KOD Lawn Service LLC | Application Preview
KOD Lawn Service LLC is seeking government grants to expand its operations by acquiring another work truck and additional lawn equipment. The funding will support the hiring of a new crew, which aims to increase job opportunities and revenue.
The business plan is straightforward, focusing on gradual growth over the next five years. The goal is to add one to two crew members and a new work truck each year, ultimately aiming for five to six crews within four years. As the company establishes more crews, it anticipates significant profit increases.
The application highlights the essential nature of lawn care services and the company's ability to generate consistently higher profits than the initial investments. Despite first-year expenses and seasonality challenges, KOD Lawn Service managed to outperform its costs. The anticipated reduction in new equipment costs in the second season is expected to lead to substantial profit growth.
KOD Lawn Service faces competition from numerous lawn care companies in Mississippi. However, its competitive advantage lies in its unique marketing strategies, accessible customer contact methods, and worker compensation structure. The company utilizes a grassroots marketing approach, distributing flyers directly to neighborhoods, alongside social media and Google advertising to attract customers.
A distinctive feature is the company's payment model, where workers receive a significant portion of the revenue generated—50% for a single worker and 25% each for a two-person crew. This approach ensures fair wages for labor-intensive work, which helps retain employees and maintain service quality. The remaining income is allocated for operational costs and reinvestment into the business for future growth.
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General Information
Business Registration Number: 86-1691806
Location: Clinton, MS, United States
Length of Operation: 1
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: NO
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Funding Usage
This funding would be used to purchase another work truck and another set of lawn equipment. After these items are purchased a new crew of workers will be hired and more jobs will be acquired.
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Business Plan
Our business plan is very simple. Over the next five year it is ideal that we are able to grow the business each year by getting another work truck and 1-2 additional crew members to work for the company. It is expected that majority of the companies profits from each crew will be spent on scaling the company until we have 5 - 6 crews working. It is anticipated that we would be able to have 5 crew in 4 years because by time we establish the third crew profits will have tripled and we would be able to jump from 3 crews to 5 crews. Investors should invest my company because what I am trying to achieve is very simple to understand, there is always a need for the services my company provides, and my company will always produce profits that out perform the money that was invested in my company. With all of the expense that we had in the first year, and being considered season work we still out performed out expenses. Next season we will not have a lot the new equipment cost for our first crew, so the majority of the income earned will be profited. This would be a big compounding effect on the profits made by starting a second crew.
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Self Identified Competition
Lawn service in MS has plenty of competitors. Every year there are a host of new companies that come into the industry. What makes my company different from a lot of older companies is how we market, how we can be contacted, and how we pay. We marketing in a variety of different ways. The main strategy is a "boots on the ground approach" where we go into neighborhood that we like and go hand out flyers to every house in the neighbor hood. This is a very good strategy that produces approximately a 1-3% return for the amount of flyers we hand out. That means if we hand out flyers to 300 houses we can expect a call back from approximately 3-9 customers on average. With 3-9 new customers we easily cover the cost of the flyers we passed out, and we establish a new weekly, or biweekly, customer. Our other form of advertisement include social media marketing, website marketing, and being searchable on google. It is absolutely free to advertise on social media and through the companies Google My Business page. Google would be considered the second best way to get customers for the company, and social media would be last because it produces the least amount of conversions. We are able to be contacted through google, our social platforms, and of course our contact information is located on our flyers. For customers who aren't interested in speaking with us directly, they are able to book appointments directly through our social media website. We offer direct booking just in case someone is not able to answer a phone call for whatever reason. The last thing that set us apart from our competitors is how we pay. Being the owner of the company I believe that it is absolutely essential for workers to make an honest wage. Our hired labor (future employees) are not paid minimum wage for the work they do, instead each job pays out 50% of earned income to the workers. If 1 person is working they would make 50% of the income earned. If 2 people are running a crew each person would make 25%. I believe that when it comes to labor intensive work that is to be preformed in various outdoor conditions paying a livable wage is a must to retain workers and continue to put out great services. Another 15-25% would be used for fuel and maintenance, which are our biggest expenses, and the final 25-35% of income would stay in the company to help with scaling for the next year.
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