From Side-Hustle to Pro: Lease-to-Own or Pay Cash for a Mower?
Thinking about taking your landscaping side hustle full-time? One thing is for sure—you need commercial-grade equipment to achieve those perfectly striped lawns that turn heads and command the big bucks. Commercial-grade mowers are built differently from the consumer-grade models meant for homeowners who mow once a week. You’re paying for a heavier-gauge metal deck and components, a more powerful engine that brings speed that can run for many hours per week, precision maneuverability, and a suspension system to make riding around on it easier on your body for the long haul.
We know you “tweeners” have the elbow grease part down, but the financial end of things, maybe not so much. Commercial equipment is a big investment and can be intimidating. One of the most common questions we’ve noticed beginner landscapers asking in forums and on social media is:
“Should I take on debt to get my first commercial mower, or wait until I can pay cash?”
There is plenty of conflicting advice out there and people can be very passionate about their opinions on this. Some say debt is the only way to grow. Others preach that cash is king. At Mower Finance, we think that both are viable options, and you can take the emotion out of it by running the numbers. And it’s easier than you think to calculate. We’ll compare both scenarios in this post so you can decide for yourself what is right for you.
First, let’s define what “affording” an expense really means from a business standpoint. Andy Hopkins, the CEO of Mower Finance and a former landscaper turned finance expert, has first-hand experience of what true profitability means. He built his landscaping business, Twin Pines Landscaping, around what he calls the “15% Rule”.
Simply put: your equipment and operating expenses should not exceed 15% of your gross revenue.
To be a viable business that can be sustained over time, you need to reserve that other 85% for taxes, paying yourself a wage, maintaining your truck & equipment, emergency cushion, and profit. This requires a degree of efficiency and expense tracking to keep you on course, but it takes the mystery out of it if you know what you’re shooting for.
This is what the equation looks like:
Total Expenses ÷ Gross Revenue = .xx (xx%)
Try plugging your monthly numbers into our cost-to-value calculator.
Cost to Value Calculator
Simple, right? Just be sure you have a real handle on what your actual expenses and income capabilities are. Include more than the equipment itself. Include marketing stuff like fliers, website, business cards. Include gas cans, extra blades, trimmer string, fuel.
Here is a real-world example:
Johnny the tweener is ready to go full-time. He has turned down opportunities due to the limits of his equipment and still being stuck at that day job. It’s time to cut the cord!
First, he calculates the total cost of the new equipment he requires.
Total Equipment Cost
$7279 Bad Boy Maverick 60”
+ $2565 basic trailer
+ $800 handhelds & supplies
+ $425 (4%) sales tax
= $11,069
With his less-than-perfect credit history, Johnny was turned down by the big-name lender at the dealership. However, he has qualified for a 48-month Lease-to-Own program through Mower Finance which covers the amount of the new equipment.
At the end of the term, Johnny will own the equipment. He can also opt to pay off early at any point in the term which would help him save on total cost.
The lease-to-own contract is different from a car lease. Leasing to own allows him to take advantage of the trade-in value toward his next piece of equipment because he owns it free and clear at the end. Here are what his monthly expenses would be:
Expenses Per Month
$507* LTO payment on $11,069
+ $500 gas and incidentals
= $1,007
*Monthly payment is based on a middle-tier lease-to-own program with a 48 month term from a provider in the Mower Finance network. Approval and approval amount depend on credit eligibility and are not guaranteed. Other terms and programs above and below this program are also available which have an effect on costs. Example is for hypothetical purposes only.
With the new equipment, Johnny estimates he can take care of 35 lawns a week charging an average of $50/each:
Gross Income Per Month
35 lawns @$50 each
$7000
The Math
$1,007 Expenses per month
÷ $7000 Gross Income per month
= 14.4% Cost to Value ratio
This fits within the 15% rule! The business supports the purchase as long as he can stay on top of those 35 lawns and his expenses stay steady.
Side Hustle Math
$1,000/month Gross revenue
–$100/month Expenses
$900/month Net Income
Time to Save $11,069: 12 months if he saves 100% of his side-hustle earnings
What about the cash scenario?
Johnny could also decide he is too risk-averse to take on debt right now. If he continues in side-hustle mode, he can handle 5 lawns per week @ $50 each with minimal expenses while making do with his old consumer-grade equipment.
This is the slow and steady route. It’s safe. It works. But it requires discipline; otherwise one year can turn into two, and two can turn into never.
What if the 15% Rule is not in your favor?
If you do the math and find you’re over the 15% threshold, that doesn’t mean your dream is dead. It just means you need to recalibrate. Some possibilities:
- Dare to raise your prices
When it comes to differentiators, being the cheapest provider will not be something you can sustain. Sure, to start out, you might give friends and family a price break. If you have a group of neighbors right next to each other, you may be able to justify a discount. Pricing is a much-discussed topic among lawntokers, youtubers, and podcasters. The consensus is that marketing yourself as the cheapest makes it difficult for you to change strategies later. Differentiate your service in some other way. Anything but that! - Cut expenses elsewhere
Spending traps are everywhere for you to fall into. Have you been offered a $300/month website service to build and maintain a site for you? It’s a lot easier than you think to DIY a minimal-cost site that does the same job. Have you been told you need to pay for ads to get customers? Door-knocking the neighbors of your existing accounts may actually be more effective and consolidate your route. - Negotiate with dealers
Here’s an insider tip: if you show up at a dealership with an approval from Mower Finance, you’ve just made that dealer’s life a lot easier. Leverage that. Ask if there is wiggle room in the price since you’ve already lined up your financing. - Consider used equipment
Used commercial equipment can be a great value if cared for properly. And one of the great things about a Mower Finance approval is that used equipment is eligible. - Rethink your timing
Maybe you just need more time to work toward a down payment.
When you make the shift from tweener to full-time business owner, train yourself to always be looking at expenses with a critical eye. Purchasing a mower – however you decide to accomplish that – is a good return on investment because it is essential to being able to mow a volume of lawns. Go into every decision with a concrete idea of what a good return on investment looks like.
Remember, the 15% rule isn’t a one-time thing. You can come back to it again and again as your business grows. It helps you make level-headed decisions instead of emotional ones.
Our Goal: Empower, Not Overextend
At Mower Finance, we’re not here to push you into financing just to make a sale. We want you to succeed long term. That means helping you understand the numbers, stay in control of your business, and grow with confidence.
Take the emotion out. Do the math. Aim for 15%. You’ve got this.
