Expanding your lawn care business into offering storage?

Do you ever sit there and day dream about different ways you would like to expand your landscaping or lawn care business? Maybe you have come up with a few additional services you would like to offer in the upcoming years or maybe you thought outside the box. That is exactly what this member of the Gopher Lawn Care Business Forum did when he expanded his lawn care business into offering portable storage services for his customers. Let’s have a look at his story.

He wrote “Hi everyone. I actually have 2 businesses within our company. One is a portable storage company kind of like ‘PODS’ and the other is a lawn care business. The portable storage business is booming. At first we were renting portable storage containers for our lawn care business. After a short time, we thought these guys running the business must be making a lot of money, so we thought, why not get into it ourselves. Since then, we’re not doing bad at all. I guess I can’t complain. But now with both businesses going, we are definitely busy.

Let me give you a little more about our background. My father and I started this project after renting a competitor’s container for a project we were doing. Beyond the cost, the delivery system took almost 45 mins to unload the container and set where we needed it. Plus, we couldn’t get the container put exactly in the right spot and had to compromise.

After thinking about their program, we decided there had to be a better way to deliver containers. So, with a degree in manufacturing engineering, my father designed a truck and had it built. Every piece was engineered, cut, welded and after 6 months of building, the truck was finished. The delivery system that was built was patented and can only be purchased through our portable storage company now. We do not use any off the shelf items. Our delivery trucks run by a remote control once on site and you almost never have to touch the truck when unloading. Our system can unload a container in 5 mins or less now.

What makes our program unique is the system itself. No other storage container company comes close. There are cheaper system out there but they require a rollback truck which pulls the container onto the carrier at a steep angle, letting the contents shift inside. No system is cheap enough to warrant a customer’s damaged goods. Our system keeps the container level and can pick up 1,4000 lbs.

This business has taken off so much that we are now looking to expand and offer others a chance to license our technology. The difference in franchising and licensing is the upfront cost. Our competitors charge a $75,000 franchise fee, we don’t. You only buy the equipment and the licensing fee is 8% of the monthly rental revenues the containers generate. The storage containers are made of steel and are the strongest containers on the market. They cost $4,500 each. The basic truck costs around $50k and then you pay for the upfit of the truck which is around $80k. It’s still cheaper than our competitor. Our truck would crush a competitor’s box if we tried to pick it up.

If you owned 100 containers and they rented out at $125.00 per month, the monthly revenue generated from the boxes alone is $12,500k per month, or $150,000 per year. The truck delivery fees and pick-up fees would generate approximately $10k per month or $120,000 per year. These are all numbers based on what we are doing and can vary depending on your location. But if those numbers work, then you would generate a gross revenue of $270,000 on a $600,000 investment. Not only that, but the depreciation is 5 to 7 years. If you bought rental properties for a total of $600,000, there is no way those rental properties would generate that kind of income. Plus rental properties cost you money with upkeep, that upkeep can be very costly. Our containers have no upkeep.

With our financing option, you can lease the truck, and lease the containers with $1000.00 down per container. So if you want 100 containers, you could lease them with $100,000 vs. straight buy out of $450,000.

If you invested $1000.00 per container, and rented the containers out for $125.00 per month, your net income per container per year is $580. So by investing $1000.00 out of pocket, it would generate 58% return on the money you invested. The rest would go to pay out the lease payment. Once the lease is paid out in 5 years, the containers are yours and you used someone else’s money to build a fantastic income for the rest of your life, or the life of the container.

The key to success in this or any other industry is to find a need and fill it. Who knows, you might now be looking to expand your business into offering portable storage boxes or maybe you have a totally different idea all together. Whatever it is that is going on in your mind, investigate it. Experiment with it and explore. You never know when that next idea will be making you millions. Just whatever you do, don’t give up.

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The landscaping and lawn care business plan startup guide
A rebellious teenagers guide to starting a landscaping & lawn care business
The GopherHaul Lawn Care Business Show Episode Guide.
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