Why Good Landscaping Companies Go Broke in Winter (And How to Survive the Off-Season)

Jan 10

for Landscaping and lawn care business owners who make most of their money during the growing season and struggle with cash flow during the winter months.

You had a killer season. April through November, you were slammed—mowing, mulching, hardscaping projects, fall cleanups. The money was rolling in.

Now it's January. The phone's not ringing. Your crew is on reduced hours. And somehow, despite banking what felt like good money all season, you're staring at your business account wondering how you're going to cover next month's expenses.

If this sounds familiar, you're not alone. Seasonal cash flow is the silent killer of landscaping businesses. It doesn't matter how good you are at the work—if you can't bridge the winter gap, you won't make it to see another spring.

The Problem: You Make Money 7 Months a Year, But Spend It for 12

Here's the brutal reality: you make 80-90% of your annual revenue between April and October. Then November hits, and revenue drops off a cliff.

Sure, some of you do snow removal. But unless you're getting consistent heavy storms, winter revenue is a gamble. Meanwhile, your expenses don't stop:

Truck payments and insurance
Equipment storage
Phone, internet, software subscriptions
Your own mortgage and living expenses
Crew payroll if you kept anyone on

If your fixed costs run $10,000 a month and you've got four slow months, you need $40,000 just to survive winter. Add another $15,000-$20,000 to ramp back up in spring—materials, rehiring crew, equipment repairs.

Most landscapers don't have $55,000+ sitting in the bank by late November. And that's why they're scrambling every February.

Where the Money Actually Goes

You didn't separate business profit from personal income. When cash flows in summer, it all feels like "your money." You pay yourself when you need it, cover expenses as they pop up. By winter, you've spent money the business needed to survive.

Lifestyle creep killed you. Great July, so you upgraded the truck. Strong August, so you took a vacation. Small increases add up fast.

You didn't set aside for taxes. You grossed $180K from April to October. Then April 15th comes and you owe $30K+ right when you're trying to buy materials and rehire your crew.

You spent customer deposits. That $5,000 deposit on a spring hardscape job isn't your money—it's the customer's until you do the work. But you see the balance and spend it on winter expenses. Come spring, you can't buy materials.

Solutions That Actually Work

1. Run a Profit-First System During Peak Season

Every dollar that comes in gets divided immediately:

50% to operating expenses
30% to owner pay
15% to an off-season reserve account (don't touch until December)
5% to a tax account (untouchable until April)

Set up automatic transfers. This forces you to live on 30% during the season, but guarantees you'll survive winter and pay your taxes.

2. Build Winter Revenue Streams

Snow removal contracts – Pre-sold seasonal contracts for commercial properties. A few office parks can cover your overhead for months.

Holiday lighting – Install in November, remove in January. One crew can handle 30-40 installs for $15K-$25K in revenue.

Winter hardscaping – Market pavers and retaining walls to customers who want work done before spring.

The key: sell these to your existing customers during peak season. Don't wait until November.

3. Convert Top Customers to Year-Round Contracts

Your best customers spending $5K+ annually are candidates for 12-month agreements with equal monthly payments.

Ten customers at $400/month is $4,000 in guaranteed income every month—including January and February.

4. Cut Smart, Not Desperate

Smart cuts: Reduce to skeleton crew, pause non-essential subscriptions, delay equipment purchases.

Dumb cuts: Firing your entire crew, canceling insurance, stopping marketing, skipping equipment maintenance.

Winter is when you do the business work you don't have time for during peak season.

5. Don't Rely on Credit to Survive

A line of credit is for emergencies—not poor planning. If you're tapping it every winter just to survive, you're borrowing from next season to pay for this season's mistakes.

Use credit for true emergencies only.

Your Action Plan

Right now:

Calculate exactly how much you need to make it to April
Pursue any winter revenue possible
Cut non-essential spending immediately

Starting this spring:

Open separate bank accounts: operating, owner pay, off-season reserves, taxes
Set up automatic transfers using profit-first percentages
Start selling winter services during peak season
Convert your top customers to annual contracts

The Bottom Line

The landscaping companies that survive are the ones that treat peak season revenue like it has to last all year. Because it does.

Stop spending like you've got 12 months of revenue when you only have 7. Build your reserves during peak season, create winter income streams, and plan for the gap.

Do that, and you'll never be broke in February again.

Need help building a financial plan that accounts for your seasonal reality? Book a free consult and I'll show you exactly how to set up your accounts and make it through winter without the panic.