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
We've operated primarily in the commercial space for nearly 10 years, and while there are certainly challenges, I wouldn't trade the experience and relationships we've built.
One of the biggest challenges is managing cash flow. Commercial contracts often come with longer payment terms, which means you're carrying labor, materials, fuel, and operating costs well before payment arrives. It requires discipline and planning, especially during seasonal transitions.
That said, some of our strongest customer relationships have come from commercial clients. The work tends to be more structured, recurring, and relationship-driven. We've found that when you consistently deliver and become a trusted partner, those relationships can last for years and often lead to additional opportunities.
For us, the biggest benefit has been building long-term partnerships and learning how to operate at a higher level. Commercial work has pushed us to become better operators, better planners, and better business owners.
Allinone17 - Love this. I'm a few months in on residential and am going to try and start bidding some commercial work later this summer. Being completely new to this, can you give me a ballpark of the size of these commercial contracts, the hours required and the work delivered?
That’s a great question, and the honest answer is that commercial work can vary quite a bit depending on the client and scope.
For us, contracts have ranged from a few thousand dollars for smaller service agreements to much larger projects and recurring contracts. The biggest difference I’ve noticed compared to residential isn’t always the contract size, it’s the expectations, documentation, communication, and compliance requirements that come with it.
In terms of labor, some jobs may only require a small crew for a day or two, while others can involve multiple team members over several weeks. The scope of work is usually very clearly defined, and clients often expect detailed proposals, certificates of insurance, safety documentation, and regular communication throughout the project.
One thing I’d recommend is not chasing commercial work solely because it seems bigger. Make sure you understand your costs, cash flow, and contract terms. Some commercial clients can have payment terms of Net 30, Net 45, or longer, so you’ll often be carrying expenses before payment arrives.
That said, if you deliver consistently and build trust, commercial relationships can turn into long-term partnerships and recurring opportunities. Some of our best clients today started with a relatively small first project.
What type of commercial work are you looking to bid on later this summer?
Thank you!
Ideally I'd like enough work to keep a 2 man crew busy through the winter, and than about 25% of their time in the spring-fall. Some parking lot and sidewalk snow removal / mulching some beds / ongoing mowing and fertilizer.