The global landscaping and gardening services market is expected to expand by $79 billion by 2025, making it a haven for opportunities among those who are interested in starting a business in this industry. North America alone is set to account for 37% of the market share. If you have been contemplating when you should start a landscaping business, now is the right time.
One of the key factors to consider is your capital expenditure. You may be asking yourself, “What tools do you need to start a landscaping business?” and “How much does it cost to start a landscaping business?” Landscaping equipment can be expensive, and you need to be prepared with enough funds to ensure that you have the basic machines to get started.
Equipment financing companies like Charter Capital can take that burden off and help you complete your landscaping equipment list, so you can focus on what matters most: marketing and growing your business.
To give you an idea of how much you need to invest in tools for your landscaping business, read on.
Landscaping Equipment List
What tools do you need to start a landscaping business? Below is a list of the typical equipment that full-service landscaping companies have and their price ranges. This should give you an idea of which tools you want to start with based on your business’s focus and budget.
- Commercial lawn mower ($1,000 to $3,000)
- Blowers, edgers, and trimmers ($200 to $500 per tool)
- Sprayers and spreaders ($30 to $100 per tool)
- Tools for digging, cutting, measuring, marking, grading, etc. ($5,000 to $7,000)
- Safety equipment, including protective gloves, face masks, goggles, earmuffs, and vests ($500 to $2,000)
- Vehicle to transport equipment to the site ($25,000 to $36,000)
- Utility trailer for hauling heavy equipment (optional) ($800 to $5,000)
- Dump truck ($15,000 to $100,000)
- Compactor ($200 to $2,000)
- Bulldozer ($10,000 to $100,000)
- Backhoe ($10,000 to $70,000)
- Storage space for your tools and machines ($1,000 to $2,500 to build yourself, or $50 to $200 per month to rent)
What Does It Cost To Start a Landscaping Business?
Other factors that affect your initial investment include permits and licenses, insurance, fuel, and labor costs. If you’re starting a landscaping business that performs small-scale yard work, you can probably get started with $25,000, but if you’re going to deliver multiple services for as many clients, be prepared to shell out around $150,000 to get set up comfortably.
Start-Up Costs
The cost to start a landscaping business depends on your location. For example, if you’re starting a business in the Northeast, your equipment costs will likely be higher because of the colder weather. You’ll need to invest in machines that can handle winter conditions, such as snow blowers and ice melt products. But if you’re in Arizona, for example, the cost of starting a landscaping business is a bit lower because of the year-round warm weather.
The bottom line is that there is no one answer to the question, “What does it cost to start a landscaping business?” Your costs will depend on your region, focus, and equipment needs. However, being armed with the knowledge of what to expect can help you plan better and make the right decisions for your business.
Equipment Costs
The cost of landscaping equipment can be a major investment for any business. It’s important to remember that the purchase of this equipment is an investment, and it will help you make money in the long run. When you’re looking at what tools to start with, think about what you’ll need to complete the most common jobs that you’ll encounter. We’ve given a list of tools and equipment above, as well as their average pricing, but you should expect to pay more for more specialized equipment.
Also, keep in mind that you may not need to buy all of this equipment at once. You can start with the basics and add to your collection as your business and revenue grow.
Other Business Costs
In addition to the cost of equipment, there are other costs you’ll incur when starting a landscaping business. You’ll need to budget for marketing and advertising, supplies, employee wages, and taxes. Be sure to factor these in when creating your start-up costs.
Buying vs. Leasing Landscaping Equipment
When you’re starting a landscaping business, you have to decide if you want to buy or lease your equipment. Leasing can be a more affordable option in the short term, but it can be costly in the long run. You’ll usually have to commit to a three-year lease (sometimes longer), and at the end of the lease, you may not be able to afford to buy the equipment outright.
If you decide to buy your equipment, you’ll need to save up enough money to make a large purchase. However, once you own the equipment, it’s yours to use for as long as you want. You also have the option of selling or renting your equipment to other businesses, which can help offset the cost of ownership.
No matter what you decide, make sure you do your research and talk to other business owners to get their advice. There are pros and cons to both buying and leasing equipment, so make the decision that’s best for your business.
How To Set Up a Landscaping Business
Because establishing a landscaping and gardening business requires a large capital, you have to make sure that you go through all the necessary steps to ensure that it operates with minimal to zero hitches. Here’s a step-by-step guide.
1. Research what it takes to start a landscaping business.
Landscaping work requires technical skills and know-how. You might not have the talent for it yourself, but you should understand how everything works and know where to get resources when the time comes. Being adept at it yourself is a huge factor, of course, but many landscape business owners have managed to thrive as long as they have the right equipment and team.
2. Prepare your business plan and structure.
How do you want to run and grow your company? What are your short-term and long-term goals? What are your management plan and service line? Where will you get the money to get started and continue operating it? These are some of the questions you should answer in your business plan.
3. Register your business and file the required paperwork.
Check state-specific requirements when it comes to setting up a landscaping business. Some locations require a business owner to have a landscape contractor’s license before they can perform anything. Others don’t require a license but need a minimum number of hands-on professional hours to be approved.
4. Apply for financing.
Once you have the green light to start your landscaping business, it’s time to bring out the funds to purchase the items on your landscaping equipment list. Because of the high cost of many of these machines, applying for equipment financing is a practical and smart idea. This way, you can allocate more of your funds to launching marketing campaigns, hiring skilled professionals, and other strategies that will help you grow your business.
5. Set up your office and hire staff.
Choose a location that’s accessible and, if possible, have enough space to store your landscaping tools and equipment. Hiring skilled and experienced professionals is also crucial and can save you from costly work mistakes.
6. Get insured.
Getting insurance coverage is a given, no matter how careful you or your staff think you are.
Accidents can happen at any time and any place, so it’s always best to be prepared.
7. Promote your opening and get started.
Now that you’re done setting up your landscaping business, it’s time to get the word out and promote it aggressively via traditional and online means.
Starting a landscaping business requires a lot of work and a considerable investment, but the gains from operating it well will eventually outweigh the costs as your business grows.
Get Started on the Right Foot With Charter Capital
The equipment and tools for a landscaping business are pricey, but finances will no longer be an issue when you have the right financing partner to help you every step of the way. Charter Capital prides itself on helping small businesses become big ventures through our affordable equipment financing products and services.
We have been in the financing and leasing industry since 1977, so we understand the challenges that small business owners encounter as their businesses thrive. We are committed to seeing you succeed and offer equipment and technology leases and loans of up to $1,000,000. Contact us today to learn more about how we can help you.