Starting a landscaping business is a rewarding venture that combines a love for the outdoors and design with smart business sense. The industry pulls in well over a hundred billion dollars annually, thanks to consistent demand for lawn maintenance and garden design from homeowners, businesses, and public spaces.
This guide will walk you through the practical steps, from validating your business idea and securing funding to obtaining permits and acquiring equipment, to help you launch a successful landscaping business in the U.S.
Step 1: Plan your business and research the market
Market and competitor research
Start by researching your local area. Drive through different neighborhoods to see the types of properties and existing landscaping. Check local Facebook Groups and Nextdoor to understand what services homeowners request and what they complain about.
Next, identify three to five direct competitors on Google Maps. Review their websites and social media to list their services and look for customer reviews. A frequent misstep is to underprice work just to get clients, which is not a sustainable path. Calculate your own costs first.
Budgeting for startup costs
Your initial investment will vary. You can start with quality used equipment to manage expenses. A reliable commercial mower might cost $1,000-$3,000, with another $500 for a string trimmer, edger, and blower. Hand tools could add $200.
Beyond equipment, budget for business registration, which is typically $100-$500. You should also plan for general liability insurance, which can run from $50 to $100 per month. A used work truck is often the largest single expense, so factor that into your financial planning.
Here are 3 immediate steps to take:
- Scout three target neighborhoods to document property sizes and service needs.
- Create a spreadsheet comparing the services of three local competitors.
- Draft a startup budget listing all potential equipment and administrative expenses.
Step 2: Set up your legal structure and get licensed
Choose your business structure
You might want to form a Limited Liability Company (LLC). This structure protects your personal assets if your business faces a lawsuit. For tax purposes, an LLC is simple because profits pass through to your personal tax return, which avoids double taxation.
A mistake many new owners make is to operate as a sole proprietor. While easier to start, it offers no liability protection. This puts your personal savings and property at risk. You can register an LLC through your state's Secretary of State website for about $50-$200.
Get your federal and state paperwork
Once you have a business structure, apply for a free Employer Identification Number (EIN) on the IRS website. You will need this for taxes and to open a business bank account. The online process takes less than 15 minutes.
Next, look into state-specific licenses. Most states require a pesticide applicator license if you plan to spray chemicals. Check with your state's Department of Agriculture for exam and fee details, which typically run from $75 to $250.
Some states also require a contractor's license for jobs over a certain amount, like $1,000. Finally, get a general business license from your city or county clerk's office. This usually costs between $50 and $150 per year.
Here are 4 immediate steps to take:
- File for an LLC with your Secretary of State.
- Apply for a free EIN on the IRS website.
- Research your state's pesticide applicator license requirements.
- Contact your city hall for a local business license application.
Step 3: Secure your business insurance
Protect your business with the right insurance
General liability insurance is your first line of defense. It covers property damage, like a mower flinging a rock through a window, and client injuries. A $1 million policy is standard, with annual premiums often between $600 and $1,500.
You will also need commercial auto insurance for your work truck. While state minimums are an option, they often fall short after a serious accident. Consider liability coverage of at least $100,000. This protects your business from a major financial setback.
If you hire even one employee, most states require you to have workers' compensation insurance. This covers medical bills and lost wages if an employee gets hurt on the job. Also, look into an inland marine policy to protect your equipment from theft or damage.
Some new owners try to save money with a basic policy, but that can be a costly mistake. You might want to get quotes from providers like Hiscox, Next Insurance, or The Hartford, as they have experience with landscaping businesses and their specific risks.
Here are 4 immediate steps to take:
- Get quotes for a $1 million general liability policy.
- Review your state's workers' compensation requirements for employers.
- Ask potential insurers about adding an inland marine policy for your equipment.
- Request quotes from at least two insurance providers that specialize in trade businesses.
Step 4: Set up your location and buy equipment
Find a base of operations
You can often start from home. Check with your city's planning department about "home occupation" permits. Some areas restrict commercial vehicle parking or outdoor equipment storage in residential zones, which can be a surprise for new owners.
If you need a separate space, look for a small yard zoned for light industrial or commercial use. A 500-square-foot fenced area is often enough for a truck and trailer. When you review a lease, ask for a one-year term to maintain flexibility.
Purchase your core equipment
Once you have a space sorted out, it's time to fill it with the right gear. Your equipment will be a primary part of your startup budget. You can manage this by mixing new and high-quality used items to start.
A new commercial zero-turn mower runs $4,000-$9,000. A heavy-duty string trimmer and a backpack blower will add another $700-$1,100. Get these from a local power equipment dealer, not a big-box store. Dealers provide service, repairs, and parts access, which prevents costly downtime.
Here are 4 immediate steps to take:
- Contact your city planning office about home business regulations.
- Price out a commercial mower and trimmer at a local equipment dealer.
- Search commercial real estate listings for small, secure yard spaces.
- Draft a final equipment list that balances new and used gear.
Step 5: Set up your payment processing
For residential jobs, you should expect payment upon completion. Commercial accounts, however, often work on Net 30 terms. A mistake many new owners make is not clarifying these terms upfront, which can create cash flow problems while you wait for checks.
For larger projects like installations, it is wise to request a 25-50% deposit. This covers your upfront material costs and secures the client's commitment. Without a deposit, you risk being left with expensive supplies if a client backs out.
Speaking of payments, you need an easy way to collect them. For landscaping businesses that accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware, it is a better rate than many other providers who charge over 2.5%. It is particularly useful for collecting payment immediately after a one-off job or securing a deposit on the spot.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done—no waiting for bank transfers.
Here are 3 immediate steps to take:
- Define your payment terms for residential versus commercial clients.
- Set a standard deposit percentage for all installation projects.
- Download a mobile payment solution to accept on-the-go payments.
Step 6: Fund your business and manage finances
Secure your startup funding
The SBA Microloan program is a solid option for new businesses. These loans range from $5,000 to $50,000 and are offered through nonprofit lenders like Accion Opportunity Fund. You will generally need a credit score above 640 to qualify.
Another path is equipment financing. It is often easier to get because the mower or truck serves as collateral. Lenders like Currency specialize in this and can help you acquire gear without a large cash outlay. This keeps your funds free for other operational costs.
A mistake some new owners make is to fund the business with personal credit cards. The interest rates, often above 20%, can quickly become a burden on your cash flow. It is better to explore formal business loans first.
Plan your working capital
Once you have funding, focus on cash flow. You should have enough working capital to cover at least six months of operating costs. This includes expenses like fuel, insurance, and marketing before you build a steady stream of income from clients.
Aim to have $5,000 to $10,000 set aside. This financial buffer prevents stress while you wait for Net 30 payments from commercial accounts. Without it, a single delayed payment could disrupt your entire operation and put you in a tight spot.
Here are 4 immediate steps to take:
- Check your credit score to see if you meet loan requirements.
- Research SBA Microloan lenders that serve your state.
- Get a quote for equipment financing for your primary mower.
- Create a six-month budget to determine your working capital needs.
Step 7: Hire your team and set up operations
Build your crew
Your first hire will likely be a Landscape Laborer. This person handles mowing, trimming, and site clean-up. Expect to pay between $15 and $22 per hour, depending on their experience. A mistake some owners make is hiring informally. Always use a formal job description and employment contract.
If your services include fertilization or pest control, any employee who applies chemicals must have a state-issued pesticide applicator license. You should also look into basic OSHA safety training to prevent common job site accidents and protect your business from liability.
Streamline your daily workflow
Once you have a team, organization becomes key. You might want to use management software like Jobber or LMN. These platforms help you manage client schedules, send quotes, and handle invoicing from one place, which saves significant administrative time.
With this in mind, set a financial target for your team. A healthy benchmark is to generate $60,000 to $80,000 in annual revenue per full-time employee. This metric helps you price your services profitably and decide when it is time to expand your crew.
Here are 4 immediate steps to take:
- Draft a job description for a Landscape Laborer with a clear pay range.
- Research your state's pesticide applicator license requirements for employees.
- Sign up for a free trial of a business management software like Jobber.
- Set a revenue-per-employee goal for your first year of operation.
Step 8: Market your business and get customers
Start with local, low-cost marketing
Begin with door hangers in the neighborhoods you scouted. You can get 500 printed for about $150. A mistake many new owners make is creating a generic flyer. Instead, list three to four core services with clear pricing to get immediate calls.
Also, get permission to place a yard sign at completed jobs. This is free advertising. Next, set up your free Google Business Profile. Ask your first few clients to leave a review, as most customers check reviews before hiring a service.
Build your online presence
A simple website that showcases your work is a powerful asset. Use it to post high-quality before-and-after photos. You should also create a Facebook page for the same purpose. Post consistently, about two to three times per week, to show you are active and reliable.
Once you have a steady workflow, you might explore Google Local Services Ads. You pay per lead, not just for clicks, with costs often between $20 and $50 per qualified lead. This can be more effective than traditional ads for getting your phone to ring.
Track your results
It is important to know what works. Get in the habit of asking every new customer, "How did you hear about us?" This tells you where to invest your marketing dollars. Your goal is to keep your Customer Acquisition Cost (CAC) below 25% of a client's annual value.
Here are 4 immediate steps to take:
- Design and print 500 door hangers with your core services and prices.
- Set up your Google Business Profile and request reviews from your first clients.
- Create a business Facebook page to post photos of your work.
- Start tracking how every new customer discovers your business.
Step 9: Price your services and create proposals
Choose your pricing model
You can price your services in a few ways. An hourly rate, often $40-$75 per person, works for unpredictable jobs. For defined projects like a garden bed installation, a fixed-rate price is better. Recurring maintenance is best handled with a monthly contract.
A reliable method is cost-plus pricing. First, calculate your direct costs for labor and materials. Then, add your overhead and a profit margin. A good target for your gross profit margin is between 30% and 50% to ensure your business stays healthy.
Calculate your costs accurately
A frequent misstep is to forget overhead costs like fuel, insurance, and marketing when you bid on a job. These indirect costs can easily make up 15-25% of your total expenses. Forgetting them will quickly eat into your profits and can sink your business.
For example, a job with $80 in labor and $100 in materials has a direct cost of $180. If your overhead is 20%, add another $36. Your total cost is $216. To hit a 40% profit margin, you would need to charge the client around $360.
Create professional proposals
Once you have your price, present it in a professional proposal. This document should clearly outline the scope of work, itemize all costs, and state your payment terms. This simple step prevents scope creep and payment disputes down the road.
Here are 4 immediate steps to take:
- Calculate your hourly overhead rate by adding up all non-job-specific monthly costs.
- Set a target gross profit margin for your services, aiming for 30% to 50%.
- Create a price list for your three most common services, such as mowing or seasonal clean-ups.
- Draft a proposal template that includes scope of work, a cost breakdown, and payment terms.
Step 10: Scale your business and maintain quality
Maintain service quality
As you grow, you need a system to keep your work consistent. Create a simple quality checklist for your crew to use at every job. This should include items like closing all gates, blowing clippings off hardscapes, and ensuring lawn edges are sharp.
A key metric to track is your customer callback rate. If more than 5% of your jobs require a return visit to fix a mistake, it is a sign your quality control process needs attention. This simple number tells you a lot about your team's performance.
You might also want to look into certifications from the National Association of Landscape Professionals (NALP). Earning a Landscape Industry Certified Technician credential for your team members adds a layer of trust and professionalism that clients appreciate.
Know when to expand
Once your quality is consistent, you can focus on expansion. A good rule of thumb is to hire a new crew member for every $60,000 to $80,000 in new annual revenue. This ensures you have the income to support the added payroll.
Many owners hire too soon, which strains cash flow, or wait too long, which burns out their team. Use that revenue benchmark as your guide. When you add a second crew, management software like Jobber or LMN becomes necessary to coordinate schedules and routes.
Here are 4 immediate steps to take:
- Create a post-job quality checklist for your crews.
- Track your customer callback rate for one month.
- Research the NALP certification requirements and costs.
- Calculate your current revenue per employee to guide your next hire.
You have the roadmap to launch your landscaping business. Remember that consistent, high-quality work on every job is what builds a lasting reputation. Your attention to detail will set you apart. With a solid plan, you are ready to grow a successful company.
As you complete jobs, keep your payments simple. JIM turns your phone into a card reader, letting you accept payments for a flat 1.99% fee with no extra hardware. To get your money instantly after each job, Download JIM.
