When you’re considering your own business, it’s easy to get bogged down by the numbers and budget of it all. But when you’re starting your own landscape design business, it’s a little different than your run-of-the-mill landscaping business—there are so many more details to consider. How much money will it take for you to start this type of business?
To start a landscape design business, you can expect to spend about $60,000 on the high end of your budget. This includes a computer with design software, all the equipment you need to create your landscaping, a vehicle and trailer, and your licensure. This cost does not include the cost of your bachelor’s degree in landscaping architecture which is necessary to start this level of business.
Before you start, there are a few things to consider, like what the difference is between landscaping and landscaping design. Read on to find out not only how to create your budget, but how to gain more clients to boost your eventual profit and keep your costs low.
Landscaping Vs. Landscape Design
Before you start, it’s important to know the difference between a landscaping company and a landscape design company. While both are seasonal businesses, there’s a distinct difference—a landscaping company provides basic lawn care with some amenities, while a landscape design business—usually with the help of a landscape architect—creates the outdoor spaces by finding out the best locations for ponds, walkways, trees, etc.
That doesn’t mean you can’t do the same work within your landscaping design company. Some of the items you can do for your customers include:
- Garden and lawn maintenance
- Building decks and patios
- Golf course maintenance
- Lawn planting services
- Tree, flower, and bush planting services
- Corporate and business landscaping
- Garden Landscaping
And many more. What sets you apart is your design experience, which many of your higher-paying customers may want to see in your portfolio.
Four Cons Of Being A Landscape Designer
Necessary Budget Items
A college degree in landscaping architecture and a CLARB license
While many may not consider this as part of their budget, if it’s important to the job, you should make sure it’s included. Most of the landscape architect’s work is creating graphics and designs on a computer program that shows off the potential landscaping plan—parks, outdoor spaces, activity spaces, residential homes, businesses, and open spaces—in a visual way so your customers can see the work that is to be done.
You’ll also need to learn how to prepare site plans, specifications, and cost estimates, along with learning how to manage your team. You also need to understand how to read environmental reports and must know what trees and plants work best in which areas, how much water and sun, etc.
A bachelor’s degree is required for you to bill yourself as a landscape architect, along with proper licensure from the Council of Landscape Architectural Registration Boards (CLARB). While costs vary by school, you can find out more about where you can get your landscape architecture degree by visiting The American Society of Landscape Architects website.
Cost: Variable based on the program; licensure fees vary depending on the program, so budget about $1,500 for complete licensure.
A computer with design software.
What sets your business apart from other landscaping businesses? It’s your attention to creating your landscaping designs. While all other costs associated with this budget can also be applied to a small landscaping business, your computer and design software are what will set you apart.
Some computer programs exist to help you create those designs, like Revit, which can also help you estimate the cost of the project at the same time.
Cost: A computer usually costs around $1,500, while a program like Revit costs $2,675 annually.
How Long It Takes To Become A Landscape Designer
Major equipment and their maintenance.
As you well know, you’re going to need some major equipment before you start working on those designs you’ve created. Here’s a quick rundown of some of the items you may need:
- Commercial lawnmower: up to $16,000
- Push mower: up to $6,000
- Hedge trimmers: about $500
- Weed whackers/ string trimmers: $400
- Edgers: $1,000
- Leaf and Debris blowers: $400
- Fertilizer spreaders and sprayers: up to $1,000
- Gardening and lawn care hand tools, such as buckets, lawn bags, shovels, and rakes: $500
- Protection for your entire work crew, such as knee pads, gloves, ear and eye protection: $500
Your ongoing expenses for your equipment maintenance can cost up to $1,000 per month for your startup.
Cost: about $26,000
A vehicle and trailer
Outside of your major equipment, you’re going to need your vehicle to haul around your equipment to the work site. You may need more than just one—so make sure you plan in your budget accordingly. This cost varies depending on whether you already own one, rent one, purchase one, and whether you purchase used or new.
Cost: variable; expect around $25,000 – $30,000.
How Many People Work In The Landscaping Industry?
How to Increase Your Profits
There are ways to increase your profits before you even begin, and working them into your initial business plans can help you hit the ground running.
- Advertise. And don’t just put an ad in your local paper. Use your website and social media pages as leverage, and try to involve your existing customers—or new ones—in a customer referral program by giving them incentive to bring others to your business.
- Do your research. Know about the industry and your competition, along with the region you’re working in. Make sure you know what plants work best where, and if you don’t know, learn.
- Learn how to bid properly. Especially in a landscape design business where you will potentially be working with corporate customers, you need to learn how to make a good bid. Research everything—your customer, your competition, your region, and play to your strengths. Make sure you ask for the full job description and clarification if needed. Communicate with the customer as much as possible, and estimate your services to the best of your ability. Be realistic about that cost and the amount of time it will take to complete the project.
- Follow up on those bids. Don’t be annoyed, but make sure you follow up by communicating with your potential customer.
- Budget your time and work. Improperly budgeted bids are what get you frustrated customers. Try to estimate both to the best of your ability, and you’ll not only have customers who are happy about your work but pleased by how accurate your estimates were.
- Get involved. One way to get seen in your community is simply by being out in it. Work with other businesses on local projects or get involved with a non-profit organization. People will want to work with you if they know you’re focused on giving back.
- Stay consistent. Whether you’re networking, working with customers, or even working with your employees, make sure you stay consistent and communicate well. The more open you are about your process, the easier it is to gain more customers, and therefore more profit.
Keeping Your Budget Low
While that $60,000 number may scare you at first, it’s important to know that that’s the highest part of your budget, including everything but your education. If you already have a vehicle and a trailer that you can use for your business, that already cuts the cost in half. You also don’t need the highest cost in mowers and trimmers—you can find some used or start with items that are much more inexpensive and work your way up as you gain more profit.
In many cases as well, these are just initial costs. Your degree, vehicle, and most of your major equipment are paid for at the start. Keeping your computer programs up to date, making sure your major equipment is maintained, and paying for your work and your employees will be your main expenses after the initial costs have been incurred.
Regardless of how you get there, make sure you’re prepared for the investment because once you do, you’re off to the races. Landscape design can be a very profitable business if you focus, keep your costs low, and make sure you hire hardworking individuals.
How Much Architectural Landscapers Make On Average
Frequently Asked Questions
How much should I charge for my landscape design services?
While your costs should vary depending on your location and your project, it’s most common to charge between $4,000 and $5,000 for a smaller residential design. Expect to charge your customers around $50 to $150 per hour of labor.
What is the profit margin for a landscape design business?
In many cases, you can experience a 10 to 15 percent profit margin on your landscape design business. Expect the lower end if you just start as a small company.
How much money can a landscaping business make annually on average?
For many smaller landscaping businesses, you can expect to make about $60,000 in profits annually. This does change based on the customer base, your overall region, what services you provide, your management style, your advertising and business strategy, and additional costs that you may incur during the year.
To learn more on how you can start your own landscaping business, check out my startup documents here.
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Meet Shawn Chun: Entrepreneur and Landscape Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a landscape business owner at a job site, driving down the road or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Landscaping Business Boss: I want to help landscape business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.