Does anyone have experience with landscaping businesses?

June 08, 2023

by a searcher from Georgetown University in New York, NY, USA

I'm looking at a landscaping business in MA, and wanted to see if anyone has had experience with these types of businesses. Curious about some of the potential pitfalls and/or important questions to ask. Would be great to chat! Thanks in advance.

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Reply by a professional
from Bentley College in Miami, FL, USA

Here are some of the questions to think about:

Client Base: Who are the company's customers? Is the business overly reliant on a small number of large clients, or does it have a broad and diverse customer base? How much repeat business does the company get? What is the churn rate of customers? Maintenance contracts vs. new construction. Reputation: What is the company's reputation in the community? Look at online reviews and ask around. A poor reputation can be difficult to overcome. Equipment Condition: In the landscaping business, equipment is a significant part of the operation. What state are the tools, machinery, and vehicles in? Will they need to be replaced soon, or are they in good working order? Staffing: Who are the employees? Will they stay on after the sale, or will you need to hire new staff? What are their qualifications and experience levels? How easy is it to hire if you need to? Pricing Strategy: How does the company price its services? Are these prices competitive with other local landscaping businesses? Any easy wins in adjusting the pricing?

Reply by a searcher
from Northwestern University in Washington, DC, USA

Thanks for tagging me ^redacted‌! A couple question I would think about is 1) how are they finding/retaining labor? In my experience this can be one of the challenging aspects of a business like this so want to see how the seller has dealt with this previously. 2) I would get a feel for how much, if any, of their work is construction related. This can be a potentially lucrative part of the business, but requires more specialization, licensing, etc. so need to figure out if that will apply to your business and if you have the necessary credentials (or can keep them in the business) to operate that part of company.

Good luck!

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