How to Start a Landscape Supply Business

Starting a landscape supply business can be an exciting and rewarding business venture for entrepreneurs with green fingers who are passionate about helping others improve their outdoor spaces.

Having said that, you should keep in mind that launching a successful landscape supply business requires careful planning, significant investment, and a wide range of skills.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own landscape supply business, from conducting market research and securing funding to obtaining licenses, setting up operations, and attracting customers.

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Industry Overview

The landscaping supply industry is a thriving segment of the broader U.S. landscaping market, which as of 2024, is valued at $153 billion and supports more than 661,000 businesses. This huge sector continues to experience steady growth, with demand for its products predicted to grow at a rate of 3.5% per year until 2028 at least.

This growing demand for landscaping services is thought to be driven by the booming residential housing market and an increased interest in gardening as a hobby since COVID — both of which are ensuring a consistent need for essential supplies like soil, mulch, stone, and hardscape materials.

With that said, landscaping supply businesses are faced with overcoming the challenges of rising fuel costs and labor shortages. However, even in spite of these hurdles, the demand for landscaping materials remains strong, which bodes well for the ability of new entrants to this industry to thrive.

Startup Costs

If you’re considering whether a landscape supply business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own landscape supply business?

Well, it depends. The initial investment for a landscape supply business varies widely based on factors such as your business’s size, the type of equipment it needs, and the specialty of the services it offers:

• Land and property acquisition will be one of the largest initial expenses when first starting out. This is because you must obtain a property with multiple acres of space to be able to store bulk materials of soil, mulch, and stone. Depending on the location, land acquisition costs can range from $50,000 to $200,000 — though this cost increases even further if you plan to offer any additional services. For example, if you plan to build a plant nursery or sell other tools, expect to invest another $50,000 to $150,000 on the additional space and construction costs.
• Equipment and vehicles will likely make up the second biggest cost faced by your business. At the very least, you’ll typically need a front-end loader (for moving bulk materials) and a delivery truck, which can cost between $25,000 and $60,000, and $30,000 to $80,000 respectively. A good way to save money on this necessary expense is to rent or purchase used vehicles where possible, though you should be aware that this may increase costs in the longer run.
• Initial inventory stocking is another significant startup cost to bear in mind when launching your landscaping supplies business. Materials such as soil, mulch, pavers, gravel, and plants will all need to be purchased in large quantities before you can open — and can easily cost between $20,000 and $100,000. It’s important to note that the amount you end up spending on your initial inventory will vary greatly depending on the materials you want to offer, how much you want to keep on hand, and the size of your customer base.

In addition to the initial costs outlined above, it’s essential that you budget for the main ongoing costs associated with your landscape supply business to ensure it remains profitable and sustainable over time.

In particular, the main ones to be aware of include inventory replenishment, employee payroll, and the maintenance or repair of your business’s equipment.

Earning Potential

As the owner of a landscape supply business, the primary way in which your company will generate revenue is through the sale of essential landscaping materials like mulch, gravel, pavers, and plants, as well as lawn care tools and equipment.

The prices you can charge for your materials will depend on local market demand and what exactly you’re selling. For example, gravel typically ranges from $45 to $100 per ton, while mulch can cost between $25 and $75 per yard, depending on the type.

While residential customers represent a profitable market — particularly during peak gardening seasons — selling to commercial landscapers is generally ideal as they offer a more steady stream of income. This is because many commercial landscapers sign standing contracts in order to obtain the large quantities of materials they consistently require.

Regardless, a landscape supply business with a well-established customer base can typically expect to generate profits in the range of $50,000 to $75,000 per year — with the potential for much more as the business scales.

Due to the high operating costs of this industry, most landscape supply businesses have a profit margin of between 15% and 20% of all the gross  revenue they generate. However, you can boost your profits by expanding in niche areas and specialty items such as exotic plants, decorative stones, or curated garden packages (e.g., English or Japanese-style gardens).

Ultimately, the earning potential of your landscape supply business will depend on your ability to cater to both commercial and residential markets and maintain competitive pricing. With careful planning and execution, this type of business offers considerable profitability and growth potential.

9 Steps to Starting a Landscape Supply Business

In order to start a landscape supply business, you’ll need to complete the following steps:

1. Planning Your Landscape Supply Business
2. Registering Your Business
3. Finding a Suitable Location
4. Developing Supplier Relationships
5. Securing Funding (If Applicable)
6. Purchasing Equipment and Inventory
7. Setting Up Your Storefront
8. Getting all Applicable Licenses and Permits
9. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Landscape Supply Business

Before diving into your landscape supply business, you’ll need to spend some time conducting thorough market research.

This can involve analyzing the local market to understand the demand for landscape supply services, identifying potential competitors, and assessing the target demographic.

This will help you evaluate the financial viability of your project — including projected revenues and expenses — as well as determine the best location for your business.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

Your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our Landscape Supply Business Name Generator tool.

If you do have a name in mind, we recommend researching the following to confirm it’s available:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a landscape supply business.

Develop a Marketing Strategy

In any business, the key to growing a consistent customer base is effective marketing. Below, we’ve explored the main strategies you should consider when marketing a landscape supply business:

• SEO and Google My Business: Since many of your customers will be based in the nearby area, it’s crucial to optimize your business’s website for local search results. On top of investing in SEO, you’re also encouraged to create a Google My Business profile — this will not only help you to appear higher up in the search results, it will also boost your online credibility in the customers’ eyes too.
• Email Marketing: Another popular and effective marketing strategy is to collect email addresses through your website or in-store so that you can easily promote your services, special offers, and new products. This is great because it’s relatively inexpensive and allows you to quickly target your marketing materials toward a group of individuals who are more likely to be receptive to it. You can even include regular newsletters, exclusive discounts, and helpful landscaping tips in your emails to keep customers engaged.
• Cold Calling: Another highly effective strategy that’s commonly used by landscaping supply businesses is cold calling. However, given that it’s also largely a numbers game, you’ll need to develop a targeted list of candidates in the local area if you want to maximize your chances of getting conversions. In order to build this list, we recommend attending local networking events, referring to commercial property lists, and using sales prospecting tools.
• Referral Programs: Due to the local nature of the landscaping industry, word-of-mouth referrals that encourage satisfied customers to spread the word with discounts or rewards are a very powerful way of driving new business.

When implementing these marketing strategies, remember to try and focus on using a balanced combination rather than relying too heavily on any individual strategy.

Step 2: Register Your Business

One crucial aspect that cannot be overlooked when starting your landscape supply business is the importance of establishing a solid business foundation.

While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs — especially when it comes to landscape supply businesses (with potential liabilities and debt).

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your landscape supply business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

Step 3: Find a Suitable Location

With your business’s registration and taxes sorted out, you’ll be ready to begin the process of choosing a location for your landscaping supply business — do not take this step lightly, as a good location is crucial to your long-term success.

When searching for the right location for your landscape supply business there are a number of key questions to consider, including:

• Is the size of the plot sufficient for everything? (e.g., your inventory, vehicles, and an area for customer interaction)
• Is the plot flat or composed of mostly manageable terrain?
• Is the plot in a good geographical location? (e.g., in terms of foot traffic and proximity to competitors)
• Is the land zoned for commercial use?
• Does the land comply with local, state, and federal environmental regulations?

Before closing a deal for the purchase of any land, be sure to do your due diligence — reviewing property surveys, identifying any easements or restrictions, and investigating any legal claims, liens, or title disputes are all essential if you want to avoid potential future problems.

Step 4: Develop Supplier Relationships

The next step you’ll need to take at this point is to begin building relationships with reliable suppliers of high-quality landscaping materials.

There are a number of ways to get in touch with these suppliers, including:

• Attending trade shows specific to landscaping, construction, or agriculture
• Using online supplier directories (e.g., ThomasNet, Alibaba, and GlobalSources)
• Joining associations like the National Association of Landscape Professionals (NALP)
• Contacting local quarries and regional material suppliers

Using the avenues outlined above, look to identify reliable suppliers that meet your quality and pricing standards — in particular, be sure to focus on those that offer competitive prices and have a track record of delivering on time.

Make sure you don’t rely on a single supplier for your stock as this can leave your business vulnerable to supply chain disruptions that will cost you both money and repeat business. At the very least, try to have a backup supplier for key materials such as mulch, gravel, soil, and pavers to mitigate this risk.

After establishing connections with these suppliers, it’s crucial that you foster trust by paying invoices on time, maintaining clear communication, and being transparent about your business’s needs.

In the long-term this will pay off, as suppliers are more likely to offer you favorable terms and priority during busy seasons.

Step 5: Secure Funding (If Applicable)

Due to the large amounts of capital that will be required upfront to start a landscape supply business, you’ll most likely need to secure some form of financing.

Whether you choose a bank loan, SBA loan, private investors, or crowdfunding, opting for this funding ensures you have the resources needed to invest in high-quality equipment, attract clients through effective marketing, and can be a solid investment in your business’s long-term success.

Ultimately, the type of financing you choose should align with your specific financial situation and business plan, allowing you to manage cash flow effectively as your business grows.

Step 6: Purchase Equipment and Inventory

Regardless of your business’s size, there are certain essential items and inventory that it will need to obtain before it can get started.

We generally recommend all landscape supply businesses to invest in the following essentials for their inventory:

• Various types of soil, mulch, and organic compost
• Crushed stone, gravel, sand, and decorative rocks
• Materials used for patios, walkways, and retaining walls (e.g., pavers and bricks)
• Fertilizers and pesticides
• Irrigation supplies (e.g., hoses, sprinklers, and drip systems)
• Landscaping tools and equipment (e.g., rakes, shovels, and wheelbarrows)
• Edging materials
• Outdoor lighting

Alongside this basic inventory, your business will also need to invest in several key pieces of equipment to be able to properly serve customers, such as:

• Front-end loaders
• Forklifts
• Delivery trucks
• Dump trucks
• Scales
• Point of Sale (POS) system
• Storage bins or bays
• Racking systems

Remember that these just represent the basic inventory and equipment that all landscape supply businesses should obtain — depending on your niche, you may need to obtain certain pieces of specialist equipment or materials in addition to those mentioned above.

For example, if you offer artificial turf installation you’ll also likely require turf rollers, compactors, adhesives, and various other specialist tools to install the synthetic grass.

Step 7: Set Up Your Storefront

Now that you’ve obtained all the required equipment and inventory needed to get started, it’s time to begin setting up shop.

In particular, try to focus on the following principles when setting up your business’s storefront:

• Functional Layout: Where possible, try to place frequently purchased items (e.g., mulch, soil, and pavers), in easy-to-access areas near the entrance or main pathway. While larger, bulkier items like gravel or stones can be stored in an outdoor yard area, they should still be easily visible and marked with clear and weatherproof signage.
• Showcase Products Effectively: Organize bulk materials like gravel, soil, mulch, and stone into clearly marked bins or bays in areas of your outdoor yard that are easy to access. If possible, offering viewing areas where customers can get a closer look at materials (e.g., sample bins) is a great way for customers to test out a product in smaller quantities before committing to a larger order.
• Use Clear Signage: By ensuring that all sections of your store are categorized and marked with clear signage — both inside and out — customers will have a much easier time navigating your store and finding the products they want.

By organizing your storefront in a way that promotes ease of shopping and showcases your inventory effectively, you’ll create a positive experience for customers that can lead to repeat business.

Step 8: Secure All Necessary Permits and Licenses

To be able to operate your landscape supply business legally, there are a number of different licenses and permits you may be required to obtain.

Seller’s Permit

A Seller’s Permit — which goes by many different names depending on the state — is a crucial requirement for any landscape supplies business since it’s mandatory for the selling of almost any good or service.

This permit is necessary to be able to collect sales tax from your customers and then remit it to the tax authority in your state. Operating without this permit not only prevents you from being able to lawfully do this, but can also lead to penalties and fines for non-compliance.

Zoning Permit

Depending on the regulations of the area you plan to base your business in, it will likely need to obtain a zoning permit. This essentially just demonstrates that your business is operating in an area that is properly zoned for the commercial activities it plans to undertake.

This permit is particularly relevant for a business selling landscaping supplies because such operations often involve unique land use requirements that must align with local regulations.

Environmental Compliance Permits

Due to the potential environmental impact of the materials your landscape supply business will store (e.g., chemicals, soil, gravel), you will likely need to secure some sort of environmental compliance permits.

For example, since the bulk stores of soil, mulch, sand, and gravel at your store can create runoff during rainstorms that contaminates nearby water sources, an environmental permit would likely be needed to ensure that this is properly managed.

Signage Permits

A signage permit is a local government approval which regulates the size, type, and placement of signage to ensure compliance with local ordinances.

If you plan to display any physical signs advertising your business you’ll likely need one this permit to be able to do so legally in certain locations.

Each local government may have its own rules on where and how signage can be displayed, so it’s important to ensure compliance to avoid disruptions in your marketing efforts.

Step 9: Get Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most landscape supply businesses should consider.

We’ve briefly outlined these below.

General Liability Insurance

General liability insurance is a foundational coverage that’s essential for landscape supply businesses because it protects against claims of bodily injury, property damage, and personal injury that may occur on-site.

An example of this might be if a customer slips and falls on wet gravel in the supply yard, injuring themselves. If the customer decided to file a claim for medical expenses and damages, this policy would cover the legal fees and compensation costs, protecting you from paying out of pocket.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Commercial Property Insurance

Commercial property insurance is essential for safeguarding against any damage that may be suffered by your business’s physical assets — such as its buildings, inventory, equipment, and storage facilities.

The median cost for business property insurance is approximately between $40 and $170 per month for plans with policy limits of $100,000 or greater.

Having said that, rates can vary significantly based on factors such as your business’s location, risk profile, and the value of the property in question.

Commercial Auto Insurance

Commercial auto insurance is another must for most landscape supply businesses, given that it covers damages, liability, and other costs associated with accidents in the vehicle you’ll use for jobs.

This type of insurance is essential for businesses that rely on vehicles and is more comprehensive than personal auto insurance, as it is tailored to commercial-related use.

Without commercial auto insurance, an accident could lead to significant out-of-pocket expenses for repairs, medical bills, or legal fees, which can be detrimental to your small business.

While specific figures can vary greatly depending on the number of vehicles your business owns, the driving history of your employees, and your coverage limit, it will typically cost small businesses between $100 and $500 per month.

Workers’ Compensation Insurance

If your landscape supply business will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.

This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.

The average cost of workers’ compensation insurance ranges between $45 per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.

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How to Start a Landscape Supply Business FAQs

Who is the target market?

A landscape supply business typically serves two primary markets: commercial and residential customers.

Commercial landscapers place larger, more frequent orders and are likely to generate the bulk of sales, while residential customers typically place smaller, less frequent orders, but are essential for building a loyal customer base and reputation.

How does a landscape supply business make money?

A landscape supply business earns revenue by selling materials such as mulch, gravel, pavers, and plants. It also generates income from selling lawn and garden tools and offering related services to both commercial landscapers and residential customers.

How much can you charge customers?

Pricing depends on material volume, market rates, and local competition. For example, gravel can range from $45 to $100 per ton, and mulch typically costs $25 to $75 per yard.

To maintain profitability, businesses may charge service fees for deliveries and focus on selling specialty items for additional profit.

How much profit can a landscape supply business make?

Due to the relatively high operating costs of this industry, a landscape supply business will typically earn a profit margin of around 15% to 20%.

For established businesses with regular commercial contracts and residential retail sales, this should equate to a profit in the $50,000 to $75,000 range, with the potential to make much more as your business grows.