Key Takeaways
- 01The landscaping industry is growing rapidly with over 0.6 million lawn care businesses expected by 2022
- 02A solid business plan and market research are essential foundations for a profitable landscaping business
- 03Choose between landscaping services, lawn maintenance, or both based on your target market demands
- 04Invest in quality equipment gradually and determine competitive pricing for your services
- 05Marketing strategies including website development, SEO, and social media are crucial for attracting clients
Are you interested in starting your own business but do not know where to find inspiration? Well, landscaping presents an exciting opportunity to venture into it! Thousands of people are entering the landscaping business today, and according to recent reports, there will be more than 0.6 million lawn care businesses by 2022.
In 2020, Statista estimated that the average consumer unit will spend 170.77 U.S. dollars on garden/lawn care services, a major increase from 2016. The lawn care industry goes beyond just cleaning up your neighbor's lawn. So, to start a landscaping business, you must deal with planning, legal arrangements, financial management, selecting specific services, recruiting, and marketing.
If this sounds like a good idea, keep reading to find out landscape business tips on how to run a profitable landscaping business.
Step-By-Step Guide to Setup Landscaping Business
1. Understand the Market
If you're starting a new landscaping business, learn as much as possible about it, specifically about the particulars of lawn care in your area. Many landscaping guides can be found online, or you should consider taking online courses from reputable organizations. In addition, ask for advice from other entrepreneurs in your local area who are more experienced in the field. The process can take a while, but you are more likely to succeed by doing your research ahead of time. Make sure there is enough demand for your services before starting your business.
2. Draft a Business Plan
A landscaping company needs to have a rock-solid business plan. There is no doubt that your plan is a map that will lead you to set up a successful landscaping business. As your landscaping service business grows, you will encounter more and more challenges. Every day, you will have to make more business decisions, so you'll have to put more effort into managing your time. Having the right plan in place will make things easier for you. To achieve your goals, you need to stick to your overall strategy. In most cases, the right choice is obvious. To make a successful plan, you don't have to make it complicated. Simply put, a strategic plan states what you want to accomplish and how you intend to accomplish it. You'll be far more likely to achieve your goals with a solid, written strategy. After finishing your landscaping business plan, create an executive summary that summarizes your plan and explains your company's mission statement as well as its fundamental values.
3. Choose a Name for Your Business
An easy-to-pronounce and memorable name is ideal. When hiring employees or contractors, you should also make sure the business name is easy to spell for them. A name search can be conducted on the website of your state government's small business division, and you can see whether the name you are looking for is available.
4. Decide What Services You Will Offer
Landscaping services and lawn maintenance are the two types of services. Many new landscaping service businesses offer both types of services, but some offer only one type. Please review these services before deciding what services you want for your new business.
Landscaping Services vs. Lawn Maintenance
Landscaping services:
- Plan a home's or business' layout ("landscape")
- Providing landscaping updates to a client
- Make a house's "curb appeal" more appealing
- Service for businesses without their landscaper
Lawn maintenance services:
- Sod installation
- Mowing lawn services/weed eating
- Weeding
- Trimming shrubs and hedges
- Applying fertilizer
- Seeding/hydroseeding
- Planting/plant care
- Bug and pest treatments
- Irrigation system maintenance and repair
- Lawn aeration
The above are some of the services you may choose to offer as part of your business. As for what your customers need, it just depends on your target market and what you intend to provide to them. Starting small with just a few services is a good idea, as you can expand if there is enough demand for additional services as you go along.
5. Establish Your Company
After you have determined what kind of services you will provide, you will be able to decide better what you need to do to set up a company so that the paperwork work required will be much easier. It includes the following:
(A) Choose a Business Structure
Choosing a legal business structure to categorize your business under is the first step to operating as a legal business in the state. Your business structure will determine how much you'll have to pay in taxes and what paperwork you have to file. Before choosing your business structure, it is essential to become familiar with the rules and regulations of your state. The good news is that you can change your business structure as your business grows.
The two main structures recommended for businesses include:
Business Structure Comparison
| Structure | Best For | Key Benefits |
|---|---|---|
| Sole Proprietorship | Single owners with startup capital | Simple to set up, full control, ties personal and business assets together |
| Partnership (LLP) | Two or more business partners | Shared liability, silent partners possible, limited liability for each partner |
| Limited Liability Company (LLC) | Owners seeking asset protection | Separates personal and business assets, protects during financial decline |
Important Note on Sole Proprietorship
This structure ties your personal and business assets together, so you will also be affected if your business faces financial difficulties. Eventually, as your company grows, research other structures that might be better suited to your more extensive operation.
(B) License Requirements
A new business must be registered to operate legally. To do business as a company, you must register your DBA with the state and federal government. Before registering your business, check this database to ensure your name is unique. A valid Employer Identification Number (EIN) is also required. As a result, you will need this tax ID to start a business, hire employees, and obtain local permits. Using the IRS website, you can get an EIN. Licensing and permits required for landscaping businesses vary by state. If you are unsure what your state's requirements are, contact the business licensing association in your state.
6. Purchase High-Quality Equipment
To produce high-quality work, you must use the right tools. Equipment can be expensive, so finding your financial balance is crucial. When you don't need big-ticket items often, you can rent them. Many of the tools can be rented from home improvement stores, usually for about $100 per day. If you gradually invest in good equipment instead of buying everything immediately, you will have a better supply shed.
When your business grows and you take on big landscaping projects, it may become more cost-effective to purchase equipment. Keeping track of your rental costs will help determine when owning is the better option financially.
Essential Equipment for Your Landscaping Business
- Trailers and trucks for transportation
- Mowers for commercial use
- Weed eaters and edgers
- Rototillers
- An array of specialized tools
Pro Tip: Rent Before You Buy
When you don't need big-ticket items often, you can rent them from home improvement stores for about $100 per day. This allows you to gradually invest in equipment as your business grows.
7. Calculate the Cost of Lawn Care Services
When you have your equipment ready, determine the how to price landscaping jobs services. In the same way, as many landscape contractors, lawn care professionals also charge their clients for visits. The cost of maintenance of lawn and small repairs can range from $30 to $60 per visit. In addition, even the most successful landscaping companies charge between $50 and $100 for removing grass and watering flower beds on pathways.
The actual price may also differ depending on the operating lawn care expenses and work performed by the tradesmen. In addition to the final bill, you can charge extra if the residents ask for the trees to be cut down at the job sites.
Typical Landscaping Service Pricing
Average costs for common landscaping services
| Type | Cost | Priority |
|---|---|---|
Lawn Maintenance Visit Standard lawn care and small repairs | $30-$60 | High |
Grass Removal & Watering Pathway flower bed maintenance | $50-$100 | Medium |
Tree Removal Additional charges based on size and complexity | Variable | Low |
Prices vary based on location, lawn size, and specific services requested
Help from an experienced person in the landscaping industry can help you set up the startup costs for a successful lawn care business. If you're wondering how to bid a landscaping job, an expert can guide you through the process and help you come up with an accurate estimate. You can also use online automated software like InvoiceOwl to get your estimates after analyzing the lawn's working area or size. Setting and tracking landscaping costs this way is the easiest.
8. Market Your Business
Setting up a lawn care company and sitting back is not enough for a company's success since it is necessary to engage in marketing activities to attract new clients. As a landscaping business owner, you will know firsthand how homeowners expect their lawns to be bright green and how much care they will put into keeping that lawn beautiful. In the same way, you will need to continue to put in different marketing efforts to ensure that your lawn care business attracts new clients and how to retain clients.
Online marketing strategies are a great way to promote your lawn care business.
Get to Know Your Competitors
Using various marketing channels, you must find out who your competitors are in the lawn care industry. Be aware of the company's features and how they make the experience enjoyable for their potential customers.
Create Your Website
Adding a unique logo and developing a user-friendly website is your next marketing strategy to promote your lawn care business. The main web page should contain your current offers and a list of your services. Creating a website that looks professional will allow visitors to scroll down the page and take a look at the other services that the company has to offer.
Use SEO Strategies
In addition to the website, it is advisable to add relevant content such as informative blogs and service guides that could be useful for customers. Hire an SEO specialist to put your newly-developed website on top of the search engine results.
Send Email Marketing Campaigns
Promoting landscaping jobs via email marketing usually results in new customers. Sending emails to new and existing clients is an excellent way to reach out to them. Organize a mailer with a list of services linked to your website and a CTA button. With such methods, you allow the clients to view the message when it is convenient for them. Ultimately, you would be interested in attracting potential clients.
Run Social Media Campaigns
Social media platforms such as Facebook, Instagram, and others play an essential role in marketing techniques. In this particular situation, you will have the opportunity to advertise your business while also expecting to get more clients at the same time. As a result of social media marketing, homeowners will not only be attracted from within your service area but will also be attracted from distant regions.
9. Invest in Automated Software
The more time you spend managing reports and following up on scheduled tasks, the more you'll have to pay for your lawn care company. Keeping an eye on ongoing activities is not that easy. Keeping track of your crew and sending invoices in just a few clicks is possible with automated lawn care software like InvoiceOwl.
The focus on providing excellent customer service often distracts you from managing employees and payments. Therefore, it is likely that you will lose your valuable money. InvoiceOwl can help you eliminate these problems. Using this invoice estimating software, you can manage your invoices, payments, and reporting in one place. Don't let your competitors catch up with you! Try a free trial now.
10. Recruit a Team
According to your business model, depending on your landscape business, you may need to recruit a landscape construction team or a team of landscapers.
When You Need to Recruit a Team
There are several instances when you need to recruit a team:
- If you seek a person to take on the leadership or managerial role in your business
- If there are projects on your to-do list
- The goal is to be able to handle several projects at once
Hire staff with experience and an understanding of giving your clients high-quality work. It is essential to keep in mind that the people you hire positively represent your business. To build a favorable reputation in your neighborhood for your landscaping company, you need to build a team that can help you achieve that.
Streamline Your Landscaping Business Operations Today
InvoiceOwl helps you systemize your landscape business by automating estimates, invoicing, and payment tracking. Focus on growing your business while we handle the paperwork.
Start Your FREE TrialFrequently Asked Questions
Yes, of course. With the income you can generate from providing landscaping and lawn services, you can become wealthy very soon. Despite this, there is also the possibility that your business could go belly up if the next recession hits. Ultimately, it all boils down to how you approach business.
Landscape businesses have more significant potential for growth, but it depends on how you approach them. To maximize your business profit margin, you must follow all the right steps, including implementing the business plan, customer satisfaction, building your network, and employing the right marketing strategies.
Having more services to offer will increase your profits. If you can offer all those services to your customers (flower bed work, sodding, lawn mowing, tree pruning, etc.), it will help you make more money. You can also accomplish more daily jobs if you have better equipment to perform each task faster and correctly.
Final Thoughts
Getting into landscaping can be a great way to make a flexible income. Start and run a profitable business by working hard and dedicating yourself to thriving business growth.
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