- Recurring Revenue Contract
- A signed agreement with a customer for weekly, bi-weekly, or monthly landscaping services at a fixed fee β the backbone of predictable cash flow in a landscaping business.
- Route Density
- The concentration of service stops within a geographic area; higher density reduces drive time between jobs and improves crew productivity and fuel efficiency.
- Seasonal Revenue Mix
- The proportion of annual revenue earned across seasons; landscaping businesses manage this by layering services such as snow removal, fall cleanups, and holiday lighting to reduce winter revenue gaps.
- Equipment Depreciation
- The annual reduction in value of mowers, trucks, trailers, and other capital assets β a key line item in financial projections and a factor in equipment replacement planning.
- Job Costing
- Calculating the true cost of each service job β labor, fuel, materials, and equipment wear β to determine whether each job is profitable at the quoted price.
- Residential vs. Commercial Accounts
- Residential accounts are typically smaller, higher-margin, and paid on completion; commercial accounts are larger, lower-margin per visit, but provide stable recurring contracts paid Net 30.
- Crew Productivity Rate
- The number of billable hours or jobs a crew completes per day, used to forecast labor costs and set job pricing.
- Upsell Services
- Higher-margin add-on services β fertilization, aeration, mulching, irrigation installation β offered to existing maintenance customers to increase revenue per account.
- Startup Costs
- One-time expenses required to launch the business, including equipment purchases, vehicle down payments, insurance deposits, licensing fees, and initial marketing spend.
- Break-Even Point
- The monthly revenue level at which total income equals total fixed and variable costs, with zero profit or loss β a key milestone to project and track in Year 1.