Do you want to start a landscaping business?
Do you want to start a landscaping business? Well, this business primarily includes designing and maintaining peoples’ lawns by utilizing gardening skills and ideas to convert even the smallest spaces into impressive designs.
These days, lawns have become an integral part of houses, corporate buildings, and streets. Previously landscaping services were only utilized by people who loved to beautify their space. However, now more people are utilizing the service to also play their part in saving the climate.
Thus, opening a landscaping business plan is the right choice and it can become a profitable venture if you manage to plan and execute it effectively. If you don’t know how to open a landscaping business you can take help from this business plan for landscaping written for a startup, Land Care.
2.1 The Business
Land Care will be a registered and licensed landscaping startup in Seattle. The business will aim at providing professional expertise to help people in installing and maintaining their lawns. In the initial phase, the business will serve its customers by providing the following services: lawn installation, sod laying, lawn care, and designing rock/ stone structures.
2.2 Management of Landscaping Business
To manage a landscaping business plan, you need to employ skillful gardeners and landscapers. Moreover, you’ll also need to invest in landscaping tools and machinery. Besides the general startup requirements, there is a lot more to manage to run your business plan landscape company successfully. For example, advertisement plan, online presence, sales management, and finance management.
If you are looking for how to set up a landscaping business you can take help from this landscape business plan. In this landscaping business plan on how to start a business plan landscape company, we have provided all the details of Land Care.
2.3 Customers of Landscaping Business
The customers of a landscaping business belong to various walks of life. They include residents, home builders, businesses & corporates, government agencies, and educational institutions.
2.4 Business Target
Our target is to become the most renowned and popular landscaping business in Seattle. Moreover, through our high-quality service, we aim to achieve and maintain a CSAT score above 95%. Besides, our financial targets to be achieved in the next three years are demonstrated here.
3.1 Company Owner
Land Care is started and owned by Judi Smith. Judi has done her graduation in Horticulture. She is well known for her ideas of upkeeping garden spaces. During and after her academic years, she has won many landscaping competitions.
3.2 Why the landscaping business is being started
Judi was always an enthusiast of garden structure design. She decided to start a landscape business plan to utilize her skills and her passion for the benefit of her customers. As well as for earning a good living.
3.3 How the landscaping business will be started
Step1: Drafting landscaping business description
To ensure a successful startup it is essential to do everything with proper planning. Judi studied several landscaping business plan examples to make a landscaping business plan for her business. But due to a lack of experience in marketing and financial analysis, she decided to hire a professional to write a business plan landscape company for her. The landscape business plan she got written is provided in this lawn care business plan sample.
Step2: Define the brand
Judi acquired the licenses and permits required to start her own landscaping business plan. Meanwhile, she defined her services, business values & aims, and customer care policies to get identified by the target market.
Step3: Set up everything from machinery to workforce
After that, Judi started to back up her business with a strong workforce and the latest landscaping tools. She rented a building to set up her office. Meanwhile, she hired a co-manager to get some help in conducting interviews and tests to hire the most competent employees. Then she purchased the required inventory to run her business plan landscape company.
Step4: Promote, market, establish a web presence
The last thing to do was to reach out to the target market. Judi utilized the latest methods including online and social media campaigns to attract target customers. The detailed advertisement plan Judi employed to get introduced to a large audience will be provided in later sections.
|Research and Development||$28,500|
|TOTAL START-UP EXPENSES||$378,600|
|Other Current Assets||$203,000|
|Start-up Expenses to Fund||$378,600|
|Start-up Assets to Fund||$1,118,000|
|TOTAL FUNDING REQUIRED||$1,496,600|
|Non-cash Assets from Start-up||$1,488,000|
|Cash Requirements from Start-up||$357,000|
|Additional Cash Raised||$51,200|
|Cash Balance on Starting Date||$33,800|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$39,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,496,600|
|Loss at Start-up (Start-up Expenses)||$364,400|
|TOTAL CAPITAL AND LIABILITIES||$1,930,000|
When you are owning your own landscaping business plan you can implement your creative ideas to the fullest. However, it is still necessary to write down the services you want to provide your customers in a landscape business plan template. As it will enable you to get the required inventory and to hire the employees with the relevant skills.
- Landscaping Architectural Design Our primary service will be to decorate and beautify gardens by using architectural structures and designs. We’ll use decorative rocks, garden pebbles, stone, and other structures to define
- Stone walls
- Ground cover
- Landscape stairs
- Plant anchors
- Lawn Installation We’ll also provide landscape and lawn installation services from scratch. In this, we’ll perform
- Sod laying
- Turf installation
- Rotovating soil
- Landscape Care & Maintenance We’ll also offer regular maintenance services in which we’ll perform
- Maintenance of rock and gravel landscape
- Planting Trees/ Shrubs/ Flowers/ Vegetables
Our last service will include cultivating plants on your lawn. We’ll plant trees, shrubs, flowers, vegetables, and fruits that would be considered best for your soil.
Marketing Analysis of Landscaping Business
Before opening a business plan landscape company it is essential to carry out an accurate marketing analysis. This is to know the market opportunities and your target customers. Exploring the groups of your target customers should be done before even researching on how to write a business plan for landscaping. It is because a thorough knowledge of your customers will enable you in introducing the services that would interest them.
Marketing analysis is a stepwise process. If you are looking for a complete business plan for a landscaping company, you can take help from here. In this landscape business plan and landscaping business model we’re providing marketing analysis done for Land Care.
5.1 Market Trends
Landscaping services are in great demand. Firstly because they freshen and beautify the outdoor spaces. And second due to the awareness in people to keep their surroundings green. According to IBISWorld, the landscaping business plan has seen a growth rate of 1.8% during the past five years i.e. from 2016 to 2021. And the landscape business plan is expected to grow by another 1% in 2021.
The latest stats calculated in 2021 also reports the total market size of landscaping services as $99.7 billion. Thus, the market stats are satisfactory to initiate your startup.
5.2 Marketing Segmentation
The potential customers of Land Care are divided into the following groups:
5.2.1 Residential Community
Our primary customers will be the residents living in our vicinity. In our city, most of the families belong to the working class and others do not have a great number of young enthusiasts to install a lawn themselves. Therefore, to beautify and maintain their outdoor they’ll need to hire professional services.
5.2.2 Home Builders
Our second target customers will be the construction companies and contractors who build homes. Landscaping and lawn installation increases the value of the property. Therefore, they are expected to avail of our landscape design services.
5.2.3 Businesses & Corporates
Nowadays, all small and large buildings of businesses and corporates contain decorative landscaped lawns. As that helps in creating a refreshing environment. This group is expected to become our potential customers as they’ll also need regular maintenance and care.
5.2.4 Government Facilities
Government properties, offices, public parks, bus stations, and even some streets are also marked by landscaped lawns and designs. Therefore, they will also be hiring our services.
5.2.5 Educational Institutes
Almost all educational institutions ranging from schools to universities contain beautiful lawns. This is to create a pleasant and natural atmosphere to promote learning. Thus, such institutions are also expected to avail of all our services.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Businesses & Corporates||24%||35,000||36,000||37,000||38,000||39,000||10.00%|
5.3 Business Target
- To earn a net profit margin of $10.7k per month by the end of the second year and $21.8k per month by the end of the three years of our launch
- To achieve an average rating above 4.8 within a year of our launch
- To achieve a Net Promoter Score above 80%
- To achieve and maintain a CSAT score above 95%
Immigration Business Plan
5.4 Product Pricing
Our prices are a little higher than our competitors. However, we still expect to get more customers as we provide a 50% discount on the maintenance of lawns that are installed/ designed by us.
No matter how efficient and skillful you are, you can never get customers without an effective marketing plan for the landscaping business plan. Thus, to make sure that your customers know about you, you should start advertising before starting a business plan landscape company. Here we’re listing how Judi decided to market her startup.
6.1 Competitive Analysis
The competitive aspects we’ll have to outperform our competitors are listed here:
- We’ll establish a website and social media account to display our works and to facilitate our customers in booking our services and in giving feedback.
- We’ll use the latest tools to ensure quick work delivery.
- We are highly client-oriented. Our skillful workers will be working in collaboration with customers to ensure that they get what they wanted.
6.2 Sales Strategy
- We’ll set up four different forms of landscaped lawns in our workspace to give an idea of what to expect from us.
- We’ll advertise our services through Google Local ads service and social media sites.
- We’ll make our website SEO to get topmost positions in Google searches.
- We’ll offer a 50% discount on all of our services for the first 20 days of our launch.
- We’ll offer a 50% discount on lawn maintenance/ care services for the lawns that are installed/ designed by us.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Landscaping Architectural Design||44,000||46,640||49,438|
|Landscape Care & Maintenance||31,000||32,860||34,832|
|Planting Trees/ Shrubs/ Flowers/ Vegetables||29,000||30,740||32,584|
|TOTAL UNIT SALES||144,000||152,640||161,798|
|Unit Prices||Year 1||Year 2||Year 3|
|Landscaping Architectural Design||$50.00||$58.00||$67.28|
|Landscape Care & Maintenance||$40.00||$46.40||$53.82|
|Planting Trees/ Shrubs/ Flowers/ Vegetables||$35.00||$40.60||$47.10|
|Landscaping Architectural Design||$2,200,000.00||$2,705,120.00||$3,326,215.55|
|Landscape Care & Maintenance||$1,240,000.00||$1,524,704.00||$1,874,776.04|
|Planting Trees/ Shrubs/ Flowers/ Vegetables||$1,015,000.00||$1,248,044.00||$1,534,594.90|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Landscaping Architectural Design||$47.00||$55.00||$63.00|
|Landscape Care & Maintenance||$37.00||$42.00||$48.00|
|Planting Trees/ Shrubs/ Flowers/ Vegetables||$32.00||$37.00||$43.00|
|Direct Cost of Sales|
|Landscaping Architectural Design||$2,068,000.00||$2,565,200.00||$3,114,619.20|
|Landscape Care & Maintenance||$1,147,000.00||$1,380,120.00||$1,671,916.80|
|Planting Trees/ Shrubs/ Flowers/ Vegetables||$928,000.00||$1,137,380.00||$1,401,129.20|
|Subtotal Direct Cost of Sales||$6,223,000.00||$7,605,500.00||$9,288,801.20|
While writing a landscape business plan you should include a detailed list of the employees you’ll hire to run your business plan landscape company. The list should also include expected/ average salaries so that you can arrange for the finances accordingly.
The personnel plan developed for Land Care is provided here as an example.
7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 5 Landscapers to design, construct & beautify the outdoor area
- 4 Gardeners to fertilize the soil, mow lawn & plant plants
- 1 Social Media Manager to manage company’s sites
- 1 Technician to upkeep the machinery
- 1 Accountant to maintain financial records
- 1 Sales Executive to execute the marketing strategy
- 2 Cleaners
- 2 Drivers
- 1 Receptionist/ Call operator
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Social Media Manager||$7,000||$7,700||$8,470|
|Receptionist/ Call Operator||$7,000||$7,700||$8,470|
The financial plan is a crucial component when you make a landscaping business plan. In your financial plan, you should analyze projected profits and losses, gross margins, cash flows, and balance sheets to find out
- Where to invest more in order to get the desired goals?
- What financial decisions should be taken to achieve long term success?
- How to ensure financial stability for your business plan landscape company?
To help you in making a landscaping financial plan that satisfies all the above-mentioned requirements, we’re providing the financial plan sample made for Land Care.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.17%||8.24%||8.32%|
|Long-term Interest Rate||8.30%||8.35%||8.42%|
8.2 Break-even Analysis
|Monthly Units Break-even||5338|
|Monthly Revenue Break-even||$130,000|
|Average Per-Unit Revenue||$234.00|
|Average Per-Unit Variable Cost||$0.63|
|Estimated Monthly Fixed Cost||$168,000|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$6,223,000||$7,605,500||$9,288,801|
|TOTAL COST OF SALES||$6,223,000||$7,605,500||$9,288,801|
|Gross Margin %||6.49%||7.06%||7.68%|
|Sales and Marketing and Other Expenses||$134,000||$134,000||$139,000|
|Total Operating Expenses||$392,850||$415,900||$445,950|
|Profit Before Interest and Taxes||$39,150||$161,588||$327,051|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$19,000||$20,520||$22,162|
|SUBTOTAL CASH FROM OPERATIONS||$71,000||$77,390||$83,581|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$72,000||$78,000||$84,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$48,000||$51,000||$53,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$49,000||$52,920||$57,154|
|Net Cash Flow||$13,000||$14,500||$16,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$283,000||$316,960||$356,263|
|TOTAL LONG-TERM ASSETS||$23,900||$26,768||$30,114|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$16,600||$18,592||$20,897|
|TOTAL LIABILITIES AND CAPITAL||$292,900||$319,200||$359,100|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.21%||2.45%||2.71%||2.40%|
|Total Current Assets||151.10%||151.80%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||95.60%||98.18%||100.93%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.17%||0.16%||0.16%||0.40%|
|Pre-tax Return on Net Worth||72.98%||73.70%||74.20%||75.00%|
|Pre-tax Return on Assets||95.76%||100.55%||105.58%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.67%||34.71%||35.79%||N.A.|
|Return on Equity||55.47%||57.19%||58.96%||N.A.|
|Accounts Receivable Turnover||7.7||7.7||7.8||N.A.|
|Accounts Payable Turnover||15.7||16.1||16.5||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.03||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$238,000||$251,328||$265,402||N.A.|
|Assets to Sales||0.86||0.86||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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