Expanding To Larger City

Discussion in 'Business Operations' started by Utah Lawn Care, Oct 17, 2017.

  1. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Messages: 1,548

    I would appreciate any input helping me see my options. This would be a life changing decision for my family. I am considering expanding to a city 50 miles away that has 3.3 times the population and a 2ish month longer mowing season while still running my business at my current location. We currently earn an above average income, but we have about maxed out our growth potential in our service area of 40k people.

    What options do I have to minimize driving there every single day to do quotes? What verbiage should I use on the estimate to give people a good sense of the price, without being exact so I don't have to be there? I have mowing and fertilization & weed control down well if it's on google, but bush trimming, weeding, and landscape weed spraying are the services I am unsure about.

    What options do you see for me to get going initially? I could offer a proven employee the job in the new location to start at 0 clients and take care of all the labor down there this first year. This would involve him moving, renting a facility for the equipment etc.
    Another option is hiring someone new that already lives there, working with him till he is trained well, then send him off on his own and let him work solo under my supervision. I figure I would hit 80-160 clients the first year which might involve needing to hire a second guy.

    What headaches do you see me potentially having? What options do you see for the above scenarios?
     
  2. grass man 11

    grass man 11 LawnSite Member
    Messages: 248

    My
    Only question is , are you stable and profitable at your first location. If so, then I would build based on the same ideas, and concepts
     
  3. BigJlittleC

    BigJlittleC LawnSite Bronze Member
    from Chicago
    Messages: 1,616

    Your going to have to be there to get it going. I would promote from within before hiring a greenhorn. If you have the right guy willing to move it could make a world of difference. Set up estimates on Saturday-Monday and head down. Sell, sell, sell and fill your guys route!
     
  4. Charles

    Charles Moderator Staff Member
    Messages: 8,758

    I don't see how you could get 80 to 160 clients your first year unless you lowballed the area. Bigger area usually means more LCOs to compete with
     
  5. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Messages: 1,548

    I should take home 90k from distributions and payroll from my current location. That doesn't include insurance costs. I project that number to increase by roughly 10k/year for the next 3 years.
     
  6. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Messages: 1,548

    Thank you. I am sure especially during the first couple months of busy season I would have to be there at least every other day to do estimates.
     
  7. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Messages: 1,548

    Thanks Charles. I have taken that into consideration. I have looked at the online competition and it's not much better than where I live which I dominate. I would need to immediately get on top of SEO for the new city, get a good pay per click campaign going etc. For the last 3 years in my current city I have gained 55 clients per year. The area I will be expanding to has 3.3 times the population. I am quite confident I can meet those numbers. If I didn't it wouldn't be the end of the world.
     
    Charles likes this.
  8. BigJlittleC

    BigJlittleC LawnSite Bronze Member
    from Chicago
    Messages: 1,616

    50 miles is really not that bad of a commute. I used to do it daily when I had a 9-5. It's still close enough you can do a same day estimate. If your not getting the leads you could even just send a crew there one or two days a week till it's established.
     
    Utah Lawn Care likes this.
  9. grass man 11

    grass man 11 LawnSite Member
    Messages: 248

    Without any problem, I could as long as the demographics supported it, assuming we are talking 100k plus persons that all have disposable income.
     
  10. Charles

    Charles Moderator Staff Member
    Messages: 8,758

    I put an ad in recently and all I got were one time mows calls. You could not pick up 80 to 160 customers here your first year. No way. No how. Many lawns but lots of LCOs that do a decent job
     

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