Own
your business, own your job, own your life.
Statistics show that nine out of
every ten new businesses fail. Most of these businesses fail within
the first year. The rest don't make it past their third anniversary.
Given such dismal odds why would you want to start a landscaping or
interiorscaping business?
First of all because the odds
are better than you think. Landscaping and interiorscaping are service
businesses. A service business is the most easy business to start and
be successful. The "statistics" usually do not include small
service businesses. So, one would hope, your odds are better than you
think.
There are other reasons that make starting a service business easier
than others. You can start out with low capital investment. You can
run your business with low overhead. If you manage your business
properly, slow periods will not cause financial hardship.
The reason for most business failures is that they cannot survive slow
periods or cash crunches. Other types of businesses have large
overheads that require a constant influx of money. Such expenses as
employees, rent, loan payments, etc. You can design your business to
survive these problems.
These guidelines for starting your own service business are for those
who have little or no money to start with. If you have plenty of money
(start-up capital) than you can follow these guidelines much easier
than the rest of us. So before we get started, remember we are
assuming that you have no start-up capital, but are willing to work
hard and take a few risks.
First you need to know what you are doing in your new field. A little
business knowledge would not hurt either. But you probably do not have
time to go back to school. Also, I would imagine you are interested in
getting started right away. So, visit your local book store.
If you know nothing about gardening and landscaping pick up a couple
of books that cover the basics. A good book for everyone is Sunset's
Western Garden Book. Not only does it cover all the basics and
more, it also has a complete encyclopedia of plants, trees, shrubs,
and flowers. Each description tells you what the plant is, how to
plant it, care for it, requirements, etc.
If you lack a business background buy some good books on business
basics. There are many books on running a small business. Remember,
most gardeners, landscapers, or interiorscapers that fail do so, not
because they did not know their trade, but because they did not
understand how to manage their business. In fact, it is almost more
important to understand good business techniques than it is to know
about plants.
After you have purchased your small library set aside at least one
hour a day (morning, evening, lunch-hour, anytime) to study them. Give
yourself as much time as you can to read and study. Be sure to divide
your time equally between your business and trade books.
Now, I presume you are currently working at another job to support
yourself and possibly a family. Rule Number One: DO NOT QUIT YOUR JOB!
Start your business part-time. You need your income to survive on
while you build your new business. Your new business will take time to
develop to the point where it will support you.
If you have debts (credit cards, auto loans, etc.) try to get them
paid off or paid down as much as possible before you start your new
business. There will be rough times ahead and you want the decks
cleared for heavy weather. In other words, when cash gets tight you do
not want to lose your car or be hauled into court.
Acquire the basics you need to get started.
Gardener: A truck or trailer to carry your equipment and debris
(although some enterprising people have even started without this). A
lawn mower, rake, broom, and other small hand tools. Buy your
equipment used if necessary, but shop carefully.
Landscaper: Basically you need hand tools and a truck or trailer. To
start with most other tools you can rent.
Interiorscaper: A car or truck is necessary, watering cans, and
assorted small hand tools.
From the basic requirements to start it would seem that
interiorscaping requires the smallest capital outlay. This is correct,
but starting an interiorscape business is more difficult in other
ways. It requires a better understanding of the trade. Indoor plants
are much more difficult to maintain. Also, acquiring accounts is not
as easy as in outdoor work. Most, if not all, interiorscape accounts
will be commercial, as opposed to the residential work of gardeners.
For gardeners and landscapers a truck or trailer is a must, but as I
mentioned earlier it is possible to start without one for some work.
If you are doing maintenance you may be able to get accounts that will
allow you to use their equipment and not require you to haul away
debris. You will be expected to work very inexpensively, though. If
you can get a truck do so.
For both gardeners and landscapers another source of income is from
clean-ups. This is simply a one-time job of cleaning up an overgrown
landscape. These jobs are hard work, but can be quite profitable.
In every business you have to contend with the government. Service
businesses are no different. Before you get started investigate what
is required in your area. Most likely you will need a business license
from your city. The state may require a contractor's license or
certification for landscape contractors. Most likely your state will
require a pest control license if you intend to apply pesticides.
Check out all the city, state, and federal rules before you start.
If you can afford it, you should get insurance before you start. If
you can not afford it when you first start your business (remember,
some activities, in some states, require insurance) then plan on
getting it as soon as possible. It is for your own protection. One
lawsuit could ruin all your hard work.
Arrange your work hours so that you have time to start your part-time
business. You can start on week-ends, but an ideal schedule would be
to have two or three weekdays off and work nights so that you can put
in some hours on the other days.
By now you should have the time, equipment, and the knowledge (or
working on that by studying). Now you need the work. To get this you
need to advertise. How and where you advertise depends on your budget
and your market.
For gardeners and landscapers I would recommend that you start with
residential work and add commercial work later. For interiorscapers
the work is almost all commercial.
To acquire residential work there are several ways. They are presented
below in order of cost and are rated for effectiveness.
- Word-of-mouth.
Recommendations. Cheapest and best, but requires that you
already have done some work.
- Door-to-door.
Cheap, but ineffective and time consuming. If you have no
alternatives then pick new areas with new homes and upper income
areas.
- Flyers.
More costly than door-to-door, but no more effective.
- Newspaper
classified ads. Very effective. Try to use a small direct mail
weekly that allows you target specific zip code zones. Weekly
direct mail publications with names like Pennysaver, Advisor, etc.
are your best bet. Your money will be better spent than in the
large city daily.
- Yellow pages.
Very Expensive. Not a good place to put limited dollars when just
getting started, but effective at later stages of your business
growth.
Most successful service business
that are growing get most of their leads (prospective customers) from
word-of-mouth and newspaper ads. A classified in a direct mailed
weekly can be as low as $30.00 per zip code zone. I would recommend
the type of weekly that consists mainly of classified ads and display
ads.
To acquire commercial work is completely different. This requires
print advertising in local business magazines or upscale monthly
magazines that reach the upper income people in your city. It also
requires direct mail campaigns to the businesses you are trying
attract as customers and direct (door-to-door) solicitation. An ad in
the Yellow Pages is a must for attracting commercial work.
If you advertise in the Yellow Pages use the phone company Yellow
Pages and not an imitation. You money will be much better spent.
Once you start advertising you will not immediately get work. First
you must bid on the job, that is give the prospective customer a
summary of what you intend to do and what it will cost. This is the
part that will make or break you.
The lowest price does not always get the job. In fact, we don't
recommend trying to get work by price alone. Charge what you are
worth, what you what, and what quality work will pay in your market.
Let the competition work for less. The person that gets the job is
usually the person who gives the most professional presentation. This
means knowing what you are doing. Being able to estimate the time and
materials necessary for the job. Presenting yourself and your service
in a professional way.
Always be on time for a bid. Never miss a bid (if something does come
up, call and change the appointment). I won more jobs because nobody
else showed up then you would care to know about. Just being there is
half the battle.
Dress neatly. Wear a uniform, if possible. Sears sells uniform shirts
and pants in many different colors. It does not have to have your
company name on it to look like a uniform (although that is a nice
touch). Be conservative in your appearance and hair style. Remember,
even in your own business you are not completely your own boss — the
customer is. Often the job goes to the person the customer felt most
comfortable about.
Look professional. Carry a clipboard to take notes. Have some sort of
pre-printed estimate sheet to provide to the customer. Use a brochure
(if you can afford it) to describe your services. Have business cards.
If you have done all this, then do not sell yourself short. Charge an
appropriate rate. Don't worry about those who will not pay your price.
You only need those who will.
From here on in it is simply a matter of acquiring the work and doing
it. Do an excellent job and you will have more work then you can
handle. As the work fills up your available work hours start
considering your move to leave your present job. Perhaps find a
part-time job to fill the gap. Eventually you will have no need for an
outside job. Your business will provide for all your needs.
As your business grows you can grow with it. Move carefully and do not
overextend yourself. Keep your overhead low. Only spend money when it
is an investment that will return profits. Eventually you may hire
employees, salespeople, rent an office, etc., but by that time you
should be making enough money to afford it.
Once you have started and are moving successfully forward, your next
problem will be growth and how you handle it. Rapid growth has killed
many businesses. But if you keep a close eye on your books, watch
which jobs are profitable and which are not, know exactly why and
where you are making money or losing money then you should have no
trouble.
Good Luck!
Be sure to see our other articles in this issue and in the Resources
section for more details on many of the areas touched on in this
article.
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