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By Lee Hall, Esq. | Legally reviewed by Bridget Molitor, J.D. | Last reviewed September 22, 2022
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Landscaping is a hardy business, and perennially in demand — puns intended. Residential and commercial properties need outdoor maintenance and beautification in every season. Landscaping is also strenuous, all-weather work.
If you enjoy doing physical work and don't mind being out in the elements, landscaping could be your vocation. You might even decide to start your own company.
This guide walks you through the necessary steps for forming a landscaping business.
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Thinking about opening a landscaping business? The first thing to know is this: landscaping is local. An aspiring landscaping business owner must know and appreciate the territory.
First, landowners (your prospective clients) strive to match or complement the character of the town where they live. To a community, landscape contractors must do more than show up with a lawn mower, sprinkler, and shears.
Consider: What are the community's expectations and ideals? How can your new company meet them — or raise the bar?
Second, planting zones are area-specific. A landscaping pro must know what to plant, when to plant it, when to seed, and when to cut. It all depends on local soil quality and weather patterns.
Moreover, landscaping evolves at different rates in different places. Many of today's property owners want organic or natural outdoor maintenance and beautification. These customers rely on their landscapers to know how nature best flourishes in their region.
Understanding the local environment also means identifying potential customers. Are they apartment management companies? Owners of freestanding homes, townhomes, or condos? Government agencies? Restaurants? Other businesses and organizations? Having identified your target clientele, it is time to delve into their markets. By examining the websites, social media, and publications that inform your clientele, you can design a locally appropriate business plan.
You can name your new landscaping business using your own name or another name with significance to your mission. When you think of an appropriate business name, run an internet search. Steer clear of a name any other landscaping firm uses in your area. Take care to create no confusion over the identity and ownership of your business.
Be sure the internet domain name and social media account names you want are free. Check the Secretary of State's website for your state. If you know that your landscaping business is the only one to claim the name in your area, you are ready to register your business name with the state. You have then claimed it for your website, business cards, and marketing materials.
Some business owners decide to go further and trademark their business names or slogans with the U.S. Patent and Trademark Office (USPTO), then register the trademark with the state. The whole process takes several months, but businesses do it to protect valuable intellectual property.
A small business needs a legal structure. For instance, it could be a sole proprietorship, a partnership, or an S corporation. Many of today's small business owners form limited liability companies (LLCs).
Why is the LLC business type so frequently chosen by entrepreneurs? Like corporations, limited liability companies provide some protection for the business owner against personal liability in the face of legal actions. However, an LLC does not have to adhere to all the formalities of an incorporated business. The owner of an LLC can opt for "pass-through" taxation and pay tax by way of an individual tax return.
While an LLC is not a corporation, it is a business. Its owner will set up accounts, handle funds, and possibly hire people. Its name should correlate with an Employer Identification Number (EIN), issued by the Internal Revenue Service (IRS). The process of obtaining an EIN is simple and speedy.
Check your state law to find out if creating your business is a one-and-done task, or if you need to file further documentation in future years. Your lawyer or accountant can also advise you on these requirements, and can tell you more about taxes and your choice of business types.
You might also need state and local business licensing. If you are a specialist, such as a landscape architect, you'll undergo a special licensing process. See, for example, Pennsylvania's provision on licensing for landscape architects. (While regular landscape design does not require a special degree, a landscape architect is typically a licensed architect with special training in designing public parks, cemeteries, and other developments.)
The Small Business Administration (SBA) offers resources to boost local small business startups. Its Service Corps of Retired Executives (SCORE) initiative connects entrepreneurs with free counselors who can advise on every stage of planning and executing a business concept. Mentors are available for in-person meetings or Zoom calls.
Because SCORE assigns counselors to advise nearby business creators, these counselors understand the local economy. They can likely assess a new startup's potential successes and strains in the local setting.
You can also find counselors supportive of LGBTQ-owned businesses, Native-owned, minority-owned, woman-owned, and veteran-owned businesses.
How can you prepare for your first meeting with your small business adviser? Draft a business plan. Your counselors will go over the plan with you and make suggestions. In preparation, set aside time to create a business plan.
A written plan is the foundation of a business. Every new company needs a business plan. It enables the founder(s), advisers, and lenders to visualize the way a business will operate and flourish.
Commonly included elements in a business plan are:
"At Designscapes Colorado, our mission is simple: to offer high-quality, competitively priced residential and commercial landscapes and maintenance. We use only premium grade materials to deliver custom design and maintenance services that surpass expectations. We view ourselves as partners with our clients, our employees, our community, and our environment."
Once you finish your business plan, have your advisers go through it with you. Make revisions where needed. After the business is up and running, review your business plan regularly. A business plan should evolve with the business.
What working capital does a landscaping business need? Typically, the business must purchase equipment and products. Vehicles and lawnmowers are other common purchases. Some landscapers decide to acquire office buildings and storage space. Business licensing, building occupancy and signage permits, business cards, and insurance are all necessary expenditures.
Check the Small Business Administration for funding options, such as the SBA 7(a) loans, microloans, and other popular options. Note that you could also look into SBA CAPLines, which are revolving or non-revolving credit lines for small businesses.
You may also want to seek out city or neighborhood grants.
Web-based accounts such as Venmo and PayPal help customers pay for your services easily, bringing in a flow of usable cash. You can also check your local banks and credit unions for interest-bearing business checking accounts. After establishing a checking account, order checks and a debit card. You'll have options for applying for a credit account from your bank's partners, PayPal, and other sources. By using credit accounts, your business can form a credit profile.
Today, many property owners seek expertise in organic and native gardening. They look for landscape architecture experts. Or they hope to find professionals who can help plan stormwater and climate-related issues. A landscaper has numerous opportunities to learn and make professional progress.
As you gather in-depth knowledge of your craft, you'll be able to offer yourself as a speaker for gardening and local business groups. Learning, and teaching what you know, is a satisfying way to contribute to the community around you.
Network with lawn care industry people, real estate agents, contractors, arboretum owners, zoning boards, and local business meetup groups. Their members have vital knowledge and contacts. Keep an updated profile on LinkedIn and other social media hubs for business, and stay in touch with other professionals.
If you spot a need, you might offer to donate landscaping and gardening work to the local post office, library, farmer's market, or school. Professional signage noting your donation can increase your business name recognition. It can also cultivate a sense of goodwill in the community.
To obtain further assistance as you create your business, consider using this business formation tool. It's an online guide to forming a legally compliant business, step by step. If you need legal advice, connect with a business organizations attorney.
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We have a DIY option you can use to save time and stress.We help you:
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