Realised you’re not cut out for your job – but you are for lawns? Look no further.
Lawn mowing businesses are growing in popularity. It might be because there is a sizeable target market – as plenty of grass lawns attached to residential homes and commercial properties require regular maintenance. Another convincing reason in starting up a lawn mowing business is that you are your own boss.
However, being your own boss can be overwhelming. Not only are you required to provide excellent service to customers but also to carry out business administration tasks like generating invoices and submitting tax reports. A big benefit is that you don’t have to face this struggle alone. LawPath’s expert business lawyers can help make sense of this confusing process and give you guidance to secure success.
This guide will cover how to start a lawn mowing business from scratch and buying a lawn mowing franchise.
How to start a lawn mowing business
Starting from scratch
Step 1: The business structure
Consider what business structure you would like your lawn mowing business to have.
This decision will affect your tax status, liability limitations and reporting obligations of the business.
- A sole trader is an appropriate choice if you intend to be the only decision maker. There are no annual fees or registration fees to pay. However, personal assets will secure any loan a sole trader takes out. In addition, operating income from the lawn mowing business will be considered part of your taxable income.
- Partnerships work well if you would prefer to run the business alongside someone else. Much like a sole trader, all partners will have unlimited liability, however this comes at the benefit of having access to a larger pool of capital.
- If these business structures sound too small for your lawn mowing visions, then consider establishing a company. Have a read of our comprehensive guide to starting up a company.
Step 2: Register for an ABN
Step 3: Equipment
The next step involves thinking about how you will deliver your service logistically. A lawn mowing business involves expensive equipment such as a lawn mower, an edger, a weed trimmer and a leaf blower. Such heavy equipment also needs to be transported since the business needs to be fully mobile. In this case, a truck might be the transportation of choice.
The purchase of all this is well outside the financial capacity of many new business owners. Instead, a hire purchase agreement would allow owners to hire the equipment for a set period of time through installment payments. The agreement gives you the option to buy equipment at its cessation. It’s definitely worth looking into hire purchase agreements.
Step 4: Staffing
Hiring staff to assist with the lawn mowing services is a great idea to expand your business. Since you will be the employer, an employment agreement will have to be written to set out the provision of their employment. It’s important you issue an appropriate contract to limit your liability.
Buying a franchise
Starting a business from scratch can be a lengthy process. Alternatively, you may choose to buy a franchise of an existing lawn mowing business. An example of this is Jim’s Mowing. This will save time on establishing your business image and reputation. However this means that you will be required to report on performance, potentially be required to meet performance targets and have additional duties owed to your franchisor. Read more on what obligations franchisees are subject in our franchisee guide.
As customers can often cut their own grass, a lawn mowing business will have to show they are experts in the field. Remember – practice makes perfect! However, entrepreneurs cannot forget business administration requirements. Extra caution must be taken to build your lawn mowing business on strong foundations.
To put your mind at ease, LawPath can connect you with experienced business lawyers.
The grass is greener on LawPath’s side. Contact a LawPath consultant on 1800LAWPATH to learn more about setting up your lawn mowing business, customising legal documents and obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.