How to Sell a Lawn Business

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A existing lawn business with an established list of regular customers could be easy to sell. A prospective new owner will be able to forecast first-year revenue because of the existing business, making the transaction potentially less risky. You can sell the lawn business even if you have not built up a steady clientele. However, if possible, you should sell before the start of the peak mowing season. Chances are few buyers in cold-weather states will want to invest in a lawn service in the dead of winter -- unless the price is very attractive.

Establish a price for your lawn business. An industry standard called a "valuation" measures the worth of your lawn company by considering how much you are earning as the owner along with the worth of your equipment. According to Entrepreneur.com, lawn companies are valued at about one or one and a half times the seller's earnings, plus the value of the equipment. Variations of the formula allow for some of the owner's discretionary expenses, such as a leased truck, to be considered as income. For example, you have been paying yourself a salary of $50,000, and have been spending $12,000 a year on a leased truck. Your lawn equipment is worth $20,000 for a total of $82,000. That makes your business worth between $82,000 and $103,000.

Advertise the sale of your business. Place advertisements on free online classified sites. Market the business through your social networking sites and also leave notices on bulletin boards at grocery stores, coffee houses and at stores selling lawn equipment.

Provide prospective buyers with full financial statements that have been audited by an accountant. Also provide bank records showing deposits and expenditures, along with a copy of your personal tax return showing your reported income from the lawn business. The financial statements should include a list of regular customers and copies of service agreements.

Meet with prospective buyers to show the list of equipment to be included in the sale such as mowers, edgers and trimmers. Agree on a price and sell the lawn business.

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About the Author

Robert Lee has been an entrepreneur and writer with a background in starting small businesses since 1974. He has written for various websites and for several daily and community newspapers on a wide variety of topics, including business, the Internet economy and more. He studied English in college and earned a Bachelor of Arts in liberal arts from Governor's State University.

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