The cost to start a landscaping business varies depending on the type of landscape design you want to do. Landscaping businesses can range from small residential jobs to large commercial projects.
The average startup cost to start a landscaping business is between $5,000 and $75,000, but some will spend more if they have a lot of specialized equipment like irrigation systems or other complex needs. The cost to start a landscaping business also depends on where you live and what kind of business you’re planning to start. Also, how much equipment and materials you need how many employees you need, how much money you have available to invest, and how much risk you want to take on. We’ll discuss this more below.
Cost to Start a Landscaping Business
First, let’s look at what a landscaping business is. It’s a business that provides landscaping services for residential and commercial properties. It can be a full-time job or a side hustle, depending on how much work you can get. Landscapers typically work with plants, trees, shrubs, and flowers but also may install hardscapes like patios or walkways. It’s a broad term that can include everything from mowing lawns and planting flowers to building retaining walls or installing irrigation systems.
There are several costs to starting a landscaping business. Let’s examine them more closely:
Vehicle
The first thing you’ll need is a truck. You could rent one, but most landscapers opt to buy one outright because of the long-term savings. The average price for a used landscaping truck is $15,000 and can go up to $50,000 or more depending on what kind of equipment it has years on its warranty.
Marketing and advertising
This can involve paying for ads online or offline marketing, which can range from $2,500 to $3,500 on a large scale. It can range from $50 to $300 on a small scale.
Landscaping Business Licenses and Permits
You will need a business license and other permits before starting your landscaping business. This can vary by state but usually costs between $50 and $200 per year.
Business Insurance
You should have general liability insurance that covers any damages or injuries caused by your company’s operations. This type of insurance is required by law for all businesses in most states. If you don’t have any other employees besides yourself, then this can be relatively inexpensive; however, if you hire subcontractors or workers.
Equipment and Tools
Equipment can cost between $5,000 and $12,000. This includes everything from mowers and trimmers to leaf blowers and edgers. You’ll also need shovels, rakes, and other hand tools. Some landscapers use a trailer to transport their equipment, which costs around $3,000+.
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What you need for a landscaping business
What you need for a landscaping business depends on the type of landscaping business you own. Some residential landscapers may only work with smaller equipment and job sites. As a commercial landscaper, you’ll have bigger clients and more land.
- You will need to have the required equipment for your business. You will need to buy tools, machinery, and other equipment required for landscaping.
You must know how much money should be invested in these items and their maintenance costs because they will determine how much profit you can get from your investment.
- Landscaping requires a lot of work, so it’s better to hire workers to help you with this task rather than doing everything yourself, which could be time-consuming, especially when there are deadlines involved, like preparing gardens on time.
- Landscapers should be able to manage their time wisely and plan their workload. They should also communicate well with clients and other people in their company and understand their landscaping needs. Having a good understanding of the landscape industry and its seasonal needs is important, but it’s also important to have some basic business skills.
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Cost to purchase landscaping equipment
You’ll need to purchase or rent equipment to do landscaping work. The cost of the equipment will depend on what you need, but it can range from around $2,000 for a basic setup to more than $100,000 for a high-end setup.
For example, if you’re only doing basic lawn mowing and maintenance work, you may only need some basic tools like a weed eater and edger. On the other hand, if you plan to install large gardens or ponds in your yard, you’ll need more expensive equipment such as tractors and backhoes.
Maintenance costs for landscaping equipment vary widely depending on the type of machine that you use and how much maintenance it requires. Suppose you regularly use heavy-duty machinery like tractors or front loaders in tough conditions with loose soil conditions, such as rocky hillsides or sandy dunes, which may cause frequent replacement.
Maintenance would likely cost several hundred dollars depending on how often they’re used and how much wear occurs each time they’re used. If you have an old backhoe and want to use it for light-digging jobs around your house, then maintenance may only run about $50 every few months.
If insurance is required by law where you live, this cost shouldn’t be included because it’s required anyway. But if not required by law, then make sure not only yourself but also other people using tools such as chainsaws, etcetera while working outside don’t go without having protection against accidents happening without proper precautions taken!
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Should you hire employees or contractors?
When you’re starting your business, you may have to make some tough choices about whether to hire employees or contractors. Employees are more costly upfront, but they can offer benefits and stability for your business. Contractors are less expensive, to begin with, but you might have to pay them more as the job progresses.
If you decide to hire employees, you’ll have to pay a certain monthly amount for their health insurance and other benefits. Depending on your state, you may also have to pay Social Security taxes and unemployment insurance. These costs can quickly add up. If you hire contractors, they’re responsible for paying their payroll taxes (if applicable).
Hiring employees is probably best if you need to be around the business more. If you hire employees, you’ll have to pay them a salary and benefits. You may also be required to make payments for unemployment insurance if your business employs at least one person. You must consider these costs before hiring new people.
Contractors are often more expensive and can increase liability risk if they don’t follow all the necessary procedures.
Hiring contractors may be the better option if you don’t want a long-term commitment or would instead focus on other aspects of running your landscaping business. They’ll complete tasks as needed without any worries about payroll taxes, benefits costs, or retirement plans for themselves—and this can also save money for your company!
When can you start paying yourself?
Some people believe you should expect to pay yourself first and then your employees. This is a common practice in landscaping, ensuring that your business has enough cash flow to cover its operating expenses and payroll.
The amount you pay yourself will depend on the factors below:
- First, it is important to ensure that your company has enough cash flow to cover its operating expenses and payroll before paying yourself anything. How much money do you have in the bank? If you’re starting, this is probably not a lot of money.
- Your rate of pay (how much you charge for lawn care)
- Your salary and benefits package
- How many employees are in your business?
- Your equipment purchases: If your equipment purchase were financed, the payments would likely be monthly (or quarterly). If not, then payment is usually made at the time of sale. Either way, these payments can offset some of your taxable income over time if deducted as an expense from gross sales revenue.
So, that’s it for our breakdown of the costs associated with starting a landscaping business. As you can see, it’s not as expensive as you might think. However, it does take some time and effort to set up your business. If you want to go into landscaping, then be prepared for hard work and long hours.
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Frequently Asked Questions
How long does it take for a landscaping business to become profitable?
Depending on your business plan, a landscaping business may take 2-3 years to become profitable. It would be best if you worked consistently to achieve your income goals with your business. So, it is possible to be profitable in landscaping.
What can I do to make my landscaping business more profitable?
You can make your landscaping business more profitable by upselling existing clients, taking on more jobs, expanding your services, and managing your time. You can also consult with your accountant to see how to cut back costs.
What are the best ways to save money on landscaping equipment?
You can save money on landscaping equipment by renting at low prices or buying good equipment that doesn’t require much maintenance. Start with basic tools and services at the beginning of your landscaping business.
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.