Greens Manicure Service’s competitive edge will be based on quality and professionalism. During the first year Steve will be doing all of the lawns with only one other employee. This provides him with direct supervision of the employee and direct involvement with the job. This will ensure customers receive a quality job. Steve knows what quality work is, based on previous experiences to be detailed under the Management section.
Greens second competitive edge is professionalism. Steve will ensure that all interactions between the customer and his employee, as well as himself, ooze professionalism.
Steve truly believes that professionalism and quality are the factors that attract and maintain customers. Consequently, Steve will be truly vigilant in ensuring that his competitive edges are always apparent to the customer as his livelihood is dependant on this.
Greens Manicure Service’s sales strategy will be based on one-on-one communications with prospective leads. Steve will first be leveraging his relationships with his parents (pillars in the neighborhood) and his connection with the neighborhood. The prospectives will generally form a bit of a bond with Steve because of local familiarity and then Steve will need to communicate his experience in lawn care and his constant benchmarks of quality and professionalism. Steve is willing to offer a free estimate and cutting for those that are interested in a possible contract. Although some of the free cuttings will not turn out to be long term customers, he is confident that his competitive prices and superior service will turn most of the leads into customers.
By year two, the business will be ready to expand outside of the neighborhood and Steve will be using advertisements in the local paper to generate business. When people call with questions, Steve will have already (the previous year) built up a loyal following of customers that will serve as an effective referral system in which prospective people can call the current customers and get a glowing testimonial of Green’s service.
The first month will be used to set up the office, purchase the necessary lawn care equipment, hire and train an employee. Additionally, during the last two weeks of the month, Steve will be canvassing the neighborhood to build up a customer list.
Month two will see some business. The business will be growing as Steve continues to increase the number of jobs that he has. Month two through October will see a steady rise in revenues. Business will pick up again in April of year two. From February through April Steve will be working hard on generating new customers and will bring on two additional employees to service the new customers.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Suburban middle class | $41,748 | $91,254 | $97,854 |
Other | $0 | $0 | $0 |
Total Sales | $41,748 | $91,254 | $97,854 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Suburban middle class | $2,922 | $6,388 | $6,850 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $2,922 | $6,388 | $6,850 |
Greens Manicure Service will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 3/1/2001 | 4/1/2001 | $0 | ABC | Marketing |
Set up the office | 3/1/2001 | 4/1/2001 | $0 | ABC | Department |
Signing up the 20th client | 3/1/2001 | 5/1/2001 | $0 | ABC | Department |
Revenue exceeding $50,000 | 3/1/2001 | 5/1/2002 | $0 | ABC | Department |
Totals | $0 |
Greens Manicure Service is owned and operated by Steve Greinthum. Steve was first introduced to lawn care while he was pursuing his bachelor’s degree in business from the University of Oregon. Steve worked for a large, well-respected landscaping company. He started out his freshman summer year as a mower operater. During his four years at school he eventually moved up to crew manager.
Steve enjoyed taking care of lawns. He was always excited about working outside. He also liked the management responsibilities that he had his last summer. The one thing he longed for is operating his own company. He decided the only thing stopping him was money, he already had all the experience and knowledge necessary. So Steve got a loan from his parents and started the company.
Greens Manicure Service will consist of Steve working full time. Steve will be the manager for the business, signing up new customers, managing customer accounts, hiring, training, supervising, and cutting grass.
Greens Manicure Service will use a total of two people during year one. For year two Steve will hire an additional two people to create a second work crew.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Steve | $22,500 | $22,500 | $22,500 |
Employee 1 | $12,800 | $12,800 | $12,800 |
Employee 2 | $0 | $12,800 | $12,800 |
Employee 3 | $0 | $12,800 | $12,800 |
Total People | 0 | 4 | 4 |
Total Payroll | $35,300 | $60,900 | $60,900 |
The following sections will outline important financial information.
The following table highlights some important financial assumptions of Greens.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The Break-even Analysis indicates approximately $3,900 is needed in monthly revenue to break even.
Break-even Analysis | |
Monthly Revenue Break-even | $3,956 |
Assumptions: | |
Average Percent Variable Cost | 7% |
Estimated Monthly Fixed Cost | $3,679 |
The following table indicates the projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $41,748 | $91,254 | $97,854 |
Direct Cost of Sales | $2,922 | $6,388 | $6,850 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $2,922 | $6,388 | $6,850 |
Gross Margin | $38,826 | $84,866 | $91,004 |
Gross Margin % | 93.00% | 93.00% | 93.00% |
Expenses | |||
Payroll | $35,300 | $60,900 | $60,900 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $1,152 | $2,552 | $2,552 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $0 | $0 | $0 |
Insurance | $1,200 | $1,200 | $1,200 |
Licenses + bonded fees | $1,200 | $1,200 | $1,200 |
Payroll Taxes | $5,295 | $9,135 | $9,135 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $44,147 | $74,987 | $74,987 |
Profit Before Interest and Taxes | ($5,321) | $9,879 | $16,017 |
EBITDA | ($4,169) | $12,431 | $18,569 |
Interest Expense | $1,847 | $1,675 | $1,495 |
Taxes Incurred | $0 | $2,051 | $3,691 |
Net Profit | ($7,169) | $6,153 | $10,831 |
Net Profit/Sales | -17.17% | 6.74% | 11.07% |
The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $31,311 | $68,441 | $73,391 |
Cash from Receivables | $10,437 | $22,814 | $24,464 |
Subtotal Cash from Operations | $41,748 | $91,254 | $97,854 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $41,748 | $91,254 | $97,854 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $35,300 | $60,900 | $60,900 |
Bill Payments | $12,129 | $20,205 | $23,413 |
Subtotal Spent on Operations | $47,429 | $81,105 | $84,313 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $1,800 | $1,800 | $1,800 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $7,000 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $49,229 | $89,905 | $86,113 |
Net Cash Flow | ($7,481) | $1,349 | $11,741 |
Cash Balance | $6,919 | $8,268 | $20,009 |
The following table indicates the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $6,919 | $8,268 | $20,009 |
Accounts Receivable | $0 | $0 | $0 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $6,919 | $8,268 | $20,009 |
Long-term Assets | |||
Long-term Assets | $4,750 | $11,750 | $11,750 |
Accumulated Depreciation | $1,152 | $3,704 | $6,256 |
Total Long-term Assets | $3,598 | $8,046 | $5,494 |
Total Assets | $10,517 | $16,314 | $25,503 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $336 | $1,779 | $1,937 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $336 | $1,779 | $1,937 |
Long-term Liabilities | $17,650 | $15,850 | $14,050 |
Total Liabilities | $17,986 | $17,629 | $15,987 |
Paid-in Capital | $0 | $0 | $0 |
Retained Earnings | ($300) | ($7,469) | ($1,316) |
Earnings | ($7,169) | $6,153 | $10,831 |
Total Capital | ($7,469) | ($1,316) | $9,515 |
Total Liabilities and Capital | $10,517 | $16,314 | $25,503 |
Net Worth | ($7,469) | ($1,316) | $9,515 |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Suburban middle class | 0% | $0 | $3,254 | $3,541 | $4,785 | $5,124 | $5,478 | $6,145 | $6,547 | $6,874 | $0 | $0 | $0 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $3,254 | $3,541 | $4,785 | $5,124 | $5,478 | $6,145 | $6,547 | $6,874 | $0 | $0 | $0 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Suburban middle class | $0 | $228 | $248 | $335 | $359 | $383 | $430 | $458 | $481 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $228 | $248 | $335 | $359 | $383 | $430 | $458 | $481 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Steve | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $0 | $0 | $0 |
Employee 1 | 0% | $0 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $0 | $0 | $0 |
Employee 2 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Employee 3 | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 0 | 0 | 0 | |
Total Payroll | $2,500 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $0 | $0 | $0 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $3,254 | $3,541 | $4,785 | $5,124 | $5,478 | $6,145 | $6,547 | $6,874 | $0 | $0 | $0 | |
Direct Cost of Sales | $0 | $228 | $248 | $335 | $359 | $383 | $430 | $458 | $481 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $228 | $248 | $335 | $359 | $383 | $430 | $458 | $481 | $0 | $0 | $0 | |
Gross Margin | $0 | $3,026 | $3,293 | $4,450 | $4,765 | $5,095 | $5,715 | $6,089 | $6,393 | $0 | $0 | $0 | |
Gross Margin % | 0.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 93.00% | 0.00% | 0.00% | 0.00% | |
Expenses | |||||||||||||
Payroll | $2,500 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $0 | $0 | $0 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | $96 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Licenses + bonded fees | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Payroll Taxes | 15% | $375 | $615 | $615 | $615 | $615 | $615 | $615 | $615 | $615 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $3,171 | $5,011 | $5,011 | $5,011 | $5,011 | $5,011 | $5,011 | $5,011 | $5,011 | $296 | $296 | $296 | |
Profit Before Interest and Taxes | ($3,171) | ($1,985) | ($1,718) | ($561) | ($246) | $84 | $704 | $1,078 | $1,382 | ($296) | ($296) | ($296) | |
EBITDA | ($3,075) | ($1,889) | ($1,622) | ($465) | ($150) | $180 | $800 | $1,174 | $1,478 | ($200) | ($200) | ($200) | |
Interest Expense | $161 | $160 | $158 | $157 | $156 | $155 | $153 | $152 | $151 | $150 | $148 | $147 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($3,332) | ($2,144) | ($1,876) | ($718) | ($402) | ($71) | $551 | $926 | $1,231 | ($446) | ($444) | ($443) | |
Net Profit/Sales | 0.00% | -65.90% | -52.99% | -15.01% | -7.84% | -1.30% | 8.96% | 14.14% | 17.91% | 0.00% | 0.00% | 0.00% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $2,441 | $2,656 | $3,589 | $3,843 | $4,109 | $4,609 | $4,910 | $5,156 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $0 | $27 | $816 | $896 | $1,199 | $1,284 | $1,375 | $1,540 | $1,639 | $1,661 | $0 | |
Subtotal Cash from Operations | $0 | $2,441 | $2,683 | $4,405 | $4,739 | $5,308 | $5,893 | $6,285 | $6,695 | $1,639 | $1,661 | $0 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $2,441 | $2,683 | $4,405 | $4,739 | $5,308 | $5,893 | $6,285 | $6,695 | $1,639 | $1,661 | $0 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,500 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $4,100 | $0 | $0 | $0 | |
Bill Payments | $25 | $751 | $1,203 | $1,224 | $1,308 | $1,330 | $1,355 | $1,399 | $1,426 | $1,410 | $350 | $348 | |
Subtotal Spent on Operations | $2,525 | $4,851 | $5,303 | $5,324 | $5,408 | $5,430 | $5,455 | $5,499 | $5,526 | $1,410 | $350 | $348 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,675 | $5,001 | $5,453 | $5,474 | $5,558 | $5,580 | $5,605 | $5,649 | $5,676 | $1,560 | $500 | $498 | |
Net Cash Flow | ($2,675) | ($2,561) | ($2,770) | ($1,069) | ($819) | ($273) | $288 | $636 | $1,019 | $79 | $1,162 | ($498) | |
Cash Balance | $11,725 | $9,165 | $6,394 | $5,325 | $4,506 | $4,233 | $4,521 | $5,157 | $6,176 | $6,255 | $7,417 | $6,919 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $14,400 | $11,725 | $9,165 | $6,394 | $5,325 | $4,506 | $4,233 | $4,521 | $5,157 | $6,176 | $6,255 | $7,417 | $6,919 |
Accounts Receivable | $0 | $0 | $814 | $1,672 | $2,052 | $2,437 | $2,608 | $2,860 | $3,122 | $3,301 | $1,661 | $0 | $0 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $14,400 | $11,725 | $9,978 | $8,066 | $7,377 | $6,943 | $6,841 | $7,381 | $8,279 | $9,477 | $7,916 | $7,417 | $6,919 |
Long-term Assets | |||||||||||||
Long-term Assets | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 | $4,750 |
Accumulated Depreciation | $0 | $96 | $192 | $288 | $384 | $480 | $576 | $672 | $768 | $864 | $960 | $1,056 | $1,152 |
Total Long-term Assets | $4,750 | $4,654 | $4,558 | $4,462 | $4,366 | $4,270 | $4,174 | $4,078 | $3,982 | $3,886 | $3,790 | $3,694 | $3,598 |
Total Assets | $19,150 | $16,379 | $14,536 | $12,528 | $11,743 | $11,213 | $11,015 | $11,459 | $12,261 | $13,363 | $11,706 | $11,111 | $10,517 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $711 | $1,162 | $1,180 | $1,263 | $1,285 | $1,308 | $1,352 | $1,378 | $1,399 | $338 | $337 | $336 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $711 | $1,162 | $1,180 | $1,263 | $1,285 | $1,308 | $1,352 | $1,378 | $1,399 | $338 | $337 | $336 |
Long-term Liabilities | $19,450 | $19,300 | $19,150 | $19,000 | $18,850 | $18,700 | $18,550 | $18,400 | $18,250 | $18,100 | $17,950 | $17,800 | $17,650 |
Total Liabilities | $19,450 | $20,011 | $20,312 | $20,180 | $20,113 | $19,985 | $19,858 | $19,752 | $19,628 | $19,499 | $18,288 | $18,137 | $17,986 |
Paid-in Capital | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Retained Earnings | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) | ($300) |
Earnings | $0 | ($3,332) | ($5,476) | ($7,352) | ($8,070) | ($8,472) | ($8,543) | ($7,992) | ($7,067) | ($5,836) | ($6,281) | ($6,726) | ($7,169) |
Total Capital | ($300) | ($3,632) | ($5,776) | ($7,652) | ($8,370) | ($8,772) | ($8,843) | ($8,292) | ($7,367) | ($6,136) | ($6,581) | ($7,026) | ($7,469) |
Total Liabilities and Capital | $19,150 | $16,379 | $14,536 | $12,528 | $11,743 | $11,213 | $11,015 | $11,459 | $12,261 | $13,363 | $11,706 | $11,111 | $10,517 |
Net Worth | ($300) | ($3,632) | ($5,776) | ($7,652) | ($8,370) | ($8,772) | ($8,843) | ($8,292) | ($7,367) | ($6,136) | ($6,581) | ($7,026) | ($7,469) |
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For those who love hard work, spending time outside, and being your own boss, starting a landscaping business may be a great fit.
But where do you start?
This guide will show you how to write a landscaping business plan, and address other important factors to consider when starting a landscaping business.
Plan for success.
Having a business plan is important for several reasons. It serves as your guide for everything you need to run a profitable landscaping business .
Business plans help you avoid costly mistakes by forcing you to go over all the tough aspects of starting a business, not just the fun ones.
A landscaping business isn’t guaranteed success. In fact, 20% of small businesses fail within their first year.
Here are some of the reasons why landscaping businesses don’t make it.
Operational inefficiencies can bog down business. This could be too much overhead, such as buying a lot of equipment, but not having enough jobs to keep it in use.
Bad estimates also are frequent issues for landscapers. Underpricing a job could win you work, but you also want to make enough money to stay in business. On the other hand, overpricing a job could result in lost work. It’s a fine line to straddle.
Pro tip: Looking at past job hours and expenses using a landscaping time tracker can help you prepare better estimates.
Automated GPS time and location tracking
The failure to get repeat customers leads many businesses to sputter out. Consistent jobs pay the bills and are a reliable source of income.
Without it, owners spend too much of their time working to find new customers. This is a lot more expensive than keeping the current ones happy.
Cash flow problems plague businesses that are growing fast. If you need more equipment to get more jobs done, you’ll need more cash to make that happen and still be able to pay your team.
Those are the most common problems that landscaping business owners run into.
Now let’s see how to write a great plan so you can avoid these pitfalls.
A business plan is made up of a common set of sections that can vary in length. The more you add, the better suited you’ll be for the ups and downs that come with running a company.
The following sections are the most important, and could be considered the minimum to include in your landscaping business plan.
This is the first thing someone will read in your business plan. It describes what you want to do and why you will be successful in doing it.
Keep this simple but powerful. If you are looking for money from a bank or other investors, this summary will set the stage for them to trust in your plan.
This includes your mission statement, history, and an overview of team members.
This mission statement is an easy-to-read message that lets people know why your business exists.
For example “To grow and maintain naturally healthy lawns and gardens,” may be a mission statement for a landscaping company. Overall, keep it simple.
In your company history, describe how long you’ve been around, what services you offer, and what reputation you already have as a landscaper.
The last part of this section is an overview of team members. You’ll want to explain who will be part of the company, why they are skilled, and how they will contribute to the success of the business.
This is your chance to establish the status of the landscaping market in your area, and determine where you can stand out.
If there are already 30 tree removal companies in your area, you may not want to focus on that specific service.
On the other hand, you may find that many of those companies have bad reviews, and there is a need for higher quality work to be done.
This is all part of your analysis of the market, so you can find out where there is the greatest need and set up your services to meet that need.
Also consider how services are being priced so you don’t stand out for charging too much. See if your area has a need for more high-end work like gardening, or if there are more potential customers out there that just need lawn services.
Your objective here is to find out where you best can position your company to be successful.
If you’re looking for an easy way to research and document the competition, you can build a simple competitor analysis project board using Hubstaff Tasks simple project management tool .
Assign tasks, add due dates, comments, and more
This section details the services you’re going to offer and details about them. Here’s what you’ll want to:
When you “open the doors” to your new landscaping business, customers won’t be able to find you if they’ve never heard of you. A marketing plan will put you in a position to get noticed.
Talk about the brand you are creating. Think about why it will be special. Describe what it will look like, display any logos or designs, and show the slogans or phrases you’ll use as a brand.
Your marketing plan should include, at minimum, how you plan to use social media, customer referrals, online ratings, in-person events like lawn and garden shows, and direct mail .
The way you spend and manage money is one of the most important aspects of survival and growth as a business. Your financial plan needs to consider the following:
Creating a landscaping business plan is a vital part of starting a landscaping business. Those who prepare and plan will stand a better chance of profiting and growing their operation for many years to come.
It can feel tedious going through each of the steps of this plan. Keep in mind the reasons why you wanted to start this business as you build your plan.
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Here is a free business plan sample for a landscaping company.
Have you been nurturing the idea of launching your own landscaping company but feel lost on how to lay the groundwork? You've landed in the perfect spot.
Here, we will unveil a comprehensive free sample business plan tailored for a landscaping business.
As an aspiring entrepreneur, you're likely aware that a robust business plan is crucial for turning your green dreams into reality. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to flourish.
To streamline your planning process and get started on solid footing, you can utilize our landscaping company business plan template. Our team of experts is also on standby to provide a complimentary review and fine-tuning of your plan.
A good business plan for a landscaping company must be tailored to the unique aspects of the landscaping industry.
Initially, it's crucial to provide a comprehensive overview of the landscaping market. This includes up-to-date statistics and the identification of emerging trends within the industry, similar to what we've incorporated in our landscaping business plan template .
Your business plan should articulate your vision clearly. Define your target market (residential homeowners, commercial properties, government contracts, etc.), and establish your company's unique value proposition (eco-friendly services, specialized designs, maintenance contracts, etc.).
Market analysis is the next critical component. This requires a thorough understanding of the local competition, market demands, and customer preferences specific to landscaping services.
For a landscaping company, it's important to detail the services you will offer. Describe your range of services - maintenance, design, installation, seasonal services - and how these cater to the needs and preferences of your target market.
The operational plan is vital. It should outline the location of your business, the structure of your service teams, supplier relationships for plants and materials, and the logistics of your service delivery.
Emphasize the quality of your service, the expertise of your team, and the sustainability of your practices, which are particularly important in the landscaping business.
Then, delve into your marketing and sales strategy. How do you plan to attract new clients and retain existing ones? Discuss promotional tactics, customer loyalty programs, and potential additional services (like seasonal decorations or eco-friendly options).
Incorporating digital strategies, such as a professional website and active social media engagement, is also crucial for modern businesses.
The financial section is a cornerstone of your plan. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.
In landscaping, the seasonality of services can impact cash flow, making it essential to have a detailed financial plan. For assistance, consider using our financial forecast for a landscaping company .
Compared to other business plans, a landscaping company's plan must address specific factors such as the seasonality of the work, the physical demands on staff, and the potential for environmental impact.
A comprehensive business plan will not only help you clarify your strategy and vision but also attract investors or secure loans.
Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of the day-to-day operations of a landscaping company.
By presenting a detailed and substantiated plan, you showcase your dedication and preparedness for the success of your landscaping business.
To achieve these goals while saving time, you can simply fill out our landscaping business plan template .
Here, we will provide a concise and illustrative example of a business plan for a specific project.
This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.
To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.
All these elements have been thoroughly included by our experts in the business plan template they have designed for a landscaping company .
Here, we will follow the same structure as in our business plan template.
Market data and figures.
The landscaping industry is a robust and growing sector with significant market potential.
Recent estimates value the global landscaping services market at over $100 billion, with a projected growth trajectory in the coming years. This is driven by an increased focus on residential and commercial aesthetic appeal, as well as environmental sustainability.
In the United States alone, there are over 600,000 landscaping service businesses, generating a combined annual revenue of approximately $99 billion. This underscores the critical role landscaping plays in American property maintenance and development.
These figures highlight the substantial economic impact of the landscaping industry and its importance in shaping living and working environments.
Current trends in the landscaping industry reflect a growing emphasis on eco-friendly practices and outdoor living spaces.
Sustainable landscaping is gaining traction, with more companies offering services like drought-resistant xeriscaping, native plant gardens, and organic lawn care. These practices not only conserve resources but also cater to the environmental consciousness of modern consumers.
Outdoor living spaces are becoming increasingly sophisticated, with the integration of outdoor kitchens, fire pits, and entertainment systems. This trend is expanding the scope of landscaping services to include comprehensive outdoor design and construction.
Technological advancements, such as robotic lawn mowers and smart irrigation systems, are streamlining maintenance tasks and improving water efficiency.
Additionally, the use of landscaping software for 3D design and project management is enhancing the ability to visualize projects and manage workflows effectively.
These trends demonstrate the landscaping industry's adaptation to the evolving preferences and technological advancements influencing consumer demand.
The success of a landscaping company hinges on several critical factors.
Quality of service is paramount. A company that consistently delivers well-executed and attractive landscaping projects is more likely to build a strong reputation and customer loyalty.
Innovation in design and the ability to offer customized landscaping solutions can significantly differentiate a company in a competitive market.
Strategic location, particularly in areas with high demand for landscaping services, can provide a steady stream of business opportunities.
Exceptional customer service is essential for fostering positive client relationships and encouraging repeat business and referrals.
Lastly, efficient cost management, commitment to sustainable practices, and the capacity to adapt to industry trends, such as the integration of smart technology in landscape management, are vital for the sustained success of a landscaping company.
Project presentation.
Our landscaping company project is designed to cater to the increasing demand for sustainable and aesthetically pleasing outdoor spaces. Situated in a region with a booming housing market, our company will provide a comprehensive range of landscaping services, from garden design and lawn care to hardscaping, water features, and outdoor lighting, all executed with an emphasis on sustainability and eco-friendliness.
We will focus on creating beautiful, functional, and low-maintenance landscapes that enhance the outdoor living experience for our clients.
Our landscaping company aims to become a leading provider in the region, known for innovative designs, quality craftsmanship, and environmentally responsible practices.
The value proposition of our landscaping company is centered on delivering exceptional outdoor living spaces that are both beautiful and sustainable. We understand the importance of creating a harmonious balance between nature and the built environment.
Our commitment to using eco-friendly materials and methods ensures that we not only beautify our clients' properties but also contribute to the health of the ecosystem. We offer personalized service, tailored to the unique needs and visions of each client, ensuring their outdoor space is a true reflection of their lifestyle and preferences.
We are dedicated to enhancing the beauty and value of our clients' properties while fostering a deeper connection with nature. Our landscaping company strives to be a community leader in promoting green living and outdoor enjoyment.
The project owner is a seasoned professional with a passion for landscape design and a strong commitment to environmental stewardship.
With years of experience in the landscaping industry and a background in environmental science, he is well-equipped to lead a company that prioritizes both client satisfaction and ecological integrity.
Driven by a vision of transforming outdoor spaces into sustainable sanctuaries, he is determined to offer services that stand out for their creativity, quality, and environmental benefits.
His dedication to excellence and his love for nature are the cornerstones of this project, aiming to elevate the standard for landscaping services while promoting sustainable living practices within the community.
Market segments.
The market segments for our landscaping company are diverse and cater to a variety of customer needs.
Firstly, we have residential homeowners who are looking to enhance the aesthetic appeal and functionality of their outdoor spaces.
Secondly, commercial clients such as businesses, schools, and public parks require regular landscaping services to maintain a professional and welcoming exterior.
Additionally, we serve real estate developers and property managers who need landscaping for new constructions or to increase property value and curb appeal.
Lastly, environmental-conscious clients are a growing segment interested in sustainable and eco-friendly landscaping solutions.
A SWOT analysis of our landscaping company highlights several key factors.
Strengths include a skilled team with expertise in landscape design and horticulture, a strong reputation for quality and reliability, and a portfolio of successful projects.
Weaknesses might involve the seasonal nature of the business and the dependency on local climate conditions.
Opportunities can be found in expanding services to include eco-friendly and sustainable landscaping practices, as well as leveraging new technologies for landscape management.
Threats could encompass the competitive nature of the landscaping industry and the potential for economic downturns affecting clients' spending on non-essential services.
Competitor analysis in the landscaping industry shows a mix of local and regional companies.
Direct competitors include other full-service landscaping firms, as well as smaller operations specializing in specific services like lawn care or garden design.
These businesses compete on factors such as price, service range, and quality of work.
Identifying competitive advantages such as specialized services, customer service excellence, and sustainable practices is crucial for standing out in the market.
Understanding the strengths and weaknesses of competitors is vital for carving out a unique position and retaining a loyal customer base.
Our landscaping company's competitive advantages lie in our commitment to customer satisfaction and environmental stewardship.
We offer comprehensive services from design to maintenance, ensuring a seamless experience for our clients.
Our team's expertise in sustainable landscaping allows us to provide innovative solutions that reduce water usage and promote biodiversity.
We also prioritize clear communication and transparency with our clients, building trust and long-term relationships.
Our dedication to using high-quality materials and the latest landscaping techniques ensures that every project we undertake is completed to the highest standard.
You can also read our articles about: - how to start a landscaping company: a complete guide - the customer segments of a landscaping company - the competition study for a landscaping company
Development plan.
Our three-year development plan for the landscaping company is designed to establish us as a leader in sustainable and aesthetically pleasing outdoor spaces.
In the first year, we will concentrate on building a strong local client base by delivering exceptional service and showcasing our innovative landscape designs.
The second year will be focused on expanding our services to include eco-friendly and water-saving landscaping options, and extending our reach to neighboring communities.
In the third year, we plan to diversify our offerings by introducing outdoor lighting solutions and custom hardscape designs, while also forming partnerships with local businesses and real estate developers to further enhance our market presence.
Throughout this period, we will remain dedicated to environmental stewardship, customer satisfaction, and staying ahead of industry trends to serve our clients better and solidify our market position.
The Business Model Canvas for our landscaping company targets homeowners, commercial property managers, and real estate developers looking for quality outdoor space enhancements.
Our value proposition is centered on creating beautiful, sustainable landscapes that meet the specific needs of our clients while also being environmentally responsible.
We offer our services through direct consultations and project management, utilizing our skilled workforce and state-of-the-art landscaping equipment as key resources.
Key activities include landscape design, installation, and maintenance services.
Our revenue streams are generated from landscape design and installation projects, ongoing maintenance contracts, and the sale of specialty landscape products. Our costs are mainly associated with labor, materials, and equipment maintenance.
Find a complete and editable real Business Model Canvas in our business plan template .
Our marketing strategy is centered on showcasing the quality and sustainability of our landscaping projects.
We aim to educate our target audience on the benefits of eco-friendly landscaping and how it can enhance property value and environmental health. Our approach includes local home and garden shows, social media campaigns, and before-and-after showcases of our projects.
We will also develop partnerships with eco-conscious organizations and participate in community greening projects to demonstrate our commitment to sustainability.
Finally, we will leverage customer testimonials and word-of-mouth referrals, backed by a strong online presence, to reach a wider audience and establish our brand as a top choice for landscaping services.
The risk policy for our landscaping company is designed to minimize risks associated with project execution, client satisfaction, and environmental impact.
We adhere to strict safety standards and regulations, ensuring that all staff are trained in best practices for landscape construction and maintenance.
We conduct regular project reviews to ensure that we meet our high standards for quality and design. Additionally, we manage costs effectively to maintain financial stability.
We carry comprehensive liability insurance to cover any potential issues related to our landscaping services. Our priority is to deliver exceptional landscapes while ensuring the safety and satisfaction of our clients and the protection of the environment.
We envision creating a landscaping company that not only transforms outdoor spaces but also promotes environmental sustainability.
With our dedication to quality, innovation, and eco-friendly practices, we are confident in our ability to thrive in the landscaping industry.
We are excited about the opportunity to enhance the beauty and functionality of our clients' properties while contributing positively to the environment.
We are adaptable to the evolving needs of the market and look forward to the flourishing future of our landscaping company.
You can also read our articles about: - the Business Model Canvas of a landscaping company - the marketing strategy for a landscaping company
Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.
All these elements are available in our business plan template for a landscaping company and our financial plan for a landscaping company .
Initial expenses for our landscaping company include acquiring landscaping equipment, vehicles for transportation, purchasing insurance, and obtaining necessary business licenses. We will also invest in professional training for our staff to ensure high-quality service, as well as costs related to brand creation and launching targeted marketing campaigns to establish our presence in the local market.
Our revenue assumptions are based on a thorough analysis of the local demand for landscaping services, taking into account the increasing trend in residential and commercial property owners investing in outdoor spaces.
We anticipate a steady growth in client contracts, starting with residential projects and expanding to commercial landscaping services as our reputation for quality and reliability grows.
The projected income statement indicates expected revenues from our landscaping services, production costs (materials, labor, equipment maintenance), and operating expenses (office rent, marketing, salaries, vehicle expenses, etc.).
This results in a forecasted net profit essential for assessing the long-term viability of our landscaping business.
The projected balance sheet reflects assets specific to our business, such as equipment, vehicles, and material inventories, and liabilities including loans and anticipated business expenses.
It shows the overall financial health of our landscaping company at the end of each fiscal period.
Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our financial needs at any given time. This will enable us to manage our finances effectively and maintain a healthy cash flow.
The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses and initial operating costs.
The working capital requirement for our landscaping company will be closely monitored to ensure we have the necessary funds to finance our daily operations, including purchasing materials, equipment maintenance, and payroll.
The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and begin generating a profit.
It will indicate when our business is expected to become financially sustainable.
Performance indicators we will track include the profit margin on our landscaping services, the current ratio to assess our ability to meet short-term obligations, and the return on investment to measure the efficiency of our capital invested in the business.
These indicators will help us evaluate the financial performance and overall success of our landscaping company.
If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a landscaping company .
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Table of Content
Do you want to start a landscaping business? Well, this business primarily includes designing and maintaining peoples’ lawns by utilizing gardening skills and ideas to convert even the smallest spaces into impressive designs.
These days, lawns have become an integral part of houses, corporate buildings, and streets. Previously landscaping services were only utilized by people who loved to beautify their space. However, now more people are utilizing the service to also play their part in saving the climate.
Thus, opening a landscaping business plan is the right choice and it can become a profitable venture if you manage to plan and execute it effectively. If you don’t know how to open a landscaping business you can take help from this business plan for landscaping written for a startup, Land Care.
2.1 the business.
Land Care will be a registered and licensed landscaping startup in Seattle . The business will aim at providing professional expertise to help people in installing and maintaining their lawns. In the initial phase, the business will serve its customers by providing the following services: lawn installation, sod laying, lawn care, and designing rock/ stone structures.
To manage a landscaping business plan , you need to employ skillful gardeners and landscapers. Moreover, you’ll also need to invest in landscaping tools and machinery. Besides the general startup requirements, there is a lot more to manage to run your business plan landscape company successfully. For example, advertisement plan, online presence, sales management, and finance management.
If you are looking for how to set up a landscaping business you can take help from this landscape business plan . In this landscaping business plan on how to start a business plan landscape company , we have provided all the details of Land Care.
The customers of a landscaping business belong to various walks of life. They include residents, home builders, businesses & corporates, government agencies, and educational institutions.
Our target is to become the most renowned and popular landscaping business in Seattle. Moreover, through our high-quality service, we aim to achieve and maintain a CSAT score above 95%. Besides, our financial targets to be achieved in the next three years are demonstrated here.
3.1 company owner.
Land Care is started and owned by Judi Smith. Judi has done her graduation in Horticulture. She is well known for her ideas of upkeeping garden spaces. During and after her academic years, she has won many landscaping competitions.
Judi was always an enthusiast of garden structure design. She decided to start a landscape business plan to utilize her skills and her passion for the benefit of her customers. As well as for earning a good living.
Step1: Drafting landscaping business description
To ensure a successful startup it is essential to do everything with proper planning. Judi studied several landscaping business plan examples to make a landscaping business plan for her business. But due to a lack of experience in marketing and financial analysis, she decided to hire a professional to write a business plan landscape company for her. The landscape business plan she got written is provided in this lawn care business plan sample .
Step2: Define the brand
Judi acquired the licenses and permits required to start her own landscaping business plan . Meanwhile, she defined her services, business values & aims, and customer care policies to get identified by the target market.
Step3: Set up everything from machinery to workforce
After that, Judi started to back up her business with a strong workforce and the latest landscaping tools. She rented a building to set up her office. Meanwhile, she hired a co-manager to get some help in conducting interviews and tests to hire the most competent employees. Then she purchased the required inventory to run her business plan landscape company .
Step4: Promote, market, establish a web presence
The last thing to do was to reach out to the target market. Judi utilized the latest methods including online and social media campaigns to attract target customers. The detailed advertisement plan Judi employed to get introduced to a large audience will be provided in later sections.
Legal | $243,000 |
Consultants | $0 |
Insurance | $29,000 |
Rent | $24,000 |
Research and Development | $28,500 |
Expensed Equipment | $50,000 |
Signs | $4,100 |
Start-up Assets | $318,000 |
Cash Required | $326,000 |
Start-up Inventory | $52,000 |
Other Current Assets | $203,000 |
Long-term Assets | $219,000 |
Start-up Expenses to Fund | $378,600 |
Start-up Assets to Fund | $1,118,000 |
Assets | |
Non-cash Assets from Start-up | $1,488,000 |
Cash Requirements from Start-up | $357,000 |
Additional Cash Raised | $51,200 |
Cash Balance on Starting Date | $33,800 |
Liabilities and Capital | |
Liabilities | $30,000 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $39,000 |
Other Current Liabilities (interest-free) | $0 |
Capital | |
Planned Investment | $1,496,600 |
Investor 1 | $0 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Loss at Start-up (Start-up Expenses) | $364,400 |
When you are owning your own landscaping business plan you can implement your creative ideas to the fullest. However, it is still necessary to write down the services you want to provide your customers in a landscape business plan template. As it will enable you to get the required inventory and to hire the employees with the relevant skills.
Before opening a business plan landscape company it is essential to carry out an accurate marketing analysis. This is to know the market opportunities and your target customers. Exploring the groups of your target customers should be done before even researching on how to write a business plan for landscaping. It is because a thorough knowledge of your customers will enable you in introducing the services that would interest them.
Marketing analysis is a stepwise process. If you are looking for a complete business plan for a landscaping company, you can take help from here. In this landscape business plan and landscaping business model we’re providing marketing analysis done for Land Care.
Landscaping services are in great demand. Firstly because they freshen and beautify the outdoor spaces. And second due to the awareness in people to keep their surroundings green. According to IBISWorld, the landscaping business plan has seen a growth rate of 1.8% during the past five years i.e. from 2016 to 2021. And the landscape business plan is expected to grow by another 1% in 2021.
The latest stats calculated in 2021 also reports the total market size of landscaping services as $99.7 billion. Thus, the market stats are satisfactory to initiate your startup.
The potential customers of Land Care are divided into the following groups:
Our primary customers will be the residents living in our vicinity. In our city, most of the families belong to the working class and others do not have a great number of young enthusiasts to install a lawn themselves. Therefore, to beautify and maintain their outdoor they’ll need to hire professional services.
Our second target customers will be the construction companies and contractors who build homes. Landscaping and lawn installation increases the value of the property. Therefore, they are expected to avail of our landscape design services.
Nowadays, all small and large buildings of businesses and corporates contain decorative landscaped lawns. As that helps in creating a refreshing environment. This group is expected to become our potential customers as they’ll also need regular maintenance and care.
Government properties, offices, public parks, bus stations, and even some streets are also marked by landscaped lawns and designs. Therefore, they will also be hiring our services.
Almost all educational institutions ranging from schools to universities contain beautiful lawns. This is to create a pleasant and natural atmosphere to promote learning. Thus, such institutions are also expected to avail of all our services.
Potential Customers | Growth | ||||||
Residential Community | 23% | 31,000 | 32,000 | 34,000 | 36,000 | 38,000 | 10.00% |
Home Builders | 14% | 19,000 | 21,000 | 22,000 | 24,000 | 26,000 | 10.00% |
Businesses & Corporates | 24% | 35,000 | 36,000 | 37,000 | 38,000 | 39,000 | 10.00% |
Government Facilities | 22% | 30,000 | 31,000 | 32,000 | 33,000 | 34,000 | 10.00% |
Educational Institutes | 17% | 27,000 | 28,000 | 29,000 | 31,000 | 32,000 | 11.00% |
10% |
5.4 product pricing.
Our prices are a little higher than our competitors. However, we still expect to get more customers as we provide a 50% discount on the maintenance of lawns that are installed/ designed by us.
No matter how efficient and skillful you are, you can never get customers without an effective marketing plan for the landscaping business plan . Thus, to make sure that your customers know about you, you should start advertising before starting a business plan landscape company . Here we’re listing how Judi decided to market her startup.
The competitive aspects we’ll have to outperform our competitors are listed here:
Unit Sales | |||
Landscaping Architectural Design | 44,000 | 46,640 | 49,438 |
Lawn Installation | 40,000 | 42,400 | 44,944 |
Landscape Care & Maintenance | 31,000 | 32,860 | 34,832 |
Planting Trees/ Shrubs/ Flowers/ Vegetables | 29,000 | 30,740 | 32,584 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Landscaping Architectural Design | $50.00 | $58.00 | $67.28 |
Lawn Installation | $55.00 | $63.80 | $74.01 |
Landscape Care & Maintenance | $40.00 | $46.40 | $53.82 |
Planting Trees/ Shrubs/ Flowers/ Vegetables | $35.00 | $40.60 | $47.10 |
Sales | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Landscaping Architectural Design | $47.00 | $55.00 | $63.00 |
Lawn Installation | $52.00 | $59.50 | $69.00 |
Landscape Care & Maintenance | $37.00 | $42.00 | $48.00 |
Planting Trees/ Shrubs/ Flowers/ Vegetables | $32.00 | $37.00 | $43.00 |
Direct Cost of Sales | |||
While writing a landscape business plan you should include a detailed list of the employees you’ll hire to run your business plan landscape company . The list should also include expected/ average salaries so that you can arrange for the finances accordingly.
The personnel plan developed for Land Care is provided here as an example.
Co-Manager | $14,000 | $15,400 | $16,940 |
Landscapers | $73,000 | $80,300 | $88,330 |
Gardeners | $60,000 | $66,000 | $72,600 |
Social Media Manager | $7,000 | $7,700 | $8,470 |
Technician | $10,000 | $11,000 | $12,100 |
Accountant | $9,000 | $9,900 | $10,890 |
Cleaners | $15,000 | $16,500 | $18,150 |
Drivers | $16,000 | $17,600 | $19,360 |
Sales Executive | $8,000 | $8,800 | $9,680 |
Receptionist/ Call Operator | $7,000 | $7,700 | $8,470 |
The financial plan is a crucial component when you make a landscaping business plan. In your financial plan, you should analyze projected profits and losses, gross margins, cash flows, and balance sheets to find out
To help you in making a landscaping financial plan that satisfies all the above-mentioned requirements, we’re providing the financial plan sample made for Land Care.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 8.17% | 8.24% | 8.32% |
Long-term Interest Rate | 8.30% | 8.35% | 8.42% |
Tax Rate | 23.80% | 24.40% | 25.90% |
Other | 0 | 0 | 0 |
Monthly Units Break-even | 5338 |
Monthly Revenue Break-even | $130,000 |
Assumptions: | |
Average Per-Unit Revenue | $234.00 |
Average Per-Unit Variable Cost | $0.63 |
Estimated Monthly Fixed Cost | $168,000 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Expenses | |||
Payroll | $219,000 | $240,900 | $264,990 |
Sales and Marketing and Other Expenses | $134,000 | $134,000 | $139,000 |
Depreciation | $2,250 | $2,300 | $2,410 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,600 | $2,800 | $2,900 |
Insurance | $2,000 | $2,000 | $2,050 |
Rent | $3,000 | $3,500 | $3,600 |
Payroll Taxes | $30,000 | $30,400 | $31,000 |
Other | $0 | $0 | $0 |
Profit Before Interest and Taxes | $39,150 | $161,588 | $327,051 |
EBITDA | $39,150 | $161,588 | $327,051 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $7,830 | $32,318 | $65,410 |
Net Profit | $31,320 | $129,270 | $261,641 |
Net Profit/Sales | 0.47% | 1.58% | 2.60% |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $52,000 | $56,160 | $60,653 |
Cash from Receivables | $19,000 | $20,520 | $22,162 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $33,000 | $34,500 | $35,000 |
Bill Payments | $15,800 | $17,600 | $18,200 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $13,000 | $14,500 | $16,000 |
Cash Balance | $24,000 | $25,000 | $26,000 |
Assets | |||
Current Assets | |||
Cash | $261,000 | $292,320 | $321,552 |
Accounts Receivable | $23,700 | $26,544 | $29,835 |
Inventory | $4,080 | $4,570 | $5,118 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $18,200 | $20,384 | $22,932 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 4 | Year 5 | Year 6 |
Current Liabilities | |||
Accounts Payable | $19,000 | $21,280 | $23,919 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $29,000 | $30,000 | $31,000 |
Retained Earnings | $54,000 | $58,860 | $64,746 |
Earnings | $194,000 | $211,460 | $232,606 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $280,000 | $305,200 | $335,720 |
Sales Growth | 7.28% | 8.07% | 8.94% | 3.00% |
Percent of Total Assets | ||||
Accounts Receivable | 9.22% | 10.22% | 11.32% | 9.80% |
Inventory | 5.43% | 6.02% | 6.67% | 9.90% |
Other Current Assets | 2.21% | 2.45% | 2.71% | 2.40% |
Total Current Assets | 151.10% | 151.80% | 152.00% | 158.00% |
Long-term Assets | 11.38% | 11.45% | 12.02% | 12.00% |
TOTAL ASSETS | ||||
Current Liabilities | 4.98% | 5.02% | 5.07% | 4.34% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
Total Liabilities | 7.68% | 7.74% | 7.81% | 7.38% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 95.03% | 97.60% | 100.33% | 99.00% |
Selling, General & Administrative Expenses | 95.60% | 98.18% | 100.93% | 97.80% |
Advertising Expenses | 1.58% | 1.62% | 1.67% | 1.40% |
Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
Main Ratios | ||||
Current | 33 | 34 | 35 | 32 |
Quick | 31.5 | 32.8 | 33.62 | 33 |
Total Debt to Total Assets | 0.17% | 0.16% | 0.16% | 0.40% |
Pre-tax Return on Net Worth | 72.98% | 73.70% | 74.20% | 75.00% |
Pre-tax Return on Assets | 95.76% | 100.55% | 105.58% | 111.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 33.67% | 34.71% | 35.79% | N.A. |
Return on Equity | 55.47% | 57.19% | 58.96% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 7.7 | 7.7 | 7.8 | N.A. |
Collection Days | 100 | 100 | 100 | N.A. |
Inventory Turnover | 31.8 | 33.39 | 34.1 | N.A. |
Accounts Payable Turnover | 15.7 | 16.1 | 16.5 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | -0.04 | -0.03 | -0.03 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $238,000 | $251,328 | $265,402 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.86 | 0.86 | 0.87 | N.A. |
Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
Acid Test | 27 | 28.1 | 28.7 | N.A. |
Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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If you want to start a lawn care company or expand your current lawn maintenance business, you need a business plan.
You can download our Lawn Care Business Plan Template (including a full, customizable financial model) to your computer here.
The following sample lawn care business plan template gives you the key elements to include in a winning lawn care business plan. It can be used to create a business plan for a landscaping business, a lawn mowing business plan and a landscaping design business plan.
Below is a free sample of each of the key sections of your lawn care business plan.
Business overview.
[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its lawn maintenance services to various businesses in the area that need landscaping and lawn maintenance.
The company was founded by [Founder’s Name] in [Year established]. [First Name] started the company with a vision to help the local community see the beauty of professional landscaping and how important it is for the environment.
They are not only experts in decorative landscaping, but also in vegetable gardening and sprinkler systems. They also specialize in lawn problems; from weeds, crab gass, or dry grass in summer.
Below is [Company Name]’s initial services list:
[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by moderate to high income families that live in residential houses who are in need of proper landscape maintenance. These residents are able to pay for quality lawn care and landscaping services any time of the year.
The location is also a prime spot for big hotels, resorts, golf clubs (clubhouses), recreational spaces, and companies that will need our services as well.
The [Company Name] was founded by [Founder’s Name]. [First Name] has started working in the Landscaping industry at a very young age. His/her love for the environment and for design has pushed himself/herself to study at [insert university] and become a professional landscape architect. [First Name] also just finished taking up a second degree in business management.
[Company Name] is uniquely qualified to succeed due to the following reasons:
[Company Name] is seeking total funding of $295,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing equipment and materials needed, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
---|---|---|---|---|---|
Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
You can download our Landscaping Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] provides a professional all-season lawn care service for suburban residences in [Location]. It also offers its services to various businesses in the area that need landscaping and lawn care services.
[Founder’s Name], the founder of [Company Name] started very young in the landscaping and lawn care business. Ever since [First Name] was still in his college years, he was working part-time in a small landscaping company and earning a few bucks off of the lawnmower he has borrowed from his neighbor. Only in [Month and Year established], did he realize that this is what he wanted to pursue, to start his own lawn care business that cares for the environment and the community.
Through years of hard work and practice, he/she was able to grow his/her business to be one of the most popular all-season landscaping businesses in [Location] and is looking to expand to surrounding areas in the coming years.
Since incorporation, the company has achieved the following milestones:
Iii. industry analysis.
The Lawn Care industry is dependent on the health of the housing and property markets, both of which have grown steadily over the past five years. Additionally, because landscaping services are often discretionary, industry demand is dependent on levels of per capita disposable income and, thus, the high-income demographic, which generates a healthy portion of its revenue. The industry also relies on demand from institutional and commercial clients, which generally lead to higher per-service revenue.
Steady growth in the domestic housing market has underpinned the industry’s growth over the past five years. A healthier housing market has encouraged current homeowners to invest in their properties to increase their value amid growing disposable income.
Over the next five years, favorable economic conditions will benefit the industry, such as rising per capita disposable income that will boost households’ ability to purchase industry services. Nonresidential construction activity is expected to climb steadily, making this market a point of emphasis for growth
Demographic profile of target market.
[Company Name] will serve the residents of [location] and will soon expand to the surrounding cities. The area we serve is mostly populated by middle to upper-class families that live in residential houses who are in need of a lawn mowing business. These residents are able to pay for quality lawn care and landscaping services any time of the year.
Glendale | Highland | |
---|---|---|
Total Population | 26,097 | 10,725 |
Square Miles | 6.89 | 3.96 |
Population Density | 3,789.20 | 2,710.80 |
Population Male | 48.04% | 48.84% |
Population Female | 51.96% | 51.16% |
Target Population by Age Group | ||
Age 18-24 | 3.68% | 3.52% |
Age 25-34 | 5.22% | 4.50% |
Age 35-44 | 13.80% | 13.91% |
Age 45-54 | 18.09% | 18.22% |
Target Population by Income | ||
Income $50,000 to $74,999 | 11.16% | 6.00% |
Income $75,000 to $99,999 | 10.91% | 4.41% |
Income $100,000 to $124,999 | 9.07% | 6.40% |
Income $125,000 to $149,999 | 9.95% | 8.02% |
Income $150,000 to $199,999 | 12.20% | 11.11% |
Income $200,000 and Over | 32.48% | 54.99% |
The company targets the following customer segments:
Direct & indirect competitors.
Lawn Man Established in 1970, Lawn Man is a locally owned and operated lawn care professional service providing environmentally responsible fertilization, weed control and integrated pest management services for customers in the Northeast. Services offered by Lawn Man Man include:
H&K Landscaping
Founded in 1974, H&K Landscaping is a full-service lawn care, landscaping & irrigation company serving the East Coast. In addition to lawn care and irrigation installation, the company offers total lawn and landscape restoration and construction. Services offered by H&K Landscaping Landscaping include:
Escamilla Landscaping
Escamilla Landscaping is a family-owned and -operated landscaping company that specializes in creating elegant outdoor living spaces. It offers a variety of services for both commercial and residential clients, providing quality work at affordable prices. Services include: Sodding, Irrigation, Tree trimming and Lawn maintenance.
Competitor pricing is customized and highly dependent on property size and condition
There are a lot of things that make [Company Name] at a vantage point from its competitors. These include:
The [company name] brand.
The [Company Name] brand will focus on the Company’s unique value proposition:
Social Media/ Online Marketing With the majority of the people now online, the company will invest resources in online ads for different social media platforms to reach potential clients. We will create ads that will successfully create positive conversions. A company website will also be developed. This website should be able to direct traffic from search engines as much as possible. In order to do this, the company will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified landscaping service provider that it is.
Publications [Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.
Major Publications We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Commute Advertising We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to purchase our services.
Ongoing Customer Communications [Company Name] will maintain a website, social media accounts, and publish a monthly email newsletter to tell customers about new events, products and more.
Functional roles.
The Company intends to employ [X] landscape experts, [Y] administrative assistants, and [Z] landscape teams. The company may have to add more people during peak seasons. [Company name] anticipates having [X] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles:
Service Functions
Administrative Functions
[Company name]’s long term goal is to become the number one landscaping provider in the [location] area. We seek to be the standard by which other providers are judged. We also would want to expand our reach by extending our services to nearby cities. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
Date | Milestone |
---|---|
[Date 1] | Finalize lease agreement |
[Date 2] | Design and build out [Company Name] |
[Date 3] | Hire and train initial staff |
[Date 4] | Kickoff of promotional campaign |
[Date 5] | Launch [Company Name] |
[Date 6] | Reach break-even |
Management team members, hiring plan.
[Founder’s Name] will serve as the company CEO and president. In order to launch the business we need the following additional personnel:
Revenue and cost drivers.
[Company Name]’s revenues will come primarily from landscaping services, especially from fixed contracts with bigger companies. Labor expenses are the key cost drivers. [Founder’s Name] and all of the company’s employees will earn a competitive base salary with good benefits.
The next largest cost for the company is the office lease and the monthly equipment maintenance check and possible repairs. The Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Key assumptions.
Number of customers per day | Per location |
---|---|
FY 1 | 20 |
FY 2 | 25 |
FY 3 | 35 |
FY 4 | 45 |
FY 5 | 65 |
Average service contract | $75 |
Annual Lease ( per location) | $50,000 |
Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
Expenses & Costs | ||||||
Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
LIABILITIES & EQUITY | ||||||
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | ($246,450) | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
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So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.
Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.
Build your dream business with the help of a high-paying job—browse open jobs on The Muse »
According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.
“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”
Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.
The four main types of business plans are:
Internal business plans, strategic business plans, one-page business plans.
Let's break down each one:
If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.
Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.
Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.
Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.
As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .
Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.
Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).
A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.
Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:
Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?
The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.
Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.
A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.
For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.
How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.
What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.
Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”
A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.
“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”
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7. Marketing plan and sales strategy. 8. Management plan. 9. Financial plan. A landscape business plan is essential for securing bank loans, managing startup costs, and maintaining cash flow. Even the most seasoned landscape business owner needs a dynamic roadmap to guide operations and inform goal-setting.
Your operations plan should have two distinct sections as follows. Everyday short-term processes include all of the tasks involved in running your landscaping business such as serving customers, procuring supplies, keeping the equipment maintained, etc. Long-term goals are the milestones you hope to achieve.
As a landscaping business has a large scale of functioning, you need to include this section in your plan. 6. Financial Plan. Writing a financial plan is a necessary step toward creating a well-rounded business plan. A financial plan helps your business in becoming cost-effective and profitable.
4. Sales & Marketing Strategy. The next section of your landscaping business plan gives you a chance to highlight your strategic plan for acquiring new clients. Start by exploring your unique selling point, the suitability of the proposed marketing strategies, and the overall marketing budget.
In terms of detail, it is important to include enough information to give a clear overview of your landscaping business. However, you don't want to include so much detail that the plan becomes cumbersome. A good rule of thumb is to keep the business plan to around 30 pages. As for frequency, it is generally a good idea to update your business ...
A landscaping business plan allows you to set your company up for success. It helps you figure out if you have a viable business idea, creates a roadmap for launching your business, and organizes your thoughts. Your landscaping business plan should include the following seven sections: Executive summary. Business description. Market analysis.
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A landscaping business plan is a formal written document that describes your company's business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders ...
1. Describe the Purpose of Your Landscaping Business. The first step to writing your business plan is to describe the purpose of your landscaping business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
With ClickUp's Business Plan Template for Landscaping Company, you'll have everything you need to create a winning roadmap for success. This template will help you: Outline your goals, strategies, and marketing plans to attract potential clients and secure funding. Visualize your financial projections to ensure profitability and sustainable growth.
Download our Ultimate Landscaping Business Plan Template. Having a thorough business plan in place is critical for any successful landscaping venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on ...
Landscape Design and Maintenance Business Plan. Emerald Outdoor Design is a full-service landscape design and implementation firm with the goal to bring beauty to your home that adds to serenity in your life. If you're ready to take your landscaping knowledge and turn it into a business, you need a plan. Before you start writing a business ...
A Sample Landscaping Business Plan Template. 1. Industry Overview. It is not enough to own a property that is well designed and built; the hallmark of any property is the beauty of the lawns and gardens. Landscapers are in the business of giving total esthetic effect in and around our neighborhoods.
6.1 Personnel Plan. Greens Manicure Service will consist of Steve working full time. Steve will be the manager for the business, signing up new customers, managing customer accounts, hiring, training, supervising, and cutting grass. Greens Manicure Service will use a total of two people during year one.
Your marketing plan should include, at minimum, how you plan to use social media, customer referrals, online ratings, in-person events like lawn and garden shows, and direct mail. 6. Financial Plan. The way you spend and manage money is one of the most important aspects of survival and growth as a business.
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According to IBISWorld, the landscaping business plan has seen a growth rate of 1.8% during the past five years i.e. from 2016 to 2021. And the landscape business plan is expected to grow by another 1% in 2021. The latest stats calculated in 2021 also reports the total market size of landscaping services as $99.7 billion.
Get your lawn care business plan template. Download your free template today. 1. Create a cover page and table of contents. If you're writing a lawn care business plan to attract potential investors, you'll need to include: A cover page with your lawn care business name, logo, address, and contact details.
Give a detailed demographic profile. Sample from Growthink's Ultimate Landscaping Business Plan Template: [Company Name] will serve homeowners and businesses within a 10-mile radius of our location. These potential customers are as follows: • 27,827 housing units. • Average income of $74,700.
The following sample lawn care business plan template gives you the key elements to include in a winning lawn care business plan. It can be used to create a business plan for a landscaping business, a lawn mowing business plan and a landscaping design business plan. Sample Lawn Service Business Plan
With the average sod job at $3,000 per home built, there is a potential sod business of $39,000 (13 homes x $3,000) in 2009 and $105,000 (35 homes x $3,000) in 2010. Within the first year of operation, it is estimated that John will generate approximately $100,000 in sales. This represents a market capture of 21%.
Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money).
3. Use effective hiring practices. Hiring employees gives you more time to run your landscaping business, better serve clients, and even offer more services.. An effective hiring process helps to reduce turnover, improve the quality of your services, and present a great professional image.