Statistics show that nine out of every ten new businesses fail, with most failing within the first year and the rest not making it past their third anniversary. So, why would you want to start a landscaping or interiorscaping business given such dismal odds?
Better Odds Than You Think
First of all, the odds are better than you might think. Landscaping and interiorscaping are service businesses, which are among the easiest types of businesses to start and succeed in. The often-cited statistics usually don’t include small service businesses, so your chances may be more favorable than they seem.
Reasons to Start a Service Business
Service businesses have several advantages that make them easier to start compared to other types of businesses:
- Low Capital Investment: You can start with minimal initial investment.
- Low Overhead: Operating costs are generally lower, making it easier to manage during slow periods.
- Flexibility: Proper management can help you navigate through financial hardships more effectively.
Common Reasons for Business Failures
Many businesses fail because they cannot survive slow periods or cash crunches. High overhead costs, such as employee salaries, rent, and loan payments, can cripple a business. However, a service business can be designed to minimize these issues.
Guidelines for Starting Your Own Service Business
This guide is for those with little or no money to start with. If you have start-up capital, these guidelines will be even easier to follow. Here’s how you can get started:
Gain Knowledge in Your Field
First, you need to know what you’re doing in your new field. A bit of business knowledge would also help, but you probably don’t have time to go back to school. Instead, visit your local bookstore:
- Gardening and Landscaping: Pick up books that cover the basics. A highly recommended book is Sunset’s Western Garden Book, which covers plant care and includes an encyclopedia of plants.
- Business Basics: Buy some good books on running a small business. Understanding business management is crucial for success.
Study and Prepare
Set aside at least an hour a day to study your books. Divide your time equally between learning your trade and understanding business management.
Don’t Quit Your Day Job
Continue working at your current job while you start your business part-time. This income will support you while you build your business. Try to pay off or reduce any debts before starting your new venture to avoid financial stress during tight periods.
Acquire Basic Equipment
Depending on your business focus, you will need some basic equipment:
- Gardener: A truck or trailer, lawn mower, rake, broom, and other small hand tools. Buy used equipment if necessary.
- Landscaper: Hand tools and a truck or trailer. Rent other tools as needed.
- Interiorscaper: A car or truck, watering cans, and assorted small hand tools.
Interiorscaping may require less capital initially but demands a better understanding of the trade, as indoor plants are more challenging to maintain. Acquiring commercial accounts for interiorscaping can also be more difficult than finding residential work for gardeners and landscapers.
Legal Requirements and Insurance
Investigate what is required to start your business in your area. This might include a business license, contractor’s license, or pest control license. Obtain insurance as soon as you can afford it to protect your business.
Advertising and Acquiring Work
To get work, you need to advertise. How and where you advertise will depend on your budget and target market:
- Residential Work: Word-of-mouth recommendations, door-to-door canvassing, flyers, newspaper classified ads, and eventually Yellow Pages listings.
- Commercial Work: Print advertising in local business magazines, direct mail campaigns, and door-to-door solicitation.
Bidding and Professionalism
When bidding for jobs, present yourself professionally:
- Be on time for bids.
- Dress neatly and conservatively.
- Use a clipboard and pre-printed estimate sheets.
- Provide brochures and business cards if possible.
Charge what you’re worth rather than trying to undercut competitors. Customers often choose the most professional presentation, not necessarily the lowest price.
Growing Your Business
As you gain more work, you can consider transitioning to full-time and possibly hiring employees or renting an office. Keep your overhead low and only make investments that will yield a return.
Handling Growth
Monitor your business closely as it grows. Keep an eye on your finances and understand which jobs are profitable. Properly managing growth will help ensure your business thrives.
By following these guidelines and managing your business effectively, you can increase your chances of success in the landscaping or interiorscaping industry.
