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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.
Recommended Reading:
Article provided by ProGardenBiz.
ProGardenBiz online magazine provides how-to advice on starting and running a
landscape contracting or maintenance business. Get start-up guidance, business
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If
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