How to Start a Gardening Business

If you’re an avid gardener, you probably have a yard that’s the envy of the neighborhood. Not everyone has a green thumb or even likes to garden, but you could come to their rescue by starting a gardening business. You’ll have plenty of customers to target right in your own neighborhood! 

Starting a successful gardening business involves several steps, which are detailed in this guide.

Understand Your Startup Costs

You may already have all the equipment you need, but if not, you’ll need to make a small investment. You’ll need shovels, trowels, tillers, edgers, trimmers, and perhaps even a mower, depending on the services you want to offer. If you offer mowing, you’ll likely need a trailer to transport your mower to job sites.

You’ll also incur costs for registering your business entity, obtaining required business licenses and permits, and purchasing business insurance.

All in all, though, the costs to start a gardening business are relatively low, and should be less than $3,000. 

Determine Services to Offer

The potential services you could offer are many. You could choose to just specialize in things like planting and maintaining flower beds, or you could offer a full package of services that could include:

• Creating vegetable gardens
• Building new flower beds
• Hedge trimming
• Mulching
• Tree and shrub planting
• Yard edging and trimming
• Mowing

Obviously, the more services you offer, the more revenue you can bring in. 

Determine Pricing

Prices for gardening services are generally per project, and can range from $500 to clear and plant a flower bed to up $5,000 for a full service landscaping job. You’ll want to base your pricing on how long you estimate the project will take. If you’re going to hire employees to assist with gardening services, you’ll also need to consider your labor costs and price jobs to cover the costs and allow for a good profit margin. 

You’ll also need to consider gardening prices in your area to make sure that your prices are competitive. 

Create a Business Plan

Creating a business plan helps you to analyze every aspect of your business and create strategies that will make your gardening business successful. You’ll also need a business plan if you’re going to apply for bank funding.

A business plan has several sections:

• An executive summary that highlights the key points of the business plan
• A company overview that includes your company mission and vision
• A description of the gardening services you plan to offer
• An analysis of the overall gardening market
• An analysis of your main competitors in your area
• Your marketing and sales strategy
• An operations plan, meaning how you’ll run the business on a day to day basis
• A description of your relevant skills and experience, as well as your hiring plan
• Financial projections

Be sure not to skip this step in the process of starting your business. You’ll learn a lot as you write it, and come with ideas that will help you to start and grow your company.

Decide on a Business Structure

If you start doing business without forming a business entity with your state, by default, you’ll be operating as a sole proprietorship. That means that you and the business are considered one and the same, so profits from the business pass through to you to be reported on your personal tax return. However, it also means that you are personally liable for the debts and obligations of the business.

Your other choices are to form a corporation or a limited liability company (LLC), both of which offer personal liability protection for company owners. Corporations are more complicated and come with many requirements, and they’re also subject to corporate income taxes.

Most new business owners choose to form an LLC because of their simplicity. LLCs offer much flexibility as well as pass through taxation, just like a sole proprietorship. 

To form an LLC, you simply have to file a document with your state, which officially registers your LLC in the state. It’s simple to do online and comes with a modest fee. 

Check Licensing and Permit Requirements

Your state and local governments may have certain licensing and permit requirements for your gardening business. You’ll just need to check with your government offices to see what you may need. Licenses and permits are generally simple to obtain and come with nominal fees.

You may be required to obtain a sales tax permit, if gardening services are subject to sales tax in your state.

Apply for an EIN

If you’re going to hire employees or if you business will have more than one owner, you’re required to get an employer identification number (EIN). An EIN functions like a social security number, allowing federal tax authorities to identify your business. 

You also may be required to have one to open a business bank account. You can apply for an EIN on the IRS website. It only takes a few minutes and there is no cost. 

Get Business Insurance

Your insurance agent is your next stop. They can help you determine what types of business insurance you may need. You’ll at least need general liability insurance that protects you from a host of things, including bodily injury claims. You also may want to insure your equipment. 

Open a Business Bank Account

Keeping your personal and business finances is crucial for accounting and tax purposes. Most banks offer bank accounts for businesses, so check with the bank where you do your personal banking. You’ll likely be required to provide your EIN and your business formation documents.

Create a Website

You’ll need a website so that potential customers will be able to find you online. You can make one yourself through sites like GoDaddy or Wix, or you can hire a website design company to do it for you. 

You’re Ready to Start Marketing!

Now you’re ready to put your marketing strategy into action.  You may want to start by distributing flyers in your neighborhood and posting on Facebook or Instagram. Share pictures of your work and be sure to include links to your website.

You should also get listed on Google My Business and Yelp. 

In Closing

A gardening business is a great way to follow your passion and make a good living. You could do it as a side hustle if that’s what you’re looking for, or do it full-time and grow the business until you have a whole team working for you. A gardening business can be quite profitable either way. Just be sure to follow all the steps so you get your business off on the right foot.