Start & Run a Landscaping Business. Joel LaRusic

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      Let’s face it: Starting a business takes money. And while it is true that you don’t have to buy everything for your landscaping business right away, ideally you’ll have enough basic equipment to cover a variety of jobs. Without sufficient capital at the start, running your business may quickly become tiresome and stressful. You need to consider funding sources and develop your business plan.

      1. Financing Options

      The money you need for your business can come from a variety of sources. Keep in mind, though, that you should always be careful of debt and work hard to keep it under control. If you borrow, borrow only what you need and when you need it.

      1.1 The bank of Mom and Pop

      If you are just starting out in the world of business, your best bet for securing needed funds may be your parents, other relatives, or friends. Use good judgment when borrowing from family and friends. Friends are forever, but money can be gone tomorrow, and if it’s not paid back, it can wreck your relationship. If you do borrow, prepare a promissory note that details the terms and conditions of your arrangement.

      1.2 Personal loans

      If close relatives are not an option and you have decided (probably wisely) not to borrow money from your friends, a personal loan from the bank may be your answer. Good credit is required, as is collateral. Your lawn care equipment will probably not be sufficient for collateral (unless you have some particularly large and costly pieces of equipment), but vehicles are good collateral if you own them, as are stocks, bonds, and other assets that can be liquidated. Equity in your home is like gold.

      1.3 Business loans

      A business loan is another option, but bear in mind that banks do not loan money based on a great idea, no matter how well documented it is. Like a personal loan, a bank loan must be secured somehow. The bank will want you to provide your business forecast, business plan, cash flow summary, list of assets, and more. After that, it is still going to want to see collateral, and it will ask you to prove your commitment to the project by supplying a significant portion of the required investment. For these reasons, I recommend that you ask for a personal loan instead of going through the hoops for a business loan.

      If you have incorporated your business and are planning to apply for a loan in the name of the business because you are “protected,” you may want to reconsider. The bank will ask you to personally guarantee the loan, and you’ll have to jump through many hoops to get the money you want. Again, you’re probably better off seeking a personal loan.

      On the other hand, if you have been in business for a while and have built up a reputation, business assets, and some healthy and steady receivables, then a business loan may be just the thing you need when you are ready to expand or buy the next piece of equipment.

      1.4 Help from the government

      If the bank won’t come to your assistance, you should check out government departments and agencies that support small business. These organizations will require paperwork too, but not as much as the banks. They tend to be more sympathetic to small business and are worth investigating. Even if you don’t get financing, they offer a lot of information that can help you in other ways.

      • In the United States, go to the Small Business Administration website at www.sba.gov. Its stated mandate is to help small businesses succeed.

      • In Canada, check out the Business Development Bank of Canada at www.bdc.ca. It was established by the federal government specifically to help companies that were having trouble securing financing for their operations.

      In either case, be prepared with your well-thought-out business plan.

      2. Your Business Plan

      To decide how much money you need now and in the future, you have to do some planning, and that entails writing a business plan. You probably don’t want to do this work because you’re raring to get moving. As well, you may believe you already have a plan in your head, but that is not enough. I can’t overemphasize the importance of having a written business plan. Too many would-be entrepreneurs overlook this step.

      Having a business plan is particularly important if you plan to get outside financing for any part of your business. Your business plan will answer questions such as:

      • How much money do you need and what do you intend to spend it on?

      • When do you expect to start making a profit in your company?

      • Will the company be able to afford loan payments?

      Even if you do not require outside financing, the business plan will provide much-needed direction and focus. It will force you to think objectively and critically about the future of your company. For example, you should answer questions such as:

      • What services will I choose to offer?

      • How big do I want to grow my company?

      • What are the keys to the success of my business?

      By stating clear goals in a business plan, you will be able to measure your success and make changes as necessary. Without the goals, you will have no way to measure how your business is progressing or determine when to make changes. Many businesses fail due to poor planning; don’t let yours be one of them.

      Writing out your plan will provide a stimulus for further creativity. You’ll likely discover areas of your business that you have not thought about yet. Developing your plan will compel you to think ahead, think deeper, imagine different scenarios, and visualize your dream. The end result will be a sharper focus, a clearer sense of direction, and increased determination.

      Find some sample business plans to review. Then put pen to paper and start on your own plan, making sure you include the sections described below.

      2.1 Executive summary

      The executive summary is the overview. It contains three important subsections:

      • Mission statement. The mission statement should define what kind of business you are in, set out goals relating to the quality of your service, and perhaps briefly summarize your competitive advantage.

      • Objectives. You should list three or four measurable items that you feel are the objectives of your company. These points will give you and your employees a focus as you grow.

      • Keys to success. These points spell out how you will ensure that you meet your objectives. If one of your objectives is to provide exceptional customer service, then one of the keys to success will indicate how you intend to do this.

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