The Art of Diversifying Your Lawn Care Clientele

The Importance of Customer Diversity in Lawn Care

In the realm of lawn care, having a varied mix of clients is not just a strategy—it's a safeguard. Diversifying your customer base can help mitigate the impact of economic downturns and seasonal changes that affect different market segments in unique ways.

Many lawn care businesses tend to focus on a specific type of customer, such as homeowners, apartment complexes, office parks, or government contracts. While specializing can have its advantages, over-reliance on one segment can leave a business vulnerable. For instance, if a lawn care company primarily services a single large client and that client is lost due to unforeseen circumstances, the company could face significant financial hardship.

A Cautionary Tale from the Printing Industry

To illustrate the risks of customer concentration, consider the story of a printing company run by a father with his two sons. This company relied on a local bank for 60% of its business. Should the bank merge or change its printing needs, the company could be at risk of closing. Despite this, the company has not pursued additional accounts aggressively, a strategy that is difficult to comprehend.

Building a Strong Residential Base

For lawn care businesses, it is wise to establish a solid base of residential accounts. A good target is to maintain at least 30-40 residential clients. These accounts typically provide steady weekly income, which is beneficial since commercial clients often have payment terms extending 30-60 days after invoicing.

Once a strong residential base is in place, lawn care businesses can then look to acquire commercial accounts. For those starting with a smaller number of lawns, it's advisable to seek new business near existing profitable accounts to minimize drive time and maximize efficiency.

Breaking into Commercial Accounts

Gaining commercial accounts without commercial references can be challenging, but it's not impossible. Here are some tips for those looking to expand their business into the commercial sector:

1. Provide strong references from existing residential customers.
2. Ensure your pricing is competitive.
3. Sell yourself and your business—people often choose services based on personal connections.

When considering different types of accounts, keep these factors in mind:

• The potential for growth within the account.
• Whether the client typically seeks the lowest bid, which is common with government accounts.
• The possibility of maintaining a long-term business relationship.
• Your ability to meet or exceed the customer's expectations.

Diversification: The Key to Longevity

The adage "never put all your eggs in one basket" holds true in the lawn care business. Diversification is crucial for maintaining a thriving enterprise. By spreading out risk across various customer types, lawn care businesses can ensure a more stable and resilient operation.

Interesting Stats and Data

While specific statistics on customer diversification in the lawn care industry are scarce, the broader landscape industry offers some insights. According to the National Association of Landscape Professionals, the industry has an annual growth rate of 2.5% and generates $99 billion in revenue each year. This growth suggests ample opportunities for lawn care businesses to expand and diversify their customer bases.

Furthermore, a survey by Lawn & Landscape magazine found that 70% of lawn care professionals are optimistic about revenue growth, indicating a positive outlook for the industry. This optimism could be linked to strategic diversification efforts by these professionals.

Best of luck to all lawn care business owners in achieving a balanced and prosperous customer portfolio.