Originally Published: Dec 5, 2016
Thinking about starting a landscaping business in Ontario? You can start small with basic lawn care or build a company that offers a full range of landscape services.
The key is to start with a clear plan. You need to decide what services you’ll offer, understand your startup costs, choose a business structure, and register your business.
This step-by-step guide covers the main things you need to know to start a landscaping business in Ontario and turn your skills into a successful business.
Is Landscaping a Good Business to Start?
Landscaping can be a good business to start for an entrepreneur who enjoys working outdoors and wants the flexibility to begin on a smaller scale. There is ongoing demand for lawn care, garden maintenance, seasonal cleanups, and other property services from both homeowners and businesses.
Startup costs can also be flexible. A lawn care business may begin with equipment you already own, while a larger company offering new landscaping installations may require more investment. This gives business owners the option to start with a few services and expand as demand increases.
Like any small business, success is not guaranteed. Your local competition, pricing, operating costs, seasonality, and quality of service will all affect whether you can build a profitable business.
1. Decide What Landscaping Services You’ll Offer
Before starting your landscaping business, decide what type of work you want to do. You do not need to offer every service right away. In fact, starting with a smaller list can make it easier to control costs and build experience.
Common landscape services include:
- Lawn mowing and lawn care
- Garden maintenance and weed control
- Spring and fall cleanups
- Planting and garden design
- Sod installation
- Mulching and edging
- Property maintenance
- Landscape design and installation
The equipment you need depends on the services you plan to offer. It also depends on the size of the property and the clients you want to attract.
For example, a landscaper working with homeowners may only need a mower, trimmer, blower, and basic hand tools to get started. Larger landscaping projects or commercial properties may require a truck, trailer, and more expensive equipment.
You can always consider offering more services as your business grows.
Plan for the Landscaping Off-Season
Ontario’s landscaping season can slow down once winter arrives, so think about how your business will operate throughout the year. Many landscaping businesses add seasonal services such as snow removal, salting, fall cleanups, or spring garden preparation. These services can help provide income during periods when there is less demand for lawn care.
You do not have to offer every service. The right approach will depend on your equipment, experience, and the type of landscaping work you want to provide. For example, a landscaper who already owns a truck may be able to add snow removal more easily than someone who focuses on basic landscaping services for small residential properties.
Planning for seasonal changes can help turn landscaping from a summer job into a more stable and profitable business. As your customer base grows, you may also find that existing lawn care clients need other property maintenance services throughout the year.
2. Create a Landscaping Business Plan
A business plan helps you turn your idea into a practical roadmap. It does not need to be long or complicated, especially if you are a new entrepreneur starting a small business. Your plan should cover the services you’ll offer, your target market, start up costs, pricing, and how you plan to attract customers.
Many landscapers start with a small number of services and expand as they gain customers and experience. Planning ahead can help you decide where to spend your money, which customers to target, and what you want your new landscaping business to become.
Think about the customers you want to serve. You may focus on homeowners who need regular lawn care services or target property managers and commercial clients that need ongoing maintenance services.
It is also helpful to research competitors in your area. Look at other landscaping companies and see what they offer, who they serve, and how they price their services. This can help you find opportunities in your local market.
When setting prices, remember to account for more than your time. Your hourly rate or project price also needs to cover fuel, equipment, supplies, insurance, travel, marketing, and other business expenses.
3. Calculate Your Landscaping Business Startup Costs
Startup costs can vary widely when starting a landscaping business. If you already own a vehicle and some basic tools, you may be able to start with a small investment. A larger landscaping company could require much more.
Make a list of the equipment you need before you start buying. For a basic lawn care business, this could include:
- Lawn mower
- String trimmer
- Leaf blower
- Hand tools
- Safety equipment
- Fuel containers
- Vehicle or trailer
More advanced landscape work may require expensive equipment like commercial mowers, aerators, compact loaders, or excavators. You do not always need to buy these items. Renting equipment for specific jobs can help keep your start up costs lower and profit margins higher.
If you need help paying for equipment, you may also consider a business loan, line of credit, or equipment financing. Eligible businesses may be able to access financing through programs such as the Canada Small Business Financing Program.
Avoid buying equipment simply because you may need it someday. Start with the right equipment for the work you currently offer and add more as your business grows.
4. Choose a Business Structure for Your New Landscaping Business
Before you register your new business, you will need to choose a business structure. Many landscaping contractors in Ontario choose between a sole proprietorship business license and a corporation.
A sole proprietorship is generally the simplest option for one person starting a business. The business and owner are not separate legal entities. This makes the business easier to set up, but it also means the owner can be personally responsible for its debts and obligations.
A corporation is a separate legal entity. Incorporation may provide benefits such as limited liability and more options for tax planning. However, corporations also have more setup costs and ongoing filing requirements.
There is no single option that is right for every landscaping business. Think about your expected income, liability, plans to hire employees, and how large you want the company to become.
If you are unsure which structure is right for you, speaking with an accountant or lawyer can help.
5. Choose & Register Your Business Name
Your business name is an important part of your brand. A good name should be easy to remember and help customers recognize your landscaping company.
Before choosing a name, check whether similar names are already being used. This can help you avoid confusion with other landscaping companies before you spend money on a website, signs, uniforms, or vehicle graphics.
Once you have chosen your structure and name, you can register your business.
When you start a landscaping company, registration requirements depend on the structure you choose and where the business is located. A landscaping business in Canada may be registered provincially, while corporations also have the option of federal incorporation. If you are starting a business in Canada but will operate primarily in Ontario, it is important to understand which registrations apply to your situation.
If you operate your business as a sole proprietorship in Ontario under a name other than your own legal name, you will need to register that business name.
If you choose to incorporate, you can create an Ontario corporation or a federal corporation. Each option has different naming and filing requirements.
Ontario Business Central can help you register your Ontario business or incorporate your landscaping company. Once your filing is complete, you will receive the official registration or incorporation documents for your business.
6. Check Licenses, Permits & Business Insurance Requirements
There is no single Ontario licence required for every landscaping business. The licences and permits you need will depend on where you operate and the services you offer.
Check with your local municipality before you launch your landscaping business. Some types of work in the landscaping industry may have additional rules. Services involving pesticides, certain construction work, electrical work, or other regulated activities may require permits, licences, or qualified professionals.
Business owners need to think about how they will protect themselves, their equipment, and their customers. Landscaping work often involves customer property, vehicles, tools, and heavy equipment, so having appropriate business insurance is an important part of managing risk.
General liability insurance can help protect your business against certain claims involving injuries or property damage. You may also need commercial vehicle insurance or coverage for your tools and equipment.
If you plan to hire workers, additional employment and workplace insurance requirements may apply. An insurance professional can help you determine what insurance coverage makes sense for your business.
7. Set Up Your Business & Tax Accounts
Depending on your business structure and activities, you may need to set up accounts with the Canada Revenue Agency.
A Business Number is used to identify a business when dealing with certain federal tax and government programs. You may also need to register for GST/HST based on your taxable revenue and circumstances.
If you hire employees, you may need a payroll account and will have responsibilities for payroll deductions and remittances.
Good recordkeeping is also important from day one. Keep track of your income, equipment purchases, fuel, supplies, insurance, and other expenses.
Keeping your business finances separate from your personal spending can make bookkeeping and tax time much easier.
8. Find Your First Landscaping Clients
Once your business is ready, it is time to find customers. Fortunately, landscaping jobs can be very visual, which gives you plenty of ways to promote your business.
Start with a simple website and social media profiles that show the services you offer and the areas you serve. Before-and-after photos are a great way to show potential new clients the quality of your work.
You can also use marketing strategies like:
- A Google Business Profile
- Local social media groups
- Lawn signs
- Vehicle graphics
- Online advertising
- Flyers and door hangers
- Customer referrals
Word of mouth can be especially valuable for a local landscaping business. A homeowner who is happy with your work may recommend you to friends and neighbours, which can be more valuable than many marketing efforts.
You can also build relationships with real estate agents, contractors, landlords, and property managers. These connections may lead to referrals or ongoing property maintenance work.
9. Grow Your Landscaping Business
You do not need a large crew or expensive equipment to build a successful landscaping business. Many new landscaping businesses start small and grow as they gain customers.
Pay attention to which services make the most money and which ones lead to repeat business. This can help you decide where to invest your time and money.
As demand increases, you may choose to buy better equipment, hire employees, or expand the types of services you offer. You may also move from basic lawn care into larger landscape projects or commercial work.
Good service is just as important as great landscaping. Showing up on time, communicating clearly, and doing reliable work can help turn first-time customers into long-term clients.
Questions About Starting a Landscaping Business
How Much Does It Cost to Start a Landscaping Business in Ontario?
There is no set amount. Your start up costs depend on the services you offer and the equipment you already own.
Someone starting with basic lawn care and an existing vehicle may have fairly low costs. A business that needs a truck, trailer, commercial mower, and other equipment will require a larger investment.
Do I Need a Licence to Start a Landscaping Business in Ontario?
There is no single province-wide licence for all landscaping companies. However, your municipality or the specific services you offer may have additional licences, permits, or rules.
Check local requirements for residential or commercial properties before you begin offering services.
Do I Need to Register My Landscaping Business?
It depends on how your business is structured and the name you use.
An Ontario sole proprietor operating under a business name will need to register the name. If you want to operate as a corporation, you will need to complete the incorporation process.
Should I Incorporate My Landscaping Business?
Incorporation may be worth considering if you want limited liability, expect the business to grow, plan to hire employees, or want the other benefits of operating through a corporation. However, a business name registration is simpler and may make sense for someone starting small.
What Equipment Do I Need to Start a Landscaping Business?
It depends on the services you offer. Basic lawn care may only require a mower, trimmer, blower, hand tools, safety equipment, and transportation. As you take on larger jobs, you can add or rent specialized equipment based on your business needs.
How Do I Get My First Landscaping Clients?
Start by making your business visible in the community. Create an online presence, promote your services locally, and ask satisfied customers for referrals.
Photos and reviews can be especially useful. They allow potential customers to see examples of your work before contacting you.
Ready to Start Your Landscaping Business?
Starting your own landscaping business can be a great way to turn practical skills into a growing company. Start by deciding what services you want to offer, creating a business plan, setting a realistic budget, and choosing the right structure.
Once you are ready to make your business official, Ontario Business Central can help.
Whether you want to register a sole proprietorship, incorporate in Ontario, or create a federal corporation, Ontario Business Central has been helping small business owners for 30 years to register their businesses online and get the documents they need to get started.
Ready to start your landscaping business? Register or incorporate with Ontario Business Central today.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended when you have legal or accounting questions, that you speak to a qualified professional.
