How to Start a Landscaping Business

Thanks in part to the real estate boom, the landscaping industry is seeing solid growth and is in need of committed professionals.

Warmer climates require tending year-round, while colder areas may need special treatment. Designing, building, and maintaining a yard is hard yet rewarding work. If you enjoy improving a front yard’s architecture, building a blooming garden, and the scents of freshly cut grass, then landscaping may be the right fit.

If you want to know how to start a landscaping business, step by step, then read on – this guide is just for you!

Step 1: Decide if the Business Is Right for You

Pros and cons

Ask yourself, what are the downsides and upsides of launching a landscaping company? A viable business idea should offer more advantages than disadvantages.

Below are some pros and cons of landscaping:

Landscaping industry trends

In 2019, the National Association of Landscape Professionals (NALP) launched an apprenticeship program in collaboration with the US Department of Labor.((https://www.landscapeprofessionals.org/apprenticeship)) The goal is to train more workers to fill labor shortages in the landscaping market. Landscaping mostly requires skilled labor, and this program helps ensure adequate skills development. As their work is key to its success, a new landscaping enterprise must compensate workers appropriately, or struggle with high turnover.

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US landscaping industry at around $129 billion, after growing at least 5% per year since 2017.((https://www.ibisworld.com/industry-statistics/market-size/landscaping-services-united-states/)) 
• Growth forecast – Market advisory Research and Markets expects annual growth to remain at 5% through 2027.((https://www.researchandmarkets.com/reports/5119697/united-states-landscaping-market-growth)) 
• Number of businesses – More than 630,000 businesses providing landscaping services operate in the US.((https://www.ibisworld.com/industry-statistics/number-of-businesses/landscaping-services-united-states/))
• Number of people employed – The industry employs more than 1.2 million people.((https://www.ibisworld.com/industry-statistics/employment/landscaping-services-united-states/))

Trends and challenges

Landscaping trends are:

• Real estate boom gives landscaping businesses a steady supply of clients and work
• Rising number of millennial households drives demand for landscaping maintenance and health-conscious gardening

Challenges in the landscaping industry include:

• Hiring and retaining qualified workers
• High level of competition

What kind of people work in landscaping?

• Gender – 89% of landscaping contractors in the US are male, while 11% are female.((https://www.zippia.com/landscape-contractor-jobs/demographics/#gender-statistics))
• Average level of education – 44% of landscaping contractors hold a bachelor’s degree and 25% have a high school diploma.((https://www.zippia.com/landscape-contractor-jobs/demographics/#degree-level-types))
• Average age – The average age of a landscaping contractor is 41 years old.((https://www.zippia.com/landscape-contractor-jobs/demographics/#age-statistics))

How much does it cost to start a landscaping business?

Startup costs for a landscaping firm range from about $7,500 and $20,000, according to Step by Step Research, with an average of about $15,000 in investment. The primary costs are a truck and trailer, plus equipment including mowers, trimmers, and wheelbarrows.

You’ll need several items to successfully launch a landscaping business, including specialty equipment. Here’s a list to get you started:

• Gardening tools
• Push mower
• Riding mower
• Leaf blower
• Lawn spreader
• Sprayer (for fertilizer, pesticides, etc.)
• Trimmer
• Edger
• Water saw
• Plate compactor
• Trailer
• Heavy-duty truck
• Portable generator 

Startup Costs	Ballpark Range	Average
Mower	$300 - $4,000	$2,150
Trimmer/Edger	$150 - $300	$225
Landscaping equipment	$400 - $600	$500
Truck	$5,000 - $10,000	$7,500
Trailer	$1,000 - $5,000	$3,000
Licenses and permits	$110 - $130	$120
Insurance	$200 - $400	$300
Marketing cost	$250 - $500	$375
Total	$7,410 - $20,930	$14,170

How much can you earn from a landscaping business?

Your earnings as a landscaping business will depend on the type of work you do and its seasonality. Landscaper salaries vary depending on location but tend to range from $23,000 to $54,000, according to advisory site Career Explorer.((https://www.careerexplorer.com/careers/landscaper/salary/)) 

Industry profit margins usually range from 8% to 12%, which means revenue of $500,000 to $1 million would lead to $50,000-$100,000 in profit. 

If you can charge $5,000 per landscaping job and your firm does 100 jobs per year, then you should see an annual revenue of $500,000 and a profit of $50,000, assuming a 10% margin. As you build your business, you could do 200 jobs a year at the same rate, bringing in $1 million in revenue and a tidy profit of $100,000.

What barriers to entry are there?

Barriers to entry for a landscaping business are moderately high. Significant challenges for new entrants include:

• Knowledge – Clients expect expertise and experience
• Equipment costs – Pricey tools and machinery required
• Seasonality – Less work in colder months limits income
• Hiring workers – Shortage of experienced laborers

Step 2: Hone Your Idea

Now that you know what’s involved in starting a landscaping business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

An aspiring landscaper should know what separates landscaping from simple lawn care. The latter is mainly about lawn mowing, but also includes weeding, pruning, fertilization and other maintenance services. The former, on the other hand, goes much further.

Landscaping refers mainly to the designing and building out of lawns, gardens, and other outdoor areas, and can include the addition of rock paths, vegetable gardens, sculptures, fountains, and other fixtures, as well as fencing and ground contouring. You could say the landscaper builds the lawn care specialist’s place of work.

Having said that, most landscapers also provide lawn care services, given predictable client demand, and some even make that central to their business. As the business owner, you will decide which services your landscaping firm will offer clients.

Research the most in-demand services in your area, for residential and commercial landscapes, and structure your business model around the top options. You may also want to research the profit margins for landscape design and installation versus maintenance and lawn care. Whatever services you choose, it’s generally wise to experiment with pricing structures, starting low first to offer clients a discount and build a reputation.

The increase in US real estate values and residential construction in recent years means higher budgets for landscapers installing fixtures or performing lawn, tree, and garden care. Opportunities abound as new homeowners look to build out their lawns and perhaps add productive fruit and vegetable gardens.

An aspiring landscaper should understand that they will likely have more creative freedom when working with households rather than commercial properties.

The type of landscaping work you stress will dictate your equipment and expertise needs, each of which will require investments of time, energy, and money.

What? Determine your products or services

Some of the most common service niches in the landscaping industry include:

• Landscape architecture – Design and installation with custom features like walls, gardens, driveways; generally requires relevant degree
• Lawn care and maintenance – Mowing, watering, trimming, pruning
• Fertilization, weeding, pest control – Fertilizing, weeding, edging; applying pesticides requires permits & training
• Sod and lawn installation – More labor-intensive work, could mean more pay and include maintenance

How much should you charge for landscaping services?

Service advisory Home Advisor says landscaping services cost between $4 and $40 per square foot, depending on the scope of work.((https://www.homeadvisor.com/cost/landscape/)) For example, basic services that include thatching, aerating, and flower planting would cost $4-$6 per square foot, while a full tear-out and remodeling job would cost $10-$40 per square foot. 

Most US landscape contractors are paid $25-$35 per hour, or an average hourly wage of $30, depending on the intensity of the work, location, and required expertise.((https://www.salary.com/research/salary/posting/landscape-contractor-hourly-wages)) If you intend to do more installation than maintenance, this will make each job more time-consuming, locking up your laborers for longer periods of time. Of course, you’ll also be able to charge more for installation services.

Gaining a solid understanding of the various factors involved is key to building an effective pricing model for and balancing equipment and labor costs to achieve your desired profit margin. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Will your landscaping firm primarily service residential homes or commercial properties — or both? Where you focus your team’s efforts should be determined by a combination of the capabilities of your equipment and labor force, your desired margins, and your personal preferences.

Residential properties may allow for more custom work (such as working with the homeowner to develop an appealing landscape design), while commercial work often involves larger spaces and more labor, which means higher revenues from fewer jobs. Residential landscaping is likely to offer more opportunities, especially for a new landscaper.

Industry analysts generally see three advantages in switching from residential to commercial landscaping work: fewer accounts; higher level of professionalism; and consistent budgets.

Doing residential and commercial work may mean expanding your staff to meet demand.

Where? Choose your business premises

In the early stages, you may want to operate your business from home to cut costs. But as your business grows and operations intensify, you will likely hire more workers and maybe move to an office and rent a storage facility. You can find commercial space to rent in your area on Craigslist, Crexi, and Commercial Cafe.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Landscaping Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “landscaping” or “lawns”, boosts SEO
• Choose a name that allows for expansion: “Green Horizon Landscaping” over “The Tree Masters” or “Turf Titans”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Landscaping Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise summary of your landscaping business plan, highlighting its key aspects and objectives.
• Business Overview: An introduction to your landscaping business, including its mission, vision, and basic details.
• Product and Services: Description of the landscaping services and products your business will offer, such as lawn care, garden design, and hardscaping.
• Market Analysis: An assessment of the landscaping industry, including market size, trends, and potential customer segments.
• Competitive Analysis: An evaluation of your competitors in the landscaping market, identifying strengths and weaknesses.
• Sales and Marketing: Strategies for promoting your landscaping services and acquiring customers through advertising, sales tactics, and online presence.
• Management Team: An introduction to the key individuals who will manage and operate the business, emphasizing their relevant skills and experience.
• Operations Plan: Details on how your landscaping business will operate, covering day-to-day activities, equipment, and suppliers.
• Financial Plan: Financial projections and funding requirements, outlining the expected income, expenses, and profitability of the business.
• Appendix: Supporting documents and additional information, such as resumes, contracts, and market research data, that provide further context to your landscaping business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to landscaping services. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your landscaping firm will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a landscaping business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Landscaping Business Licenses and Permits

Starting a landscaping business requires obtaining a number of licenses and permits from local, state, and federal governments.

The National Association of Landscaping Professionals (NALP) offers a handy guide to upgrade your landscaping business through education, certifications, and membership. If you plan on spraying pesticides, you will likely require additional certifications. The US EPA website includes a guide on how to get certified as a pesticide applicator.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your landscaping business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your bank to learn about their specific rates and features.

Banks vary in terms of offerings, so it’s a good idea to consider your options to choose the best plan that works for you. Once you choose your bank, you’ll need to bring your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and any other legal documentation that proves your business is registered.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet is vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. We examine several of them below.

Recommended software for landscaping would include Aspire for client relations, Jobber for accounting, BuilderTrend for project management, and SmartDraw for 3D design.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero.
• If you are unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your landscaping business, the marketing strategy should focus on showcasing your expertise in creating beautiful, functional outdoor spaces, your knowledge of plants and landscape design, and the quality of your work. Emphasize your ability to transform any outdoor area, whether it’s residential or commercial, and highlight any special services like sustainable landscaping, hardscape construction, or ongoing maintenance. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding: Your branding should convey professionalism, creativity, and a connection to nature. This includes a well-designed logo, business cards, uniforms for your crew, and branded vehicles.
• Direct Outreach: Network with local builders, real estate agents, and community groups. Offering free consultations or landscape design sketches can help attract new clients.

Digital Presence and Online Marketing

• Professional Website and SEO: Develop a website that showcases your portfolio, services, customer testimonials, and contact information. Use SEO best practices to rank for local searches related to landscaping services, garden design, and outdoor renovations.
• Social Media Engagement: Utilize platforms like Instagram and Pinterest to showcase your work, and Facebook to share customer reviews, gardening tips, and seasonal promotions.

Content Marketing and Engagement

• Landscaping Blog: Share blog posts about landscape design trends, seasonal gardening tips, and case studies of your projects. This helps establish your expertise in the field.
• Email Newsletters: Keep your clients informed about your services, seasonal maintenance tips, and special offers.
• Video Tutorials: Create video content that provides landscaping advice, showcases transformations, or offers insights into your design process.

Experiential and In-Person Engagements

• Local Home and Garden Shows: Participate in home and garden shows to display your work and connect with potential customers.
• Community Projects: Engage in community landscaping projects or sponsor local events to increase visibility and build your reputation.

Collaborations and Community

• Partnerships with Local Nurseries: Build relationships with local nurseries for plant supplies and potential referrals.
• Collaboration with Other Businesses: Partner with related businesses like pool installers, outdoor lighting specialists, or carpenters for cross-promotion opportunities.

Customer Relationship and Loyalty Programs

• Referral Programs: Implement a referral program that rewards clients for referring new business to you.
• Maintenance Contracts: Offer maintenance contracts to provide ongoing care for completed landscaping projects, ensuring long-term customer relationships.

Promotions and Advertising

• Targeted Local Advertising: Use local newspapers, community bulletin boards, and online platforms to advertise your services.
• Before and After Photos: Use before and after photos of your projects in your marketing materials to visually demonstrate the impact of your work.

Focus on USPs

Unique selling propositions, or USPs, are the unique characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your landscaping firm meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your landscaping business could be:

• Speedy services delivery
• Comprehensive package of services
• Lawn installation specialist
• “Interiorscaping” — landscaping inside offices and commercial properties

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a landscaping business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in landscaping for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in landscaping. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

You may not need to hire any employees if you are starting out small from your home. But as your business grows, you will need to hire employees for various job roles. The potential employees for a landscaping business might include:

• Landscape Designer
• Sod specialist
• Sprinkler specialist
• Mower/Trimmer
• Gardener/Groundskeeper

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn or Facebook. You can also use free classified sites like Jobs and AngelList. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Landscaping Business – Start Making Money!

Besides the real estate boom, a growing interest in gardening that accelerated during the pandemic lockdowns has fueled the demand for landscaping services. Market prospects look bright with the pandemic winding down and the economy recovering. US consumers now have bigger disposable income that may be spent on landscaping services.

You might want to consider investing in potential growth areas such as lawn, tree, and garden installation, maintenance and care for residential homes and complexes, and commercial properties. With all your knowledge, you’re now ready to start your entrepreneurial journey. It’s time to roll up your sleeves and launch your landscaping business.