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New Business-Market analysis

Discussion in 'Industry Surveys & Polls' started by Maintenance Man, Jan 29, 2011.

  1. Maintenance Man

    Maintenance Man LawnSite Member
    Posts: 16

    I have done a little lawn maintenance on the side for a long time and worked for a golf course for six years but have never took my business to the next level. I am looking at writing a business plan (which I think everyone should do). As I am doing this I am finding out getting information on market analysis is hard to find in this industry or maybe I am not looking in the right place. Anyway I am taking a pole here and many of you may be interested in the same information. Also I would like to see LawnSite do this every year to update this information for the industry.

    Questions: Lawn maintenance(could do same for landscape)

    1. How many: Customers
    Total acers covered
    Number of crews
    Number of people on a crew
    number of office staff
    size of city (est. Population)
    sales range
    net profit / gross sales (just as a percentage)
    average cost of labor
    State or region(not city)

    I think this would give us a good idea without giving acual prices where we stand. Again each area of the country will have diffiernt expenses but at least we can compair how we are doing on an average or if we need to do a better job.
  2. GreenI.A.

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

    One of he big factors in your market analysis is YOUR LOCAL MARKET. Different areas of the country vary greatly in many factors when it comes to business. There is a huge difference in pricing across the country and you really can't take use this to build a solid business plan. For example with pricing in my area I only market homes values at over $1 mill and house hold income over $150k, my prices are highly reflective of the market I work in, I wont step on a property unless my labor is billed at $100 an hour minimum plus materials which are marked up substantually aswell. Another thing is aberage cost of labot - this varies aswell you aren't going to be able to find a guy around here who speaks english that will do labor for less than 12 an hour as that is barely enough to survive off of.

    A business plan is imporant, it's one of the first things a bank will ask for if you walk in for a loan. Even a vehicle loan, I have saved money bringing mine in with me to show I have a plan of how i will make my money. Just tailor it around your market area being your service area in Nebraska. Build your business plan with multiple forecast. Do one with crew that you plan to start out with, and depict your goals for marketting and building the business, including your budget for maketting and research what you can get for marketting for it, and proposed out come of the marketting campaigns. Are you going to invest 2k in marketting each year and expect to build your client base 30 accounts a yr? Figure your crews around those figures you get, that will give you an idea of future forecast for additional crews, materials cost, and projected incomes
  3. Maintenance Man

    Maintenance Man LawnSite Member
    Posts: 16

    I appreciate your response and your ideas presented and I don't want to get into a lengthy debate. I said at the end of the question that this could be posted by state or region such as (Nebraska in general or southeast Nebraska or by county) this would give relevance to the number for each persons area. Also this is not a question about price but more about profit margins wich are not always based on how wealth your clientel are. Another question this could answer is market share. How many people per cap, have their lawns mowed or some service done. How do we know what are market share is if we don't have any idea of how big the market is. Where do I go to get this information if not from the guys doing the work. Without giving away your trade secrets how about sharing meaningful information about business. (I am not it Nebraska anymore)
    Last edited: Jan 29, 2011
  4. GreenI.A.

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

    sorry about that i missed you line there at the end. If I had seen that then I wouldn't of gone off on that tangent

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