Lawn selling and laying business

* The calculations use the average data for the World

Landscaping today is becoming increasingly widespread, many individuals and even companies are interested in improving their territory. One of the areas is landscaping, and most often resort to the use of artificial or natural lawn. Modern technology allows you to sell the lawn in rolls, so that you can transport the finished planting and easily plant it. Such a direction can be a very effective start of your own business, developing which you can reach quite large profits. Moreover, the sale and laying of the lawn may become the development of an existing landscape design business or independent entrepreneurship, which is interesting for beginners.

Due to the relative simplicity of this business, more than one lawn-laying company is already operating in many cities. In this regard, a relatively high level of competition can be expected, and therefore the entrepreneur must carefully study the market and the proposals of competitors. Even in this direction there are peculiarities and differences in work; many companies offer only retail sale of rolled lawn, but do not offer laying work and especially design. There are also differences in the quality of the lawn, so you can occupy different price categories, looking for a consumer specifically for your product. The lawn can also be supplied not only in rolls; the service of planting the territory with natural grass may be relevant, while offering consumers different grasses and opportunities. And, finally, not all companies are engaged in after-sales services, although in most cases this turns out to be a very good additional source of income, because if you do not take care of the lawn, all the time and effort spent will be wasted. Providing as many services as possible can be difficult in the early stages of doing business, but will provide an important competitive advantage. Therefore, it is very important to conduct a full analysis of supply and demand before the start, assess the opportunities that arise and identify threats and difficulties.

To get started, you need to register as a business entity in order to be able to use the simplified taxation system, it is better to register as an individual entrepreneur, but if there is a need to register a legal entity, it is easier to register a limited liability company. In either case, it will be possible to transfer to the state’s benefit no more than 6% of revenues or 15% of operating activities. Any special permits directly to the landscape planning are not required, only if construction work is not supposed. In this case, you have to join a self-regulatory organization through which you can obtain permission to carry out your work. The activity itself falls within the definition (OKPD 2) 81.30 Landscape planning services, although other classifiers may be used depending on the services offered.

Next, you need to find a place for your own office. Optimally located in the central areas of the city, it will be convenient for most customers. A relatively small office may be required only for working with clients, but if it is supposed to provide a large range of diverse services, then premises for storing inventory are needed. You also need to allocate a place to store products, which will be a lawn in rolls or planting material. Therefore, you should count on a few tens of square meters, and in some cases at least 100 m2 will be required. Renting premises in the city center can be very expensive, so you should think about the possibility of opening a small office and renting a warehouse on the outskirts of the city. Thus, significant savings can be made. The amount of rent depends heavily on the city itself and the location in it, so it’s difficult to give exact numbers here. In the end, some companies are also engaged in the cultivation of the finished lawn in order to deliver it in rolls to the client. This will require the rental of a large area of ​​land and the arrangement of full-fledged greenhouses, which entails additional financial investments. As a result, monthly expenses for rent can be very small (if only a representative office is opened, and most of the work is done by outsourcers), and very significant when renting warehouses, greenhouses and an office. If possible, premises and territory can be redeemed or rented only as an office, in which case the starting investment grows several times, but then you do not have to spend money on rent, and in case of failure you can sell your own real estate or start renting it yourself for rent.

The premises will almost certainly require special repairs, as well as the purchase of furniture. If greenhouses are needed, then their equipment may require several hundred thousand rubles, depending on the size and configuration. That is, there is also a fairly wide range of funds for expenses, because if you manage only with a small office, you can make cosmetic repairs for 100 thousand rubles, buy computers and peripheral equipment, as well as furniture. Greenhouses will need several times more, if not several tens of times more. Technical rooms and warehouses are usually leased in ready-made condition, so no additional investments are required.

Depending on the format of work, a certain staff of employees will be required. If you have to work only with outsourcing companies, it is enough to hire employees who will be engaged exclusively in administrative and organizational work, interact with customers and suppliers, work with documents and negotiate. However, in most cases, it will require the search for specialists in various fields.

First of all, it is the performers who carry out the laying of the lawn, its maintenance and preparation. This requires not only ordinary workers, but also managers, as well as people who know how to handle plants and properly care for them. Next, you need to find a phytodesigner who will be engaged in the design and preparation of the project, several people will probably be required in this area, and it should be noted that it is sometimes difficult to find highly qualified personnel in this direction. Followed by greenhouse workers, if you plan to grow a lawn yourself, workers like the face like not only plant breeders, but also technicians and other maintenance personnel.

If possible, people are attracted who are able to engage in the selection and breeding of new plant varieties and in order to increase the efficiency of their own production. Typically, to work in a business in this area requires a fairly large staff. Therefore, several dozen people can work at the enterprise at once.

However, it should be noted that all business processes that are not related to profit-making by an organization should be outsourced. This includes bookkeeping, tax and legal advice, comprehensive cleaning of premises and territories, as well as ensuring safety and security. To do this, it is better to contact a private security organization that will carry out an alarm, install a fire system, and several security guards can be on duty at the enterprise if necessary. Work with outsourcing companies is also possible if the enterprise itself does not intend to deal with laying a lawn or carrying out landscaping, including the creation of design projects. Outsourcing, especially at the first time of work, can significantly reduce maintenance costs while offering customers the most comprehensive list of possible services.

The next stage is the search for suppliers of finished products. This applies primarily to suppliers of rolled lawn, because in most cases it is advisable to produce it only when there is a large volume of production, a company that sells and sets lawns directly to end consumers usually works with wholesale suppliers and works only in retail. Many companies also sell related products, such as fertile soil or fertilizers. For laying the lawn, they mainly use bluegrass and fescue grass. Varieties can be different depending on the purpose of the lawn, because they distinguish between a lawn that is shady, sun-loving and universal, although each company itself forms its product range using various lawn options and combining them. You also need to think about your pricing policy, and many companies offer a lawn for customers with different financial capabilities, bringing it even from other countries to wealthy customers.

It is also necessary to consider the possibility of opening your own store selling finished products, people often buy the same rolled lawn for further laying with their own hands, so the creation of a outlet can be relevant. There you can sell all related products and directly contact consumers. However, sometimes it is much easier to carry out the sale of products directly from the office or even deliver home to consumers. If an entrepreneur also wants to engage in small wholesale or wholesale sales, then he needs to find partners for doing business. Implementation of a rolled lawn is possible in garden supplies stores, and large batches of goods can be shipped to all similar points in the city or you can accept delivery requests from partners.

Also, customers are interested not only in the sale of the lawn or its planting, but also in the full development of the design project. Moreover, such a direction can bring even much more profit than directly selling the lawn itself. Landscaping involves not only determining the location of the lawn and the volume of its use, but also designing the entire territory, which requires the purchase of additional goods. In this direction, the provision of construction services may be relevant, and this is primarily the equipment of the drainage system. An unprepared site in the end will not be able to be a place to place a lawn that will disappear at the first temperature fluctuations.

If a client orders grass sowing, then specialists who determine the soil parameters, select the most suitable plants and go on a long process of growing the lawn leave for the place. It is much easier to lay a rolled lawn, but even in this case special technology is required. Sometimes it is necessary to fertilize the soil or even make a more fertile layer of the earth. Specialists in landscape design develop a complete project, so they act from the very beginning of work on the order. It should be noted that such a business is somewhat seasonal in nature, although sometimes a rolled lawn is delivered to the territory only for a short time, for example, for one-time events. It often uses a lower-quality lawn, which should not take root on the ground, so the client is spared the need to buy expensive material. Most often, the clients of such firms are companies that wish to improve their territory; requests may also come from parks that need quick restoration of damaged grass. If there is a golf club or other sports club in the city of work, the grounds of which should be covered with a lawn, then you can count on the orders of an expensive lawn that has certain characteristics.

The entrepreneur also earns on subsequent site maintenance, although in most cases a high-quality rolled lawn can do without complicated maintenance for several months or even a year. However, sooner or later renewal of the soil or plants will be required, during the operation the characteristics of the lawn cover may change (which is most important for sports facilities), and not every company or individual has sufficient knowledge or a desire to deal with the maintenance of the territory. Therefore, the organization engaged in the sale of the lawn has every opportunity to receive additional profit due to after-sales service.

Thus, the company earns by providing a sufficiently large list of services. Selling directly the lawn itself is not always the main source of income, because the price of one square meter of material is usually lower than the cost of work for the same area. The company can offer a wide variety of landscape works - from simple garbage collection to planting trees, fertilizing the soil and cleansing of parasites.

The cost of the lawn for the consumer starts from about 100 rubles per square meter, but this is the cheapest and low-quality grass. Special varieties are somewhat more expensive, but they have special properties - they are resistant to weather events and are less affected by parasites. A special elite lawn is completely restored quickly after it has been accepted by transport or people, it has a uniform color, it is much easier to service it to the client. The most expensive lawn can cost up to 1000 rubles per square meter. The work costs a different amount for the client. Simple garbage collection - up to 100 rubles per square meter, but aeration or fertilizing will require the client to pay several thousand rubles for the entire same area, and this does not include the cost of materials.

However, landscape design can be even more expensive for a client; usually companies make a significant discount in terms of one square meter if the project is designed for a sufficiently large area. However, here the amounts are also estimated in thousands of rubles, and therefore a plot of 100 square meters can bring the company several tens of thousands of rubles, depending on the complexity and thoroughness of the study. Thus, the organization works with completely different orders, because the client can only come for a simple lawn roll, or he can order comprehensive design, planning and laying work, which will bring the company a good amount. At the same time, do not forget about further maintenance of the territory.

Such a line of business may be of interest to those who are versed in crop production or want to care for plants. Design companies can also use this idea as an extension of their business, because many private homeowners want to make their territory beautiful and neat, and among legal entities the demand for such services is constant.

A small capital (several hundred thousand rubles) may be required to start, if it is planned to open only a point of sale for a rolled lawn, or a very large investment of several million (opening and equipping greenhouses, warehouses, purchasing appropriate equipment). In addition, funds are needed for an advertising campaign, and here it will not be superfluous to create your own site on which you can post all the information about yourself. To increase the number of visitors, you can contact the special companies that are involved in website promotion.

Matthias Laudanum

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08/18/2019


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