How much does a small landscaping business make per year? That is the question on most people’s minds when they are thinking about starting this kind of business. The truth is you can make a decent living with a small landscaping company, but it takes some hard work and persistence. Most people underestimate the amount of work it takes to run their own landscaping business, but the good news is if you are willing to put in the effort, most places can earn enough to support themselves and their family whether that includes just you or with an entire family depending on how big that family is.
In this review we shall be discussing all that you need to know about the landscaping business.
How Much Money Do Landscapers Make Yearly? (Profit Margin)
Do you want to know how much money landscapers make yearly? If YES, here are 7 factors that determine the income & profit margin of landscaping companies. In order to have an idea of the amount a landscaper is expected to make daily, weekly, monthly or yearly, you should clearly define the job description of an established landscaper. As expected, a well-established landscaper is expected to offer all of these services;
- Landscape architecture services
- Landscape care/maintenance services
- Trimming Landscaping
- Landscape design/contracting services
- Lawn mowing/maintenance
- Sod installation/hydro – seeding
- Weeding or fertilizer and/or pest control application
- Weekly lawn cut
- Weeding Beds
- Sale of flowers
- Spring Cleanup
- Fall Cleanup
- Chemical Treatment
- Snow Plowing
With this in mind, we can estimate what a landscaper is expected to make. According to the Turf survey, landscape business owners make $53,323 on average annually and they expect an increase this year to $59,265 on average going forward. This is based on an average revenue of $542,653. Landscapers said corporate officer/owner/partner salaries make up approximately 10 percent of total sales.
It is important to point that there is no one mold-fits-all when it comes to how much a landscaper is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average landscaper can make yearly.
Factors That Determine How Much Money Landscapers Make Yearly
The Size of the Landscaping Business
One cannot conveniently state the amount a landscaping business is expected to make yearly if you do not know the size of the landscaping business. One the average, the approximate money a landscaper will make will range from between $4,443.58 and $4,938.75 monthly depending on the number of customers they have.
The Location the Landscaper is Covering
The location the landscaper is covering is a major factor that will determine the amount he or she is expected to earn monthly. A key factor that can greatly influence the money a landscaper is expected to make is if he chooses to operate in a location with people that can afford his or her service – the financial status of the residence in the location he or she want to start the landscaping business.
The truth is that you will struggle to make good money if you locate the business in an area filled with low income earners or in a ghetto. If you locate your landscaping business close to a highbrow area or an area with loads of retirees, you are likely going to make good returns from the business.
The Type of Services Offered
Another important factor that will determine how much a landscaper is expected to make yearly is the type of landscaping services offered by the landscaper.
You will agree that the money a landscaper that offers a robust landscaping services that covers landscape architecture services to landscape care and maintenance services to trimming services to landscape design and contracting services ,to lawn mowing and maintenance and also other complimentary services that includes sale of flowers, spring cleanup, fall cleanup, chemical treatment and snow plowing et al, will be far larger than what a landscaper that only offers landscape care and maintenance services.
The Management Style of the Landscaper
Another key factor that will determine the amount a landscaper is expected to make yearly is the management style of the landscaper. Trust me, the results you will get when you are a good manager will definitely be different from a landscaper with poor management skills.
The idea is that a good landscaper will not just retain their old customers, they will also keep getting new customers especially through recommendations. That no doubt will greatly influence the amount the landscaper is expected to make annually.
How the landscape owner should determine his salary?
The owner of the landscaping business must have a clear idea of the financial position of his company. He must have the figures at his fingertips about total revenue, expenses and net profit of the fiscal year. While working out the expenses he should include a few future expenses also such as the purchase of trucks, machinery and various types of equipment to replace the old ones. The owner should also know the exact amount required to pay the salary/wages for his employees. The owner should also ensure that the company has sufficient funds to run the business and to the work done. After completing all these calculations, he can decide how much he should pay himself as landscaping business owner’s salary. It is indeed a great idea to start with a small salary for a landscaping owner. This approach will enable him to invest more and boost the growth of his business. Therefore, he can choose to increase his salary as time goes by.
Starting Salary for lawn or landscaping business
Many landscaping business owners avoid figuring out their salary. To meet their expenses, they utilize the money left over after clearing their company’s bills. This cannot be taken as a systematic approach as this method can lead to creating a lot of financial confusion. The business owner should draw a clear line between the assets of the company and his assets. One has to maintain separate accounts for company expenses and the owner’s expenses. If both expenses are managed in a single account the process of tracking the business expenses will get complicated and the confusion may lead to serious problems. To avoid confusion and to ensure smooth functioning of the business, many business owners start with a rather small amount as their salary. This would be within the range of $23,000 – $25,000 per.
Common Equipment Used in Landscaping Businesses
Here is some of the equipment you’re likely to need as a landscaping business, along with their average cost (3)
- Manual gardening tools (shovels, rakes, shears, trowels, etc.): $10-$50 each
- Push mower: $200-$1,000
- Riding lawn mower: $1,000-$5,000
- Leaf blower: $100-$500
- Lawn spreader: $100-$500
- Sprayer (for fertilizer, pesticides, etc.): $50-$200
- Trimmer: $50-$300
- Edger: $80-$350
- Water saw: $500-$4,000
- Plate compactor: $300-$5,000
- Trailer: $1,500-$5,000
- Heavy-duty truck: $10,000-$50,000
- Portable generator: $500-$2,000
How Much Does it Cost to Start a Landscaping Business?
Initial expenses for a landscaping company vary widely, depending on the size and scope of your operations. If you’re a one-person operation that only performs basic maintenance and mowing services, you can get started with as little as $5,000 or less.
That said, most landscaping businesses will require a larger investment. The average start-up cost is between $15,000 and $20,000 if you’re starting from scratch.
There are ways to lower these start-up costs, though. Buying used rather than new equipment can cut down significantly on your expenses. You can also rent much of the equipment from home improvement stores, typically for around $100/day. While this is less cost-effective in the long term, it can be an excellent way to save on initial expenses if your financial resources are limited.
If you don’t want to start a business from the ground up, your other option is to buy an existing business (see how here). While this often takes more money up-front, it can be a good option for a first-time entrepreneur since you won’t need to do as much leg work to get it off the ground.
How Much Does a Landscape Business Owner Make Per Year?
The short answer, again, is “it depends.” According to Lawn & Landscape Magazine’s State of the Industry Report, the average annual salary of a landscape company owner ranges from around $31,000-$69,000 per year.
Lawn care business owners interviewed by Entrepreneur.com reported earning between $5,000 and $50,000 in their first year of business. That income will grow once you’re established. Those same owners reported annual earnings around $160,000-$250,000 once they’d been in business a few years.
These are average figures, but the truth is the sky is the limit when it comes to earnings. BL Landscapes earned around $700,000 in 2019, and are on track to reach $800,000 in 2020. The more projects you’re able to take on and complete, the higher your earnings will go.
Conclusion
Selling your Landscaping business is an important event when you finally decide to start focusing on something else or simply when it becomes time for retirement. With high chances of finding a buyer, the challenge is how to sell a landscaping business in three steps: develop a well-defined plan, pick the best option and then negotiate your sale price.