How To Start a Landscaping Business?
Table of Contents:
1. Step #1: Planning
2. Step #2: Registering Your Business
3. Step #3: Decide on Pricing and Marketing
4. How to Lower the Costs of the Landscaping Business?
If you have ever used a skid steer or booked landscaping services that required using it, you must have wondered how it would be to have a landscaping business. You might have even imagined having one yourself! No wonder, a successful landscaping business can be quite a lucrative job. But what will be the costs? Do you need a permit? These and many more questions may have kept you up at night. Thankfully, this article is here to put an end to sleepless nights. We have prepared a short guide regarding the process of preparing, setting up, and running your own landscaping business. Read on to learn all the ins and outs!
Step #1: Planning
As with any good entrepreneurship, starting a landscaping company also requires some preparation in the form of planning. Do not stress, at first, it does not need to be a meticulous plan. Start with deciding what services you want to offer. The broader you go the more expensive the start will be. Starting small and expanding with time is the best way to approach the landscaping industry. What should you choose? It should be something you like doing. At the same time, you will be quite good at that! It can be raking, digging, mowing lawns, trimming, or shoveling. It is also a clever idea to find a niche that will help you to stand out from the competition. Choose a few connected jobs and move on to creating a landscaping business plan.
Renting vs purchasing equipment - what to choose?
Such a plan starts with assessing the costs. Firstly, decide whether you want to buy your equipment or rent it. Renting is a cheaper option, but you can also buy the cheaper version of equipment you need at the start. It is not what you aim for as maintenance of cheaper equipment may turn out to also be quite a challenge. However, if you are tight on budget at the start these two options might be the only ways to set up your business.
What are the costs for landscaping companies?
There is not just one answer to that question. It depends on a few factors, such as:
- Rented or purchased equipment.
- Scale of the business (do you work on your own or hire employees; how many services do you offer).
- Type of equipment used (manual labor or use of larger machines, such as skid steers, tractors).
Let us give you examples of some tools (and their average costs) most landscapers have at their disposal:
- shovels ($10 to $40)
- wheelbarrows ($89 to $400)
- trimmers ($150 to $300)
- tillers ($330 to $2000)
- rakes ($10 to $30)
- chainsaws ($200 to $500).
There are also larger equipment costs (skid steers, tractors, and other machines) that come in thousands of dollars.
There are also additional costs such as getting a landscaping business license, legal costs of setting up a business, wages, and equipment maintenance, but we will discuss them further.
In general, it is estimated that to start a small landscaping business an owner will need $5,000 to $15,000. A medium-sized business might cost even as much as $250,000.
Step #2: Registering Your Business
Choose from the two most common forms of business structures:
Sole Proprietorship
It is extremely popular due to low costs and easy setup. You own the business and are personally responsible for all undertakings. It not only applies to profits but also to liabilities such as taxes, expenses, and all possible legal liabilities. This business structure does not separate business from personal assets and liabilities.
Limited Liability Company
Many owners of landscaping businesses choose this option because it separates personal and business assets or liabilities. Thanks to that, in case anything goes wrong with your business, your private funds stay untouched.
Apart from registering your landscape business, you should also think about other administrative yet crucial factors.
Licenses and permits
Basic lawn care business or landscape maintenance does not require you to hold any permits, however, holding them may be necessary for some more complex applications. It all depends on the law that applies to the state of your business. It is best to check the requirements with your county clerk’s office. Be aware that most states require a pesticide license if you deal with pesticides.
Landscaping insurance
It is advisable to check the insurance that is compulsory in your state to be covered in case you need to incur any medical, or legal costs. Even if you are not required to have insurance, it is still advisable to have general liability insurance in case you (or your employee) accidentally cause damage to someone else's property. You may think otherwise but unfortunately, such accidents are quite common when you use tools and machines instead of your own hands. Many states also require landscape professionals to have workers' compensation insurance (even if you do not employ them!).
When your business gets bigger and you start employing people and subsequently paying them for their service, it will be handy to have employment law liability insurance. Such insurance significantly helps in cases where you might unknowingly make errors in calculating wages, hours, and overtime.
Business Tax ID number
Everything your business earns will need to be taxed. Make sure that you apply for Employer Identification Number (EIN).
Business Bank Account
Once you have the Business Tax ID number, you can open a business bank account. It will separate your private finances from business income and expenses and help you with your tax payments.
If you are unsure about whether or how to apply for any of the above, consult with a good attorney or an experienced landscaping business owner.
Step #3: Decide on Pricing and Marketing
Pricing is one of the most crucial parts of your business plan. One of your main aims in setting up a business is to generate income. It will also be needed to advertise your services. There is no potential customer who would not ask the especially important question: 'How much'? You should start by asking this question to yourself. The price cannot be too high because you will simply cause your potential clients to choose cheaper competitors.
It is also not good to lower the prices just to attract customers. It may cause them to become suspicious about the quality of your services. Choose a price range like your competition. What will make potential customers choose you? Feedback. Complimentary reviews are especially important, especially at the beginning of your career. Also, remember to keep your prices at a level that allows you to cover your business expenses and, of course, leave you with a profit.
Online Marketing
It is no surprise to anyone that all the most important marketing efforts happen on the Internet. But using social media channels and simply putting the website online is not enough anymore. The key is to make your business pop up on the first pages of the Google search engine. The bigger your business gets the more emphasis you may have to place on such marketing efforts.
How to Lower the Costs of the Landscaping Business?
To sum up, setting up a landscaping business such as a lawn care company (or any small business) needs a lot of effort, time, and money. You will not cut down on effort here, but you may have just found the place where you can cut down on money (and time!). Skidsteers.com has a wide variety of excellent quality equipment at affordable prices perfect for starting a landscaping business.
We have buckets, trenchers, rototillers, grapples, and many more that are compatible with most skid steers, mini skid steers, and tractors. Our American-made range is forged from the best quality steel coming from the U.S.A. Having problems with choosing the best equipment for your new business? Do not hesitate to give us a call or get in touch through live chat. We are here to help you choose the best tools for your landscaping business at a reasonable price. Our knowledgeable team is always happy to answer any questions and address any doubts you might have.