Have you been thinking about starting a landscaping business but are not sure how to begin? Don’t worry – you’ve come to the right place to get the quick answers to your landscaping business questions.
Things you should know before starting a landscaping business are:
- Having the necessary business documents: business license, insurance, certification.
- Understanding the scope of work: clientele and type of projects performed
- Consider seasonal availability and competition
- Knowing how to best market your business
- Understanding your start-up costs and how to fund your business
As the seasons change, many homeowners and businesses will be searching for a reliable landscaper to spruce up their yards. If you feel confident after reading through each step of the start-up process, then you may be ready to open your own landscaping business!
Necessary business documents
While it may have been easy to make a few bucks mowing lawns as a kid, a legitimate landscaping business requires legal documentation. The necessary documents include a business license, insurance, and in some states, a special certification to operate a landscaping business.
Business License
Getting a business license may seem like a headache, but it becomes easier once you know the process. A good place to start is the U.S. Small Business Association website, which outlines all the legal steps to setting up your landscaping business.
First, you should decide on the type of business you will register:
- Sole Proprietorship: If the business is owned and operated by the individual, a sole proprietorship may be easily set up. However, full liability is assumed, so business owners with increased risk may choose a different structure.
- Limited Liability Company (LLC): The individual owner is separated from the business, reducing personal liability in the event of a lawsuit or claim. This structure allows the individual owner some protection in the case of any business-related problems.
- Partnership: If you plan to go into business with another person, the partnership structure may be beneficial.
Once you’ve decided on a business structure, you must register your business name with the state or local government. The registration requirements depend on the state your business is located but can easily be looked up.
After registering your business, acquiring federal and state tax ID numbers, and receiving an Employee Identification Number (EIN), you are now ready to apply for your business license. The required licenses will depend on your state
Insurance
Insurance is necessary to protect yourself and the business from any incidents that may occur during operation. This may include damage to client property, damage to business assets, or worker injuries. Of the many types of business insurance, General Liability Insurance is recommended for all businesses, followed by Workers’ Compensation Insurance if you plan to hire outside labor.
It may be worthwhile, and in some states required, to invest in bond insurance. This type of insurance guarantees your contractual obligations with clients.
Certification
There are no certification requirements for landscaping businesses, but they may help when bidding on complex or commercial jobs. The National Association of Landscape Professionals offers a variety of certification opportunities for business owners. Your state may also have a landscaping professional organization offering certification.
Scope of work
Once your business is set up, you will need to think about the details of how to run your business. Your scope of work will include target clientele, the types of projects you will take on, whether to rent or purchase equipment and how many employees to hire.
Clientele: Residential vs commercial
Some landscaping companies will choose a smaller-scale business by only accepting residential clients, while other companies may opt for larger contracts with businesses. If you are well-equipped and well-staffed, you may decide to work with both.
Residential clients are homeowners who may need weekly, seasonal, or one-time projects completed. Typically, they will pay for all or a portion of services up-front, covering materials costs.
Commercial clients are those who own a business or multiple properties and will most likely need a contract in place before starting work with your company. Some commercial customers may not agree to pay the full price until the job is completed. Due to the potential size of the project, you may need increased supervision to ensure the project is being managed well.
Types of projects
Landscaping businesses can offer a wide range of services from lawn care and maintenance to landscape architecture and design. To understand the equipment you will need, you must decide what types of services you will offer. Landscaping services include:
- Lawn mowing and maintenance
- Lawn fertilization and pest control
- Gardening services
- Sod installation
- Landscape design and construction
- Deck and patio installation
Equipment
The equipment needed is dependent upon the services you will offer. At a minimum, you should expect to have the following equipment to start a basic lawn care-based landscaping business:
- Mower – this can be stand-up or sit-down style
- Trailer to tow the equipment
- Truck to tow the trailer
- Gardening tools – shovels, rakes, hoes
- Leaf blower
- Trimmers
- Edgers and weed whipper
- Fuel for the truck and mower
- Labor:
You could be a one-person show until you get your landscaping business up and running, and that’s okay! As your business expands, think about adding employees to maintain growth. You may need a dedicated project manager, office manager, marketing personnel, and a full-time crew out in the field.
Seasonal availability and competition
During the warmer seasons, there is a clear demand for landscape professionals. However, depending on where you live, landscaping is not a year-round business. You need to consider the regional climate and how to sustain your business through the off-season.
If you live in a northern state, the landscaping season may only last from April through October. To sustain your business, you can offer fall cleanup and spring cleanup services, as well as snow removal services during the winter months. Keep in mind, that snow removal will require additional equipment such as snowplows, and may involve different insurance policies.
The landscaping industry has experienced recent growth, where Florida, California, and New York have the highest number of landscaping businesses. If your region experiences a relatively mild winter, you may be able to operate your landscaping business year-round.
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Marketing your business
With seasonal demand for landscaping, you may be thinking: Do I need to market my business? The answer is always yes!
Marketing is a key component to successfully running a small business. There are many ways to market your business, some of which are free or low-cost. Just make sure to consider your budget when deciding how much money to spend on advertising.
- Word-of-mouth: Spread the news about your landscaping business by telling family, friends, and neighbors about it. Once you have a few customers who like your work, they may recommend your business to their friends and family.
- Social media: Another free option, there are many social media platforms to advertise your business. Creating shareable posts is a great way to advertise your business to friends and friends of friends. Think of it as the modern-day word-of-mouth strategy! There are also paid advertising options on sites such as Facebook or Instagram, which will market your business to fellow site users.
- Flyers: With a printer, some ink, and paper, you may be able to create flyers for a relatively low cost. Another option for low-cost printing is the local library or print shop, such as FedEx Office. These flyers can be distributed by mail or posted at local businesses.
- Paid advertisements: In addition to paid ads on social media, you may want to place an advertisement in your local newspaper. A few community-based advertising opportunities may include radio ads, sponsoring a school yearbook or sporting event, and placing coupons in a locally distributed savings booklet.
- Cold-calling and canvassing: There is no substitute for the good old-fashioned way of advertising! Picking up the telephone and going door-to-door are cost-effective ways to reach clients who may not be active on social media. Consider purchasing leads for cold-calling or walking around neighborhoods to see if anyone could use your landscaping expertise.
- Participate in a community event: Another grassroots approach to advertising is to attend a community event such as a farmer’s market, festival, or home show. The set-up cost of a booth or table at these events will depend on the size of the event and the rented space.
Start-up costs and how to fund your business
Once you understand business registration and licensing fees, insurance payments, as well as equipment, labor, and marketing costs it becomes obvious that starting a landscaping business is not a cheap endeavor.
Perhaps you have saved up enough money to cover these costs – if so, good for you! If not, no worries – there are many opportunities for small business funding in the form of loans and grants.
Using an online startup cost calculator is a great way to determine how much money you will need to start your landscaping business. Your costs will also depend on previously discussed factors, such as the type of projects you will take on, the equipment needed, and the number of employees to hire.
General estimates for starting a landscaping business range from $5,000 to $50,000 or more.
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Frequently Asked Questions
Should I start a landscaping business or buy an existing business?
If starting a landscaping business sounds overwhelming, you may consider purchasing an existing business. As a business owner, it is up to you to weigh the pros and cons of starting a new business or buying an existing one. Ask the seller some questions such as why they are selling, the condition of the equipment, the available clients, and the financial records of the company.
How much money can I expect to make from my landscaping business?
You should anticipate an overall profit ranging from 5%-20% of your sales, after operating costs. So, if you have $500,000 in annual sales, you can expect $25,000 – 100,000 in net profit. As the owner, you may choose to reinvest your share of profits into the business or pay yourself a salary.
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.