Pros and Cons of Residential and Commercial Lawn Care Service?
As of now I’m doing residential yards but I’m thinking about expanding to commercial . What are the pros and cons ?
Forum Discussion
I would agree with the above, depending on the market and it could be very competitive, we also provide services to residential clients as well. Commercial pay can be anywhere from net15 to net60.
I completely agree. We serve residential clients as well, and having that mix can definitely help balance things out.
On the commercial side, we've seen payment terms anywhere from Net 45 to Net 75. While we still work with some great clients on those terms, we've become much more selective because carrying payroll, materials, fuel, and other operating costs for that length of time can put a lot of pressure on cash flow.
Another factor that doesn't always get discussed is the insurance and compliance requirements. Between higher coverage limits, additional insured endorsements, waivers, and other contract requirements, the overhead can add up quickly.
That said, when you find the right commercial partners, the long-term relationships and recurring opportunities can absolutely make it worthwhile. It's all about finding the right balance and making sure the numbers work for your business.