In the world of business ownership, diversification is more than just a way to stay competitive – it’s a growth strategy. For seasoned industry professionals and entrepreneurs looking to expand their portfolios or add complementary services, investing in a lawn care company may be worth considering.
As the global landscaping and lawn care market is projected to exceed $700 billion in the next decade, the industry is gaining attention not just for its potential, but its opportunities to integrate existing business operations. From cross-branding opportunities to operational flexibility, lawn care businesses can offer numerous benefits for long-term portfolio growth.
Portfolio Expansion & Low Entry Barrier
Core lawn care services can be expanded into a variety of upsell opportunities.
First and foremost, lawn care businesses may be attractive investment options because of their relatively low startup costs. Compared to other home services, many lawn care operations do not require a brick-and-mortar location and have modest equipment needs. This may enable business owners to launch and begin taking on clients quicker without overextending financially.
Beyond initial investment, the lawn care industry is driven by customers who need regular lawn maintenance. Core lawn care services can be expanded into a variety of upsell opportunities, including fertilization, aeration, weed and pest control, seasonal cleanup, and more. By expanding these offerings, business owners have the option to scale through more services or introduce higher-ticket prices. As a result, this diversification can also impact potential revenue and customer convenience.
For entrepreneurs experienced in operations or managing multiple companies, lawn care can also present a strong foundation for growth. Franchise models, in particular, can provide a structured framework for scalability. Franchise owners can potentially leverage established brand recognition, operational support, and marketing guidelines to help grow their businesses steadily and efficiently.
Cross-Branding, Cross-Selling & Customer Retention
Cross-selling…not only helps extend customer lifetime value but can increase brand loyalty.
Another compelling reason to integrate a lawn care business into an existing portfolio is its ability to complement other service-based industries. Whether an entrepreneur owns a landscaping design company, pool maintenance business, or home renovation service, lawn care can be a logical extension that may enhance overall value to clients.
For example, an architectural landscaping business that already has access to a client’s outdoor space may find value in offering lawn maintenance as an additional service. As a result, this could build up the customer relationship and increase service frequency. Cross-selling in this way not only helps extend customer lifetime value but can increase brand loyalty by offering clients a convenient, all-in-one experience. Some business owners find it easier to upsell existing clients than to attract new ones, and a diversified portfolio may create an opportunity.
Additionally, cross-branding can create a cohesive image and consistency across services. When companies present a unified brand that solves multiple homeowner needs, they may help to strengthen customer loyalty, increase the likelihood of repeat business, and help lead to referrals.
Lawn Squad
Operational Synergies & Shared Resources
Another advantage of adding a lawn care business to an existing portfolio is the potential to leverage operational synergies and shared resources. From customer service platforms and technology to marketing and field technicians, there may be opportunities to cross-utilize resources between businesses. For example, a business owner can use the same marketing assets, like social media channels, email lists, or promotional campaigns, to introduce lawn care offerings to an already engaged audience. As a result, these shared resources may help to streamline operations, reduce costs, and promote a stronger brand presence.
Seasonal Demand
Unlike some service industries that experience more unpredictable demand, lawn care experiences natural peaks, particularly during the spring, summer, and early fall months. While this may require some advance planning, it can also provide unique opportunities for entrepreneurs who are managing multiple ventures or looking to balance workloads across their business portfolio. For example, business owners operating in winter-focused industries, like snow removal or heating, may find lawn care to be a strong complement during the warmer months. The ability to shift focus and resources based on the season may help business owners optimize staffing and allocate resources to stay active year-round.
Additional Ownership Advantages
By hiring qualified staff and utilizing franchisor support, business owners can delegate everyday tasks to trained staff and focus on high-level growth and strategy.
For entrepreneurs who already manage multiple businesses or need flexibility in their schedules, many lawn care businesses offer semi-absentee ownership potential. Thanks to advances in operations software and customer scheduling tools, many business owners can oversee performance and growth from a distance rather than being boots-on-the-ground.
For entrepreneurs looking for just a bit more support, lawn care franchises may be a route worth exploring. They can provide comprehensive training and support, allowing owners to manage their businesses with minimal involvement. This model is particularly appealing to industry professionals who want to diversify their investments without sacrificing their primary business commitments. By hiring qualified staff and utilizing franchisor support, business owners can delegate everyday tasks to trained staff and focus on high-level growth and strategy.
Overall, lawn care businesses can present viable investment opportunities for experienced industry professionals and entrepreneurs. From cross-selling potential to semi-absentee ownership business models, it checks many of the boxes today’s entrepreneurs are looking for when it comes to portfolio diversification and expansion. When strategically integrated, lawn care companies may provide long-term growth, increased customer loyalty, and operational synergy for a diverse business portfolio.
