How do I start my Lawn Mowing business?

Question

Hey there, I'm in the Los Angeles area. I am 21, and I would like to start my own business. I have chosen the landscaping/Lawn mowing business, I have no experience, I do like lawns, but i don't have a strong passion for them. I chose this business to generate cash flow.

Today is my first day of research, I will take any & all advice I can get, it can be as little as a paragraph Or even 5 or 6 pages long, i will appreciate it, and soak it all up, I really need a lot of answers to questions I don't even have yet.

Right off the top of my head, here are a few research questions that I have. You can skip this and give me what ever advice you have, but also I will need these answers some how. Thank you :)

Questions:

1.What are the requirements by law, for me to do business as a lawn mower/or landscaper. Exactly what licenses, and paper work will I need to fill out etc. And any other requirement, to do this type of business that I will need.

2.How do I legally hire employees? I want my guys to be "Independent contractors." so they are responsible for everything they do. If they get hurt on the job etc. (also, will being an independent contractor protect me if they get hurt on the job?) I mainly want this, so they can use their own truck. This way they won't be careless with my truck. I want it so they use their own truck & their are responsible for what happens.

3.What equiptment will I need? About how much will it cost for everything? New/Used

4.How much should my guys get paid (Los angeles area?) And is it ok to find guys with no experience & train them? I mean is the work that hard?

5.What do most lawn Mowing companies/Landscapers even do? We don't have one so I wouldn't know. I know they cut the grass & blow the leaves, but i'm sure there is more to it. What is most common, and does it take extensive training?

6.In total, how much do you estimate it would cost me to get started? Im in Los angeles area, and imagine i had 1 truck w/ 2-3 guys, and business is pretty good. Also, how much did it cost for you to get started?

7.This question is like part 2 to my first question, What all do I need to be legitimate? Insurance? would I need a commercial property?

8.And how hard is it to keep track of my taxes & stuff? & do we get charged alot of tax in this business?

I am sure most of my questions are anoying, but they are the fresh ones off the top of my head, this is my first day of research. I really do appreciate everything you can do for me, please educate me as much as you can. It will not go to waste, & carma does exist:)

Thank you all very much!

God bless you!

Answer 1

I knew someone who started a maintenance/landscaping company part time during the recession in the 90s.

1. First off you'll need a business license and a business plan. It's not just simply putting a sign on your truck and clients will call. You'll need to build a hefty client list so that you'll be doing lawn and yard maintenance everyday. At about $100+ a frontyard/backyard (per hour) is a lot of money. Especially if you have more than one job a day and have a crew that an do jobs at the same time.

But the real money is in landscaping which you'll need a contractor's license and insurance. The reason for that is If you create the landscape you can also set up weekly, biweekly or monthly maintenance which in turn is consistent cash flow with minimal labor involved. You will need also passion in what you are doing. Knowing the plants and how to actually take care of them.

2. You can always place ads for employees and train them. But to say that in landscaping people don't use illegal workers is ridiculous. They work in cash.

3. As far as equipment go with one set of new first and keep them well maintained. a unsharp lawnblade or hedgetrimmer can slowdown a job. The key is to work quickly and efficiently moving from one job to another to maximize profits.

4. Don't know how much people get paid in LA. Pushing a lawnmower, digging ditches, weeding, pruning etc insn't rocket science.

5. Landscape maintenence involves aeration, mowing, fertilization, weed control, pruning, leave removal. Basically making their yards look perfect.

6. As for cost, factor in advertising, material, equipment & maintenence, gas, labor costs. Create a business plan.

7. Commercial maintence is different from residential so they'll have different requirements. Check your city business license boards

8. I don't know about the taxes stuff. Consult an accountant.

So remember make a business plan and weigh the plus' and minus'. Make sure you have enough seed money and be prepared to get out there and sling some clients. You could also purchase client lists. Some landscapers retire or quit and give their lists to other  companies for a fee. It's like selling your business. That would help you get started running and create a way to add referrals.

Answer 2

I can answer every question you ask but I would not be doing you any favor. I have owned and operated my own companies in Souther California for over 35 years. Your looking at a business that is very competitive, will cost you about $5000 in start-up capital just for the basic commercial quality equipment not to mention the truck and trailer needed to haul it around and the moment you stop working the money stops coming in. I am going to offer some advice that if you think out of the box you will thank me for the rest of your life.

There is a big difference between working hard and working smart. The construction worker works very hard but will never become finacially successful as with most labor intense professions. There are opportunities available to you with very low start-up cost that have the potential to make every dream come true. I was able to retire at a very early age due to the success of my two companies. My family and I recently moved out of the rat race to a resort community on Kentucky Lake. My time is now devoted to my family and helping people achieve the same success I was so fortunate to be able to achieve. I am always available to answer any questions you may have and to help in anyway I can.

Answer 3

1.   Don't know what you need in CA, in FL we just need the city or county license that we're doing business in.

2.  You don't want independant contractors.  First, you don't have any legal control over them.  They don't have to show up at a certain time, and they can leave in the middle of the job.  Subs are unreliable and do crappy work.  You are able to manage employees a lot easier and are able to fire and re-hire with no issues.  If you have subs, you need to constantly check their paperwork to make sure they are holding the proper licensing and insurance ( and if they aren't, you get sued)

3.   You will need a truck and trailer, a large mower, a small mower, 2 edgers, 2 line trimmers, a blower, storage space, gas cans, mix oil, hand pruners, hand trimmers, something to sharpen blades with, a backpack sprayer, garbage cans, a dump site, contractors bags, etc.  The equipment (minus truck and trailer) can run anywhere from $3,000 - $15,000 depending on what you get.

4.  I don't know what the minimum wage is out there, but I hire guys on at $9.00 (these are employees, not subs) and raise them after 30 and 90 days.  The work isn't brain surgery, but an inexperienced guy can f*ck up a job in no time at all.  So - no, you can't train them because you don't have experience.

5.  You can provide basic service - mow, edge, weedeat and blow it off - or you can provide a more in-depth service that includes irrigation check ups (turning on the system to find bad sprinklers that your guy mowed over), hedge trimming and weed control.

6.  You need to expect to have at least $15,000 if you expect to hire 2-3 guys.  Payroll will exceed $2,500 a week - and you need to have funds available until the payments start coming in.  It cost about $800 to start my business.  We already had a truck and trailer, bought a small (36") mower for $300 and bought hand equipment used.

7.  To be legit, you should have a business license, commercial auto policy, liability insurance (one-million dollar policy) and workers comp.  You should have a commercial storage space because you will get tired of having people  know where you live, especially disgruntled employees.

8.  You need to hire an accountant or learn to use quickbooks.  You also need to find a payroll company - they take out taxes and send them to the appropriate agency and they can deduct workers comp each pay period as well --- so you don't have to "save" the money to send in all at once.

Good Luck!

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Answer 4

SCORE  is a national nonprofit organization, sponsored by the Small Business Administration of the US.  The acronym stands for  Service Corps Of Retired Executives.

Retired senior executives volunteer their time & expertise to assist aspiring entrepreneurs like yourself.  They will advise on incorporation ( Sole Prop, LLC, S corp ),  and inform you about licensing, bonding, insurance, capital equipment and depreciation, employees ( 1099 or W-2 ), and many other areas.

They will also help you with promotion, marketing and sales.

You should also do a rough business plan,  visit the www.score.org website, there are templates there.  Also, do a cash flow projection.  SCORE members will help you interpret these and suggest ways to make it work out.

And, best of all, all their services are FREE.

To answer one of your questions:

The IRS has a test ( 11 tests, actually ) on how to determine if your employee is an independent contractor ( 1099 ) or regular employee ( W-2 ).  You should be able to find these test on the IRS website.

Your hire MUST satisfy all tests to be classified as 1099.  Some of the test include:  Do you tell him/her where to go, and when to go, to a job?  Do you specify the length of time he/she must take to finish the job?  Do you supply the tools, or does he/she?  

From the description of your business, it is highly unlikely that you can hire them as 1099.  If you do, you run the risk of being heavily fined by the IRS or Franchise Tax Board  ( and they will eventually audit you,  from my own experience. )   Further, you may run the risk of your license being pulled.

Anyway, do go and check out SCORE.  You will find lots of helpful material there.