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.

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Executive Summary

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.

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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.

Landscaping Business Plan - 3 Years Profit Forecast
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Company Summary

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.

Landscaping Business Plan - Startup Cost
Start-up Expenses 
Legal$243,000
Consultants$0
Insurance$29,000
Rent$24,000
Research and Development$28,500
Expensed Equipment$50,000
Signs$4,100
TOTAL START-UP EXPENSES$378,600
Start-up Assets$318,000
Cash Required$326,000
Start-up Inventory$52,000
Other Current Assets$203,000
Long-term Assets$219,000
TOTAL ASSETS$1,118,000
Total Requirements$1,496,600
START-UP FUNDING 
Start-up Expenses to Fund$378,600
Start-up Assets to Fund$1,118,000
TOTAL FUNDING REQUIRED$1,496,600
Assets 
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
TOTAL ASSETS$1,930,000
Liabilities and Capital 
Liabilities$30,000
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$39,000
Other Current Liabilities (interest-free)$0
TOTAL LIABILITIES$69,000
Capital 
Planned Investment$1,496,600
Investor 1$0
Investor 2$0
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$1,496,600
Loss at Start-up (Start-up Expenses)$364,400
TOTAL CAPITAL$1,861,000
TOTAL CAPITAL AND LIABILITIES$1,930,000
Total Funding$1,496,600
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    Services

    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
      • Walkways
      • Stone walls
      • Bordering
      • Patios
      • 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
      • Preseeding
      • Hydroseeding
    • Landscape Care & Maintenance We’ll also offer regular maintenance services in which we’ll perform
      • Pruning
      • Scalping
      • Grasscycling
      • 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.

    Note

    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:

    Landscaping Business Plan - Marketing Segmentation

    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.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Residential Community23%31,00032,00034,00036,00038,00010.00%
    Home Builders14%19,00021,00022,00024,00026,00010.00%
    Businesses & Corporates24%35,00036,00037,00038,00039,00010.00%
    Government Facilities22%30,00031,00032,00033,00034,00010.00%
    Educational Institutes17%27,00028,00029,00031,00032,00011.00%
    Total100%142,000148,000154,000162,000169,00010%

    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%

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    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.

    Marketing Strategy

    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:

    1. 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.
    2. We’ll use the latest tools to ensure quick work delivery.
    3. 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.
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    6.3 Sales Monthly

    Landscaping Business Plan - Sales Monthly

    6.4 Sales Yearly

    Landscaping Business Plan - Sales Yearly

    6.5 Sales Forecast

    Landscaping Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Landscaping Architectural Design44,00046,64049,438
    Lawn Installation40,00042,40044,944
    Landscape Care & Maintenance31,00032,86034,832
    Planting Trees/ Shrubs/ Flowers/ Vegetables29,00030,74032,584
    TOTAL UNIT SALES144,000152,640161,798
    Unit PricesYear 1Year 2Year 3
    Landscaping Architectural Design$50.00$58.00$67.28
    Lawn Installation$55.00$63.80$74.01
    Landscape Care & Maintenance$40.00$46.40$53.82
    Planting Trees/ Shrubs/ Flowers/ Vegetables$35.00$40.60$47.10
    Sales   
    Landscaping Architectural Design$2,200,000.00 $2,705,120.00 $3,326,215.55
    Lawn Installation$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
    TOTAL SALES$6,655,000.00 $8,182,988.00 $10,061,802.04
    Direct Unit CostsYear 1Year 2Year 3
    Landscaping Architectural Design$47.00$55.00$63.00
    Lawn Installation$52.00$59.50$69.00
    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
    Lawn Installation$2,080,000.00 $2,522,800.00 $3,101,136.00
    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
    Any questions? Get in Touch!

      Personnel plan

      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

       Personnel Plan   
       Year 1Year 2Year 3
      Co-Manager$14,000$15,400$16,940
      Landscapers$73,000$80,300$88,330
      Gardeners$60,000$66,000$72,600
      Social Media Manager$7,000$7,700$8,470
      Technician$10,000$11,000$12,100
      Accountant$9,000$9,900$10,890
      Cleaners$15,000$16,500$18,150
      Drivers$16,000$17,600$19,360
      Sales Executive$8,000$8,800$9,680
      Receptionist/ Call Operator$7,000$7,700$8,470
      Total Salaries$219,000 $240,900 $264,990

      Financial Plan

      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

       General Assumptions   
       Year 1Year 2Year 3
      Plan Month123
      Current Interest Rate8.17%8.24%8.32%
      Long-term Interest Rate8.30%8.35%8.42%
      Tax Rate23.80%24.40%25.90%
      Other000

      8.2 Break-even Analysis

      Landscaping Business Plan - Break-even Analysis
       Break-Even Analysis 
      Monthly Units Break-even5338
      Monthly Revenue Break-even$130,000
      Assumptions: 
      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 1Year 2Year 3
      Sales$6,655,000 $8,182,988 $10,061,802
      Direct Cost of Sales$6,223,000 $7,605,500 $9,288,801
      Other$0$0$0
      TOTAL COST OF SALES$6,223,000 $7,605,500 $9,288,801
      Gross Margin$432,000 $577,488 $773,001
      Gross Margin %6.49%7.06%7.68%
      Expenses   
      Payroll$219,000$240,900$264,990
      Sales and Marketing and Other Expenses$134,000$134,000$139,000
      Depreciation$2,250$2,300$2,410
      Leased Equipment$0$0$0
      Utilities$2,600$2,800$2,900
      Insurance$2,000$2,000$2,050
      Rent$3,000$3,500$3,600
      Payroll Taxes$30,000$30,400$31,000
      Other$0$0$0
      Total Operating Expenses$392,850 $415,900 $445,950
      Profit Before Interest and Taxes$39,150$161,588$327,051
      EBITDA$39,150$161,588$327,051
      Interest Expense$0$0$0
      Taxes Incurred$7,830$32,318$65,410
      Net Profit$31,320$129,270$261,641
      Net Profit/Sales0.47%1.58%2.60%

      8.3.1 Profit Monthly

      Landscaping Business Plan - Profit Monthly

      8.3.2 Profit Yearly

      Landscaping Business Plan - Profit Yearly

      8.3.3 Gross Margin Monthly

      Landscaping Business Plan - Gross Margin Monthly

      8.3.4 Gross Margin Yearly

      Landscaping Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Landscaping Business Plan - Projected Cash Flow
       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$52,000$56,160$60,653
      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
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$33,000$34,500$35,000
      Bill Payments$15,800$17,600$18,200
      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
      Dividends$0$0$0
      SUBTOTAL CASH SPENT$49,000 $52,920 $57,154
      Net Cash Flow$13,000$14,500$16,000
      Cash Balance$24,000$25,000$26,000

      8.5 Projected Balance Sheet

       Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Cash$261,000$292,320$321,552
      Accounts Receivable$23,700$26,544$29,835
      Inventory$4,080$4,570$5,118
      Other Current Assets$1,000$1,000$1,000
      TOTAL CURRENT ASSETS$283,000 $316,960 $356,263
      Long-term Assets   
      Long-term Assets$10,000$10,000$10,000
      Accumulated Depreciation$18,200$20,384$22,932
      TOTAL LONG-TERM ASSETS$23,900 $26,768 $30,114
      TOTAL ASSETS$285,000 $319,200 $359,100
      Liabilities and CapitalYear 4Year 5Year 6
      Current Liabilities   
      Accounts Payable$19,000$21,280$23,919
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$16,600 $18,592 $20,897
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$15,900 $17,808 $20,016
      Paid-in Capital$29,000$30,000$31,000
      Retained Earnings$54,000$58,860$64,746
      Earnings$194,000$211,460$232,606
      TOTAL CAPITAL$277,000 $301,930 $332,123
      TOTAL LIABILITIES AND CAPITAL$292,900 $319,200 $359,100
      Net Worth$280,000$305,200$335,720

      8.6 Business Ratios

       Ratio Analysis    
       Year 1Year 2Year 3INDUSTRY PROFILE
      Sales Growth7.28%8.07%8.94%3.00%
      Percent of Total Assets    
      Accounts Receivable9.22%10.22%11.32%9.80%
      Inventory5.43%6.02%6.67%9.90%
      Other Current Assets2.21%2.45%2.71%2.40%
      Total Current Assets151.10%151.80%152.00%158.00%
      Long-term Assets11.38%11.45%12.02%12.00%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.98%5.02%5.07%4.34%
      Long-term Liabilities0.00%0.00%0.00%0.00%
      Total Liabilities7.68%7.74%7.81%7.38%
      NET WORTH101.09%101.90%102.84%110.00%
      Percent of Sales    
      Sales100.00%100.00%100.00%100.00%
      Gross Margin95.03%97.60%100.33%99.00%
      Selling, General & Administrative Expenses95.60%98.18%100.93%97.80%
      Advertising Expenses1.58%1.62%1.67%1.40%
      Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
      Main Ratios    
      Current33343532
      Quick31.532.833.6233
      Total Debt to Total Assets0.17%0.16%0.16%0.40%
      Pre-tax Return on Net Worth72.98%73.70%74.20%75.00%
      Pre-tax Return on Assets95.76%100.55%105.58%111.30%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin33.67%34.71%35.79%N.A.
      Return on Equity55.47%57.19%58.96%N.A.
      Activity Ratios    
      Accounts Receivable Turnover7.77.77.8N.A.
      Collection Days100100100N.A.
      Inventory Turnover31.833.3934.1N.A.
      Accounts Payable Turnover15.716.116.5N.A.
      Payment Days272727N.A.
      Total Asset Turnover2.42.52.6N.A.
      Debt Ratios    
      Debt to Net Worth-0.04-0.03-0.03N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$238,000$251,328$265,402N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.860.860.87N.A.
      Current Debt/Total Assets1%0%0%N.A.
      Acid Test2728.128.7N.A.
      Sales/Net Worth2.12.22.3N.A.
      Dividend Payout000N.A.

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