Archive for the ‘Entrepreneurship’ Category

Daniel Pepper asked:


There is a whole lot of advertising noise and commotion buzzing around and lawn mowing businesses have a tough time getting attention.

Think about it. With tons of advertising messages shooting across the path of your potential customers, how can they distinguish your marketing message from others? Can you really compete against the big dogs in your area with vaults of marketing money at their disposal?

The answer: Yes but it’s not going to be easy.

The fact is advertising is harder than ever to compete in. Smaller lawn businesses have less to lose than some of the bigger lawn companies out there so to get attention, some owners exaggerate their claims, making promises they can’t deliver on.

Since hype seems to be the only way to get your prospects looking at your lawn mowing business, you probably figure you need to follow in the footsteps of those who have walked outside the lines of truth.

Is this the right thing to do?

As I have talked about before, it bears repeating here again…you’ll probably get away with it in the short term but not in the long term.

Let me explain…

Here are 3 reasons why avoiding false promises and staying truthful is the way to go.

1. You Have To Be Able To Prove It

The first reason is obvious. You must be able to back up any lawn mowing business advertising claims you make with actual and factual proof. It’s legally termed making a “substantiated” claim, and the FTC gets particularly picky when it comes to claims that come close to challenging this rule.

Let’s say you run an ad saying, “One out of 10 people in Anywhere County, USA use No Name Mowing.” You’d better be able to show a reputable survey that clearly reveals those results. If you carried out the survey yourself, you have to prove it was organized and executed in good faith, conducted by an impartial third party, and that it genuinely represents the views and opinions of the group of people you are talking about.

But following this rule doesn’t start and stop with just you. All claims also apply to anyone who works for you – employees, Web designers, subcontractors, etc. If your representatives inaccurately describe your lawn mowing business, you’re in trouble.

Don’t worry there is a “Get Out Of Jail Free” card. It’s called “puffery” and you may want to do some due diligence about it and how you can use it in your lawn mowing business marketing.

For example, No Name Mowing claims its home-made organic lawn care fertilizer is “made from the best stuff on earth.” Nobody will actually believe that claim because it’s “puffery”.

However, if No Name Mowing said its fertilizers were “made with fresh organic ingredients” that becomes a claim that must be proven. No Name Mowing would need to substantiate it. When any “reasonable” person would assume that your lawn mowing business ad’s promise is so over the top that it is mere “puffery,” you’re no longer required to have to prove it.

2. It’s Against The Law To Lie

As I eluded to in the first reason above, federal law blatantly states that you must tell the truth in ads you create for your lawn mowing business services. Section 5 of the Federal Trade Commission Act (passed in 1914 and amended in 1996) says it’s illegal to deceive or mislead your customers and prospects. You cannot make fraudulent claims or insincere offers about your lawn care services. The FTC also

specifically highlights claims that mislead by omission so you’re not out of the woods yet. If you leave out relevant lawn care information or facts, or if your marketing claim hints at results that you can not deliver, you’ll be on the hook.

Perhaps you’re wondering…what happens if the law comes down on your lawn mowing business?

Well, if your inaccurate claims influence a customer’s decisions, behavior, or compel them to buy, you could be in violation of FTC guidelines. The range of penalties go from massive fines to “cease and desist” orders to corrective advertising to even some jail time.

Of course, like most legal matters, what is constituted as “false” and/or “misleading” is always open to interpretation. A lawn mowing business advertising a claim that walks the fine line is a risk you may decide to take. Legally, that risk rides on who defines “misleading.” Do your due diligence and get advice from a lawyer to help you make the right decision.

Remember that customers are not dummies. Most people can quickly pick up when a lawn mowing business is advertising a false claim.

3. Your Competitors Can Bite Back

The battle for market share is fierce so many lawn mowing businesses have turned to comparing competitors in their marketing. Lawn care services are launched with little preparation and training and don’t necessarily meet meaningful customer needs just so company B can compete with company A. As a result, lawn care ads often dwell on some minutely different edge that offers a little bit better advantage than the competition but doing so creates the opportunity for your competition to bite back. Your competitors may decide your lawn care claim is untrue or inaccurate and force you to prove it. Let’s face it, having a lawn care competitor register a complaint with the FTC and possibly take you to court doesn’t exactly help your bank account.

Remember, if you claim your lawn mowing business is better than another, you must be prepared to support that with undeniable proof.

Today, customers have little tolerance for lawn mowing business marketers that promise and do not deliver. To develop advertising that attracts customers, use these 4 ingredients to stay on the side of marketing legally:

1. Don’t Talk About Yourself

Turn to legitimate descriptive testimonials from current customers to talk about why you’re the lawn mowing business of choice.

2. Be Real

Most people are down-to-earth and don’t expect incredible results that lawn care services can’t deliver. Promise what you can deliver.

3. Stick With The Benefits

Market how customers benefit if they go with your lawn care services. Always answer the question, “What’s in it for them?”.

4. Lower Risk

Offer money back guarantees if a customer is not satisfied. When you lower the risk, your prospect is more receptive to your marketing.

Here’s to your lawn mowing business success!



How To Build Auto Lawn Sprinklers
Geoff Ficke asked:


Every business requires a structure that will withstand necessary legal and governmental scrutiny. The choice of how to organize a new enterprise should be made based on the needs and capacity of the owner(s) to maintain and detail the records, history and finances of the business.

Many simple service businesses are set up as a sole proprietorship. The lawn service I utilize is a sole proprietorship. I make out the check in the name of the person providing the service. If I do not spend over $600 per year with any sole proprietor I am not required to fill out tax form 1099 and provide the information to the Internal Revenue Service and the service provider.

The sole proprietorship is the method of structuring most entrepreneurs utilize when starting out in a small-scale commercial venture. This works if services provided are simple, of relatively small transaction size, small inventory required and there is no need for hiring and paying employees. As sales grow and the need to expand becomes apparent the entrepreneur will probably want to consider a more formidable structure.

Here is my advice when considering the business structure best suited for your business, based on present and future needs: consult an attorney. Taxes, investment vehicles, partnering, harvesting profits, incorporation options, and depreciation or only a few of the areas of concern a new business may need to consider and decide upon. A business attorney will have expertise in every area of concern and can construct the most appropriate structure for your business and personal needs. The ability to memorialize in precise legal documents the exact terms, conditions, and responsibilities of all officers and/or share holders in the company is invaluable when disagreements occur.

The importance of written agreements and contracts, signed by all parties to the transaction, cannot be overstated. No one ever enters into a business situation if they are 100% sure it will fail. There is always an air of confident expectation that the business has a good chance of success and will ultimately prosper. Unfortunately, there is always a significant chance that results will be disappointing and disagreements will occur. Make sure that all parties to a deal have a full awareness of the business structure they are participating in.

Oral contracts and agreements have been upheld in courts. However, they are much more difficult to enforce than properly written and executed business contracts. Do not leave important details to chance. Have proper documentation on hand for the protection of all parties.

Partnerships, limited partnerships, limited liability corporations, and corporations are popular vehicles for housing the legal structure of a business. Each has benefits and liabilities, depending on the needs and requirements of the business owner(s).

A partnership can be useful when several parties bring complimentary assets to a venture. One partner might have a patent that represents a commercial opportunity. Another might have investment resources they can bring to bear. Yet another potential partner has specific management experience to contribute. 

I have entered into several partnerships in the past with mixed results. If there is a bit of advice I can offer to potential partners before they start it is this: have full agreement on how to harvest profit/loss when success/failure occurs. One partner wants to grow and mature a business, while another wishes to cash out after a few years and this is where the seeds of destruction are sown. Goals, as well as duties and responsibilities must be fully transparent.

The Limited Partnership can be an excellent opportunity for the entrepreneur wishing to put capital to work, but not physically committing to work on a project. Typically a General Partner will manage the business, and the Limited Partners provide the pool of money required in funding a business. Usually units of a Limited Partnership are sold in equal dollar amounts. Be sure and read the deal prospectus carefully and skeptically. In addition, be sure to familiarize yourself with the laws of the state where the business entity will be domiciled as the various states have different laws in this area.

A Limited Liability Corporation is a relatively new corporate structure that offers many of the advantages of the corporation and the benefits of individual tax rates. An attorney will be able to advise if the Limited Liability Corporation is appropriate for your particular needs.

A Corporation is the vehicle that requires the most care and maintenance, as well as providing maximum personal protection. A Corporation is ostensibly a legal entity that acts as if it were a person. Losses are incurred by the legal entity of the Corporation, not by the shareholders of the Corporation. Assets of an incorporated business are property of the Corporation, not the individual shareholders. The owners of stock in the Corporation enjoy benefits based on the number and class status of their shares. 

An attorney can advise the best state in which to incorporate based on your anticipated needs. Nevada is the best state for secrecy. Delaware is excellent for transparency and resolution of disputes. Some states are more business friendly from a tax and regulation standpoint and all of these areas must be considered before filing for incorporation.

A Corporation will need to be assigned a Federal Identification Number in order to open a bank account at any financial institution in the United States. The Federal Government utilizes this number when tracking tax, financial and employment data on every incorporated business.

The Articles of Incorporation, annual meeting minutes, a board of directors, corporate fees and filings, state compliance and filing local, state and federal tax returns require a detailed, and potentially costly execution of corporate governance. In addition, stock certificates must be appropriately accounted for and capitalization requirements met and maintained.

Be realistic when choosing the business structure that will offer your fledgling enterprise the most useful features based on present and future needs. Many people file for incorporation, then realize they do not need the hassle of maintaining detailed books and records. Use the business structure that enables you to legally perform every obligation required, while allowing you to be a slave to your business opportunity, not a slave to your corporate structure.

 



How To Build Auto Lawn Sprinklers
Tagg Hamilton asked:


According to the Bureau of Census Service Annual Survey , the lawn care and landscape business is a $46.8 billion industry in 2006. Each year, people spend that much on landscaping services. Over the last 10 years, the industry has grown considerably. The beauty of the landscaping industry is that virtually anyone can do it. No prior business knowledge is required. I know high school students that make $12,000 or more in the summer. I believe that anyone can make at least $20,000 landscaping. Great landscapers earn over $100,000 a year. What the industry offers is an easy to start business opportunity. Most aspects of the business are already taken care of and all you have to do is follow the steps that I outline in this business kit. It is an extremely simple operation to learn and apply. You can do it. Yes, you.

Landscaping is a solution to the dull 9-5 job. This business lets you be your own boss, work for yourself, and determine your own schedule. With over 7 years of industry experience, I have created a realistic business opportunity that has proved to be a success with anyone who takes the principles and applies them.

The downside of the lawn care and landscaping business is that it is highly seasonal. Your location can spell a huge difference in the potential success of your business. The demand in Florida is higher than the demand in Maine or Michigan or in other states that remain buried in snow for a longer period of time.

I have been in this business for over seven years. I saw it when it was small and have seen it grow exponentially! According to several sources, the landscaping industry has had an amazing 1000% increase in growth over the last 10 years! Also, residential homeowners as well as commercial and professional business owners spend over a billion dollars each season for this service and its associated products. And, with the landscaping industry being so versatile, this quite possibly will be the perfect ‘add-on’ service to your existing business. It is also the perfect business that can earn you enough in 8 months so you can either take the rest of the year off or run another seasonal business during the other 4 months of the year.

As a general rule, the landscaping season begins in Spring focusing mainly on commercial properties. This is when you will start to look for leads and begin your work. The season ends in mid to late fall when the grass has stopped growing at your clients’ homes and businesses.

Landscaping businesses can make more than $500 per day per work crew during the season. Well-organized installation crews can make more that $1000 per day. It is also not uncommon for landscapers to earn upwards of $1500 in a single day when doing work on larger residential and commercial jobs. I recently managed to get a landscaping contract with a local church. The quote I gave was for $1300. My equipment costs were minimal and I paid my 2 employees $120 each. Do the math. At the end of the job, I had over $1000 cash profit in my back pocket and a huge smile on my face!

A smaller landscaping business can easily expect to earn more than $20,000 in their first year as long as they have a solid business plan. Try to begin with the end in mind. I know of many mid size landscaping companies that make between 100 and 150 thousand dollars each year – between Spring and Autumn! There is a ton of money to be made in this industry. You are providing an essential service that people will use month after month and year after year.

The landscaping industry is the perfect add-on for seasonal businesses like, Christmas Light Installers, construction workers, window cleaners, junk removal services, painters, roofers, and framers. The main thing that attracted me to this industry is the fact that this business is extremely low risk. I have been able to use my current client database to create leads and get contracts. In the winter, I run a Christmas Light Installation business and have been able to keep my employees during this season whereas in past years, I had to lay them off and often they never came back because they found other work! This business changed that!

The landscaping industry is one of the fastest growing service industries in the United States, Canada, and the UK! Each year, the demand for this service increases. For some reason everyone wants to have a better looking lawn than their neighbors. In a recent study, it was shown that the thing that people despised most about owning a home is the pain of lawncare. People want a beautiful looking property without the hassle of mowing their own lawn. This is where you come in and cash out!

This wonderful business opportunity is now more popular than ever and you are a part of it! The biggest benefit you have is that you are starting now. It’s here and you got in on the ground floor at the beginning. That means there is a ton of room for growth. There is also room for small business owners, like you, to make a ton of money in a short period of time. It’s going to be some work, but once you get rolling, you are going to look back and think that taking the first step was the best decision you could have ever made.

One reason for the growing demand of this service is the growth of two income families. The increasing number of double-income families means the number of people with no time but has money on hand is increasing. In fact, according to a nationwide survey conducted by International Communications Research for the Bayer Lawn Care Institute, “the average homeowner spends nearly eight hours each week on lawn care and landscaping tasks around their home and would consider hiring a professional service in order to acquire more free time.”

The target market of the lawn care and landscaping businesses are homeowners with larger size lawns. Larger lawns, such as with 4,000 – 7,000 square feet, typically yield better margins when factors such as transportation time and costs are considered. The typical target market also include middle class suburban families with large lawns and no teenage children, as teenagers are likely to be tasked to mow and take care of the lawns. Middle-aged homemakers are also more likely to rely on a lawn service compared to younger homemakers who are more likely to do the lawn themselves.

Lawn care services can be residential or commercial. Residential lawn care services typically include lawn cutting, trimming, edging and removal of clippings. The service is typically offered once a week through the frequency can depend on the customer’s requests. This side of the business is made up of many small companies. This occurs because of high labor intensity, low startup costs, and nature of the industry.

The commercial side consists of apartment complexes, business parks, and common areas of subdivisions, schools and others. The commercial side is typically serviced by larger lawn care landscaping services.

In this industry, you are simply selling a service that includes the landscaping duties on homes and businesses. Can it get any easier than that?

The difference that you make in this business is how you choose to sell your services. Many landscaping companies differ in how they sell their service. Some companies only sell the landscaping service requiring customers to provide the tools and materials while others provide the work with no warranty. Other full-service companies offer to provide the landscaping, do the gardening, and give a warranty.

I have found that the service that works best is one that combines all these variables together. I have built my business model on this principle. It is a model that that provides the landscaping service to the customer, I supply all the tools and the lawnmowers, and I offer a warranty.



Create a Lawn care Business
FranNet LLC asked:


The demographics of America are changing – and fast. There is a growing population of aging baby boomers who are savvy, smart and independent, and they know they have choices for their future lifestyles.

The statistics show that this population is on the rise. In 2003, there were 36 million Americans who were 65 and older; by 2030 it’s projected that this population will grow to 71 million. And an AARP study from 2005 found that 89 percent of people 50 and older want to stay at home as long as possible.

To do this, our aging U.S. citizens will likely need assistance in many areas such as housekeeping, yard upkeep, home maintenance, and, in some cases, relocation to new homes or care facilities.

These people, whether they are in need of physical assistance or are busy traveling during retirement, will need others to help them take care of things at home.

With this trend, a unique business opportunity is now flourishing – a “one call resolves it all” home care services for seniors.

It’s an ideal time for investors to capitalize on this new business trend. That’s exactly what Kim and Paul Abelman did when they decided to start a business.

The Abelmans found their new business in Spectrum Home Services. Spectrum is part of a national growing industry offering personal home care for older adults and busy homeowners.

But Spectrum Home Services is different from traditional home care service companies. They are simply one-call away for people who need a broad spectrum of services including housekeeping, yard care, maintenance, companionship and relocation services. Other companies offer a few of these types of services, but not the number of services available through Spectrum.

The Abelmans are happy to offer this service to area seniors and other busy homeowners through Spectrum Home Services.

Kim Abelman shared that “people who choose home care can find it frustrating making calls for numerous services. Many of our clients were calling a handyman for broken items around the house, a yard service to mow their lawn, a home cleaning service to do their laundry and a nursing service to make sure their medication is taken on time.” One call to the Abelman’s Spectrum Home Services fulfills all these needs and more.

In September 2006 they purchased franchise rights to Spectrum Home Services in New Albany, with the guidance of franchise consultant and expert, Barney Greenbaum.

Greenbaum works with clients in the Ohio market through the national organization, FranNet. Using FranNet’s proprietary process, he matches his clients with the right franchise using safety, risk avoidance, high standards, and affordability as criteria.

“My job is to act as first a facilitator to help find the business that matches their requirements, then I coach them along with helpful resources, such as financing, franchise attorney, and accountant, once they find a good fit. We spend 30 to 60 days on the search with a well thought out action plan. My goal is for the client to find the right tools to make the process less scary, and help them reach those important goals,” Greenbaum explained.

He demonstrated this trend in the home care service industry to the Abelmans. “With 10,000 people now turning 60 every day the baby boomer generation will need more caregiver services than the caregivers can easily provide,” said Greenbaum. “Paul and Kim wanted an affordable business they could grow, while maintaining a balance with their family, work, spirit, and health. Working with active seniors on home care projects allowed them this flexibility.”

The Spectrum Home Services approach to home care drew the Abelmans to this business. They discovered that Spectrum was for them after reviewing several other business options.

“We knew that the eventual goal for this business is to provide services that are very much needed,” Kim Abelman said. “We ‘got’ the concept after meeting with Greenbaum and going through the FranNet process.”

The Abelman’s also wanted something that would give back to the community. “We work closely with families and do everything they need done – trash, cleaning, clearing out for Goodwill, running errands,” Abelman explains. “We’ve become like family for many of our clients.”

Abelman says she “liked the networking and marketing aspect of Spectrum. To reach people that need the services, I do in-service programs with discharge managers in hospitals and at realtor meetings. As a former college lecturer, it’s easy for me to put [our business] into words. I’m okay going out and meeting people to teach about this new concept of senior home care.”

With no other franchise like Spectrum in the area, the Ablemans are getting a lot of calls for the services they offer. They’ve also experienced a rise in the number of younger, busy homeowners who call. Some companies are even offering Spectrum Home Services as part of employee benefits to help working families.

Greenbaum enjoyed matching the Ableman’s with Spectrum Home Services and summed it all up: “At the end of the day they added some value to someone’s life, and occasionally they might even get a hug for it.”

To learn more about FranNet in the Columbus area, contact Barney Greenbaum at

614-882-7777 or call 1-800-FRANNET.



Start a Lawn Care Business A Whole New Way!