In the competitive world of landscaping and lawn care, building a profitable and sustainable business requires a multifaceted approach. From balancing client needs to developing an effective team and maintaining company profitability, lawn care entrepreneurs must navigate a complex landscape to achieve long-term success.
Understanding the “three-legged stool” approach to success is one key to building a thriving business, according to Aaron Suttenfield, the founder of RDS Lawn Care in Belmont, N.C., and co-founder of The Lawn Care CEO with 28 years of industry experience. This concept represents the delicate balance between client, team and company needs. Each leg of the stool is crucial, Suttenfield says. If one is neglected, the entire structure becomes unstable, potentially leading to business failure.
From the client perspective, you need to offer an affordable, easy-to-understand service that the market is willing to pay for. This means carefully analyzing pricing, product offerings and the competitive landscape to ensure your business remains competitive and attractive to potential customers.
To build a solid team, prioritize creating full-time, career-oriented jobs with benefits such as health care, retirement plans and paid time off. Suttenfield currently spends 1.26 percent of revenue on health care for his employees. Investing in your employees can attract and retain top talent, a crucial factor for long-term success.
Finally, for the company itself, Suttenfield underscores the need to maintain profitability, with a target net margin of 20-25 percent. He notes that labor should be below 15 percent of revenue and materials around 20-25 percent. Knowing the numbers is vital to building a profitable lawn care business. Use the QR code with this story to download a cost-per-unit calculator and a rate matrix template.
Data-driven programs
According to Suttenfield, developing an effective fertilization program is another key to building a profitable lawn fertilization business. Your reputation and referrals are your most critical lead sources, so using ineffective or subpar materials or failing to develop a comprehensive program will hurt your business in the long run.
Suttenfield partnered with Cort Hall, an agronomic expert from Harrell’s, to develop a data-driven approach to fertilization for his company. This approach not only ensures the effectiveness of your program but also gives you a sense of control and security.
By utilizing a tool from Harrell’s called PolyGraph, Hall can predict the nitrogen release patterns of different fertilizer products, allowing for the creation of a consistent, predictable program. PolyGraph enables Suttenfield’s company to optimize its fertilization program for maximum effectiveness and efficiency. This leads to better resource management and reliable results for clients.
The slow-release, granular approach offered by Polyon controlled-release fertilizer also has allowed RDS Lawn Care to reduce overall nitrogen usage while maintaining lush, green lawns — an essential factor for generating referrals.
Suttenfield also highlights the value of a robust customer relationship management (CRM) system like Spraye. This system streamlines estimating, scheduling and client communication, giving you confidence in your operations.
Cultivate the right relationships
Finally, Suttenfield says building solid partnerships and leveraging technology to drive efficiency and profitability are essential. His relationship with Hall and Harrell’s, for example, provides access to agronomic expertise and a collaborative approach to program development. This allows Suttenfield to focus on growing his business and reassures him that his company’s agronomic program is in good hands.
By knowing your numbers, learning how to use the cost-per-unit calculator and rate matrix tool, abiding by the three-legged stool principle, building a relationship with a Harrell’s rep (who may become your agronomist) and tying it all together with a comprehensive CRM such as Spraye, you will be well on your way to building a profitable lawn care business.
