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When an outdoor space is functional, beautiful, and thriving, chances are a skilled landscaper has played a key role in bringing it to life.
Landscapers design, implement, and maintain outdoor areas like parks, gardens, lawns, and more. If you’re a landscaper, you know it’s a profession that blends creative vision with hands-on, physical work. Great landscapers have the ability to transform spaces, which is why they’re often in high demand.
If you’re considering turning your passion for landscaping into a business, you’re in the right place. Starting a landscaping business requires more than just talent – it’s essential to protect your business legally, so you can focus on your craft without any concerns.
Are Landscaping Businesses Profitable?
Landscaping businesses have the potential to be profitable however, your success will depend a lot on how you manage your business. Generally, there’s a high demand for landscaping services, for both commercial and residential landscaping. There’s a good chance of attracting repeat customers, as outdoor spaces require ongoing maintenance. This can lead to stable growth, making landscaping a scalable business.
That said, your landscaping business’s success won’t just depend on how great your services are. Effective business management plays a critical role in establishing and maintaining a profitable landscaping business.
How Do You Start Your Own Landscaping Business In Australia?
A landscaping business doesn’t just happen – it takes research, training and planning to have your very own landscaping business. It’s a good idea to have some expert legal guidance along the way, so you don’t miss anything important.
Create A Business Plan
The first step towards starting any business is creating a good business plan. A business plan contains the vision you have for your landscaping business, long-term and short-term goals, financial plans, market research and much more – having all your notes in one place is a great way to stay organised.
If you want to know more about writing a business plan, check out our article: How To Start Writing A Business Plan.
Get Qualified And Licenced
Next, it’s crucial to ensure you have the necessary qualifications and licences before starting your landscaping business. The specific qualifications and licences required vary by state, so it’s important to check the regulations that apply in your area. In many cases, a Certificate III in Landscape Construction may be needed, along with a contractor’s licence, particularly if you’re providing landscape construction services like paving or building retaining walls.
Register Your Landscaping Business
Once you have clarity on the direction you want to take your business in and are confident you’ve got the right qualifications and licences, it’s time to register your landscaping business.
To register your business, you will need to decide on a business structure. In Australia, three of the most commonly registered business structures are a sole trader, partnership and company.
Register A Sole Trader Or Partnership Business
Sole trader and partnership businesses are similar to one another in terms of their registration process and legal protections.
To register your landscaping business as a sole trader, you will need to apply for an Australian Business Number (ABN) and register a business name, unless you plan on using your personal name as your business name. These two steps can be completed online and are relatively simple – after that, you’re all set to operate as a sole trader (don’t forget to register for the relevant taxes).
Despite the easy registration process, sole trader businesses provide very little legal protection. When you register as a sole trader, the business is attached to you personally. Without any legal separation between you and your landscaping business, your personal assets could be at risk if the business falls into trouble.
The same advantages and drawbacks exist for partnership business structures. In a partnership, the partners need to simply apply for an ABN for the business and register a business name — unless they meet the exception of using their personal names. Partners might also take the additional step of securing the terms of their partnership in a Partnership Agreement. However, the business will still be legally attached to all the partners, potentially putting all of them at personal risk if the businesses face financial trouble.
Register As A Landscaping Company
For better legal protection, it’s often recommended to register your landscaping business as a company. Unlike sole traders or partnerships, a company is a separate legal entity, meaning your personal assets are typically protected if the business faces financial or legal issues. As a result, you’ll have limited liability, which reduces the risk to your personal assets in case the company encounters trouble.
If your landscaping business is a serious venture, registering it as a company can be a smart move. However, it’s wise to seek legal help during the registration process. Companies in Australia are regulated by the Australian Securities and Investments Commission (ASIC), and there are various rules and regulations you’ll need to comply with when registering. Additionally, key decisions, such as selecting your company structure, governance, and officeholders, are made during the registration process, making expert guidance essential to get it right.
What You Need For A Landscaping Business: Legal Edition
In addition to registering your business correctly, there are several other legal considerations when starting a landscaping business. It’s crucial to protect your assets, maintain clear communication with third parties, secure your revenue streams, and ensure your business operates at a high standard. By addressing these areas, your landscaping business can remain legally compliant and well-protected, allowing it to function smoothly.
To achieve this, it’s essential to have the right legal documents in place. The specific contracts and agreements you’ll need will depend on your business operations, but here are a few key ones to consider:
- Service Agreement: A contract between you and your clients outlining the scope of services, payment, duties and obligations of each party
- Employment Agreement: When you have employees, an employment agreement is necessary to clearly communicate the terms of employment such as role description, wages, breaks, superannuation and leave
- Non-Disclosure Agreement (NDA): NDA’s are integral when it comes to protecting your landscaping business’s confidential information
- Workplace Policy: Keeping workplace standards compliant with regulations is key to smooth operations. A workplace policy helps communicate processes, roles, and responsibilities.
- Website Terms and Conditions: If you have a website, a T&C’s document can help make sure you have the necessary controls, help protect your ownership and limit your liability
- Privacy Policy: If your landscaping business’s website collects any kind of information from it’s users, then a privacy policy is required to be compliant with Australian privacy laws
How To Advertise My Landscaping Business
Marketing and advertising are essential to promoting your landscaping business, with many avenues available depending on your goals and resources.
In Australia, it’s important to ensure your advertising complies with regulations. The Australian Association of National Advertisers (AANA) Code of Ethics governs advertising standards, and the Australian Consumer Law (ACL) provides guidelines on advertising, marketing, and pricing. Staying compliant with these rules helps protect your business from fines and reputational damage. Understanding your legal obligations upfront is key to avoiding potential issues down the road.
What Other Laws Apply To My Landscaping Business?
Other than marketing laws, a few other regulations you will need to look out for include:
- Australian Consumer Law (ACL)
- Employment Law
- Industry Specific Regulations
- Local/State Laws
- Intellectual Property Law
Chatting with a legal expert will give you a better idea of how your specific landscaping business can be compliant with the relevant regulations, so don’t hesitate to reach out.
Key Takeaways
Starting a landscaping business can be an exciting new venture, however it’s important to take care of the legal aspects of your business. To summarise what we’ve discussed:
- Landscaping businesses can be profitable due to high demand for both residential and commercial services, but effective business management is essential
- Start by creating a detailed business plan outlining your goals, financial plans, and market research
- Obtain the necessary qualifications and licences, which may vary by state, such as a Certificate III in Landscape Construction and a contractor’s licence
- Decide on a business structure (sole trader, partnership, or company), with a company offering better legal protection but more complexity
- Ensure your business has the necessary legal agreements, including Service Agreements, Employment Agreements, and Workplace Policies, to protect your operations
- Adhere to advertising and marketing laws, including the AANA Code of Ethics and Australian Consumer Law, to avoid legal issues
- Other applicable laws include Australian Consumer Law, Employment Law, and industry-specific regulations, making it important to seek legal advice
If you would like a consultation on starting a landscaping business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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