Turning Your Business into a Success
- You just run it as a “cash business”.. You are completely unincorporated, and as such, uninsured, un bondable, and pay any employees you have cash, with no receipts for anything.
- You’re competing with “Little Timmy” and his $199.00 push mower, and his $49.00 weed whacker ( ’cause he doesn’t even know it’s called a “line trimmer”). His only other asset is the $20.00 extension cord he uses. Total business assets, after fair market depreciation? Less than a hundred bucks.
- “Little Timmy” has your ass beat for liability, Even if he runs over the chain for the dog, and tosses it through a $1,500.00 patio door, the homeowner can’t do jack-shit, because he’s a minor, and as such, has no attachable assets. There’d also be explaining on their part about hiring a minor.
- If you do ANYTHING that costs someone money, it’s you sorry ass on the hook for it. There’s no limit to damages. Run over that piece of dog chain, and it goes through your cash helper’s jaw… He might just land up owning your house.
Starting a landscaping business typically requires several licenses and permits
which can vary by location. Here are some common requirements:
- Business License: Most cities or counties require a general business license to operate legally.
- Landscaping License: Depending on your state or municipality, you may need a specific landscaping or contractor’s license. Check local regulations for details.
- Insurance: While not a license, obtaining liability insurance is crucial to protect yourself and your business from potential claims.
- Pesticide Applicator License: If you plan to use pesticides or herbicides, you may need a license or certification, which often involves training and passing an exam.
- Sales Tax Permit: If you sell products (like plants or landscaping materials), you might need a sales tax permit to collect and remit sales tax.
- Employer Identification Number (EIN): If you plan to hire employees, you’ll need an EIN from the IRS for tax purposes.
Moving Up with a Business License
- The next level.. You have a “ Business Licence” , and use a current account at your bank. This is what’s commonly called a “ Sole Proprietorship” You’re now a real company, but you’re still on the hook personally, for anything that goes south. There’s way, way more to it than that, but there are opportunities to get insurance, etc. Register as an employer, deduct a whack of stuff for taxes… I hope you get my drift.
Landscaping 101.2: Incorporation – The Next Step
- Incorporate!!! It’s the cheapest insurance you can ever have.. For less than a grand, you can only be sued for the assets of the company, unless there can be proved gross negligence on the part of you or an employee.
- You don’t need a licence to cut people’s grass. You do, however, need a licence to apply / purchase certain kinds of chemicals.
- You also get credit at your suppliers.. There’s two prices for a lot of stuff… One for the public, and another for the “trades”.
- Commercial insurance on your equipment can either be direct to the company, or added to your personal insurance as a rider. DON’T assume that your homeowner’s policy will cover your commercial stuff. No homeowner has a 48 inch XMark to cut a half acre.
- Incorporation lets you take advantage of any county / state/ federal programs. There’s nothing like having the government pay some or all of an employee’s wages as you train them in the industry.
- Until the point at which your business is big enough that your corporate assets are worth insuring from theft, and for liability.. Just leave it as a simple incorporation. Do the math about loss and value, and replacement.
The Path to a Successful Landscaping Business
In short, there’s no “License” to get into the landscaping business, but there’s definitely a path to take to turn it into a successful business.
If you’re the only employee, you don’t own a business ,you just own your day job. It’s like owning a variety store.. and having to be there, or go broke.
Don’t fixate on making money at any cost. I wouldn’t cut a lawn for less than $80.00 .. Sure.. they could get “Little Timmy” to do it for $25.00.. But I’m bonded, insured, and I pay my guys well. We charge enough that we can take the time to make it look amazing. High end houses pay high end money. It’s that simple.
I have 2 guys that run string trimmers, and they are poetry in motion. When they can trim out a property fast and flawlessly in less time than it takes for me to cut the main lawn, I can see from my profit, that they are worth that I pay them $5.00 an hour over industry standard. It also helps that the pay / price point makes it easier to retain profit making employees.
Competing cheaply is a race to the bottom..
Good luck in your endeavors
Conclusion:
Building a Successful Landscaping Business
Starting a landscaping business doesn’t require a specific license to cut grass, but it’s crucial to obtain the right licenses, incorporate your business, and secure insurance to protect yourself and your assets. Incorporating limits your personal liability, helps you access better supplier deals, and allows you to take advantage of government programs.
To succeed, focus on offering high-quality service rather than competing solely on price. By paying your employees well, investing in the right equipment, and providing excellent results, you’ll attract high-end clients and build a profitable, sustainable business.
