Welcome Back!

Now that Valentine's Day is behind us, it’s time for the real best day of the year - when stores are filled with discounted chocolate! 💌🍫

But it's not all about the sweets; we're also turning over a new leaf in this edition as we dig into the vibrant world of the landscaping industry. 🌿🌷 While the last remnants of winter might still be lingering, the promise of spring and blooming opportunities in landscaping is just around the corner.

So, whether you're still snacking on discounted treats or eagerly planning for greener days, join us with your favourite post-Valentine's snack in hand!

INDUSTRY BREAKDOWN

The Landscaping Industry - A Green Gold Rush or a Mow-ment in Time?

Working in the business buying and selling industry, we have been a part of over 300 business transactions. So if you want to use the term “expert” we won’t stop you… 😎 that being said, we rarely say, “this is the time to buy” when it comes to a certain industry - but this is the time to buy a landscaping business. Time after time we have seen the success of the landscaping industry take off, especially right as spring and summer is approaching. When it comes to a seasonal business, there is no better time to experience the true strengths of the business than right before peak season. 

Whether you're naturally green-thumbed or just planting your first business seed, let's dig into the flourishing realm of landscaping in the United States.

Industry Trends

A decade ago, the landscaping industry might have been seen as just another outdoor chore. Now in 2024 it's propelled into a robust, multi-billion-dollar industry. Data from the National Association of Landscape Professionals shows an industry blooming faster than springtime daffodils. 🌼

In this verdant sector, residential lawn care and garden maintenance have rooted themselves as the main contributors to the industry’s growth. But it's not just about mowing and sowing anymore; landscape design, tree services, and irrigation systems are branching out, offering more than just curb appeal.

The shift towards sustainable and eco-friendly landscaping is also cultivating new opportunities. Think native plants, organic treatments, and xeriscaping (don’t worry, we’d never heard about xeriscaping either - it pretty much just garden’s you don’t have to water). With more and more Americans looking for greener lawns (both literally ‘green’ and ‘good for the environment’), eco-conscious landscaping could be the next big thing.

The Finances 

Let's talk green - and we don't just mean lawns. The landscaping industry is experiencing a financial bloom, driven by increased demand for residential and commercial services. But, like any business, the path to profit is lined with its own set of challenges. 🌱💰

This graph from Grand View Research shows that the landscaping industry is going nowhere but up! The global landscaping services market size was valued at USD 296.09 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030. The increasing popularity of organic gardening and easy accessibility to high-tech landscaping products, as a result of rapid industrialization, are some of the prominent factors that are responsible for the growth of this industry across the globe.

Just as a lawn requires the right investment in tools and treatments, entering the landscaping business demands resources for equipment, skilled labour, and potentially, landscape design software. However, the bright side is that once you've planted your business seeds and nurtured them properly, the potential for growth can be as high as the grass that seemingly sprouts up two feet overnight.

Buy or Bust?

The landscaping industry presents a promising opportunity for entrepreneurs, especially with growing trends in outdoor living spaces and environmental sustainability. However, it's crucial to understand the industry's complexities. Business owners should be mindful of factors such as seasonal changes and shifting consumer preferences. A well-thought-out strategy can lead to success in this field, but it's important to maintain realistic expectations and adapt to the market's evolving demands.🌳🌷

So, are you ready to get your hands dirty in the landscaping business, or will you leave it to the greenery gurus? The soil's fertile, but it takes more than just a love for the outdoors to thrive in the world of landscaping. Remember, a savvy investor knows when to plant deep and when to just admire the garden. 🌻👩‍🌾

Check out these landscaping deals:

1. Landscaping Business with Owner Retiring in Utah - $1,950,000

2. Extremely Profitable Commercial Landscaping Business in Florida - $1,200,000

3. Profitable Niche-Based Landscaping Company in California - $995,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

SPONSORED BY JENN SCHURER

Hey SMB owners! 👋🏻

Are you a small business owner juggling the demands of growth with the nitty-gritty of numbers? Meet Jenn Schurer, CPA, CMA, your Canadian virtual bookkeeper who speaks the language of debits and credits so you don't have to.

With tax season on the horizon, it's the best time to streamline your finances. Jenn's expertise with QuickBooks Online and cloud-based services means you're just a click away from understanding your financial health.

Whether you're a tech-savvy startup or a seasoned enterprise with up to 20 employees, Jenn is here to make sure your books are immaculate. Think of her as your financial organizer, tidying up your accounts to make tax time a breeze for you and your accountant.

So, if you're in search of a new system to bring order to your financial chaos, look no further. Jenn's here to turn those spreadsheets into success stories.

Ready to get your books tax-season-ready? Connect with Jenn and transform your books to save yourself time and money this tax-season.

DEAL REVIEW

Profitable Niche-Based Landscaping Company

This week’s deal is a staple landscaping company in Sacramento, California.

Deal Facts 🔥

Green Flags 🟢

• Established Business: Operating for over 21 years with brand recognition and an excellent reputation in the Sacramento region signifies a stable and potentially resilient business.

• Profitable with Growth Opportunities: The business shows strong cash flow and revenue with identified opportunities for expansion, especially in retail and online, indicating potential for further financial growth.

• Seller Support & Training: The seller's offer to provide hands-on training for up to 12 weeks can ensure a smooth transition, minimize operational disruptions, and sustain the business's success 

Red Flags 🔴

• Licensing Requirement: The need for a C-27 Landscape license might limit potential buyers to those already holding or capable of obtaining this certification, potentially narrowing the pool of interested parties.    

• Competition: Landscaping can be a challenging industry due to its low barriers to entry, which in some areas, means that competition can come from just about anyone with a truck. However, the requirement for a license to operate in this business offers a degree of reassurance. Regardless it is important to acknowledge that there are already established competitors in the market.  

• Owner Involvement: Building a solid management team in a landscaping business can be challenging. Why? Well, as per the point above - starting a landscaping company can (sometimes) be as simple as buying a truck and basic equipment. This can allow a landscape employee to go from making under $100K/year to $150K+ a year with flexibility over their schedule. This business has a team of 10 people, indicating some layers of management exist - but something to double-click on. 

Watch Our Video Breakdown 

For a more in-depth analysis, check out this video deep dive of the deal by our Founder, Morgan Tate:

Possible Deal Structure: A vanilla deal (like this one) deserves a vanilla deal structure!🍦Our only recommendation is to try and bump up the seller financing portion of the deal from 7% of the deal value to closer to 20-30% but take the owner up on their offer of 20 hours per week for up 12 weeks post-closing.

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

Last time 20% of you were into interested in learning more about our HVAC deal! 🌶️🌶️🌶️

BROKERAGE FEATURE

Murphy Business is one of the largest and most successful business brokerage firms in North America. Whether you desire to buy or sell a business, their conveniently located offices throughout Canada and the United States provide expertise that accommodates the diverse needs of clientele in many business sectors. Murphy Business Alberta focuses on businesses in Western Canada valued at up to $10,000,000.

Get in touch with Murphy Business to learn more about buying or selling your business here!

Check out all of Murphy Business - Calgary’s active businesses for sale.

Want to see your brokerage featured in the next Mainstreet Memo? 😎 Reply to this email and we can discuss opportunities!

SMB TWEET HIGHLIGHT

Searching for a business truly feels like a really drawn-out online dating process. You spend your evenings mindlessly scrolling through listing after listing to find something that might match your interest. 😴

Plus, to make things even harder, there are so many resources to find a business for sale (including DealBuilder 😎). But did you know that there a tool where you can search for businesses that haven’t even hit the market yet?

This not-so-well-known tool gives you access to over 300 profitable businesses that you will not find on other business for sale sites.

To make this deal even sweeter - if you enter your email and are subscribed to Mainstreet Memo you will access to this tool for free!

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. Everyone is sick of hearing, “we’re closing our doors” or “due to COVID-19 we had to close…” so how about a success story? The Contrarian Thinking blog released an article about college dropout turned 250 location business owner, Steven Montgomery. Tune in for an inspiring story!

2. At one point or another, we think everyone has the idea, “I should just start my own business!” but is it actually smarter to buy a business rather than building your own? 

3. Post-Covid fear? Possible recessions?? Inflation??? Interested in how the state of the economy would affect buying and selling a business? Check out this podcast from Clinic Accelerator with our very own Founder, Morgan!