Is A Gardening Business Profitable? | upcover

The gardening services industry in Australia is valued at over $3 billion dollars and employs nearly 42,000 people. Offering gardening services can be highly profitable if the business is run correctly. There is no shortage of work. Millions of residential homes and commercial businesses require gardeners to care for plants and trees on their property. If you are considering starting a gardening business, it’s critical to understand if this business type can be profitable.

Is A Gardening Business Profitable?

Most gardening businesses charge approximately $45 per hour for their services. This amount can vary depending on the types of services being performed and the location. Specialised services performed in major cities like Sydney or Melbourne may be able to charge their clients up to $75 per hour. It’s reasonable to expect the average gardening business to bring in between $90,000 and $125,000 in revenue each year.  

These earnings are before taxes and expenses. In addition to the salary you pay yourself, the net profit margin according to industry experts can fall between 5 and 20 percent. When all is said and done, the business owner of a sole proprietorship can expect to earn a salary between $70,000 and $95,000 per year. 

How To Maximise Profits For Your Gardening Business

Each gardening business will have its own unique challenges and opportunities. Some businesses may be more or less profitable than others. Fortunately, there are some simple things that you can do to maximise your profits. 

• Keep A Tight Schedule - In many cases, gardeners quote set rates to their clients (for example, $200 a week to maintain outdoor flowerbeds and trees). The more efficiently you work, the higher your hourly rate will be. This is especially important to track if you have employees who work at an hourly rate. 
• Do More Billable Work - The time you spend working in your business or doing administrative tasks can’t be billed to your clients. Your goal should be to spend as many of your working hours as possible completing billable work. It may be advantageous to hire others (like a bookkeeper) to help with those administrative tasks. 
• Purchase Quality Tools And Equipment - Low-quality tools and equipment may have a lower upfront cost, but they will wear out quickly, ultimately leading to higher costs. Instead, invest in good quality tools that will last a long time.
• Track Margins - Some activities will generate higher profit margins than others. By tracking profit margins on each job, you can focus more on providing those higher profit services. 
• Hire More Gardeners - There are only so many hours in the day. You will be limited by how much you can physically do. However, hiring additional gardeners will allow you to take on more work and generate more profit.  

Don’t Risk The Profits Of Your Gardening Business

Well managed gardening business can generate a lot of profit. As the business owner, you need to make sure these profits are protected. A lawsuit or claim against your business can have serious financial consequences. At upcover, we’re here to help you through the process. Check out our instant quote generator, where you can get an estimate on market-leading insurance in seconds! Simply enter your occupation and expected revenue to get started.

‍