Why Do Most Landscaping Businesses Fail Within 18 Months, and What Can You Do About It?

Why landscape business fail

Why Do Most Landscaping Businesses Fail Within 18 Months, and What Can You Do About It?

Here’s a brutal truth – 70% of landscaping businesses fail before hitting the 18-month mark according to the 2024 State of the Landscape Labor Market report. No profit, no business. It’s that simple.

While business owners often have great horticultural skills and plenty of passion, they’re missing THE MOST important thing – basic business fundamentals. The numbers tell the story:

  • 70% can’t handle their finances properly
  • 40% jump in without knowing their industry
  • 30% have no real marketing strategy

These aren’t just statistics – they’re real businesses going under because they ignored the basics. In this article, we’ll show you exactly how to avoid becoming another statistic.

The truth about today’s landscape industry

Yes, projections show the U.S. market hitting USD 229.79 billion by 2030, growing at 3.89% yearly. North America owns 47.55% of the global market.

78% of landscaping businesses hit their revenue goals in 2023, and 65% earn over USD 1 million annually. But don’t let these numbers fool you. Approximately 70% of landscaping businesses still close within their first five years.

Landscaping businesses use different models to succeed. About 80% of companies provide general landscape maintenance services. We found that successful landscaping businesses do better when they focus on specific client niches and sub-niches.

Companies typically offer these landscape services:

  • General maintenance and lawn care (90% of providers)
  • Design and construction services (71% of providers)
  • Commercial property services (58.42% market share)
  • Residential services (growing at 7.0% CAGR)

The most successful companies know their strengths and avoid spreading themselves too thin across many service areas. A typical landscaping company has 24 full-time workers and charges between $50.00-$100.00 per hour.

No profit, no business, that’s especially true in the landscaping business.

The Hidden Dangers of Growing too Fast

One wrong concept many starters would have is that more services mean more money. Business owners get excited about growth and suddenly they’re drowning in inventory management problems. Quality drops, customers get angry, and costs skyrocket.

Adding services faster than planned drains resources and puts pressure on operations. Landscaping businesses that rush to add new services often have trouble with equipment management and inventory tracking.

The Seasonal Challenges

Weather changes affect landscaping operations by a lot. Warm months bring more business for core services while cooler months slow things down. Successful landscaping businesses combine different seasonal services smoothly like this:

  • Spring/Summer: Lawn care and irrigation system maintenance
  • Fall: Leaf removal and cleanup services
  • Winter: Snow removal and holiday lighting installation
  • Year-round: Hardscaping and tree care services

But also be aware that managing seasonal transitions requires careful planning and resource allocation. Staff retention becomes a challenge during slower months. Businesses that offer year-round employment through different services keep their staff longer.

So it also leads to the second challenge:

Ineffective Team Management

Here’s the thing about training, you can’t just hand someone a piece of equipment and expect magic to happen. Every new service you add means more skills to master, more knowledge to share. And when you’re dealing with seasonal workers and entry-level staff? That training becomes even more critical.

But here’s what really matters…

Running multiple services isn’t just about having enough people, it’s about making sure everyone delivers the same quality work, every time. The successful companies they’ve figured out that simple, standardized processes are the secret sauce. When every team member follows the same steps, customers get consistent results no matter who shows up at their property.

Tools like ArborNote handle project management, scheduling, and invoicing automatically. This doesn’t just save time on paperwork – it makes the whole operation more efficient.

Track all your invoices
in one dashboard

Boost your tree care business
efficiency 10x

Remember, the landscaping industry needs about 300,000 new workers each year. For the companies that keep their good people, they’re not just offering jobs, they’re offering careers. From tuition support to clear promotion paths, they’re showing their teams there’s room to grow. And their turnover rates are dropping while their service quality keeps climbing.

There is a bottom line – growing fast is exciting, but growing smart is what keeps you in business.

The People Problems Nobody Talks About

Poor Resource Management

63% of businesses have no real plan for hiring and keeping good workers. No wonder 45% of companies watched their employees walk away to competitors last year. This also proves that efficient resource allocation forms the backbone of operational success in landscaping businesses.

We’ve seen the winners in this industry do four things right:

  • Pay well and add benefits after 90 days
  • Give bonuses for employee referrals
  • Team up with schools and industry groups
  • Offer certifications that lead to better pay

But besides these benefits, what’s lies the foundation is still a solid staff management system. Here are some tips you can start to implement

The old ways don’t work anymore. You can’t run crews with paper timesheets and hope for the best. Smart companies use digital tracking systems with GPS – it’s not about trust, it’s about efficiency. Our software with easy schedule and appointment tracking makes your whole management process 10x easier.

Operational Inefficiencies Leading to Failure

Besides the staff management issues, what also drains your budget is operational inefficient, crews standing around waiting for instructions, equipment sitting idle, and materials going to waste. Check our article about all the equipment needs and cost breakdown.

Here are a couple of questions you can ask yourself forehand:

  • Your equipment: Is it making money or costing money?
  • Your inventory: Stop buying stuff you don’t need
  • Your numbers: Do you even track them?

With this in mind, smart operators use preventive maintenance schedules to keep equipment running longer. For example, you need to track your financial cost at least by weekly, and

Here’s something interesting about successful landscaping businesses – they all have solid systems in place. No fancy stuff, just the basics done right:

Metric Frequency Why It Matters
Labor Cost/Project Weekly Helps with pricing and prevents overspending
Material Cost/Project Weekly Controls inventory and optimizes purchasing
Equipment Maintenance Monthly Prevents major repairs, extends equipment life
Fuel Consumption Weekly Optimizes routes and reduces waste
Cash Flow Weekly Ensures sufficient operating funds
Customer Satisfaction Monthly Identifies issues and improves service
Project Profit Margins Monthly Evaluates pricing strategy
Labor Efficiency Weekly Improves team productivity

The Tech Lag That’s Killing Your Business

Take Digital Marketing Seriously

Let’s talk about something many landscaping business owners ignore. While word-of-mouth is still powerful, successful companies are combining it with strong digital presence. The businesses seeing real growth aren’t just putting up a website and hoping for the best, they’re actually building a complete digital strategy that works for them around the clock.

So what does this look like in practice?

The growing companies make sure their websites showcase their best work with before-and-after photos and client testimonials. They’ve realized that a website needs to look good on mobile phones since that’s where most customers are searching these days. But it’s not just about having a pretty website – these companies are regularly sharing their work on platforms like Instagram, where visual content naturally draws attention.

They’re also staying connected with customers throughout the year. You can also start writing blogs from the most familiar part of your business. Remember you are already a pro in your industry, so don’t be daunted by website content creation. This consistent communication keeps them top of mind when clients need services.

And speaking of being found, successful companies put real effort into their local online presence, keeping their Google Business Profile updated and actively collecting customer reviews.

 

Inconsistent Manual Proposal and Bidding Processes

   

Every landscaping business owner knows this headache – one team member prices a job one way, another team prices it differently. When your bidding process isn’t consistent, you’re leaving money on the table.

This is exactly why smart companies are going all-in with tree care software. With over 500,000 successful bids submitted through ArborNote, these businesses use one integrated system for everything – from GPS tree mapping and instant proposals to crew scheduling. Instead of juggling multiple tools, they’re running their entire operation smoothly, with features like QuickBooks and HubSpot integration keeping everything in sync.

The companies pulling ahead aren’t necessarily the biggest – they’re the ones who’ve standardized their processes with the right technology.

We’ve collaborated with thousands of successful landscaping companies in the past years. They combine solid industry knowledge with smart business practices. Tools like ArborNote make this easier – click here to book a product walkthrough and see how it works. No profit, no business. But with the right approach, you can join the 20% who succeed.

Good luck!

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *