Do you want to start a landscaping business and you want to know the cost breakdown? If YES, here are factors that determine how much it cost to open a landscaping company. Landscaping business just like lawn care business is not one of those businesses that someone can start and make huge income from without truly working pretty hard and smart.
It is important to note that the demand for landscape and lawn care services is driven somewhat by the construction of new commercial properties and residences and also partly by the growth of the economy.
Landscaping and lawn care services depend on demand volume and of course operational efficiency to be able to generate enough income and profits. The overhead cost can be kept as low as possible and the required equipment cost is fixed which is why it is an industry that is open to all and sundry.
Table of Content
- Estimated Cost Breakdown to Open a Landscaping Business
- Total Cost of a Small Scale Landscaping Business: $5,000 to $15,000
- Total Cost of a Medium Scale Landscaping Business – $250,000
- Total Cost of a Medium Scale Landscaping Business – $1.5 million
- Cost of Buying a Landscaping Franchise – $50,000
- Specific Location
- Can a Landscaping Business be Bootstrapped on a Lean Budget from Home?
- Financing your Landscaping Business
Estimated Cost Breakdown to Open a Landscaping Business
These are the key expenses you are expected to make when starting a medium scale but standard landscaping company business in the United States of America;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the landscaping company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring a business consultant (including writing business plan) – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for leasing a small office facility in a good location – $80,000.
- The cost for remodeling the facility – $5,000.
- Other start-up expenses including stationeries ($500), phone and utility deposits ($2,500).
- The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
- The cost for start-up inventory and landscaping tools and equipment (lawn mower, walk-behind mower, back pack blower, string trimmer, edging Shears, turfing iron, half-moon cutter, brooms, besom, weed eater, hand tools, leveling rake, spring–tined rake, switch, wheel barrow, and weed chemical supplies) – $50,000.
- The cost for the purchase of trucks/vans for conveying workers and equipment to sites – $45,000.
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750.
- The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, fax machine tables and chairs et al): $4,000.
- The cost for building and hosting a website: $600.
- The cost for opening party: $2,500.
- Miscellaneous: $5,000.
Total Cost of a Small Scale Landscaping Business: $5,000 to $15,000
Starting a small scale but standard landscaping company business that can only carry out landscaping services for homes in the United States of America will cost from five thousand dollars to fifteen thousand dollars ($5,000 to $15,000).
Please note that it is cost effective to start a small scale landscaping company especially when you have to run the office from your home and with minimal landscaping tools and equipment and less than a handful of employee mostly on contract/freelance basis.
Total Cost of a Medium Scale Landscaping Business – $250,000
You will need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up a medium scale but standard landscaping company in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a landscaping company that can carry out government approved landscaping projects.
Total Cost of a Medium Scale Landscaping Business – $1.5 million
When it comes to starting a standard and large scale landscaping company with several outlets in key cities in the United States of America, a landscaping company that can carry out landscaping contracts from government agencies and corporate organization and a company with the intention of selling franchise, then you should look towards budgeting well over one million, five hundred thousand dollars ($1.5 million).
Cost of Buying a Landscaping Franchise – $50,000
In the United States of America, the Average Cost of Purchasing a Landscaping Business Franchise is $50,000. Examples of 3 Well – Known Landscaping Business Franchising Companies in the United States of America are;
- Clintar Groundskeeping Services
- Enviro Masters Lawn Care
- Signature Landscape Lighting
Factors That Determine How Much It Cost to Start a Landscaping Business
The cost analysis as it relates to starting a standard landscaping business in the United States of America, Canada, united kingdom and Australia can be said to be almost the same except for few variations.
For example, the cost of purchasing the following landscaping equipment and tools; lawn mower, walk-behind mower, back pack blower, string trimmer, edging Shears, turfing iron, half-moon cutter, brooms, besom, weed eater, hand tools, leveling rake, spring–tined rake, switch, wheel barrow, trucks/vans (for conveying workers and equipment to site) and weed clearing chemical supplies are same especially when bench–marked against the US Dollars.
For instance, if you choose to have an online presence for your landscaping company, you can get that done with same price no matter the part of the world you live in. This is so, because with the internet (world wide web), the world has become a global village and if you live in Australia, you can contract your web designing and hosting contract to a web designer and hosting company in the United States of America. This means that you will pay the same price with someone in the United States of America.
Other factors that may be slightly different in terms of costing when it comes to starting a standard landscaping business in any of the countries listed above are cost of labor, cost of transportation and logistics, advertising and promotion, local tax, business incorporation fee and rent/leasing amongst other factors.
Over and above, when it comes to starting a medium scale landscaping company, you should be prepared to either rent or lease a small office facility; this is going to be one of the areas where you are expected to spend the bulk of your start–up capital.
When it comes to choosing a location for a lawn care and landscaping business, it is important to first and foremost look for a location where the average houses in the community has a garden or lawn. It will be out of place to locate your lawn care and landscape business in an area where you can hardly find houses with lawns.
Another key factor you should look for before choosing a location for your lawn care and landscaping business is the financial status of the residents in the location. The truth is that you will struggle to grow your landscape and lawn care business if you locate the business in an area filled with low income earners or in a ghetto. If you locate your landscape and lawn care business close to a highbrow area or an area with loads of retirees, you are likely going to make good returns from the business.
When it comes to starting a standard landscaping company business on a large scale, you would need the services of the following professionals;
- Manager (Owner)
- Human Resources and Admin Manager
- Marketing and Sales Executive
- Landscape Architect/Landscapist
- Field Staff
- Front Desk Officer
- Truck/Van Driver
Can a Landscaping Business be Bootstrapped on a Lean Budget from Home?
If you a looking for a small scale business that you can successfully bootstrap on a lean budget right from your home, then you should consider starting a landscaping company. One good thing about landscaping services is that you can successfully run the business from your home especially if you choose to major in offering services to homes within your community.
Basically, the nature of lawn care and landscape business permits people to run the business from their home. So if you must get an office facility, then ensure that it is a short term rent facility. The only reason why you must lease a property for your lawn care and landscaping business is if you want to start in a large scale and to bid for big contracts from government and corporate organizations.
As a matter of fact, you can start a landscaping business with as low as five thousand dollars or even less depending on how small you want the business to be. All you need to do is to register the business, purchase the basic needed landscaping tools/equipment, chemical supplies, print your business card and hire a landscapist only when you have landscaping services to carry out.
The challenge here is that you must be ready to take on more than half of the available roles in the business. You should be able to serve as the manager, landscapist, accountant, human resource and admin officer, and sales and marketing officer.
Financing your Landscaping Business
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan.
Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital to finance your business idea. There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Applying for loan from bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from family members and friends.
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