{"id":1017,"date":"2020-12-10T11:38:21","date_gmt":"2020-12-10T11:38:21","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1017"},"modified":"2024-06-04T19:04:20","modified_gmt":"2024-06-04T06:04:20","slug":"how-to-start-a-lawn-mowing-business-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-lawn-mowing-business-in-new-zealand\/","title":{"rendered":"How to Start a Lawn Mowing Business in NZ"},"content":{"rendered":"\n<p>When you start a lawn mowing business in New Zealand, you can either start from scratch or <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/franchising\/signing-franchise-agreement-in-new-zealand\/\"><strong><u>buy into a franchise<\/u><\/strong><\/a>. Franchise agreements can be complex, so it is crucial to understand your rights and obligations going in. Alternatively, you can <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/business-structures\/starting-a-small-business-in-new-zealand\/\"><strong><u>start your own business<\/u><\/strong><\/a>, but this can be challenging as you attempt to navigate business issues, employment regulations and tax planning, especially in the lawn mowing industry. Therefore, if you start from scratch, you should consider creating a business plan to help you research the industry and barriers to entry, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>expensive startup costs;\u00a0<\/li>\n\n\n\n<li>saturated local markets; and\u00a0<\/li>\n\n\n\n<li>how the seasonality of the work and economic downturns can affect your business\u2019 financial position.<\/li>\n<\/ul>\n\n\n\n<p>Ultimately, your choice should be guided by your budget (capital or ability to secure finance), your previous experience in business and your willingness to share the costs and profits of the business.&nbsp;<\/p>\n\n\n\n<p>This article will explain:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how to start a lawn mowing business from scratch or through buying a franchise; and\u00a0<\/li>\n\n\n\n<li>your obligations as a business owner under each model.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Starting Your Lawn Mowing Business From Scratch<\/strong><\/h2>\n\n\n\n<p>One of the initial steps of setting up your new business is to think about <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/business-structures\/choosing-structure-new-zealand-business-sole-trader-partnership-or-company\/\"><strong><u>how to structure it<\/u><\/strong><\/a> from a legal perspective, as different structures can have different financial and tax benefits for your business. There are many ways to do this in New Zealand. Some of the most commonly used ones are:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/legalvision.co.nz\/business-structures\/sole-trader-mistakes\/\">sole trader<\/a>;\u00a0<\/li>\n\n\n\n<li>partnership; and\u00a0<\/li>\n\n\n\n<li>company.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>There are benefits and downsides of each of these structures. However, you should consider the upsides and downsides in consideration of your lawn mowing business plan and client base.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Registering Your Lawn Mowing Business&nbsp;<\/strong><\/h3>\n\n\n\n<p>Once you have decided on a structure, you need to <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.nzbn.govt.nz\/get-an-nzbn\/\"><strong><u>register your business with the NZBN<\/u><\/strong><\/a> or the <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/companies-register.companiesoffice.govt.nz\/\"><strong><u>New Zealand Companies Office<\/u><\/strong><\/a>. When you do this, you will receive an NZBN number automatically (companies), or you will need to apply for one yourself. Unlike registering a company, this is a relatively easy process for sole traders, partnerships and trusts, and it does not cost anything.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Buying or Hiring Your Equipment&nbsp;<\/strong><\/h3>\n\n\n\n<p>Thinking about your equipment is a crucial step when you are setting up your lawn mowing business. Having the right tools will allow you to be more productive and, therefore, service more clients.&nbsp;<\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">If you are starting out, your budget might be limited, so hiring your equipment could be a more financially sound alternative than investing in cheaper tools. A commercial lawn mower is designed to last for years and withstand many more hours of use than a domestic one. While they cost more, the price difference is often justified by your increase in productivity and the longer life span of the mower.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p>If you decide to buy your equipment, avoid over-capitalising until you understand the needs of your business and your customers. If you decide to hire your tools, a hire purchase agreement:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>allows you to use them for a period of time by paying in instalment; and\u00a0<\/li>\n\n\n\n<li>gives you the option to buy them once the period ends.<\/li>\n<\/ul>\n\n\n\n<p>The type of mower that you will need depends on the scale of your business and clients. Some of the models available include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>walk behind lawn mowers;<\/li>\n\n\n\n<li>garden tractors;<\/li>\n\n\n\n<li>compact stand-on lawn mowers;<\/li>\n\n\n\n<li>zero-turn mowers;<\/li>\n\n\n\n<li>front-mowers;<\/li>\n\n\n\n<li>riders; and\u00a0<\/li>\n\n\n\n<li>robotic lawnmowers.<\/li>\n<\/ul>\n\n\n\n<p>Other considerations when buying your equipment include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>what power sources are available to you; and<\/li>\n\n\n\n<li>whether you will need a mulcher mower if you plan to mulch the clippings, or how you will collect and dispose of them.<\/li>\n<\/ul>\n\n\n\n<p>You should also buy an appropriate vehicle to carry your tools. When looking for a vehicle, consider:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>its payload (how much weight it can carry), as driving overloaded is dangerous; and\u00a0<\/li>\n\n\n\n<li>the ability to secure expensive tools.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Insuring Your Lawn Mowing Business&nbsp;<\/strong><\/h3>\n\n\n\n<p>It is common in New Zealand for small businesses to under-insure. However, even though the likelihood of things going wrong may be low, when it does happen, the high legal costs can put your small business under a lot of pressure.&nbsp;<\/p>\n\n\n\n<p>There are some key factors that influence which types of insurance policy you will need and how much they will cost. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the number of <a href=\"https:\/\/legalvision.co.nz\/employment\/differences-contractor-employee\/\">employees or contractors<\/a> you employ;<\/li>\n\n\n\n<li>the size of your business (turnover);\u00a0<\/li>\n\n\n\n<li>your industry and the type of work you carry out;<\/li>\n\n\n\n<li>how much cover you need;<\/li>\n\n\n\n<li>your claims history; and\u00a0<\/li>\n\n\n\n<li>how long you have been operating.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p>If your cash flow is tight, you are best to discuss your needs and budget with an insurance broker to decide which policies are absolutely essential for your business. At a minimum, you should consider getting public liability insurance and property insurance, but other types include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>business vehicle insurance;<\/li>\n\n\n\n<li>business interruption insurance;<\/li>\n\n\n\n<li>employer\u2019s liability insurance;\u00a0<\/li>\n\n\n\n<li>personal income protection; and\u00a0<\/li>\n\n\n\n<li>credit risk insurance.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Employing Staff&nbsp;<\/strong><\/h3>\n\n\n\n<p>When you are ready to grow your operations, you may consider hiring staff to help you service your client base. As an employer, you have both legal and tax obligations in New Zealand.&nbsp;<\/p>\n\n\n\n<p>When you start a new business in New Zealand, you also have some essential tax obligations and some important decisions to make, such as whether to <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/intellectual-property\/how-to-register-your-trade-mark-in-new-zealand\/\"><strong><u>register a trade mark<\/u><\/strong><\/a> for your business.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Buying a Lawn Mowing Business Franchise&nbsp;<\/strong><\/h2>\n\n\n\n<p>Buying a franchise will save you time on establishing your business image and reputation. You may be able to access the franchise\u2019s existing client base. However, you may have some duties to the franchisor, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reporting on the performance of the business; and\u00a0<\/li>\n\n\n\n<li>meeting revenue targets.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Understanding Your Franchise Agreement&nbsp;<\/strong><\/h3>\n\n\n\n<p>A franchise agreement outlines the rules under which the franchisor (owner) and the franchisee (you) will have to live for the period of the franchise.<\/p>\n\n\n\n<p>It often includes one or more schedules giving some specific details such as dates, amounts, territory boundaries and renewal rights. It will also include additional documents, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>guarantees;\u00a0<\/li>\n\n\n\n<li>non-disclosure agreements,\u00a0<\/li>\n\n\n\n<li>Privacy Act consents; and\u00a0<\/li>\n\n\n\n<li>a disclosure statement giving details about the franchise in a formal way.<\/li>\n<\/ul>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">In New Zealand, there are no specific laws that regulate the ongoing relationship between the franchisor and franchisee after they sign their contract. Therefore, it is crucial to understand your obligations under the agreement to ensure the success of your business. These agreements are often complex, so you should get yours reviewed by your lawyer before signing.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Restrictions of a Franchisee<\/strong><\/h3>\n\n\n\n<p>Depending on your agreement, you may have some restrictions. For example:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>you may be limited to operating in a certain territory;<\/li>\n\n\n\n<li>you may only be allowed to use approved suppliers by the franchisor;<\/li>\n\n\n\n<li>the franchisor may be able to impose a maximum price which you cannot exceed; and<\/li>\n\n\n\n<li>your agreement may include a restraint on competition for a certain area and duration.<\/li>\n<\/ul>\n\n\n\n<p>Your franchise agreement should also contain a robust dispute resolution process. Mediation is usually the most common and faster choice, although some agreements require arbitration.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    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These agreements are generally complex in nature, so it is a good idea to talk to your lawyer. If you need help with setting up a lawn mowing business or reviewing a franchise agreement, contact <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\"><strong><u>LegalVision\u2019s business lawyers<\/u><\/strong><\/a> on 0800 447 119 or fill out the form on this page.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How can I structure my business?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Some of the most commonly used business structures in New Zealand are sole trader, partnership and company. You should choose the structure which suits your business best.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How do I register my business in New Zealand?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">You will need to register your business with the NZBN or the New Zealand Companies Office. When you do this, you will receive an NZBN number automatically (companies), or you will need to apply for one yourself.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Should I buy or hire my lawn mowing equipment?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">If your budget is limited, hiring your equipment could be a more financially sound option than buying cheaper tools. A commercial lawn mower is designed to last for years and withstand many more hours of use than a domestic one. Once you have sufficient capital, you may decide to buy your equipment. Avoid over capitalising until you understand the needs of your business.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Should I buy a lawn mowing franchise or start from scratch?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Buying a franchise will save you time on establishing your business image and reputation. However, you may have some duties to the franchisor. Alternatively, you can start your own business, but this can be challenging as you attempt to navigate business issues, employment regulations and tax planning. Therefore, if you start from scratch, you should create a strong business plan.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"90c4126e1b\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1017\" \/>            <input value=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-lawn-mowing-business-in-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Start a Lawn Mowing Business in NZ\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you start a lawn mowing business in New Zealand, you can either start from scratch or buy into a franchise. Franchise agreements can be complex, so it is crucial to understand your rights and obligations going in. Alternatively, you can start your own business, but this can be challenging as you attempt to navigate<a href=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-lawn-mowing-business-in-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;How to Start a Lawn Mowing Business in NZ&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13217,"featured_media":57,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"213785,216645,225233,221800,216884,213573","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[10],"tags":[24,25,62,125,126],"class_list":["post-1017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startups","tag-startup","tag-small-business","tag-business-structure","tag-lawn-mowing","tag-franchising"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Start a Lawn Mowing Business in NZ | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Looking to start a lawn mowing business in New Zeland? 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