Run a Landscaping Business

If you have a passion for the outdoors and plant life, you may be interested in running your own landscaping business. This is a very competitive market and, for your business to survive, you must be prepared to invest a significant amount of your own personal time and effort. Start by learning as much as you can about landscaping in general. Head into your business with secure funding and the proper insurance. Build up a client base through aggressive advertising and positive service. Follow careful business practices, including keeping detailed documentation, and watch your business thrive!

Steps

Laying the Groundwork for Your Business

1. Learn about landscaping. You’ll either want to pursue hands-on experience via working for another landscaping company or offering to serve as an apprentice to a practicing landscaper. Or, you can attend a technical school and take classes specifically focused on landscape design and business practices. All of the information that you gain will help you to make smart choices about the services that you can offer.
   • Many people assume that landscaping is simply gardening, but there is much more there. In fact, as a landscaper you may work with building design and irrigation, making engineering an attractive college major for some.
2. Decide on the scale of your business/services offered. It is fine to start your business by simply offering to mow lawns, however, at some point you will likely need to expand your services in order to compete and survive. Consider what you are interested in and weigh whether or not to add in chemical application services (pest, weed), landscape design, or even sod installation.
   • Starting with one specialty and expanding out to others is a good way to ensure that you don’t get in over your head and that the quality remains high.
   • As you are considering scale, you will also want to think about how far you are willing to travel to do your job. This will be your “territory” and can expand or compress, as needed, but setting an initial boundary will give you an idea as to your potential customer base and their needs.
3. Consider franchising. If you have little experience starting up a business and don’t mind adopting someone else’s model, a franchise might be the way to go. This is where you essentially pay to follow the guidelines, and get the name recognition, of an existing company, such as TruGreen.
   • Another option is to purchase a local business that isn’t doing too well. You can take over their existing customers and insert new capital into their model.
4. Secure funding to begin your business. Unless you’ve saved a sufficient amount of money, you will likely need to get a small business loan, from a bank or other lender, in order to start your business and keep it running. Make sure that you understand the details of any loans that you take out and keep in mind that you will need to pack back these monies.
   • A simple, one-person lawn mowing business may cost around $500 to start up and run, whereas an existing business or franchise purchase could easily top $100,000.
5. Check for licensing requirements. The more services that you offer, the more likely it is that you will need some type of specialty licensing from your state or local government. Check with you local Chamber of Commerce to ask about licensing in your area.
   • Some states requirement that landscapers possess a contractor’s license, like New York, whereas others require a nursery license if you wish to sell plants, such as Colorado.
   • If you are even considering working with pesticides or fertilizers, you will likely need a license and possibly even additional training focusing on the handling of hazardous materials.
6. Get insured. You will want both professional indemnity and public liability insurance for your business. You will want to secure these before accepting your first clients for both their protection and yours. Professional indemnity insurance will provide you will support in the case of a financial disagreement with a client. Public liability insurance will cover you for any accidents that occur on the job.
   • It is a good idea to shop around to find the best rates as this will be a significant business expense.
7. Gain access to the necessary tools and equipment. You may already have a few of the basics, so start keeping a list of additional items that you would like to purchase down the line, such as a cutting machine. Once you’ve assessed your tools, decide on a mode of transport and storage, whether that is a van or perhaps a pick-up truck.
   • Make sure that your overnight storage is secure or you may find yourself without any tools. And, you will want your tools protected from the elements as well, or they won’t last as long.
   • Many landscapers save money by renting out large equipment, such as cement mixers, for a particular job when needed. They include the rental charges with the cost of an estimate, thereby saving money.
8. Get involved with a trade organization. Search out a trade group, such as the National Association of Landscape Professionals, pay the membership fee and participate in the activities. This is a great way to establish contacts with other landscape specialists, who may be able to refer business to you. It is also a smart place to find a potential mentor in the field.
   • Most trade groups also offer professional development opportunities, which is a good way to stay updated on any new advances in landscaping, such as eco-landscaping techniques.

Operating Your Business on a Daily Basis

1. Develop an operating budget. You will most likely need this document in place every time that you apply for a business loan. In its simplest form, it should show those monies coming in (revenue) and those monies going out (expenses). You should carry this budget over the course of the year, so that you can anticipate the downturn in revenue that most landscaping companies experience in the winter months.
   • It is a good idea to include within your budget a system by which you send some money over into savings, in case you need funds during an emergency. For example, if an expensive tool requires replacing, you’ll needs the money to do so.
2. Learn how to provide accurate estimates. This is the heart blood of a landscaping business and is really more of an art than a science. When you provide an estimate you are telling a customer up-front how much a particular job or task will cost. Your estimate should reflect an assessment of your costs (labor and supplies) with a desired profit added in as well.
   • The best estimates are those that are very detailed and include everything from fuel expenses to document fees. To help you prepare an estimate, you can purchase software, such as LandPro, that will do some of the adding and listing for you.
3. Decide on payment details and terms. As you start to draft estimates, you will realize that you need to provide consistent pricing for certain types of projects, such as mowing lawns. A good way to do this is to charge according to the size of the lawn and add in fees for obstructions, like rocky terrain.
   • You will also want to offer competitive pricing or you will be out-bid for projects. One way to understand the business terrain is to look up a few landscaping companies (your future competitors) and request free estimates. By the way, you should always offer your estimates free-of-charge. Then, compare the rates and try to fall somewhere in the middle with your own.
4. Start building your clientele. You can expand your client base by approaching those people in your neighborhood who require service. You can also post flyers in your area or create an online presence to draw people to your offerings. You will need to compete with larger companies, so getting name recognition fast is very important.
   • It may sound gimmicky, but some small companies gain customers by offering an initial bonus or credit for the first job. You can also establish some sort of rewards program for established customers.
5. Create a work schedule. Look over each week and determine when you’d like to offer services. Then, start getting a feel for how long each job will take. Be very detailed with your scheduling and keep close track of all commitments. Many landscape professionals choose to operate M-F with scheduled clients, leaving the weekend open for emergency calls.
   • Various computer programs, including Excel, can be useful when planning out a schedule and circulating it to your workers as well.

Ensuring the Long Term Survival of Your Business

1. Prepare for paperwork. This is especially the case if you will be serving as the office manager as well. You will need to set-up a payroll system, even to pay just your own salary. You will also need to get ready for taxes by receiving an Employer Identification Number (EIN) from the IRS. And, you will need to keep documentation regarding all outgoing invoices and incoming payments, in order to balance accounts.
2. Hire additional help, if necessary. As your business expands, you may want to hire office help, additional landscapers, or both. It is important to know that landscaping is a very fluid business with workers switching jobs frequently in order to earn more pay. You will want to decide how much you are willing to offer per hour to keep your workers with you in the long term.
   • It is a good idea to pay workers with additional certifications, such as pesticide application, higher than the standard hourly rate.
3. Follow equipment maintenance procedures. To keep your equipment up and running you will want to establish a set of guideline that you, and any of your employees, will follow. This should including properly cleaning and storing all equipment and tools at the end of each job. For example, it is important to remove grass debris from a lawnmower before it dries and dulls the blade.
   • Make sure to require that you and your employees wear proper safety items when operating machinery as well, such as protective goggles.
4. Collect payments promptly. Once a job is done, you should try to get your payment as soon as possible, preferably on the day of completion, if not before. Many landscapers travel with a mobile credit machine, or an app on their phones, which will allow them to accept payment immediately and on the job.
5. Develop local business partnerships. Reach out to businesses that you patronize in your area and try to establish some sort of trading relationship with them. Perhaps you will do their landscaping at a discount in order to receive a discount on a certain product? You can also ask similar businesses, such as garden stores, to display your card and send customers along to you for their landscaping needs.

Tips

• Whenever a customer has a positive experience with your company, encourage them to write a review on Angie’s List or Yelp. This is a great way to continue building your customer base.
• If you offer discounts, be consistent with them. Otherwise, you can end up marking down your services so much that you fail to make a profit.
• Try to get your company involved in the community as well by performing charity work, for example. You will build good will and also client name recognition.

Warnings

• Be careful handling any and all hazardous materials.
• Make sure to honor all of your business contracts or you could be held liable for any damages.

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Sources and Citations

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