The landscaping industry market in the United States grew by 4,2% per year between 2017 and 2022. These data indicate that the general outlook is positive, so it may be a good idea to start a business. In Hispanic Entrepreneurs we give you the details about how to start a business landscape in Tennessee.
Why has the landscaping industry grown?
Millennials have contributed to the growth of the landscaping industry. This group is becoming more and more focused on lawn care and landscape maintenance. There has been increased interest from younger generations in supporting sustainable gardens which need to be properly integrated into the wider design. This has served to boost the industry.
Likewise, the commercial sector that provides services to shopping centers, hospitals, parks, etc. has been recovered which helps the development of landscaping. Another factor that influences is the environmental restoration projects that governments implement and generate jobs.
Like the redefinition of outdoor spaces, especially since the appearance of the covid-19 pandemic. Many have invested time and money in landscaping adding elements such as water features, sculptures and technology.
Costs to open a landscaping business
For a business to function properly, it is necessary to invest in equipment, license, insurance, among other aspects. Starting a landscaping business from scratch can cost between $15.000 and $50.000 depending on the quality of the products.
You have to buy at least a van or truck, a lawn mower, string trimmer, leaf blower. The new mower costs between $1.000 and $5.000, the one with a seat between $6.000 and $10.000. The price of the mower ranges from $100 to $400, the blower from $250 to $500. A new van is worth between $30.000 and $50.000, used ones at $5.000. Also, open trailers cost $1.000 and closed trailers cost between $3.000 and $10.000. Used equipment considerably reduces the initial investment.
Other items you may need are rakes, shovels, lawn mowers ($10 and $50 each), fertilizer spreader ($100), chainsaw ($150), pressure washer ($800). On insurance you could spend an average of $50 per month, commercial software for companies of this type between $30 and $50 per month, but there are free options. In fuel you can go $5.000 a year. Add to this the company registration fees.
How to Start a Landscaping Business in Tennessee
Decide what type of clients you want to work with and put together your business plan to establish prices, investment, profit projection, etc. It then goes on to register the company with the state government. To complete this step we suggest you read our article how to register a business in tennessee.
He then applies for a Tennessee contractor's license that authorizes the business to do seeding, turf, planting, and chemical weed control. It is issued by the Department of Commerce and Insurance. Must apply on website Core and fill out the corresponding forms. The applicant or the qualifying agent must pass the examination of “Business and Law” which costs $55. To program it and obtain the study guides, seek guidance in the Information bulletin for PSI candidates.
You must submit a financial statement reviewed and audited by a licensed accounting firm, a reference letter and proof of insurance. General Liability and Workers' Compensation policy required. Also, file business registration with Secretary of State, complete contractor affidavit, submit application, and $250 fee.
In some cases, a meeting with the Board of Licensed Contractors is necessary. You can check the status of the issue at license search. The application is submitted before the 20th of each month in which the board meets, its approval takes between 4 and 6 weeks.
Other permissions for landscaping company
If the business applies restricted-use pesticides, it must obtain a commercial pesticide applicator license. To do this, you must pass the basic exam and one of the category of the Tennessee Department of Agriculture. If you fall into the horticulture and turf category you will need to pass an oral exam with the State Pest Control Board before taking the 2 license exams.
Likewise, there is a separate category for landscaping contractors in the building classification. On the other hand, some municipalities and counties require a home improvement license. You will need to find out what the legal process is in place for the locality where the business is located.
Create a marketing plan for landscaping
Design the strategies of your marketing plan to promote the business, in this process social networks become the best allies. Word of mouth marketing and SEO (search engine optimization) will be essential, for this you need to invest. You will need a $500 to $2.000 investment in this area. Combine them with paid ads.
Keep finances in order, he advises you to use new programs and software that record everything from customer visits to payroll calculation.
The success of landscaping businesses largely depends on the quality of the work carried out. Achieving customer satisfaction with beautiful designs and reliable maintenance services is key. If you need advice on the legalization of your company in the United States, do not hesitate to contact us.
