How to Start a Landscaping Business: Starting a landscaping business can be fulfilling and profitable. The landscaping industry in the US alone is responsible for over \$100 billion per year; that’s a healthy market full of opportunities for new business owners who want to take a slice of the market. While interests can vary on lawn care, gardening, or maintenance, this article will be comprehensive in helping you kickstart your landscaping business.
Table of Contents
Why Start a Landscaping Business?
The landscaping industry is in a unique position for aspiring business owners. Property owners require lawn maintenance, trimming trees, and landscaping their yards–typically on an ongoing basis. What’s more, the number of residential landscaping jobs continues to increase because homeowners are placing a high value on curb appeal and outdoor living spaces.
Some of the most successful landscapers we know start out as weekend warriors mowing lawns or trimming shrubs. Eventually, some of those same start-up-sized landscapers specialize into things like hardscaping, irrigation systems, and/or commercial contracts. Working outside while building something that belongs to you is an attractive flow for an entrepreneur. Additionally, landscaping has an overall lower barrier to entry compared to other industries.
Landscaping has excellent scalability. You can start on your own, then add a team of employees, expand your service area, and add specialized services. Nurture your own growth–many landscape entrepreneurs eventually develop multiple revenue streams from residential maintenance to commercial snow removal contracts!
Landscape Design
1. Develop Your Comprehensive Business Plan
Prior to stepping foot on your first shovel, you should have a strong business plan to serve as your roadmap to success. Identify your target market clearly – you will focus on residential customers, commercial properties, or both? Think about specializing in areas like organic lawn care, xeriscaping, sustainable landscaping or seasonal cleanup specifically to set yourself apart from the competition.
Your business plan should include startup expenses, future projections for revenue, and plans for growth over the first 3 years. In the United States, most landscaping “startups” will require between \$10,000 – \$50,000 in initial capital found, but that also depends on the overall services you provide as well as the geographic market factors.
Startup Cost Table:
| Startup Cost Category | Low End | High End | Description |
|---|---|---|---|
| Equipment & Tools | \$5,000 | \$20,000 | Mowers, trimmers, blowers, hand tools |
| Vehicle/Trailer | \$3,000 | \$15,000 | Used truck or trailer system |
| Insurance (Annual) | \$1,200 | \$3,000 | General liability, commercial auto |
| Licensing & Permits | \$200 | \$1,000 | Varies by state and municipality |
| Marketing & Branding | \$500 | \$2,000 | Website, business cards, signage |
| Working Capital | \$2,000 | \$8,000 | First 3 months operating expenses |
| Total Initial Investment | \$11,900 | \$49,000 | Depends on scope and market |
Include market analysis in your plan. Research local competitors, analyze their pricing structures, and identify gaps in service offerings. Understanding your local market demographics helps determine which services will be most profitable in your area.
2. Handle Legal Requirements and Business Licensing
Get your business name registered and choose a business structure. Most landscape contractors form LLCs as it keeps you and your personal assets safe, while giving you some latitude in how you operate your business. Find a business attorney or accountant who can help you decide on the proper structure for your circumstances and possible tax implications.
Acquiring licenses and permits, which vary considerably from state to municipality, can often be complicated. Do your local research to be sure you have the proper licenses, establish your business legally and avoid costly fines and legal issues.
Licensing Table:
| License/Permit Type | Required For | Typical Cost | Renewal Period |
|---|---|---|---|
| Business License | All operations | \$50-\$500 | Annual |
| Contractor’s License | Most landscaping work | \$200-\$1,000 | 1-3 years |
| Pesticide Applicator License | Chemical applications | \$100-\$300 | 1-3 years |
| Commercial Driver’s License | Large equipment transport | \$75-\$200 | 4-8 years |
| Workers’ Compensation | When hiring employees | Varies by payroll | Annual |
| Sales Tax Permit | Retail plant/material sales | \$0-\$100 | Varies |
If you want to use pesticides, herbicides, or fertilizers you should get specific certifications from your state’s agriculture department. These certifications, although not overly complicated, will require you to undergo training about the safe manner of applying chemicals in your state and to take exams to obtain the certification.
And don’t forget about taxes! A new business will need a federal and state tax ID and make three estimated quarterly tax payments and if you hire workers you will need to understand your employee tax obligations! Consider hiring a tax professional to assist and ensure you are complying with all necessary tax regulations.
3. Secure Comprehensive Insurance Coverage
As a landscaper, there are risks that you cannot predict so having complete coverage for your insurance is vital in protecting both your business and personal assets. General liability insurance protects you against claims of property damage or bodily injury lawsuit that could result from your work.
Commercial auto insurance protects your vehicles and equipment while in transit to jobsites. Given how much travel you’d be doing, this coverage is important. Professional liability insurance can protect you from claims related to design errors or professional mistakes.
You might also want to consider workers’ compensation insurance if you are hiring employees, or look into equipment coverage for expensive machinery. Most clients, particularly commercial accounts, require proof of insurance before signing contracts, so don’t skip this vital step. Bonding may also be needed for some commercial contracts.
4. Invest in Quality Landscaping Equipment
Start with essential landscaping equipment that provides versatility and reliability. Here’s a priority-based equipment acquisition guide:
Equipment Table:
| Priority Level | Equipment | Cost Range | Why Essential |
|---|---|---|---|
| Must Have | Commercial mower | \$3,000-\$8,000 | Core service capability |
| Must Have | String trimmer | \$200-\$500 | Edge finishing and detail work |
| Must Have | Leaf blower | \$150-\$400 | Cleanup efficiency |
| Must Have | Hand tools set | \$300-\$600 | Basic maintenance and planting |
| Should Have | Truck/trailer | \$5,000-\$25,000 | Equipment and material transport |
| Should Have | Hedge trimmers | \$200-\$600 | Shrub and hedge maintenance |
| Nice to Have | Aerator | \$2,000-\$5,000 | Specialized lawn care service |
| Nice to Have | Skid steer loader | \$15,000-\$40,000 | Heavy material handling |
You don’t have to purchase everything new in the beginning. Buying quality used equipment can help with start-up costs until you have a cash flow and can better determine what tools you use most.
When your business is positioned for growth, consider investing in more specialized equipment such as aerators, dethatchers, skid-steer loaders or landscape lighting installation tools. A number of very successful landscapers also provide snow removal services in the winter months to extend their earning potential by requiring plows and salt spreaders.
You should also look at the option of getting equipment financing so that you preserve working capital, while still acquiring the necessary tools. Many equipment dealers have programs set up for landscaping businesses.
5. Build Your Customer Base Through Strategic Marketing
Effectively marketing your landscaping services is essential to growth that will eventually lead to sustainability. Start with someone you already know: your friends and family, neighbors, and everyone from your local community who might have yard work or know someone that needs their yard worked on.
Next, make an online presence by creating a professional website with all the vital, essential information about your services, pricing, and before-and-after images of your project work. Utilizing search engine optimization (SEO) will make it easier for prospective customers to find your business when they search “landscaping near me” or “lawn care services.”
Take advantage of social media platforms like Facebook, Instagram, and Nextdoor as ways to showcase your work, and reach potential customers in the areas you plan to service.
As you market yourself, think about seasonal promotions or bundled services such as spring cleanup, fall leaf removals, mulching services, and winter snow plow contracts as ways to generate consistent, ongoing revenue over the course of the year.
Pricing Your Landscaping Services Competitively
Competitive pricing is essential for attracting customers while maintaining healthy profit margins. Research local market rates extensively for common services like lawn mowing, hedge trimming, mulching, leaf removal, and landscape installation.
Service Pricing Table:
| Service Type | Typical Pricing Range | Pricing Method | Notes |
|---|---|---|---|
| Lawn Mowing | \$30-\$80 per visit | Per visit or monthly | Depends on lot size and frequency |
| Hedge Trimming | \$50-\$150 per hour | Hourly or per job | Based on height and complexity |
| Mulching | \$75-\$150 per yard | Per cubic yard | Plus delivery and spreading |
| Leaf Removal | \$200-\$500 per property | Per job | Seasonal service, varies by property size |
| Landscape Design | \$50-\$150 per hour | Hourly consultation | Or percentage of installation cost |
| Hardscape Installation | \$15-\$40 per sq ft | Per square foot | Varies greatly by materials and complexity |
| Snow Removal | \$35-\$75 per visit | Per visit or seasonal contract | Residential driveways and walkways |
Growing and Scaling Your Landscaping Business
As your landscaping company grows, it is important that you focus on providing great customer service and high quality workmanship.
You may also decide to offer additional services based on customer needs and seasonal opportunities. When you have developed a sufficient client base and taken on larger jobs or projects, it will make sense to hire reliable employees to supplement your time and efforts.
As a landscaping business owner, you will need to put together systems and processes that will allow you to scale effectively. One reliable tool can be landscaping software.
Managing Seasonal Challenges and Cash Flow
Landscaping businesses face significant seasonal fluctuations. Develop comprehensive strategies for maintaining cash flow during slower periods.
Seasonal Revenue Table:
| Season | Primary Services | Secondary Opportunities | Revenue Potential |
|---|---|---|---|
| Spring | Cleanup, mulching, planting | Irrigation startup, fertilization | High – 30% of annual revenue |
| Summer | Mowing, trimming, watering | Landscape installation, pest control | High – 35% of annual revenue |
| Fall | Leaf removal, winterization | Aeration, overseeding, cleanup | Medium – 20% of annual revenue |
| Winter | Snow removal, planning | Holiday lighting, equipment maintenance | Low-Medium – 15% of annual revenue |
Technology and Modern Landscaping Business Management
It’s time to embrace technology for improved efficiency and customer experience. Landscaping software solutions can manage scheduling, routing, invoicing, and customer communications.
Final Thoughts: How to Start a Landscaping Business
Starting a landscaping business takes determination, muscle, business sense, and will power, but can be very rewarding both financially and personally.
Whether you are dreaming of a small lawn care route, or a full-service landscape design company; the fundamentals are the same: sound business processes, quality craftsmanship, exceptional customer service, sound financial management will allow you to stand out in this competitive but rewarding industry.
