How many times have you heard this one? “I’m starting my own lawn mowing (or lawn maintenance, lawn care, landscaping, etc…) business.” A few friends have told me this while I smile, waiting for the punch line. To the inexperienced this may sound like a great idea, but I want to discuss here the reality of running the most traditional teen business model of the past few decades, and suggest alternative ideas for you to make some real cash this summer.
Firstly, I understand why this business sounds like a good idea. Your dad has a nice riding mower, you have years of experience, your buddy has a pickup truck, and neither of you have a job. Let’s do it! But first realize that you are in the same boat as every other kid this summer, and it’s the Titanic.
The big problems: Competition, competition, and competition.
Because so many people have the barriers to entry covered (the mower, transportation, the experience), you will have many competitors. Those who have taken microeconomics already understand the basic concepts of supply and demand. But if you haven’t, here is a visual to represent your town’s mowing economy:
Because so many people are now mowing yards, the price is driven down. This is great if you need your lawn mowed, but if your business’s profit margins are being slashed because of a flooded market, then be prepared to work your butt off for peanuts. The blue lines represent the people willing to mow yards (supply) and the red lines represent the people who need their yards mowed (demand). In most cases, the people needing yards mowed (red) will stay the same, because yards usually don’t just appear or disappear, therefore the red line doesn’t move. However, when school lets out and the market is flooded with people selling the same product, then the blue line shifts to the right. The numbers above aren’t important, but the principle we’re trying to stress is that increased competition leads to low, low profit margins. This is because everyone is selling the same product, shorter grass, and the only way to compete is on price.
Hopefully making very little money for hard work is enough to turn you from the business. Do not fear though. We will discuss a couple alternative ideas for you summer-time entrepreneurs with better profit margins.
1. Pressure washing service
Across this great land of ours the art of pressure washing is practiced by far fewer than mowing, yet it’s essential for commercial and residential properties trying to look presentable year after year. Many pressure washing businesses can be run with only a ladder, a vehicle, and a pressure washer of course. You can charge your customers by square footage, linear footage, or by they job. This is a great guide for starting your own pressure washing business.
2. Mobile oil change service
Do you know how to change the oil in your car? Personally, I’ve changed oil for three different cars from three different countries, and found that they’re all very similar. If you’re not afraid to get your hands dirty, then this can be a very profitable business model. The idea of having your car’s oil changed at home for the same price as the guys at the dealership isn’t too widespread an idea as of yet. Make sure you’re informed on all of your city’s laws pertaining to the transport of oil and where to recycle it after you’re done.
1 Comment
May 21, 2009 at 11:58 AM
You can’t underestimate the value of hard work for nominal gain by a teenager. It builds character, teaches entrepreneurship, and motivates the teen to stay in school to pursue a real skill.