A landscape company can be a great way to make money if you like to work outside and with your hands. With commercial and residential accounts there is a lot of profit potential to be made working in the landscape and lawn care industry.
Is investing in a landscaping company a good idea?
The initial investment for a landscaping company can be really low. You may already have some of the equipment you need to get started. If not, you should be able to get off the ground pretty quickly.
To compete with other established landscaping companies you may want to consider taking on some debt to finance your venture. The market for a landscaping company is huge and if you work smart, you should be able to build up a great living.
What equipment do you need to start a landscape business?
To run your landscape company you’re going to need a Lawn mower, edger, hedge trimmers, and a blower. You’ll need a truck and trailer to carry these items and to take away waste from your jobs.
Obviously you can start with less if you need to. The truck and trailer will be the most costly part so to avoid that you could start out of a van or a SUV.
You’ll also need a few supplies that you will have to replenish every so often. Things like shovels, rakes, buckets and lawn bags and ear and eye protection.
What are the landscape company startup costs?
It’s going to cost between $15,000 and $40,000 to start with all the supplies you need.
This figure includes the truck and trailer which are by far the most expensive pieces.
If you are going to be working with a team you will need some money in the bank to cover payroll costs. We recommend at least $5000 to start.
This will leave you with enough starting capital to maintain the business and its operational costs with the money in the bank. If you are looking for loan options to keep this much liquid capital on hand, check out our Securing Funding for your business article.
What are the monthly operational costs for running a landscape business?
Gas, vehicle maintenance, and insurance will be a major operational cost for your business. Dump fees can add up if you are doing tree removal or weed clearing.
Again, if you are going to be running a crew payroll costs will be an additional major expense.
Operational costs for running your landscape business should be around $5000
What is a good advertising budget for a landscape business?
Advertising your landscape business can be very simple and effective.
Make sure to have your name and number on your truck and trailer. Good vinyls can work well because many of your customers will find you while you are in their area.
Another great marketing tool you can use is door hangers. If you focus on a certain area of town you can plaster this area with a simple door hanging advertising. Having customers in a smaller area is a great way to cut down on gas and vehicle maintenance.
One great thing about having a landscaping business is that once you have a customer, you should be able to keep that customer for years! This keeps your advertising costs low so you can focus on providing a great service and growth.
Compared to other businesses the cost of customer acquisition is relatively low. You should be spending about $100 per month on advertising your service business and that could be through yard signs or door hangers. Many of your customers will come to you because they are near your location.
How many customers does a landscape company have?
A landscaper with a good service area should be able to see between 50-75 customers per week.
What are the expected labor costs for a landscape company?
Labor costs are dependent on many different factors. Are you working alone or with a crew? Do you have other crews working too?
For the sake of this breakdown we’re going to assume you have just started and you’re working your route with a helper. This should keep your labor costs very low to start. With one full time helper your labor costs should be about $2500 per month.
What is the average revenue of a landscape business?
To get the average revenue of the landscape business you will have to account for all recurring revenue accounts you have set up. Plus additional charges you charge for things like debris haul off or tree removal.
If you average out your monthly fees and your upcharges you should be making about $100 per month per customer.
If you have 150 customers set up with accounts, and you are getting an average of $100 per month then your total revenue is $15,000.
How much net profit can a donut shop make? Considering the revenue, payroll costs and total expenses a landscape business should be able to make a net income of $7500 per month and $90,000 yearly. Broken down in this little Profit and Loss statement:
Income $15,000
Operational Cost $5000
Payroll $2500
Net Income- $7500
