How to start a landscaping company: 14 practical steps

Published Thursday 26 February 2026

Table of contents

• Why start a landscaping business?
• Types of landscaping businesses
• 14 steps to starting a landscaping business
• Start your landscaping business with confidence
• FAQs on starting a landscaping business

Key takeaways

• Create a comprehensive business plan that includes your target market, services offered, startup costs, and financial projections, as this document guides your decisions and is often required when applying for loans or funding.
• Register your business structure, obtain necessary licences and permits, and secure appropriate insurance coverage including general liability and workers' compensation to protect your business from unexpected costs and legal issues.
• Start with essential equipment like basic hand tools and power equipment, then rent expensive items like aerators and commercial mowers until you determine exactly what you need to avoid overspending on your startup budget.
• Focus your marketing efforts on cost-effective strategies like creating a Google Business Profile, asking satisfied customers for referrals, and sharing before-and-after photos of your work to build credibility and attract new clients.

Why start a landscaping business?

A landscaping business lets you turn your passion for outdoor work into a profitable venture. You set your own hours, choose your clients, and control your pricing.

Before you start, weigh the benefits against the challenges to see if it's right for you.

Owning a landscaping business offers several advantages:

• Flexibility: Set your own hours and choose the clients you want to work with
• Financial control: Determine your pricing and manage your own revenue
• Outdoor work: Spend your days shaping gardens and green spaces instead of sitting in an office
• Earning potential: High-quality landscaping projects can command premium rates, especially for specialized services

Consider these challenges before starting:

• Physical demands: Landscaping requires hard labour and long hours outdoors
• Weather dependence: Rain, snow, and extreme temperatures can disrupt your schedule and income
• Seasonal fluctuations: In provinces with harsh winters, you may face slow periods
• Business management: Handling invoices, expenses, and cash flow takes time away from fieldwork

The right accounting tools can help you manage finances and get paid faster. Learn how Xero helps you monitor your cash flow and get paid faster.

Types of landscaping businesses

Landscaping businesses fall into four main categories, each requiring different skills and certificates. Choose the type that matches your expertise and target market:

• General landscaping: Arranging plants, soil, and organic materials for residential or commercial properties. Services include tree trimming, leaf removal, and hedging. Some provinces require permits.
• Interior landscaping: Planting and maintaining indoor gardens for offices, shopping malls, government buildings, and other large indoor spaces.
• Gardening and groundskeeping: Ongoing garden maintenance including lawn mowing, fertilising, weeding, and sod installation. This category includes lawn care businesses serving residential or commercial clients.
• Landscape design and architecture: The most technical category, typically requiring a college degree in a related field. Projects include designing college campuses, apartment complexes, and public spaces. Requires design software proficiency and collaboration with architects.

14 steps to starting a landscaping business

Once you've chosen your landscaping specialty, you're ready to formalise your business. Follow these 14 steps to set up your landscaping company. If this is your first business, read the guide to starting a business for additional tips.

1. Develop your business plan

A business plan maps out your goals, services, and financial projections. It guides your decisions and is often required when applying for loans or funding.

Use this business plan template to get started.

Your business plan should include these sections:

• Executive summary: Brief overview of your entire plan
• Company overview: Your vision, mission, and ownership structure
• Industry analysis: Market conditions, regulations, services offered, and potential risks
• Customer analysis: Your target customer profile
• Competitive analysis: Key competitors and how you'll differentiate
• Marketing plan: Advertising channels and promotional strategies
• Operations plan: Equipment procurement, workspace, and asset management
• Management team: Leadership roles and responsibilities
• Financial plan: Startup costs, revenue projections, and funding sources for the next three years
• Insurance plan: Coverage types needed to protect your business

2. Form your business's legal structure

Your business structure determines your legal liability, what taxes you must pay, and your ownership rights. The four most common structures for landscaping businesses are:

• Sole proprietorship: A business operated by one person. Benefit: Simplest to set up; profits and losses are reported on your personal tax return. Risk: No legal protection; your personal assets are at risk if the business is sued.
• Corporation: A separate legal entity from its owners. Benefit: Personal assets are protected from business liability, plus potential tax advantages. Risk: More complex to set up and maintain, with additional reports required.
• Limited liability partnership (LLP): A structure for businesses with multiple owners. Benefit: Partners share profits while maintaining personal liability protection. Risk: Partnership agreements can be complex, and partners share decision-making.
• Not-for-profit corporation: For landscaping businesses focused on community or environmental improvement rather than profit. Benefit: Potential tax exemptions and access to grants. Risk: Restrictions on how revenue can be used; not suitable for profit-driven businesses.

3. Register for a business licence and needed permits

You must register your business and obtain a licence before you can pay taxes, open a business bank account, or apply for loans. What you need varies by province and municipality.

For projects in national parks or protected areas, you'll need a Parks Canada Development Permit before starting work and a Certificate of Completion afterward. Check with your local government for additional permit requirements.

4. Apply for a Business Number (BN)

A Business Number (BN) is your unique identifier for dealing with the Canada Revenue Agency (CRA), and you need one before registering for Goods and Services Tax/Harmonized Sales Tax (GST/HST) or payroll taxes. In provinces like British Columbia and Ontario, you receive a BN automatically when you register your business; in others, like Quebec and Yukon, you must register for a BN separately.

Apply for a BN online or by mail through the CRA.

5. Register for taxes

Tax registration depends on your revenue and whether you have employees:

• Register for GST/HST: Required once your revenue exceeds $30,000 in a calendar year. The CRA's Business Registration Online service allows some individuals to register for and instantly obtain a GST/HST account.
• Payroll taxes: Required if you hire employees; includes what you contribute to Canada Pension Plan (CPP) and Employment Insurance (EI)

What taxes you must pay varies by province. Consult a tax advisor to understand what you must do before registering.

6. Establish a business bank account

A dedicated business bank account separates your personal and business finances. Separating your finances simplifies how you prepare taxes, improves how you report finances, and is essential if you've incorporated.

To open a business account, you'll typically need:

• Your Business Number (BN) from the CRA
• Business registration documents
• Personal identification

When choosing a bank, compare:

• Checking account fees and transaction limits
• Business credit card options
• How well it integrates with accounting software

7. Understand insurance requirements

Business insurance protects you from unexpected costs and helps keep your business financially secure. With proper coverage, you protect your savings from lawsuits, accidents, and equipment theft.

What insurance you need varies by province. Work with a licensed insurance broker to assess your risks and find appropriate coverage.

Common insurance types for landscaping businesses include:

• General liability insurance: Covers property damage, bodily injury, and lawsuit defence costs
• Workers' compensation: Required in most provinces if you have employees; covers workplace injuries
• Commercial auto insurance: Protects your work vehicles from accidents and theft
• Tools and equipment insurance: Covers repair or replacement of damaged or stolen tools
• Equipment breakdown insurance: Covers repair costs when equipment fails mechanically
• Business owner's policy (BOP): Bundles multiple coverages into one customizable plan

8. Determine your services

The services you offer should match your skills, equipment, and target market. Research competitors in your area to identify gaps you can fill.

Landscaping businesses typically offer two categories of services:

• Project-based landscaping: One-time installations like patios, fences, flower beds, and sod
• Recurring maintenance: Ongoing services like lawn mowing, weeding, fertilising, and seasonal cleanup

You can specialize in one category or offer both.

Project-based landscaping services include:

• Installing patios and decks (may require a construction licence)
• Installing fences
• Installing sod and turf
• Garden bed design and planting
• Installing irrigation systems

Consider specializing in one or two services to build expertise and stand out from competitors.

Recurring maintenance services provide steady income through repeat customers. Common offerings include:

• Lawn mowing and edging
• Planting and plant care
• Weeding and mulching
• Applying fertilizer and pesticide
• Overseeding and aerating
• Hedge and shrub trimming
• Seasonal cleanup (spring and fall)

When deciding on your services, consider your target market and their likely needs. To reduce your startup costs, you could consider offering a limited range of services until you have become more experienced and established.

9. Determine what equipment you need

The equipment you need depends on the services you offer. Start with essential tools and add specialized equipment as your business grows.

Basic hand tools:

• Shovels, rakes, and hoes
• Pruning shears and loppers
• Gardening gloves

Power equipment:

• Lawn mower (push or riding, depending on job size)
• String trimmer and edger
• Leaf blower
• Hedge trimmer

Specialized equipment:

• Fertilizer spreader
• Aerator (consider renting initially)
• Chainsaw (for tree work)

Safety gear:

• Ear protection
• Safety glasses
• Work boots with steel toes

Rent before you buy. To make the most of your startup budget, rent expensive equipment like aerators and commercial mowers until you know exactly what you need. This lets you test different brands and make informed purchasing decisions.

Choose the right vehicle. A reliable truck, van, or utility trailer is essential for transporting equipment. Consider:

• Pickup trucks: Versatile for hauling equipment and materials
• Cargo vans: Secure storage for tools; better fuel efficiency
• Utility trailers: Lower upfront cost; can be towed by an existing vehicle

Add your business name and contact information to your vehicle for free advertising.

10. Estimate your startup costs and explore funding options

Startup costs for a landscaping business typically range from $10,000 to $50,000, depending on your services and scale.

Typical startup expenses include:

• Equipment: $3,000–$15,000 for basic tools and power equipment
• Vehicle: $5,000–$30,000 for a used truck or van (or $200–$500/month to lease)
• Insurance: $500–$3,000 annually for basic coverage
• Licences and permits: $50–$500 depending on your province and services
• Marketing: $500–$2,000 for website, business cards, and initial advertising
• Operating reserve: three to six months of expenses for cash flow gaps

Funding options to consider:

• Personal savings: The most common source; keeps you debt-free
• Small business loans: Available through banks and credit unions with a solid business plan
• Equipment financing: Use the equipment as collateral for lower interest rates
• Canada Small Business Financing Program: Government-backed loans up to $1 million for equipment and property
• Business credit cards: Useful for smaller purchases; compare interest rates to find the best option

Track your startup expenses carefully from day one. Accounting software can help you monitor spending and forecast cash flow as your business grows.

11. Establish your target market

Your target market determines your pricing, marketing, and what services you offer. Most landscaping businesses serve residential clients, commercial clients, or both.

Commercial clients:

• Larger projects with higher revenue per contract
• Longer payment cycles (30–60 days is common)
• Often require proof of insurance and references
• May need employees to handle larger jobs
• Industry connections help you win contracts

Residential clients:

• Easier entry point for new businesses
• Faster payment (often at job completion)
• Opportunities for premium, customized services
• Building a larger customer base increases your revenue potential
• Word-of-mouth referrals drive growth

Many landscapers start with residential clients and add commercial work as they build their reputation.

What you choose depends on your skills, equipment, and income goals. Research competitors to find gaps in the market, then position your services to fill those gaps. A clear niche makes marketing easier and helps you stand out.

12. Set your prices

How you price your services affects how profitable and competitive you are. Research what successful landscapers in your area charge before setting your rates.

You can use three common pricing methods to set your rates.

• By project: Quote a flat fee for the entire job. Best for installing and one-time projects where scope is clear.
• Hourly rate: Charge for time spent. Best for maintenance work or jobs where scope may change. Typical rates range from $25–$60 per hour depending on services and location.
• Per square foot: Charge based on property size. Best for lawn care and consistent, measurable services.

When calculating your prices, factor in:

• overhead costs: insurance, equipment depreciation, vehicle expenses, and software
• direct costs: materials like mulch, fertilizer, plants, and fuel
• labour costs: your time plus any employee wages
• job variables: property size, how difficult the terrain is, travel distance, and current condition
• profit margin: aim for 10–30% profit after all expenses

Provide written estimates before starting work, then send a final invoice when you complete the job. Documenting your work clearly prevents disputes and helps you get paid faster.

Xero accounting software lets you create professional estimates, convert them to invoices, and accept online payments, all from your phone.

13. Build your brand

Your brand is how customers recognize and remember your business. A strong brand helps you stand out from competitors and build trust in your community.

Build your brand by taking these steps:

• choose a memorable, unique business name that's easy to spell and search
• define your unique selling proposition (what makes you different from competitors)
• design a professional logo that works on trucks, uniforms, and business cards
• create brand guidelines covering your colours, fonts, and tone of voice
• build a website showcasing your services, photos of your work, and contact information

14. Market your small business

Marketing brings in new customers and keeps your schedule full. Many effective strategies are free or low-cost.

Try these cost-effective marketing tactics to grow your business.

• Google Business Profile: Create a free listing so local customers can find you in search results. Ask satisfied customers to leave reviews.
• Referrals: Ask happy clients to recommend you to neighbours and friends. Word of mouth is the most powerful marketing for local service businesses.
• Before-and-after photos: Document your work and share on your website and social media. Visual proof of your skills attracts new clients.
• Social media: Choose one or two platforms (Facebook and Instagram work well for landscapers). Post regularly and engage with your community.
• Business cards and door hangers: Leave them with clients and in neighbourhoods where you work.
• Online directories: List your business on local directories and industry-specific sites.

Start your landscaping business with confidence

You now know how to launch your landscaping business, from writing your business plan to landing your first customers. Tackling these steps one at a time makes the process manageable.

As you start serving clients and managing projects, staying organized becomes critical. Tracking expenses, sending invoices, and monitoring cash flow is easier with the right tools.

Xero's cloud-based accounting software helps you manage your finances in one place. Send professional invoices from your phone, track expenses as they happen, and see your cash flow in real time. Get one month free and spend more time growing your business.

FAQs on starting a landscaping business

Starting a landscaping business raises many questions. Find answers to some of the most common ones below.

How long does it take to start a landscaping business?

Most landscaping businesses can launch within four to eight weeks if you already have equipment and experience. This includes registering your business, obtaining licences and insurance, setting up banking and accounting, and starting marketing. If you're buying equipment and building skills from scratch, plan for three to six months.

Do I need a degree or certification to start a landscaping business?

You can start general landscaping or lawn care services in most Canadian provinces without a formal degree. However, specialized services like landscape architecture or applying pesticides may require you to be certified. Check with your provincial regulatory body to confirm what's required for your specific services.

How profitable is a landscaping business?

Landscaping businesses can be highly profitable, with profit margins typically ranging from 10% to 30%. Residential maintenance services often have lower margins (10–15%) but provide steady recurring revenue. Specialized design and installing projects can command higher margins (20–30%).

Do I need employees to start a landscaping business?

Many landscaping businesses start with one person operating alone. You can handle residential lawn care and small projects on your own while building your client base. As demand grows, consider hiring part-time help or subcontractors before committing to full-time employees.

Can I get a loan to start a landscaping business?

Yes, you can finance your landscaping startup in several ways. These include small business loans from banks, equipment loans, and government-backed programs like the Canada Small Business Financing Program. Lenders typically want to see a solid business plan, good personal credit, and that you've invested some of your own money in the business.