Are You Lawn Accounts Diversified?

Diversification of your customer base can avoid the hard times from other accounts.

Many businesses are made up of a certain type of customers. These can include homeowners, apartments, office complexes, or government accounts.

Diversity of your market segment can protect your business from the ups and downs of different market segments.

For example, I have 2 friends who are brothers that work for their dad. He owns a printing company. They supply one local bank with all their printing needs. This makes up about 60% of their work. If this bank merges with another, as many do, they may lose this account. That could put the printing company out of business. To this day they are not aggressively going after more accounts. I have never understood this.

Market mix should be made up of multiple market segments.

I recommend business owners maintain at least 30-40 residential accounts as a good base. This keeps the income flowing weekly as most commercial accounts pay 30-60 days after invoice.

After you have these 30-40 accounts established, try to tackle a few commercial accounts.

For those that only have 10-15 lawns, market for new business around your already established lawns you feel are the most profitable. It is better to acquire business close to existing accounts as the drive time will be significantly reduced.

Some ask me "How do I gain commercial accounts if I have no commercial references?"

My answer is this...

1. Submit good references from existing customers

2. Make sure your price is competitive

3. Sell yourself

Many people buy from someone they like, not necessarily from the company. Be likeable!!

Remember these things when going after different types of accounts.

1. Is there enough potential there

2. Does the customer seem to look for the lowest bids (government accounts)

3. Does it seem possible to maintain long-term business relationships

4. Can you meet the customers expectations

Never put all your eggs in one basket, diversification is important to keep a business thriving.

Best of Luck!

Kevin Whiteside is the owner and editor of http://www.LawnForum.com Monthly, an online newsletter and website for lawn and landscape professionals. Get a FREE subscription here LawnForum@aweber.com

He is also the author of "Turn High Grass Into Cold Cash- How to Start the Ultimate Lawn Business" http://www.GrassToCash.com

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