How to Buy a Landscape Business

Summer at Bibler Gardens, Kalispell, Montana

Few business ventures offer this healthy combination of benefits: aerobic exercise, plenty of sun and the pleasure of seeing lawns, shrubs and flowers bloom under your expert care. You'll need patience, a green thumb and a penchant for hard work to make a go of a landscaping business, but the creative return on your investment is worth it. You will also need some seed money, a few pieces of equipment to get you started and a keen understanding of gardening, landscaping and lawn care. Here a few tips on purchasing -- and growing -- a landscaping business.

Instructions

1. Shop for an existing landscaping business in your target area. Find viable options by searching under "Businesses for sale" in newspapers, community bulletin boards, on the Internet and other logical locations. Word of mouth is a great way to get a tip on a business for sale -- given the local nature of the business, you might even find a source on the bulletin board of your local supermarket or by contacting local service organizations or the Chamber of Commerce. Alternately, try running your own ad under "Seeking Business Opportunities."

2. Determine exactly how much you are willing to pay for a turn-key operation. You can accomplish this by figuring out what it would cost if you were to start from scratch, then add in the most complex piece of the puzzle: a customer list. Ask professionals to help you make a list of the bare bones items you will need to launch so you can go into negotiations and bargain from a position of strength.

3. Take out a loan if you don't have the investment capital on hand. You need enough to cover the maximum amount of cash you're willing to offer for the business. Obvious sources are business loans and lines of credit from banks and credit unions, but you may also wish to look into a loan that uses your home as collateral. You don't want to directly borrow from friends or family, but, if you are confident in the potential of the business, you can invite them to become investors or silent partners so that there is some return on any monies they may give you.

4. Once you find a viable sales opportunity, negotiate. Seek the most comprehensive package the seller is willing to give you. This should include commercial lawn cutting machine(s), grass edger(s) and trimmer(s), roto-tiller(s), a standard compliment of lawn and garden care tools and existing inventory of mulch, fertilizers, plant and/or grass seed.

5. Tackle the business end of the transaction. Ask if the sale price includes being trained on business systems the landscaper uses to track, service and bill customers. Find out if software is used and if the answer is yes, try to get that, too. Importantly, seek guarantees that the current owner will provide a current list of customers as part of the agreement. Ask for assurances that the seller is willing to sign a non-compete contract that can be legally enforced for at least five years. This prevents them from opening a new business in close proximity to yours for five years - enough time to get your business established.

6. Compare the landscape businesses on your short list before you select one. Call a few customers to see how they feel about their current services and vet finalists with the Better Business Bureau and the Chamber of Commerce. Once you've isolated what seems to be the best deal for you, make certain there are no judgments, liens or credit issues associated with the seller. Hire an attorney to scour the sales contract before you sign it.

7. Commit yourself to exceeding customer expectations when you take over the business. Hire staff to assist with the most labor-intensive work. "Borrow" great marketing ideas other companies have tried to reward customers for using your landscaping service over others. Over time, your success at building the business will mean less time on old lawns and more time on new ones, at which time you'll prove to anyone who might have doubted your ability to make a good business great that the grass really is greener when it comes to the lawns of your customers.

Tips & Warnings

• If you're looking for middle ground -- a service that fits between buying a turnkey operation and starting from scratch -- you may be able to find what you seek by considering a franchise.

Resources

• Find landscape business buying opportunities here
• This site also matches up landscaping company buyers and sellers
• Consider a landscaping business franchise