When entrepreneurs first decide to go into the lawn care business, one of the first decisions they have to make is whether to buy an existing business or go with their own independent company from scratch. There are pros and cons to buying an existing lawn care business rather than starting your own. You need 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 starting a business of your own that has no reputation.
2) With an existing business, staff generally remain with the company and therefore would not need to undertake any job selection or training. This offers the peace of mind that 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) Company suppliers are also usually 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 purchasing lawn maintenance equipment.
4) If the existing business is well known and established, it can generally continue to make a profit fairly soon after takeover without any hurdles or setbacks that new businesses that are less established generally experience.
5) The equipment is in place and apart from some 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 wouldn’t need to have this documentation written from scratch.
7) The documentation and tax procedures of the company must be registered and updated.
8) Last, and perhaps most importantly, with an existing lawn mowing business, you will generally inherit a strong base of customers who should stay with you if you ensure that you continue to provide them with the same level or improve the service of the 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 mannerism, it could make it difficult to market and advertise the new property to break the mindset of the clients.
2) It is possible that current employees have bad habits and do not work well as a team, which you would only realize in time after the takeover is complete. This would mean implementing new procedures or replacing some staff members, which could be a long and costly exercise for the company.
3) Old equipment can affect the cash flow of the company. Equipment repairs and replacement could hamper job performance and recovery time.
4) If the buyer is inexperienced in this industry, he could pay too much for the business, resulting in lower profits and higher expenses than expected. It is important to acquire a new lawn care business for the right price; otherwise, you can also use the money you have to invest in your own freelance business.
5) If you want to change the company logo or slogan, it could be a very expensive matter, as new documentation, business cards, equipment branding and labeling, etc. would need to be printed.
6) There may be an outstanding debt or taxes owed by the company that you were not aware of at the time of delivery. Make sure the salesperson is transparent in all aspects of the business and fully informed of what they are getting into.
As mentioned above, everything has advantages and disadvantages. It’s very important to make sure you’ve done your research and are aware of the risks involved, whether you’re starting your own lawn mowing business or purchasing an existing one. Either way, professional advice and sound independent research are always highly recommended.