Is Owning A Landscaping Company Profitable In 2024?

The landscape industry is estimated to be worth $100 billion in the United States, making it the largest home-service-related industry. So, if you are thinking about entering into this industry, then you must be prepared, and the first question in the process is: Is owning a landscaping company profitable in 2024?

Is Owning A Landscaping Company Profitable

This business is also one of the fastest home service sectors in the US. So, you are not only entering the largest and fastest growing industry but also a highly competitive one. According to the IBIS World, there are 641,782 landscaping businesses in the United States.

Therefore, before entering into this industry, you need to have perfect knowledge about the profits you’ll be earning and the challenges that will have to overcome.

Let’s begin our guide to understanding the profitability of a landscaping company, ways to increase it, and how you can successfully start your landscaping company.


What Does Landscapers Do?

What Does Landscapers Do

Landscapers help people design and maintain outdoor spaces. This includes:

  • Pruning
  • Lansacpe Manitaince
  • Watering plants on the lawn
  • Installing rock gardens
  • Controlling and removing weeds
  • Installing and maintaining the water system
  • Disease and insect control
  • Apply fertilizer and pesticides
  • Irrigation

They work with a wide array of clients, such as individual homeowners, office buildings, apartments, hotels, and commercial shopping sites.

Nowadays, the majority of landscapers are working on their own and are happy to work on their own hours, rates and the type of work they want to take.


Things To Check Before You Start Your Landscaping Company

Things To Check Before You Start Your Landscaping Company

The landscaping business is just like every other business that requires you to evaluate whether you are ready to launch the business or not. So, here are a few criteria that you need to look into before starting your landscaping company:

1. I Don’t Want To Hire Help

A landscaping business is an excellent way to pick up some extra cash on weekends or work outdoors in summer as a seasonal worker. However, this might be a tough road if you are thinking of making this a long-term career.

Landscaping requires physical labor, and believe it or not, you’ll have body pain and you’ll grow old, so for how long you’ll be able to manage all the physical work alone?

So, if you are not thinking of hiring help, then this business is not for you.

2. I Don’t Want To Learn New Skills

Now, maybe plants aren’t your thing, and you might think that if I don’t have to work with plants, then there is no new skill to learn.

However, in the landscaping business, hardscapes are also things that don’t live in a vacuum. They are outdoor features that need to go in harmony with the plants in the environment. Therefore, you need to learn the skills that you like and also the skills that you don’t like.

3. I Am Not A People Person

Landscaping is a service business, so you have to deal with many people in order to get clients. So, if you want to succeed in the landscaping business, then learn some people skills, build a good reputation, and put up your smile as your profit and salary come from a happy client.

However, this also doesn’t mean that you have to bear with the unreasonable behavior, demands, and expectations of the clients, but it is essential to have great communication skills.

4. Not Good At Sales

Sales is the foundation stone of any business. So, if you are not good at sales and you want to start your landscaping business, then this is a vital skill that you need to learn.

It is simple- Without sales, you’ll not have clients, and without clients, you don’t have a business. Fortunately, you can learn sales skills through books, webinars, internet sources and by attending classes on the art of selling.


How To Start A Landscaping Business?


Is Owning A Landscaping Company Profitable?

As we know, the landscaping business is a highly competitive industry, but if you want to establish a successful business and earn profit, then owning a landscaping business is a good option.

According to the reports, the profit margin of a landscaping business is between 5% and 20%. As we did our own research, we found that a landscaping business with 6 employees generates a total annual turnover of $700,000 and reaches a profit margin of 10%.

However, this profit margin varies from business to business and the type of services provided by them. For instance, a small planting job will cost anywhere around $750, while setting up a sprinkler system will cost $2000; similarly, the drainage will cost $1,750.

Taking about the turnover, the landscaping business in the US in 2022 generated $128.8 billion in revenue.

On average, the US landscaping business generates an average annual turnover of $203,509.

Therefore, owning a landscaping business is indeed profitable. But when assessing how much profit does landscaping company makes, you should not rely on the sales alone but also consider the costs.


How Much Does It Cost To Start A Landscaping Business?

To start a landscaping business, you require a significant amount of investment, which is given below in the table:

Item Cost (USD)
Marketing and Advertisment $8,000- $20,000
Office Supplies$500- $1,000
Marleting and Advertisment $2,000- $5,000
Landscaping Supplies$1,000- $5,000
Insuarance $1,000- $3,000
Licensing and Permits $500- $1,000
Website Design and Domain$500- $1,500
Employees Training $500- $1,500
Professional Services$1,000- $2,000
Total$15,000- $36,000

Note: These are preliminary figures that don’t include ongoing expenses such as rent, payroll, and utilities. So, the final cost of launching the landscaping business depends on the scale of the business.


How To Calculate Landscaping Profit Margin?

To calculate the profit margin of your landscaping business, follow these steps:

  1. Determine your overall revenue for one time period.
  2. Calculate your operating costs
  3. Next, subtract your expenses from the revenue
  4. Divide the number you got by your revenue. This will probably give you a decimal number
  5. Then, multiply the answer by 100.

So, for example, you earn $5,000 in a month and your operating cost is $3,200. This is how you’ll calculate the profit margin:

  1. Revenue: $5,000
  2. Operating Cost: $3,200
  3. $5,000- $3,200= $1,800
  4. 1,800/ 5,000= 0.36
  5. 0.36 x 100= 36%

So, your profit margin of the month is 36%.


How Much Does A Landscape Company Owner Earn?

How Much Does A Landscape Company Owner Earn

A landscape owner’s salary is 12-35% of their revenue. For example, if a landscaping company generates 500,000 in revenue, the owner’s salary will be between $60,000 and $175,000.

In most cases, the higher the revenue, the lower the percentage of the owner’s salary. According to ZipRecruiter, the average hourly pay of a landscape owner is $23.89 an hour in the United States.

Therefore, the average annual salary of a landscape business owner is about $73,517.


Landscape Company Owner Salary By State

StateAnnualMonthlyWeeklyHourly
Alabama$56,912$4,742$1,094$27.36
Alaska$74,614$6,217$1,434$35.87
Arizona$65,337$5,444$1,256$31.41
Arkansas$64,122$5,343$1,233$30.83
California$67,452$5,621$1,297$32.43
Colorado$67,596$5,633$1,299$32.50
Connecticut$77,253$6,437$1,485$37.14
Delaware$66,866$5,572$1,285$32.15
Florida$53,607$4,467$1,030$25.77
Georgia$52,360$4,363$1,006$25.17
Hawaii$79,269$6,605$1,524$38.11
Idaho$68,587$5,715$1,318$32.97
Illinois$63,227$5,268$1,215$30.40
Indiana$63,086$5,257$1,213$30.33
Iowa$71,808$5,984$1,380$34.52
Kansas$66,917$5,576$1,286$32.17
Kentucky$67,592$5,632$1,299$32.50
Louisiana$62,468$5,205$1,201$30.03
Maryland$70,902$5,908$1,363$34.09
Massachusetts$78,061$6,505$1,501$37.53
Michigan$63,006$5,250$1,211$30.29
Minnesota$78,026$6,502$1,500$37.51
Mississippi$65,672$5,472$1,262$31.57
Missouri$62,218$5,184$1,196$29.91
Montana$62,397$5,199$1,199$30.00
Nebraska$66,608$5,550$1,280$32.02
Nevada$78,344$6,528$1,506$37.67
New Hampshire$68,346$5,695$1,314$32.86
New Jersey$65,340$5,445$1,256$31.41
New Mexico$57,658$4,804$1,108$27.72
New York$73,837$6,153$1,419$35.50
North Carolina$55,322$4,610$1,063$26.60
North Dakota$73,305$6,108$1,409$35.24
Ohio$73,966$6,163$1,422$35.56
Oklahoma$63,645$5,303$1,223$30.60
Oregon$75,127$6,260$1,444$36.12
Pennsylvania$60,760$5,063$1,168$29.21
Rhode Island$75,252$6,271$1,447$36.18
South Carolina$66,023$5,501$1,269$31.74
South Dakota$70,296$5,858$1,351$33.80
Tennessee$81,683$6,806$1,570$39.27
Texas$60,845$5,070$1,170$29.25
Utah$72,095$6,007$1,386$34.66
Vermont$67,076$5,589$1,289$32.25
Virginia$68,999$5,749$1,326$33.17
Washington$74,521$6,210$1,433$35.83
West Virginia$62,240$5,186$1,196$29.92
Wisconsin$60,901$5,075$1,171$29.28
Wyoming$64,764$5,397$1,245$31.14

Source: ((https://www.ziprecruiter.com/Salaries/What-Is-the-Average-Landscape-Owner-Salary-by-State))


What Are The Challenges Of A Landscaping Business?

What Are The Challenges Of A Landscaping Business

While starting a landscaping business is profitable, it also comes with a unique set of challenges. These challenges include:

1. Labor

Landscaping requires physical work, and you need to hire some help to perform the labor. However, not everyone can perform high-end landscape work because of the physical toll it takes on the body.

Doing landscape work in summer also poses a challenge to work in hot temperatures. This will be extremely difficult if the laborer has poor health conditions.

2. Marketing

Marketing your business is an essential part of making your business visible to the public. Many startups fail to understand and apply the intricacies of effective marketing and end up being invisible.

Therefore, understanding the marketing tactics is a challenge in itself. You can build a strong reputation for your business online, too. For this, you can use Google ads, Facebook ads, and other social media platforms like Instagram.

3. Employee Retention

The first challenge is to find high-end employees to work with; then, the second challenge is to retain them. For this, you must offer competitive salaries to your employees.

Also, it is very common for high-end employees to bolt for higher salaries and superior working conditions. Therefore, as a landscape business owner, you must consider these matters seriously.


Ways To Increase Profit Of A Landscaping Company

Ways To Increase Profit Of A Landscaping Company

There are a plethora of methods to increase your profit as a landscape company owner, and here are a few of them:

  • Expand The Services: If you are offering services to only residential clients, then you can expand your services to commercial clients as well.
  • Equipment: You can also upgrade the equipment. This will not only help you maximize the profit but will also increase the efficiency of your business.
  • Client Retention: Increasing existing client retention is less costly than acquiring new clients. You can offer discounts, stellar customer service, etc.
  • Google Listing: Improve the online visibility of your business by listing it on Google My Business.
  • Add-On Services: You can also provide some add-on services like landscaping the curb. This will add an extra $6-$14 per for of laid concrete.
  • Social Media: Use social media platforms such as Instagram, Facebook, YouTube, and Twitter to connect with new and existing customers.

Conclusion

So, overall, the answer to “Is Owning A Landscaping Company Profitable In 2024?” depends on the region where you are living and thinking about setting up your business. Therefore, you need to do your research and make an informed decision on where you want to start your business.

You must also consider the challenges and the skills needed before starting the landscape business. Moreover, if starting a Landscaping company seems like a hectic task then you can also choose franchises from our list of 10 best lawn care franchise opportunities.


FAQs

What is the trend in landscaping in 2024?

The climate-conscious landscaping is growing among clients, which has increased the popularity of Xeriscaping, a form of drought-tolerant landscaping that aims to minimize the need for irrigation.

What states are the highest paying states for landscaping?

According to our list, the highest-paying states are Alaska, Oregon, and Massachusetts.

Which landscaping company makes the most money?

According to the 2022 reports, the landscaping company that reported the highest revenue was BrightView.

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