How to Start a Landscaping Business in 10 Steps

Owning a landscaping business can be rewarding and profitable, but the initial steps to start one require more than just a green thumb. You’ll first need to analyze your local market, decide which landscaping services to offer, and formally establish your business in your state. To help you get started, walk you through the entire process and break down the potential startup costs to prepare for. 

Is now the time to start a landscaping business?

Over the past five years, the landscaping industry has expanded by an average of 4.8% annually, now with a market size of $153 billion in 2024. Even more encouraging, individual landscaping companies reported growth of over 15% in 2023, according to the National Association of Landscape Professionals. 

While these trends don’t guarantee future results, they at least suggest a positive outlook for the industry. After all, there will always be an ongoing need for property maintenance and care, whether in suburbs, commercial lots, or outdoor public areas. 

However, you should still be aware of factors that could impact growth, including rising operational costs or changes in consumer spending habits—particularly for larger projects or nonessential services. Nonetheless, starting a landscaping company in the current market could be a rewarding opportunity if you’re willing to put in the work and learn the fundamentals. 

Starting a landscaping or lawn care business in 10 steps

From market research to the official launch, here’s everything you’ll need to do in order to start a new landscaping business. 

Step 1: Conduct market research

First, you want to study your local market and assess whether you have a viable business idea. You should focus on these items: 

• Market demand. Measure the need for landscaping services in your community. Look for areas with new housing developments, commercial zones, or neighborhoods with high-income professionals or aging populations. 
• Target customer base. Determine who your primary customers will be, whether homeowners, businesses, or both. 
• Competitors. Identify existing landscaping companies in your area and note their services, pricing, and reputation. 
• Opportunities. Look for gaps in the market. Is there a need for specific services, more price variety, or something else that you could provide that your competitors can’t? 

You can refer to local government websites and census data to learn about development plans and demographics in your area. You should also use Google Maps, local business directories, and online customer reviews to find and analyze the competition. As you gather all this information, look for indicators that suggest a need (or lack thereof) for your services. 

Step 2: Choose which type of services to offer

Based on your market research, you can decide which services to offer. Common options include the following: 

• Basic lawn care. Mowing, edging, pruning, leaf removal, and seasonal clean-ups
• Irrigation services. Maintaining and installing sprinkler systems 
• Outdoor design and installation. Creating and implementing landscaping plans for new builds or renovations
• Hardscaping. Installing patios, walkways, and driveways
• Tree services. Trimming, removal, and stump grinding
• Pest and weed control. Applying chemical treatments as needed 
• Outdoor lighting. Installing and maintaining low-voltage lighting systems 

Consider your skills, experience, and available resources when determining which services to offer. As a general rule of thumb, you should start with services you’re confident in providing that also align with your target market’s needs. 

Step 3: Choose a business model

A business model—also known as a business structure—affects your finances, operations, and degree of liability in the event of a lawsuit. While several options are available, including a sole proprietorship, partnership, corporation, and limited liability company (LLC), it’s generally advisable to choose a structure that offers liability protection. 

An LLC is a common choice for a new landscaping business owner, as it typically protects personal finances from business debts and liabilities—unlike a sole proprietorship. A corporation offers similar liability protection and additional tax options, but it’s usually more complicated to set up. For more information, we’ll explain how to choose the right structure for your landscaping business in a later section. 

Step 4: Write a business plan

Once you have a good understanding of how you’ll structure your lawn care company, you can create a business plan to show that you’ve considered all aspects of your venture. Here are the basic elements you should include in your landscaping business plan: 

• Executive summary. An overview of your landscaping business and its objectives
• Company description. Details about your services, target market, and advantages over competitors
• Market analysis. Insights on local competition, industry trends, and growth potential. 
• Financial projections. Estimated business expenses, revenue forecasts, and profitability outlook for the next few years
• Organization and management. Your business model and who’s in charge of running it
• Marketing strategy. Description of your plans to attract landscaping customers 

Writing a business plan will help you map out your initial goals and keep track of progress but remember to update it regularly as your business evolves and you learn more about your market. 

Step 5: Finance your business

While startup costs depend on your services and size, you’ll need to plan for equipment purchases, vehicle costs, insurance, licenses, and initial marketing efforts. You should also account for ongoing fuel, maintenance, and labor costs. 

Once you’ve estimated your startup costs, you can decide whether you’ll fund the business yourself or apply for outside financing, whether through friends or family, a bank, or the Small Business Administration (SBA). Regardless of the lender, ensure you have a clear plan for how you’ll use the funds and repay the loan (often included in your business plan). 

Step 6: Obtain necessary permits and licenses

Specific requirements can vary depending on your location and the services you offer, but here are some of the standard permits and licenses you might need to acquire: 

• A business license to operate in your city or county
• A contractor’s license if you plan on offering larger landscaping services (such as hardscaping) 
• Pesticide applicator license if you’ll be applying chemical treatments
• Tree pruning license to maintain trees over a certain height 
• DOT number if operating vehicles over a certain weight 

Research your local regulations thoroughly, as operating without proper permits can result in fines and legal issues. If you’d like some help, LegalZoom can help identify the exact federal, state, or local licenses you need to start your landscaping business.

Step 7: Invest in equipment

Unless you already own lawn care equipment, you’ll typically need to purchase the following tools: 

• Lawn mower (riding model for large lawns and a push model for small, hard-to-access areas) 
• Edger and string trimmer
• Pruning shears, rakes, and shovels
• Wheelbarrow or garden cart
• Spreader for fertilizer, seeds, or pesticides 
• Safety gear (gloves, googles, ear protection) 
• Truck or trailer for transportation 

In addition, you might buy a chainsaw, pressure washer, irrigation installation/repair tools, or more heavy-duty equipment for hardscaping, depending on your lawn care services. Still, you should start with the essential, versatile tools first and gradually expand your inventory as your business grows. 

Step 8: Market your business

Before launching, you’ll want to develop a plan to market your landscaping company. To begin, you should build a simple and professional website that showcases your work through before-and-after photos, lists your services, and includes a contact form for easy quote requests. You can also update your website with customer testimonials as you earn them. 

Next, you can create a free Google Business Profile to appear in local search results, making it easy for potential customers to find your contact information. However, don’t overlook traditional marketing strategies like eye-catching business cards, flyers or door hangers, and referral programs for existing customers. 

As your business grows, you might consider more targeted marketing efforts, such as local SEO to improve your search engine rankings, paid online advertising, or even sponsoring local events to increase your brand awareness. 

Step 9: Focus on customer service and retention

For any successful landscaping business, exceptional customer service is just as important as the quality of the lawn care work. This starts with the basics: always arrive on time, maintain a professional appearance, and ensure your team is courteous and respectful of customers’ properties. Likewise, clearly explain the services you’re providing (and why) and be transparent about pricing. 

Though not required, you can offer detailed service visit reports. These can include before-and-after photos, notes on work completed, and recommendations for future maintenance. You might also consider implementing an online billing system to allow customers to easily view and pay invoices. 

Consider offering referral discounts and bulk deals to help build a loyal customer base.

Step 10: Launch and manage your business

As you prepare to launch your landscaping business, there are a few final steps to complete: 

• Register your business name with your state.
• Obtain an employer identification number (EIN) from the IRS.
• Set up a business bank account, payroll, and accounting system.
• Secure proper insurance coverage (e.g., liability, vehicle, property and casualty, and workers’ compensation if hiring employees) 
• Finalize your service pricing structure. 

However, launching your landscaping company is just the beginning. In the first few months, focus on careful budgeting and cash flow management and keep detailed records of all income and expenses. It may take time before you turn a profit but follow your business plan and gradually adjust your services to align with your actual costs and market demand. 

How much does it cost to start a landscaping business?

Generally, you can expect initial startup costs to range from $5,000 to $50,000 or more for your landscaping business. However, costs can increase if you’re investing in high-end equipment. Here’s a breakdown of the expenses you should budget for. 

Equipment and maintenance

• Lawn mowers: $120 to $500 for a push mower and around $3,000 for a riding model
• Trimmers: $200 or more
• Vehicles and trailers: At least $30,000 to $40,000 for a basic pickup truck with adequate towing capabilities and potentially over $100,000 for commercial vehicles or heavy-duty trailers

Used equipment can cost less than these estimates but be sure to factor in the potential for higher and more frequent maintenance expenses. Likewise, you should consider the fuel consumption and expected life span of all equipment you buy. 

Sourcing and disposal

Costs for sourcing materials like plants, mulch, and pavers can vary widely. Many of these items are priced by the unit or square foot, and you’ll need to have the cash on hand to acquire them before starting projects. 

Disposal costs are another consideration. You’ll be responsible for paying dump fees, which can vary by location and the type of waste. General yard waste might cost $20 to $50 per load, while fees for construction debris or hazardous materials can be significantly higher. 

Research local regulations and disposal fees to get accurate estimates for your area and remember to factor these costs into your service quotes. 

Licensing, permits, and insurance

Generally, basic business licenses and permits cost between $50 and $400, depending on your location and the services you offer. However, specialized licenses (such as those for pesticide applications) may cost more. 

Moreover, you should budget for general liability insurance, which typically starts around $2,000 annually for a small landscaping business. If you offer more specialized or high-risk services, such as tree trimming, your insurance costs will likely be higher. Be sure to consider vehicle insurance as well, which might cost around $200 to $300 per month. 

Employees

The Bureau of Labor Statistics reports that landscaping and groundskeeping workers earn a mean hourly wage of $19.47. However, the total cost of employment also includes the following: 

• Payroll taxes
• Workers’ compensation insurance
• Any benefits you offer (e.g., health insurance or paid time off) 
• Recruitment and training costs

When planning your budget, you should also account for seasonal fluctuations in your staffing needs. 

Marketing

Marketing costs depend on your strategy and how much you’re able to do yourself. Here are some key expenses to consider.

• Website development: $500 to $5,000 or more for a professional site (or free if you use a DIY website builder)
• Logo design: $300 to $1,000 for a professional design
• Vehicle decals and graphics: $300 to several thousand dollars, depending on size and complexity (e.g., a full vehicle wrap) 
• Business cards and flyers: $50 to $200 for initial printing 

While it’s possible to start with a minimal marketing budget, investing in professional marketing can potentially lead to more clients and higher-value contracts.  

How to decide which type of business structure is right for you

The right business structure for your new venture depends on your liability protection needs, future growth plans, and business complexity. Here’s a breakdown of each option. 

Sole proprietorship

• Pros: Simple to set up, full ownership and control, minimal paperwork
• Cons: Personal liability for business debts and legal issues

Partnership

• Pros: Shared startup costs and workload
• Cons: Potential conflicts between partners

Limited liability company (LLC)

• Pros: Personal asset protection, tax flexibility, less paperwork than corporations
• Cons: More complex setup than sole proprietorship and ongoing fees in some states

Corporation

• Pros: Strongest personal liability protection and easier to raise capital
• Cons: More complex structure and higher setup and maintenance costs 

An LLC or corporation usually makes the most sense for many small or medium-sized landscaping businesses. However, your specific circumstances and business goals may favor a different structure. 

Before you jump in, we encourage you to consult a business attorney to ensure you make the right decision. From helping you acquire the necessary permits to registering your business name, our experienced business attorneys are ready to guide you through every step of launching your landscaping business. 

FAQs

How profitable is a landscaping business?

Profitability varies widely, but well-managed landscaping businesses can have profit margins ranging from 5% to 20%. However, this depends on the services offered, efficiency, and market demand. 

How do I price my own landscaping business services?

Price your services by calculating your costs (labor, materials, equipment, and overhead) and adding a sustainable profit margin. You should also consider market rates in your area and the value you provide, gradually adjusting prices as you gain experience and build a reputation. 

What are the pros and cons of owning a landscaping business?

Owning a landscaping business allows you to work outdoors, create a flexible schedule, and make outdoor spaces more beautiful. Conversely, the work is physically demanding, dependent on the weather, and sometimes costly, especially in places with higher fuel or maintenance costs.