How to Start a Lawn Care Business

Starting a lawn care business can be an exciting and rewarding business venture for entrepreneurs who are passionate about landscaping and helping customers maintain beautiful, healthy lawns.

Having said that, you should keep in mind that launching a successful lawn care business requires careful planning, significant investment, and a wide range of skills.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own lawn care business, from conducting market research and securing funding to obtaining licenses, setting up operations, and attracting customers.

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Industry Overview

The lawn care and landscaping industry in the U.S. is a robust sector, with a market size of $153 billion as of 2024, according to the IBIS World Landscaping Services Industry Report.

The industry currently supports over 661,000 businesses and employs more than 1 million people across various roles — including groundskeeping, lawn service, and tree trimming. Companies in this space have also seen steady growth, with the 2023 Financial Benchmark Study reporting an average increase of 15.7%.

Despite challenges like high fuel prices and labor shortages, the demand for landscaping services remains strong, primarily driven by nonresidential construction and a resilient residential housing market.

Startup Costs

If you’re considering whether a lawn care business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own lawn care business?

Well, it depends. The initial investment for a lawn care business varies widely based on factors such as your business’s size, the type of equipment it needs, and the specialty of the services it offers:

• Equipment expenses will make up a large portion of your lawn care business’s initial startup costs. Typically, you can expect to spend anywhere from $1,000 to $4,000 — which should include a mower, trimmer, leaf blower, hand tools, and a gasoline can. It’s important to note that this figure can vary greatly depending on whether you opt for entry-level or commercial-grade equipment; as an example, you can spend well over $1,000 on a commercial mower alone.
• Marketing and promotion is another important area to mention when discussing your startup costs. Depending on the strategies you decide to invest in, typical costs for a new business can range up to nearly $2,000 initially — covering expenses such as flyers, business cards, and setting up a website. Remember that these costs can vary greatly depending on whether you choose more basic, DIY methods or hire professional services for branding and digital marketing efforts.
• Insurance and licensing will also make up a large portion of your upfront costs as a lawn care business. You shouldn’t be surprised if you need to spend anywhere between $400 and $2,000 on these two, which should be enough to cover a business license (between $50 and $200), special permits like a pesticide application license ($50 to $300), and zoning permits if you operate from home ($100 to $500). Additionally, you’ll need general liability insurance, commercial auto insurance, and possibly worker’s compensation insurance if you hire employees.

Ongoing Costs

Once your lawn care business is up and running, there will be several ongoing expenses to keep your operation running smoothly. A key part of managing your business effectively is understanding and budgeting for the following recurring costs:

• Labor costs are one of the most significant ongoing expenses, especially if you hire assistants. Wages for labor typically range from minimum wage up to $15 per hour, depending on your location and the experience of the worker. Additionally, you’ll need to account for employee taxes, which range from 7.65% to 15% of the wages paid, varying by state.
• Truck and equipment maintenance are also important to budget for, as reliable tools are essential to your daily operations. Expect to pay $299 per month for a truck lease, with an additional $100 per month for truck insurance. Fuel costs will likely amount to $200 per month, and regular equipment maintenance can cost around $50 per month to keep everything in top shape.
• General operational expenses include basic needs such as a telephone and internet connection (typically between $50 to $100 per month), as well as marketing efforts like regularly printing promotional flyers and business cards (up to around $75 per month). Insurance is another big one to pay attention to, with liability coverage generally ranging from $50 to $200 per month, depending on your coverage levels and business size.

By keeping track of these ongoing costs, you can better manage your budget and ensure your lawn care business remains profitable and sustainable over time.

Earning Potential

The earning potential of a lawn care business largely depends on the type of customers you serve and the services you offer. Residential customers may provide consistent work, but long-term customers who sign up for regular maintenance with automatic payments are the most reliable, as they allow you to plan your budget well in advance.

Local businesses, such as office buildings, schools, and hospitals, are also excellent clients, as they tend to require ongoing service and are willing to pay more than residential customers. However, securing contracts with larger operations can be challenging due to competition and the fact that many larger organizations maintain their own in-house crews.

A good way to generate consistent revenue as a lawn care business is by charging a monthly service fee for basic lawn maintenance, with additional income coming from special services like fertilization, sod installation, and winter preparation. You can typically charge residential customers around $25 per month for basic lawn care that takes under two hours per visit.

However, it’s important to note that competition is steep, particularly from undocumented workers who offer lower prices due to reduced labor costs. By expanding your range of services and taking on both residential and commercial clients, your lawn care business can grow and become more profitable over time.

8 Steps to Starting a Lawn Care Business

In order to start a lawn care business, you’ll need to complete the following steps:

1. Planning Your Lawn Care Business
2. Registering Your Business
3. Setting Up Your Taxes
4. Securing Funding (If Applicable)
5. Obtaining all Necessary Equipment
6. Getting all Applicable Licenses and Permits
7. Obtaining Business Insurance
8. Creating Your Business Website

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Lawn Care Business

Before diving into your lawn care business, you’ll need to spend some time conducting thorough market research.

This can involve analyzing the local market to understand the demand for lawn care services, identifying potential competitors, and assessing the target demographic.

This will help you evaluate the financial viability of your project — including projected revenues and expenses — as well as determine the best location for your business.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

Your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our Lawn Care Business Name Generator tool.

If you do have a name in mind, we recommend researching the following to confirm it’s available:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a lawn care business.one else does.

Develop a Marketing Strategy

Effective marketing is key to growing your customer base. Below, we’ve broken down a number of key strategies to look into when marketing a lawn care business:

• Local Listings: Register your business on Google My Business and local directories to improve visibility in online searches, particularly for local customers.
• Social Media: Take advantage of platforms like Facebook and Instagram to post before-and-after photos of your work, interact with clients, and spread awareness about your services.
• Truck Signage: Place promotional signs and contact information on the trucks that you use for your lawn care business — when not in use, make sure to park your vehicle in a highly visible location with lots of traffic to increase exposure.
• Flyers & Door-to-Door Marketing: Handing out discount flyers to nearby residences and businesses can be a great way to promote your services, particularly if you include eye-catching offers that entice potential customers to give you a try.
• Lawn Signage: For every lawn you maintain, place a small promotional sign with your logo and contact details. As long as the owner of the property doesn’t mind, this simple tactic can be an effective way to attract neighbors and passersby who might be looking for similar services.

Bear in mind that a well-rounded marketing strategy won’t rely too heavily on any one of the efforts outlined above in particular — make sure to use a mix in order to build your customer base and increase visibility within your community.

Step 2: Register Your Business

One crucial aspect that cannot be overlooked when starting your lawn care business is the importance of establishing a solid business foundation. 

While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs — especially when it comes to lawn care businesses (with potential liabilities and debt).

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your lawn care business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

Step 3: Set Up Your Taxes

The next step you’ll need to take is to register your business for taxes. To this, you’ll need to obtain an Employer Identification Number (EIN), which you can think of as your business’s Social Security Number.

If you form your LLC through a specialized LLC formation service, this will likely be already handled for you in exchange for a small additional fee.

Even so, it’s important to make sure that you fully understand your business’s tax obligations; since these can depend on your location, it’s a bit difficult to accurately break down exactly which taxes you’ll be subject to.

Nevertheless, most businesses will typically be subject to income tax, sales tax, and employment taxes at the federal level. Lawn care businesses in particular will also likely be faced with payroll taxes (if they have employees) as well as some form of commercial motor vehicle tax within their state. Depending on your location, your business may also be required to pay local city or county taxes.

Due to the complex nature of business taxes, we always advise our readers to seek the help of a professional accountant or business attorney for this step.

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Step 4: Secure Funding (If Applicable)

Securing funding is crucial for lawn care businesses because it provides the necessary capital to cover initial startup expenses and ensure smooth operations during the early stages of your business.

Whether you choose a bank loan, SBA loan, private investors, or crowdfunding, opting for this funding ensures you have the resources needed to invest in high-quality equipment, attract clients through effective marketing, and can be a solid investment in your business’s long-term success.

Ultimately, the type of financing you choose should align with your specific financial situation and business plan, allowing you to manage cash flow effectively as your business grows.

Step 5: Obtain All Required Equipment

With financing sorted, it’s time to obtain all the equipment you’ll need in order to offer lawn care services, which includes:

• Basic Lawn Care Tools: When just starting out, these are the essential tools you’ll need to invest in to be able to offer basic services. These include a lawn mower, trimmer, edger, leaf blower, and basic hand tools (e.g., a shovel, hand pruner, and rake).
• Transportation: Investing in a reliable truck is a good idea when starting out, especially one with a large bed for transporting all your tools and equipment. Later down the line if you decide to expand operations, you may want to consider a trailer as well — this will allow you to more easily bring your larger tools with you to jobs.
• Safety Equipment: If you don’t already have it, basic safety equipment such as goggles, gloves, ear protection, face masks, boots and a First Aid Kit is an absolute must for this job.
• Optional Extras: As business grows and you decide to offer more advanced services, you may need to invest in more specialized tools like commercial mowers, aerators, hedge trimmers, seed/fertilizer spreaders, mulchers, or snow removal equipment (for year-round operations).

Make sure to look after your tools and provide them with regular care and maintenance. This will ensure that they last longer and perform better, which is key to providing excellent service to your customers.

Step 6: Secure All Necessary Permits and Licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Landscaping Contractor’s License

In most states, it’s necessary to obtain some form of landscaping license in order to be able to offer these types of services. While there are a few exceptions to this rule — including in Arizona, Colorado, and Delaware (among others) — this is generally true in most jurisdictions in the US.

You can read about the specific licensing requirements in your state in greater detail by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Business Operation Licenses

At a state level, your business may be required to obtain a business license in order to operate — though this will depend on your location.

This process generally involves submitting an application, paying a fee, and meeting specific state requirements. However, some states also require you to demonstrate good moral character or provide proof of insurance as part of the licensing process.

Environmental Compliance Permits

If your lawn care business will offer any services that could impact the environment, you will likely need to secure some sort of environmental compliance permits.

Some of the most common examples of activities you’ll likely need this sort of permit to engage in include:

• Pesticide and herbicide application
• Fertilization
• Irrigation System Installation
• Tree removals
• Wetland or Protected Area Work

The permits governing these activities ensure that your operations comply with state and federal environmental regulations and do not harm local ecosystems.

The Environmental Protection Agency (EPA) provides guidelines and oversees the issuance of these permits on a federal level, though it’s important to note that some states can also impose their own regulations.

Signage Permits

A signage permit is a local government approval businesses often need to be able to legally display advertisements, promotional signs, and business branding in certain locations.

If you want to engage in any of the marketing tactics we outlined above (see Step 1), you’ll likely need a signage permit for any of the following:

• Vehicle Signage: Advertising on work trucks or trailers, including magnetic signs, wraps, or painted logos.
• Yard Signs: Temporary promotional signs placed in clients’ yards to advertise your services to neighbors and passersby.
• Business Location Signs: If you have a physical office or storage facility, you may need a permit to place a sign on the property advertising your business.

Each local government may have its own rules on where and how signage can be displayed, so it’s important to ensure compliance to avoid disruptions in your marketing efforts.

Step 7: Get Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance. This is important in order to protect your business’s assets from potential financial losses.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most lawn care businesses should consider.

We’ve briefly outlined these below.

General Liability Insurance

General liability insurance is a foundational coverage that’s essential for lawn care businesses because it protects against claims of bodily injury, property damage, and personal injury that may be caused during landscaping work.

An example of this might be if one of your workers accidentally damages a client’s property or a passerby is injured on a job site — in either of these cases, general liability insurance would cover the costs.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Property Insurance

Property insurance is essential for safeguarding your lawn care business’s physical assets, such as its mowers, trimmers, and blowers.

The median cost for business property insurance is approximately $63 per month for plans with a $1,000 deductible and a $60,000 policy limit.

Having said that, rates can vary significantly based on factors such as your business’s location, risk profile, and the value of the property in question.

Commercial Auto Insurance

Commercial auto insurance is another must for most landscaping businesses, given that it covers damages, liability, and other costs associated with accidents in the vehicle you’ll use for jobs.

This type of insurance is essential for businesses that rely on vehicles and is more comprehensive than personal auto insurance, as it is tailored to commercial-related use.

Without commercial auto insurance, an accident could lead to significant out-of-pocket expenses for repairs, medical bills, or legal fees, which can be detrimental to your small business.

While specific figures can vary greatly depending on the number of vehicles your business owns, the driving history of your employees, and your coverage limit, it will typically cost small businesses between $100 and $500 per month.

Workers’ Compensation Insurance

If your lawn care business will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.

This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.

The average cost of workers’ compensation insurance ranges between $45 per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.

Step 8: Create Your Business Website

The final essential step to successfully launching your lawn care business is to create an appealing and professional-looking website for it.

Having a website is non-negotiable for any legitimate business — regardless of its size or industry. For your business, this website serves as your online storefront and gives potential customers a place to learn more about your services, view past projects, and easily contact you for quotes or consultations.

While you could argue that platforms like Facebook or LinkedIn are useful for this (which is true), these platforms will never be able to substitute a dedicated business website that you fully own and control.

Additionally, due to advancements in web technology, you’re no longer dependent on hiring a web developer or designer to create a professional-looking website. User-friendly website builder tools — such as WordPress, WIX, Shopify, or Squarespace — have simplified the process significantly.

These platforms offer drag-and-drop functionality, customizable templates, and step-by-step guidance, making it easy for anyone to set up a basic website without any coding knowledge.

When designing a website for your landscaping business, make sure to include all of the following:

• Home Page: Introduce your business, outline your core services, and include a strong call to action for visitors to contact you.
• Services Page: Provide details on the specific landscaping and lawn care services you offer, such as lawn maintenance, tree trimming, irrigation system installation, and seasonal work like snow removal.
• Portfolio or Gallery: Showcase your completed projects with before-and-after photos to give potential clients a sense of the quality of your work.
• Testimonials or Reviews: Display reviews from satisfied customers to build trust and encourage new clients to choose your business.
• Contact Information: Make it easy for visitors to get in touch with you through a contact form, phone number, or email address.
• About Us: Share the story behind your business, your mission, and what sets you apart from competitors.

Ready to Get Started?

How to Start a Lawn Care Business FAQs

Who is the target market?

Long-term customers who are willing to sign up for ongoing automatic payments are typically best as they allow you to plan your budget far in advance. Local businesses can also be excellent customers, as they typically are willing to pay more for your services than residential customers and are more likely to request regular service.

Large-scale clients with lots of lawns are another excellent customer, such as hospitals, office buildings, shopping malls, and schools. However, many will already have their own lawn maintenance crews, which can make landing a big contract like that quite difficult.

How much can you charge customers?

There are many undocumented workers in the lawn care business who are almost impossible to compete with if you want to generate significant profit. These companies are usually undocumented, pay workers less than minimum wage, have no insurance, and do not pay taxes.

Legitimate companies charge at least 150% of the minimum wage for the amount of time each worker is present on a customer’s site. So for example, if the minimum wage is $10 per hour, your business would typically charge a rate of $15 per hour.

A set charge per month is usually around $25 for a simple residential lawn that takes under two hours to cut, while a commercial business might pay more because of the time needed to cut the lawn.

How much profit can a lawn care business make?

Lawn care alone, on a small scale, is not a highly profitable business as competition is severe due to the low cost of entry and lack of sophisticated skills needed for this job.

Typical lawn care business owners — who work alone and are successful — need to work very hard to make $30,000 to $50,000 per year. To make more than this, a business owner will need to run more than a single crew and offer additional services to existing customers.

How can you make your business more profitable?

Besides cutting and maintaining lawns, a lawn service business may offer additional services such as snow removal (in colder climate areas) and landscaping.

Landscaping is a slightly different — yet related — business that includes the installation of pavers, walkways, sidewalks, and retaining walls. It also includes installing water features (ponds, fountains, and waterfalls) and planting trees, shrubs, and flowers.