trash littering property, remove branches from the lawn, etc. I have put so much into the service already. As far as referral rewards... We credit our customers $50 to their account for each and every successful referral. I also call them to thank them personally.

 

[JEdwards]

If you really have the best service and do all that. Just give it time now. It will all fall into place.

Keep it up.

 

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[PatrickP]

Ah then you have that covered already.

Have I told you yet that I hate you for being more advanced than a guy almost 3 times you age LOL

 

[The-J]

Any possibility of offering discounts to your current customers for referring new accounts?

A "Two for One Program": Tell one friend, get two trims free!*

*Your referral must stay on for a month in order for this to apply

Anything to dominate.

 

[SeanKelly]

Ah then you have that covered already.

Have I told you yet that I hate you for being more advanced than a guy almost 3 times you age LOL

I sincerely doubt that... you're probably very successful, having opened my eyes to several imperative topics thus far. I've always been called a "little old man" since I supposedly am very mature for my age.

 

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[SeanKelly]

A "Two for One Program": Tell one friend, get two trims free!*

*Your referral must stay on for a month in order for this to apply

Anything to dominate.

I'm going to try this and let you know the response I get. Thank you!

 

[The-J]

Ah then you have that covered already.

Have I told you yet that I hate you for being more advanced than a guy almost 3 times you age LOL

I'm hoping this guy sticks around. I'm curious as to how his business is going to evolve.

 

[miked_d]

What area of the US? I am in Los Angeles. The landscaping biz is dominated by small operations (1 or 2 men in a pickup). I always thought there was opportunity here.

Look at the big players with big commercial accounts. What do they do? One that I am familiar with is Valleycrest. I worked for company a few years ago that used Valleycrest. They handled the work nationwide including Puerto Rico.

 

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[MattCour]

Sounds like you have the right mindset, keep up the great work!! I'm sure your threads have inspired a few people here...

 

[mayana]

acquiring other businesses in the area.

This is something I found difficult as well, valuing the business. I think we did something like profit X 2-3 years and assets as face value with a discount because he was buying the whole company. Just go out and talk to owners. A lot of them are older who are looking to retire but don't anyone to pass the business down to/or the know how of finding someone to buy it. You would be surprised at what people have to say when you just talk to them about their situation!

This is exactly what I was going to recommend. I would suggest keeping your eyes open constantly... search business broker sites, Craigslist, etc, for the person who is trying to sell their landscaping business. Owner financing, desperate seller, retiring, medical issues; those are some keywords to look for in their ads.

I remember seeing a fairly large janitorial service for sale for the same reason. Owner was retiring, and there just wasn't any reason to hang on to the business.

I think this is GREAT that you are doing this, and even better that you are taking some of the good advice that you've gotten here. Kudos for making these decisions!!!

 

[Milkanic]

Your biggest problem I see you facing is managing and training this many people. You need to develop repeatable processes that scale and are easy to learn/manage.

Study McDonald's and their processes.

Couple books you should check out:
The E-Myth Revisited
Grinding It Out
The Checklist Manifesto

 

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[MakeItHappen]

The book Your First 100 Million by Daniel Peña talks about this. Maybe the book might be for you however the book doesn't come cheap... it costs $197 at the moment.

Here is the sales page: Your First 100 Million, 2nd Edition | Dan Pena
And here you can read free excerpts: Your First 100 Million – HTML Format | Dan Pena

Also there was a thread about this book here on forum with reviews... check it out: https://www.thefastlaneforum.com/book-recommendations/26447-your-first-100-million-dan-pena.html

Hope this might help however i wish you all the best anyways... i love your attitude!

 

[PatrickP]

I'm hoping this guy sticks around. I'm curious as to how his business is going to evolve.

Agreed!

I am looking forward to the day he is in TV and I can say heyyyyyyyyyyyy I knew him back when he was on FL forum