Landscaping Business Overview

A landscaping business provides outdoor property maintenance and improvement services for residential and commercial clients. These services range from regular lawn care to complex landscape design and installation projects. Landscaping companies work with homeowners, property managers, businesses, and institutions to maintain and enhance outdoor spaces.

Companies can start small with basic maintenance equipment and expand into more specialized services as they grow. Most landscaping businesses operate year-round, adapting their services to seasonal needs. The work requires physical labor, attention to detail, and knowledge of plants, soil conditions, and local climate patterns.

Common business models in landscaping include:

• Full-Service Model: Complete range of landscaping services, including maintenance, design, installation, and specialty care like tree services
• Maintenance-Only Model: Regular property upkeep, such as mowing, pruning, and seasonal cleanup
• Design-Build Model: Landscape architecture and installation of hardscapes, plants, and outdoor features
• Specialty Service Model: Focus on single service areas like tree care, irrigation systems, or commercial properties

Related: Checklist To Start A Business

How Do Landscaping Businesses Make Money?

Landscaping businesses generate income by charging clients for outdoor maintenance and property improvement services. Companies typically bill customers based on the size of the property, frequency of service, and complexity of work performed.

Industry Statistics

The landscaping industry includes lawn care, property maintenance, tree services, and landscape design businesses. This industry operates under NAICS code 561730 – Landscaping Services. Here are some statistics about what’s happening in the landscaping industry.

Landscaping Industry Size & Growth: The landscaping industry generated $158.9 billion in revenue last year. The industry has grown by 4% annually over the past five years. Growth projections indicate a 3.6% annual increase over the next five years, reaching $189.7 billion, driven by rising nonresidential construction activity and increasing household disposable income. (IBISWorld)

Number of Landscaping Businesses: There are 675,000 landscaping businesses operating across residential and commercial markets. BrightView Holdings stands as the largest company, generating $2.8 billion in revenue and controlling about 1.5% of the market. The industry remains mostly composed of small, independently owned operations. (IBISWorld)

Landscaping Profit Margin: Landscaping businesses typically see net profit margins averaging 10.4%. These margins can fluctuate based on service type, operational efficiency, and market competition. (IRS)

States with Most Landscaping Businesses: Population density and the prevalence of single-family homes are major factors that cause demand for landscaping services, alongside active commercial and residential development that maintains steady demand for landscaping services. The Southeast region, particularly Florida and Georgia, has the highest concentration of landscaping businesses due to year-round warm weather and continuous suburban development. (Bureau of Labor Statistics)

Also See: Ideas for Naming a Landscaping Business

Costs To Start a Landscaping Business

Starting a landscaping business typically costs between $7,000 and $80,000. The wide range reflects different service offerings and business sizes, with rental options available to reduce initial equipment costs.

There are several startup expenses to consider, but here are some of the more expensive items:

Equipment and Tools: Basic startup equipment includes commercial zero-turn mowers ($3,000-$8,000), string trimmers ($300-$600), leaf blowers ($300-$600), edgers ($300-$500), rakes, shovels, pruning tools ($500-$1,000), and a trailer ($1,500-$3,500). Larger equipment like skid steers and mini excavators cost $30,000 to $60,000 to purchase, but many businesses start by renting these machines as needed for $200 to $500 per day.

Vehicles: While many start with an existing truck, most will need to upgrade to heavy-duty trucks and trailers to transport equipment, materials, and supplies. A reliable commercial truck and trailer combination costs between $25,000 and $45,000.

Insurance: Commercial liability insurance and workers’ compensation insurance for landscaping operations ranges from $4,000 to $10,000 annually, depending on services offered and number of employees.

These estimates represent average costs, and actual expenses will vary.

Resources:
American Society of Landscape Architects
Association of Professional Landscape Designers
Ecological Landscape Alliance
National Association of Landscape Professionals