How to Start a Landscaping Business in 12 Steps

Dreaming of starting a landscaping business? It may be hard work, but it’s a rewarding business that keeps you outdoors and surrounded by nature. 

And the demand? It grows every year. By 2030, the industry is expected to reach $484.79 billion.

Low start-up costs and overhead make this business a smart choice for anyone with the knowledge and passion for it. But where do you get started?

Let’s dive into the nitty-gritty details of how to start a landscaping business. 

1. Get some hands-on experience

What’s the one piece of advice most landscaping company owners give to aspiring entrepreneurs? Get your hands dirty.

Here’s what one experienced user suggests on the LawnSite forum: 

“Get a job with an ESTABLISHED LCO in your area. Someone that knows what they're doing, not another guy that just started up and has little or no experience. Ask questions, a lot of questions. Learn the equipment, ask to stay after hours to learn the business side. Learn, Learn, Learn.” 

This is what I did before starting my own and I'm glad I did. I gained knowledge and a great mentor that helps me out to this day.”

The reality is that it’s hard to run a business you don’t know. You don’t need years of experience, but understanding the day-to-day running of things will be invaluable. Depending on what position you’re hired for, you may gain a variety of skills, like:

• Digging and planting
• Hauling materials
• Installation of hardscapes
• Plant care and maintenance
• The basics of landscape design
• How to use lawn care equipment

If you build a rapport with the owner, you may even learn the administrative side of things, which will set you up for success when you launch your own services.

So, before you dive in and start investing in landscaping equipment, get some hands-on experience. The knowledge you gain will be invaluable.

2. Research the competition

Landscaping services are something every town needs, right? That may be true, but what if your local area is already saturated with service providers?

One of the first steps to starting any business is to research the competition. Is there enough demand for another landscaper?

If there’s a lot of local competition, you can still stay in business if you do things differently. Scope things out. Read reviews from customers to see what they complain about and how you can do things better.

Demand and market saturation will dictate whether your business will have a chance to succeed in your desired location. Consider researching nearby towns as well to find your ideal location — one where demand is high and competition is low.

3. Choose your business model

All of that hands-on experience you gained may also help you figure out what you enjoy and don’t enjoy about landscaping.

Maybe you prefer simple maintenance, like lawn and hedge trimming. Maybe you love the landscape design side of things, or just want to focus on one niche area, like irrigation systems or pest control.

With these preferences in mind, start thinking about your business model. Don’t try to offer everything to everyone. Focus on the services you enjoy and excel at. 

Some of the most popular business models include:

• Basic lawn maintenance and care. Ideal for small startups. This business model has a low-cost entry point and doesn’t require much more than a basic mower, trimmer, and possibly an electric leaf blower. Basic services would include mowing, mulch laying, fertilizing, pruning, and edging, and your customers would be primarily homeowners.
• Commercial landscaping. Apartment complexes, office buildings, school campuses, and other commercial properties also need lawn and garden care. Big jobs like these are more lucrative and offer stability, but you’ll need a team you can trust and systems to keep things running efficiently, including a good route planning tool. 
• Hardscaping. From patios to fire pits and retaining walls, hardscaping is what makes outdoor spaces livable. But you’ll need expertise in this area, a reliable crew, and the right equipment.
• Design and installation. If you love the creative side of things, you can focus on designing and installing beautiful and functional outdoor spaces. You’ll need some basic plant knowledge and an eye for design.

Of course, you can offer additional services within these models. For example, basic lawn care and maintenance can also include seasonal cleanup (think gutter cleaning, leaf removal, and spring maintenance). This can help to extend your working season in climates with harsh winters.

Things like drainage, fencing, and land clearing are other possible services you could offer if you have the knowledge and equipment. 

4. Understand your startup costs 

Although a lawn care business will generally have lower upfront costs than a full landscaping business, you’ll still need to make an investment. 

Generally, startup costs can range from $5,000 to $50,000 for a new business, depending on whether you’re investing in high-end equipment and what you already have.

For example, a basic pickup truck can set you back $30,000-$40,000 if you don’t have one already.

To keep costs to a minimum, you could:

• Buy used equipment (but be prepared for more frequent maintenance costs)
• Rent equipment at the start until you have enough capital to start making purchases
• Start small and grow over time (think a single mower that you can easily load into your van or truck, or tow in a small trailer)

Don’t forget to factor in other less-obvious costs, like:

• Incorporating and registering your business
• Insurance and licensing costs
• Uniforms for branding and professionalism
• Storage space for equipment
• Software and website design costs 

5. Create a business plan

A business plan will give you a vision and a roadmap for your venture. It will keep you on track and help you achieve your goals.

Make sure that your plan covers:

• An overview of your business and what makes you different from the competition.
• Your business structure and industry experience.
• A market analysis that describes your ideal customers.  
• A list of your lawn care services.
• Your marketing strategy detailing how you will attract potential customers. 
• Financial aspects, like your sales forecast, employee costs, and budget.

Need help creating your business plan? Use our free template and guide to get started and customize it to your business needs.

6. Take a marketing course

What’s one of the top reasons small businesses fail? Poor marketing. 

The landscaping industry can be competitive. You need a solid plan to spread the word about your services and build your brand.

A marketing course can give you the tools, skills, and knowledge you need to get started on the right foot. 

You may be tempted to skip this step, but it can give you an edge over the competition.

In fact, landscaping business owners on Reddit often recommend this overlooked step.

• “I would suggest that you take a basic marketing course at your local community college,” said one user.
• “Make the ads creative. Give people a reason to call for information. Collect email addresses from those interested, then send out promotional emails to your prospects. Basically, read up on marketing,” suggested another user.

You don’t need to spend a fortune on a course either. There are plenty of excellent free options on Coursera and Edx that will cover things like:

• Email marketing
• Direct mail marketing
• Social media marketing
• Advertising

The knowledge and skills you gain will help you develop a marketing plan that drives results using online and offline channels.

7. Make it official

You’ve done a lot of research and planning. Now, it’s time to take action and make your business official.

Here’s how:

Give your business a name

Your business name is more important than you think. It tells customers what you do and will be the foundation of your branding.

Make sure that your name is:

• Memorable. Customers won’t remember lengthy names, so keep it as short and simple as possible.
• Unique. Your name must not be taken by another small business in your industry and location.
• Logical. Choose a name that reflects your services, so customers know what you offer before they even contact you.

How can you check whether your business name is taken?

• Search for it online. 
• Check with your Secretary of State. Most states have a business entity name search on their websites.
• Run a U.S. Patent and Trade Office search to check for trademarks.

You can also use a business formation service that will take care of most of the hard work for you.

Choose an entity type and register

Choosing a name is just the first step. You’ll also need to choose a business structure for your business.

You have a few options, but the two most common entity types for landscaping businesses are:

• Sole proprietorship: Formal registration isn’t required for this type of business, but you will be personally liable for all debts and liabilities. You’ll need to use your legal name as your business name, or file a Doing Business As (DBA) if you want to operate under a different name.
• Limited liability company (LLC): An LLC will shield your personal assets from business-related debts and lawsuits. You also get the benefit of flexible pass-through taxation.

Consider consulting with a business lawyer or accountant if you’re not sure which entity type is right for your business.

Once you’ve chosen a structure, you can register your business with your Secretary of State. 

Get an employer identification number (EIN)

If you form an LLC or another legal entity, you’ll need to apply for an EIN with the IRS.

An EIN will allow you to:

• Hire staff
• Pay sales and excise taxes

Essentially, your EIN is your business’s federal tax ID number.

Get a business license and any relevant permits

Depending on where you’re operating, you may need a business license and certain permits to run a landscaping company.

According to one user on the LawnSite forum, “In CT you need a license $220 in order to be legal (landscaping), sales tax permit $100, Register your DBA with town clerk (which is cheap) or file as an LLC (not cheap), you also need general liability insurance.”

Every state will have its own rules. Check with your local municipality and your Secretary of State to learn more about licensing and permit requirements.

Purchase business insurance

Even if your state doesn’t have insurance requirements, it’s a smart investment in the future of your business.

Without it, you put your business and assets at risk. And if you hire employees, you will almost certainly need workers’ compensation insurance (Texas is the only state that doesn’t require it).

As a general rule, landscaping businesses will need:

• General liability insurance. Coverage will vary depending on the insurer, but most policies protect against injury claims and property damage. Landscaping can be dangerous work, and the risk of injury is higher compared to other industries. Having coverage will protect against financial loss if an accident happens or you cause property damage while doing a job. On average, business insurance costs about $51 a month (or $610 annually) for a landscaping company.
• Commercial auto insurance. You’ll need at least one vehicle to transport your equipment, which means you’ll need a commercial auto insurance policy. Regular auto insurance won’t cover your vehicle when it’s used for commercial purposes. According to Progressive, a commercial car insurance policy costs $212-$272 per month.

Make sure you understand your policy’s coverage and make adjustments as needed to cover all of your bases.

Open a business bank account

Every business should have its own designated bank account. A bank account will make it easy to manage your transactions and keep your business’s finances separate from your personal finances.

8. Price your services

Setting your pricing may feel challenging and overwhelming at first. You may be tempted to undercut the competition, but it’s important to ensure your pricing strategy is fair and profitable.

Start by setting an hourly rate that you’ll charge potential clients. Charging by the hour is standard, especially for new businesses. Rates vary by location but it’s generally between $25 and $75 per hour.

When quoting jobs, you’ll need to factor in:

• The number of hours the job will take.
• The total costs of materials for the job.
• Your overhead costs.
• Your profit margin. Many landscapers will charge up to a 20% markup for residential customers and 15% for commercial ones. 

Another option is to set flat rates for certain jobs (for example, installing new sod or trimming a hedge). While this eliminates guesswork, you’ll need to be efficient to ensure you don’t sell yourself short.

9. Choose your equipment 

If you’re just getting started, you don’t need a ton of new equipment. The basics should keep you going until you can reinvest your profits into the business.

Your exact equipment needs will depend on what you offer, but the basics include:

• Lawn mowers
• Rakes
• An electric leaf blower (if necessary)
• Wheelbarrows
• A hedge trimmer
• Edger
• Shovels
• Pruning shears
• Tool kit (screwdriver, hammer, etc.)
• Bucket
• Gloves and steel-toed boots

10. Build an efficient operation

Landscaping equipment gets the job done, but to run an efficient and profitable business you’ll need some tech as well. Here are the top three software tools for a landscaping business:

1. Accounting software like QuickBooks  to manage your transactions and make tax preparation easier.
2. Business management software to manage customers, create quotes, and handle client communication.
3. Route planning software to find the fastest and most efficient routes between jobs. Solutions like Routific take the guesswork out of planning your routes and will scale with you as you grow. If you decide to expand your services in the future and offer delivery of plants or other products, Routific will improve your efficiency and customer satisfaction.

11. Market your services

Your business plan should at least have a basic plan of how you’ll market your services. Build off of this to ensure you’re promoting your business effectively. 

Your marketing strategy should include:

• Building a website. It doesn’t have to be fancy. Start with a basic site and expand from there.
• Being active on social media. Share photos and videos of your work, along with customer testimonials.
• Creating business cards. Hand them to customers when jobs are complete. Business cards can lead to repeat business and word-of-mouth referrals.

The most important marketing strategy? Doing a good job. Return customer calls in a timely manner, show up on time, and take pride in your work. Professionalism goes a long way in the landscaping industry. 

12. Plan for seasonal highs and lows

Landscaping is a seasonal business that peaks in the spring and summer and wanes in the fall and winter. 

But with smart planning and the right strategy, you can get through the low season without feeling strapped for cash.

To keep your cash flow steady throughout the year:

• Consider offering leaf cleanup in the fall and snow removal in the winter (if applicable) to keep landscaping jobs in the pipeline year-round. Other potential seasonal services can include holiday light installation, pruning, and gutter cleaning.
• Offer year-round maintenance contracts that include lawn care in the summer, leaf cleanup in the fall, and winter maintenance. 
• Consider selling related products, like plants or firewood, to have additional revenue streams.

Proper cash flow management will also be crucial. Setting aside cash reserves for the low season can help you build a successful landscaping business.

The takeaway

One last tip? Pay your staff well. One of the biggest challenges of running your own landscaping business is finding reliable employees. Landscaping is tough work, but paying your team fair wages will keep them around.