Start a Landscaping Business
If you are thinking of starting your own landscaping business, there are several things you need to do. First, you will need to register with your state to carry out business transactions. Obtain a business tax ID number and employer identification number. In some states, you will also need to obtain an employment law liability insurance policy. This type of coverage will protect you from any mistakes in paying employees or calculating overtime. A professional who specializes in landscaping should also be contacted.
Another important step is a business plan. This plan is a blueprint that outlines the strategy of your business. It will outline your marketing, clientele, operations, and financial goals. In addition, you will need to decide what type of business structure you want to adopt and what type of insurance you will need. Then, you’ll need to consult with a professional to help you with these decisions. Once you have decided on your business structure and strategy, you can start marketing and attracting customers.
Before you start advertising, you will need to write a business plan. This plan will outline your business strategy, which includes how much you’re going to charge for services, how many customers you’ll serve, and how much you’re going to earn. It’s also important to determine how you’re going to cover expenses, such as equipment and materials. A good business plan will also help you decide on your insurance requirements and set up your business’s structure and accounting procedures.
Once you’ve established your business plan, you need to make a business proposal. This document should detail the costs of labor and equipment, as well as general business overhead. It should also list the types of services you’ll provide and the materials you’ll need. This estimate should be free of charge. This will help you get started with your landscaping business. If you are getting the customers you want, it will be profitable.
Once you’ve found the best place for your business, you’ll need to set up an account for your new company. You’ll need to register your name with your local government and state. Incorporating your landscaping business will help you keep your business and personal expenses separate. This will make bookkeeping and tax filing easier for you. A bank account is also important for keeping track of your finances. It will keep your personal and work expenses separate.
Once you’ve settled on a name and location for your landscaping business, you’ll need to register it with the local government and state. You can use LegalZoom or other services to automate the incorporation process. Be sure to incorporate your landscaping business properly to avoid any legal problems. It’s important to be sure that you have the legal licenses and insurance needed to operate your landscaping business. If you’re new to the industry, it’s essential to do your research and find the right location to start your business.
How to begin a landscaping business in just 5 steps
When you consider the variety and depth of landscaping from commercial to residential maintenance to removal, and design to tree care, the costs of setting up your own landscaping company are quite easy. It’s as easy as hiring a lawnmower, as well as knocking on the doors.
“My previous company was a lawn care business that I grew from myself and a push mower to over 125 employees,” says Bryan Clayton, the founder of GreenPal the online lawn-care ordering service that’s a little like it’s Uber in landscaping.
“Most customers have to deal with shoddy and unprofessional competitors,” Clayton says. Clayton. “Creating a successful landscaping business is almost easy if you simply answer the phone when your customer calls, return their voicemails promptly, and do the work that you agree to with your clientele.”
It sounds simple enough, doesn’t it? But what else could landscaping business owners do to go beyond the basic? Here are some tips to use when you begin your landscaping business.
1. Choose the services you wish to provide and whether you’d like to rent or purchase equipment
The first step to start your landscaping enterprise is to purchase the necessary landscaping equipment. After you’ve determined the services you’d like your landscaping company to provide You’ll be aware of the equipment you’ll need. After that, you’ll need to determine whether to buy the equipment directly or go with renting it for a lower cost.
Beginning out, you’ll can rent your equipment or buy less expensive equipment. As your landscaping company expands, so will your the equipment requirements and expenses which means you could be spending the same amount to maintain inexpensive equipment that you pay for of purchasing a higher-quality machine.
“Most landscape contractors will need to spend five to 10 hours a week maintaining their equipment at first by sharpening blades or changing oil, spark plugs, air filters, fuel filters, and so on,” Clayton says. Clayton.
So , what are the essentials of landscaping equipment that you’ll require to know prior to setting up a landscaping company?
There are several hand-held tools that any professional landscaping professional should be armed with shovels (such as spade, square-mouth and trench) wheelbarrows and tillers (such as rear-tine tillers, or cultivators) and even more powerful tools such as chainsaws and drills. However, these aren’t the only places where the real cost is. The price of bigger equipment could shock you.
“Most people don’t know this, but the riding lawnmowers that you see commercial landscape operators running cost over $12,000 themselves,” Clayton says. Clayton.
Landscape contractors should invest even more money Clayton: Clayton:
“Landscape contractors also need to purchase or finance a decent truck, which costs at least $10,000 used, and a trailer, which costs $5,000+,” Clayton states. “Also, for landscape construction, you will need in most cases a front-end loader, which will cost $10,000 to $50,000 by itself.”
Overall, Clayton estimates that landscape maintenance and construction firms will require anywhere from $40,000 and $50,000 worth of equipment onto a client’s property. This is why it’s a good idea to begin with renting which would put set-up costs in a lower estimate of $3000, according to Clayton But don’t rely on them for a long time.
2. Find the necessary insurance for your business, permits, and EIN
There are several essential types of insurance for business that you require to carry out any business. The most essential type is general liability insurance which covers everything from repair cost as well as legal fees, to the damages that must be compensated in the event that the employee or you cause damage. Accidents, such as the collision of sprinkler heads using the mower, for instance can happen often, and you need to be protected in the event of.
There’s a chance that you’ll also require workers insurance for compensation in the state you’re in, however, as Clayton states, “Many states require both insurances to operate a legitimate business regardless of whether you have employees or not.” Workers’ compensation covers your business in case that an employee is injured while on the job including medical bills and court fees.
Other types of coverage that’s not necessary however, they can be useful, such as the inland marine insurance (for the protection of items damaged during transportation) commercial automobile insurance (you cannot make use of your personal car for much of the stuff you haul around and your personal insurance will not cover commercial vehicle) Commercial umbrella insurance (which increases your insurance coverage should you be hit with an enormous settlement).
In addition, if you’re seeking to apply pesticides as a part of your business, many states have an approved pesticide charter that has to be obtained. Clayton says this is “a very involved process” and won’t suggest it until you’ve established yourself within your area.
Before you begin running your business, be sure that you have all permits for business that you require for the state where you’re operating and also that you’ve registered to pay taxes and have received the employer ID number commonly known as a tax ID for business number.
The regulations regarding which permits you require for your business and how to obtain the licenses vary from state to state therefore make sure you know the rules for the state in which your company will be operating prior to launching the landscaping company.
3. Make sure you have an insurance policy for employment law liability before you begin to scale
Another type of insurance you’ll require when starting landscaping is the employment law liability insurance that protects your business should you fail to follow the rules in calculating overtime or wage and hour violation.
In light of the uncertain future of overtime pay and the reality that small-business owners prefer to do by themselves initially, without the help of a lawyer, or an accountant, this insurance may be a lifesaver or, more precisely or more precisely, a business saver.
Clayton describes the “personal nightmare” that resulted due to not having insurance. He explains it as follows:
“In 2009 my company was audited by the Department of Labor and they determined that our crew leader managers could not be paid a salary — they needed to be paid as hourly wage employees,” the employee declares. “This, in turn, kicked in additional overtime charges that were due to 80 employees, and it resulted in a $450,000 fine that my company had to pay.”
Lacking that insurance nearly ended the company of Clayton. Consider the experience of Clayton as a lesson in having insurance in place and especially before you expand your landscaping business any landscaping company.
4. Create a marketing strategy and determine the prices
If you’re looking to market the landscaping services you run, you are aware of where to begin: Facebook and other social media, in addition to SEO techniques, can increase the visibility of your website on Google and other search engines.
Of course, word-of mouth marketing is always the bestoption, especially in hyper-local areas However, this requires being able to work hard overtime. While you wait for positive reviews to spread around the town, think about creating your own social profiles before you begin the landscaping company.
Clayton claims that mastering the most popular marketing channels and setting a budget of $500-$2,000 for acquiring your first 10 to 100 clients is the best method for starting. A specialist in digital marketing could be needed to help you take your business to the next level when you grow your landscape business.
When you’re starting the landscaping company, you must determine the cost of your services in order that you can incorporate these into your marketing campaigns. Potential customers would like to know the price they’ll be charged for diverse landscaping services you offers.
If you’re considering your rates It’s a good idea to look at the competition to see what rates similar businesses are charging before you decide. Remember, you are able to alter rates according to your needs.
5. Your business’s financials should be in order
If you’re beginning your landscaping business it’s essential to maintain your financials in check. We’re likely long past the days of using pen and paper to track your business costs, schedules and financial accounts. Excel spreadsheets, although capable of handling huge amounts of data but aren’t as efficient.
There’s a wealth of business applications available which can make your landscaping company run efficiently. There are software and apps to assist in everything from managing inventory along with payroll and employee timesheets, so you can concentrate on more essential things, like the actually landscaping.
Clayton is also a good source of Accounting software for landscape contractors who are new. It will allow you to manage invoices, and depending on the software, automate the management of fixed assets.
Beginning a landscaping business The economics
The majority of lawn care workers earn an average of $30-$50 an hour. If you’re interested in taking it further , if you think you’ve got the drive, determination, work ethic as well as the ability to take on new challenges (be it with new technology like management software or small business marketing) there’s nothing hindering you from setting up your own landscaping company.
Clayton was able to sell the business in 2013 as the biggest acquisition in the lawn care sector within a decade. He then setting up GreenPal. It’s important to remember that he began on his own using a simple push mower in his name. It’s not a guarantee for everyone who is interested in landscaping however it’s a field which isn’t going away anytime soon. There’s no better time than to make the most of the people’s enthusiasm for a neatly manicured lawn.