Multiple Lawn Care Businesses in the Same Service Area?

Discussion in 'Business Operations' started by newguy123, Nov 17, 2013.

  1. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,095

    Do any of you own/run several, or more than one lawn care company/landscape company in the save service area(s)?

    If so why? Do you target different customers with each business???
     
  2. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,095

    Anyone care to help me out???
     
  3. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    I know of a guy that has two separate companies, one is a subsidiary of the other. The parent company only does commercial work, while the subsidiary only does residential. He started in only commercial and marketed himself as specializing in it. He has separate trucks, equipment, employees for each company. It works for him, does about 2.5mill commercial and 1.5 mil residential. Most people do not know that he owns both.
     
  4. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,468

    Not sure the benefit of doing this?? Keeping everything under one roof would seem easier from a book work stand point.

    A good business owner could keep installs, irrigation, commercial, residential separate in hop the books to see how the profits and expenses were.

    Maybe there is a tax reason for doing it separate. Does he get an advantage by keeping his employee numbers down? Able to take more deductions and appreciation?
     
  5. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    The biggest reason he does it is for marketing. For most companies there is a whole separate approach for high end commercial vs high end residential maintenance.
    Posted via Mobile Device
     
  6. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,393

    Have you nailed the execution of your original company and are now looking to branch out and hit a new market segment, newguy? Or is this a way to compensate for something you feel it's lacking?

    (if I recall correctly, you brought this same topic up a while back, but don't recall what your rationale/reasoning was. i seem to think it had something to do with both high and low end branding)
     
  7. lcchief

    lcchief LawnSite Member
    Posts: 7

    I have be ask by a few if I was part one guy . I told them I wasn't connected with him . I got the jobs . The guy they was asking about has 5 company he has purchase and kept the name and same people working for them.
    Posted via Mobile Device
     
  8. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,938

    I'd be curious to see if you could run two companies like that for residential (low to mid, and then high end) but be totally transparent about it. You have one set of inbound sales reps the prospect calls and they're everyone's "lawncare concierge", directing them to the appropriate sales rep for their level of service. "You're right, it sounds like our White Glove service isn't for you, let me transfer you to John with our It's Shorter Ain't It? division."
     
  9. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,095

    I like the thinking gentleman. I'll post my thoughts but I'd like more input before I do.

    Greenl. A.; it sounds like it worked well for the businessman you spoke about. Do you have any more information on him; how the business was ran, etc.?

    Papercutter, what you mentioned is one possible mode of attack I considered.
     
  10. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    I do as we have 2 separate target markets. It was a pain at first when the clients cross over the 2 co's and write checks to whoever they want but now that it's been 2 for a while we have it under control.
    Posted via Mobile Device
     

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