Sample Landscaping Business Plan

The following sample landscaping business plan has been developed and created by Cambium Indigenous

Professional Services. This sample landscaping business plan has been created to help you understand and

visualize how a professional landscaping business plan looks like. In addition, this sample business plan will allow

you to see the necessary components of a professionally designed plan so that you can use as a reference for you

own business planning process.

Please remember that this sample business plan uses a fictional company and scenario. Any business, person or

location resemblance is coincidental.

This sample landscaping business plan can be used as a reference but please, do no resell as your own or for other

commercial purposes. This sample business plan is property of Cambium Indigenous Professional Services.

If you or your community needs assistance developing a professional business plan, strategic plan or community

development plan, please contact Cambium Indigenous Professional Services at:

https://www.indigenousaware.com/

1109 Mississauga Street

Curve Lake First Nation, Ontario

K0L 1R0

(705) 657-1126

Email: [email protected]

TABLE OF CONTENTS

SECTION NUMBER PAGE NUMBER

ECTION #1.0 INTRODUCTION 1

ECTION #2.0 MANAGEMENT PLAN 3

2.1 O

WNERSHIP STRUCTURE 3

2.2 M

ANAGEMENT TEAM 3

2.3 P

ROFESSIONAL NEEDS ASSESSMENT 4

ECTION #3.0 INDUSTRY AND MARKET ASSESSMENT 6

3.1 I

NDUSTRY DEFINITION 6

3.2 I

NDUSTRY OVERVIEW 6

3.3 T

ARGET MARKET 7

3.4 M

ARKET SUMMARY AND CALCULATION 9

3.5 C

OMPETITIVE ENVIRONMENT 10

ECTION #4.0 MARKETING PLAN 11

4.1 P

RODUCTS AND PRICING 11

4.2 D

ISTRIBUTION 12

4.3 P

ROMOTIONAL PLAN 12

ECTION #5.0 OPERATING PLAN 14

5.1 G

ENERAL OPERATING PROCEDURES 14

5.2 H

UMAN RESOURCE REQUIREMENTS 14

5.3 I

NSURANCE REQUIREMENTS 14

5.4 G

OVERNMENT REQUIREMENTS 14

5.5 W

ORKING CAPITAL REQUIREMENTS 14

5.6 C

APITAL NEEDS 14

ECTION #6.0 FINANCIAL PLAN 16

6.1 C

OSTS AND FINANCING 16

6.2 F

INANCIAL PROJECTIONS 17

TTACHMENTS:

ESUMES / QUOTES

SECTION #1.0 INTRODUCTION

Henry John wishes to establish his very own landscaping company - HJ Landscaping. As

proposed, HJ Landscaping will operate year round and will target the Aboriginal and non-

Aboriginal local residential, non-permanent residential, commercial and government market

within and around the Territory of Anytown. Services offered by HJ Landscaping include:

 Lawn M

aintenance: Fertilizing, cutting, edging, trimming, installing sod, watering, and

sprinkler system set up.

 Carpent

ry: Deck, patio and fence design, maintenance, repair and construction.

 Bri

ck Works: Design and installation of interlocking brick for driveways, stairs,

walkways, yard separators and walls.

 Snow R

emoval: Driveways, walkways, stairs, decks and roofs.

It i

s estimated that this company will start up in the summer of 2009. The location of the

business will be within the Territory of Anytown.

Within Anytown today there are no other specialized landscaping companies that serve this

market need solely. There are however, a few local construction companies that either sub-

contract out all landscaping projects to non-Native companies or attempt to perform the services

themselves. Despite all of this, the fact remains that there is a definite need for a local

specialized supplier of landscaping services to serve the residential and commercial markets.

Aft

er careful consideration, Henry John has identified the required capital, operational,

marketing and business support requirements his business will need in order to properly

establish HJ Landscaping. They are as follows:

 Inves

t into the purchase of a company vehicle to store and haul equipment, materials,

and employees to and from job sites ($35,000).

 Purc

hase a trailer to store and haul equipment and material to a from job sites

($11,500).

 Inves

t into new tools and equipment to perform a wide range of lawn care services

($8,000).

 Inves

t into hand and power tools needed to perform brick and carpentry work on-site

($18,000)

 Purc

hase necessary snow removal equipment ($5,000).

 Purchase time and money saving office equipment and furniture ($5,000).

 Invest $5,000 into company advertising.

 Inves

t $8,000 into business support.

The c

osts and financing table below summarizes the proposed costs and how Henry John

proposes to finance these costs.

Costs and Financing Table

Proposed Costs

Proposed Financing

Capital:

Vehicle and Trailer $46,500

Lawn Care Equipment $8,000

Carpentry & Brick Work Equipment $18,000

Snow Removal Equipment $5,000

Office Equipment & Furniture $5,000

Tota

l Capital $82,500

Marketing Costs

Start Up & Ongoing Activities $5,000

Business Support:

Business Aftercare Costs $2,000

Mentoring and Support $3,000

Accounting Fees $3,000

Total Business Support Costs $8,000

Capital:

Cash Equity (10%) $8,250

ABC (40%) $26,400

Comm. Ec. Dev. Review Board (12%) $9,550

Comm. Ec. Dev. Review Board (5%) $4,775

Youth Strategy Loan (18%) $15,000

YET Economic Group (15%) $18,525

Total Capital $82,500

Marketing Financing

Cash from Operations (60%) $3,000

ABC (40%) $2,000

Total Marketing Financing $5,000

Business Support Financing:

ABC (29%) $2,250

Cash from Operations (71%) $5,750

Total Business Support Financing $8,000

Total Project Cost $95,500

Total Project Financing $95,500

identified in the costs and financing table above, Henry John’s project is estimated to cost

$95,500 to implement. Of these costs, $82,500 is made up of capital, $5,000 contains

marketing activities and the remaining $8,000 is for business support.

The re

mainder of the plan outlines the proposed management plan, industry and market

assessment, as well as the marketing, operational and financial plan for the business.

SECTION #2.0 MANAGEMENT PLAN

2.1 OWNERSHIP STRUCTURE

HJ Landsc

aping will be owned and operated as a sole proprietorship by Mr. Henry John. This

business structure well suits the type and nature of the business and will give Henry John the

freedom he needs to make this project a success.

It s

hould also be noted that the business was registered within the province of Quebec on July

18, 2007.

2.2 MANAGEMENT TEAM

Henry

John has over 8 years experience in providing forestry and carpentry services as well

operating various pieces of equipment for construction and road maintenance. Simply put, he is

an individual that enjoys working outdoors and within and for his community and Anytown.

Henry John believes strongly that the opportunity at hand and the skills he’s acquired over the

past decade leads to a good fit in terms of starting his own landscaping business.

Key highlights of Henry John’s professional work experience and education are as follows:

 Henry

John has a good understanding of the various landscaping and service contracts

that the First Nation needs fulfilled annually.

 Henry

John is knowledgeable regarding the landscaping needs of both the residential

and commercial market from a consumer’s standpoint within and around Anytown.

 Henry

John has a solid reputation of providing quality carpentry and equipment

operating services to the community and its membership.

 Henry John has learned how to prepare accurate job quotes to compete for work within

the open market.

As t

he owner and operator of HJ Landscaping, Henry recognizes that there are a number of

tasks for him to complete annually and on a day to day basis in order to be successful. More

specifically, these tasks include:

Management and Administrative:

 The ov

erall management of HJ Landscaping

 Set work schedules and manage workers

 Develop work estimates, quotes and proposals for services for clients

 Invoice and collect payment from clients

 Regular banking duties

 Maintain the equipment and vehicles of the business

 Develop sales and service contracts for clients

 Cold call clients to obtain contracts and work

 Design and implement ongoing marketing activities

 Resolve work-related problems and prepare and submit progress and other reports

 Train workers in job duties and company policies

 Requisition supplies and materials

Landscapi

ng:

 Perform the following duties: maintain lawns, gardens, athletic fields, cemeteries, parks,

interior plantscapes and other landscaped areas; spread topsoil and lay sod; spray,

prune, cut and remove trees and shrubs; construct landscape and landscape structures;

and plant, cultivate and harvest trees, shrubs, flowers and plants

 Establish work schedules and procedures and co-ordinate activities with other work units

Carpent

ry and Brick Work:

 Read and interpret blueprints, drawings and sketches to determine specifications and

calculate requirements

 Prepare layouts in conformance to design and codes, using measuring tools

 Measure, cut, shape, assemble and join materials made of wood, wood substitutes,

lightweight steel and other materials

Snow R

emoval:

 Opera

te snowplow to remove snow from streets, highways, parking lots and driveways.

 Operate the sander or salting apparatus on truck when and if needed.

Henry

John is projecting to make annual draws from his company in the amount of $25,000 for

the next three years. It should be noted that Henry John is in the process of applying for

subsidies to assist with payroll and owners draws from the CC Human Resource Development

agency.

In the unl

ikely event that Henry John is unable to perform his duties and owner, he will ask his

father, Henry John Sr. to step and manage the company on an interim basis.

2.3 PROFESSIONAL NEEDS ASSESSMENT

From a

management and administrative standpoint, Henry John acknowledges that he has

some weaknesses that must be addressed. Knowing this has allowed him to contact other

professionals who are willing to assist him in the areas below.

Accounti

ng/Bookkeeping

The services of a local accounting firm or bookkeeper will be needed to assist Henry John with

setting up the financial system of the company. It is estimated that the company will need

approximately $3,000 to retain the services of an accountant or bookkeeper to set up and

maintain the financial records for the business annually.

Aft

ercare Services

Preparing and submitting funding claims and paperwork for financial institutions can be very

time consuming. It is for this reason why ABC Aboriginal Management Services has been

approached to assist with preparing reports YET Group, Aboriginal Business Canada and

Anytown First Nation. It is estimated that these services will cost $2,000.

Industr

y Specific Business Mentor and Coach

As a mindful entrepreneur, Henry John realizes that he will need industry specific assistance

and guidance to ensure that his company is servicing its clients properly – and within a certain

set of industry ethics. This is especially important early on in business development. It is for

this reason why Henry John approached Mr. Joe Halm who is a professional Agrologist. Mr.

Halm has done work locally with Anytown and has agreed to be Henry’s Coach in the areas of

gardening and landscape. More specifically, Joe will coach Henry for a period of one year once

his business is approved for funding. Mr. Halm will ensure the company operates according to

the Code of Ethics in the practice of Agrology. Coaching areas include:

 Soil (testing – preparation – soil treatment)

 Turf grass cultivation and maintenance

 Flower beds planting and maintenance

 Trees and shrubs planting and transplanting

 Hedges and green fences

 Integrated Pest Management

 Fertilizers application

 Landscape design tools

 Gardens irrigation

 Composting and organic matter standards and specifications for residential and

commercial garden projects

 Green house plants

 Types of gardens

 Gardens risk management

For c

oaching services, John will pay Latif $3,000. A letter from Joe has been included in the

Attachments outlining the terms of his assistance and professional experience.

In year 1, Henry John will spend a total of $8,000 on business support services altogether. By

addressing all identified weakness, Henry John has surrounded himself with the necessary

professionals he needs to assist him along the way. This lessens the chance of management

flaws and will allow him to concentrate on making sales and providing landscaping services to

his clients, which is where his time and effort is best spent.

SECTION #3.0 INDUSTRY & MARKET ASSESSMENT

3.1 INDUSTRY DEFINITION

HJ Lands

caping will belong to and operate within what is defined as Canada’s Landscaping

Services industry. Under the North American Industry Classification System (NAICS), the

definition for this industry is as follows:

This C

anadian industry comprises establishments primarily engaged in providing

landscape care and maintenance services and/or installing trees, shrubs, plants,

lawns or gardens, and establishments engaged in these activities along with the

construction (installation) of walkways, retaining walls, decks, fences, ponds and

similar structures. (NAICS - 561730)

Source: Statistics Canada

3.2 INDUSTRY OVERVIEW

The in

formation contained in this sub-section was gathered and published by Statistics Canada

regarding the landscaping services industry in Canada.

 Within Canada, approximately 71.1% of all landscaping services establishments are

profitable. On average, these businesses generated net profits representative of 6.5%

of sales. Cost of sales for landscaping services establishments is approximately 44.8%

of sales. Most of this is made up of materials and wages. The average gross margin of

these establishments was 55.2%

 Wit

hin the province of Quebec, approximately 73% of all landscaping services

establishments are profitable. On average, these businesses generated net profits

representative of 6.5% of sales. Cost of sales for landscaping services establishments

is approximately 46.7% of sales. Most of this is made up of materials and wages. The

average gross margin of these establishments was 53.3%

 A k

ey characteristic of businesses within this industry is that the companies within the

lower half of the industry or those that generated between $30k and $176k in sales

annually, made much more profits at 12.9%. Simply put, the larger the company the

less profits they generated. A key reason for this is that management and equipment

costs are fixed and therefore, the profitability of individual companies is dependent on

demand volume and operations’ efficiency. Therefore, smaller companies can easily

compete with larger ones, except when providing services to larger clients.

 A hig

h number of landscaping service companies in Canada also offered property

maintenance services too. This is mainly done generate more sales streams as well as

to enable the company to generate sales all year round as opposed to just in the warmer

weather months. From a client’s standpoint, it is also more convenient to hire one

company to maintain and provide all necessary services needed to keep up personal

and commercial property as opposed to more than one.

 Within Canada, there are approximately 16,084 landscaping service businesses. Of

these, a majority employ between 1 and 4 employees.

 The law

n and landscape industry established itself as an important part of the service

sector of the economy in the late 1990s. By the early 2000s, retail sales of lawn and

garden products and professional lawn care services reached $22 billion in the U.S.

 Annual revenue generated per employee is approximately $70,000 per year.

 Technol

ogy used in this industry is very basic. Trucks, mowers, and blowers are the

major pieces of equipment used.

In an onli

ne landscape survey conducted by the Canadian Nursery Landscape Association

regarding landscape contractors in the winter of 2007 it was found that:

 More

and more landscape contractors and service providers are investing in the

necessary on-site payment technology to be able to accept debit and credit card

payment on-site. Although there is higher capital costs involved, it is advantageous to

both consumer and company to do so.

 Approx

imately half of all contractors and companies hire and employ certified staff.

 Another

interesting upward trend for landscaping services companies and contractors is

to offer financing options to their customers.

 Attending tradeshows are a great way to promote what companies have to offer and

what great work they have done to date.

 Muni

cipal and city by-laws prohibiting the use of harmful chemical pesticides have forced

operators in the industry to go green. In addition to this, consumers prefer buying

services from those companies who are green operators.

Overall, the landscaping services and lawn care industry in Canada is extremely healthy and

growing annually.

3.3 TARGET MARKET

HJ’s Lands

caping have identified their target market area as the Territory of Anytown. More

specifically, Henry’s company will target three key segments of this market area, which are:

1. Resi

dential Market within Anytown – Primary Market

2. Government and Non-Profit Market within Anytown – Secondary Market

3. Commercial Market within Anytown – Tertiary Market

Contai

ned below are summaries of the aforementioned target markets of the company.

1. Residential Market – Primary Market

The da

ta below was gathered and published by Indian and Northern Affairs Canada and

Statistics Canada in its most recent Census regarding the Nation of Anytown.

The Nat

ion of Anytown is located approximately 90 kilometers northeast of Nexton, on the shore

of Lake George. The territory covers a land mass that is approximately 1,380 square

kilometers. As of March 2008 the registered population was 4,001. Approximately 3,125

members reside within the Nation. Of these members 1,572 are male and the remaining 1,553

are female. Statistics Canada reports that the median age of the population is 24.5 years. Of

those residing on the reserve, approximately 34.19% of the population or 1,068 members are

between the ages of 15 and 34. Also, 24.17% or 755 members are between the ages of 35 –

59.

Stat

istics Canada reports that the number of private dwellings that are occupied by usual

residents total 683. The average number of members per household is 4.5. 2001 Census data

regarding income indicates that the average total income per person is $20,810 annually.

Members 15 years of age and older with income is approximately 1,990.

Ideall

y, Henry will target the families who are too busy to take the time to maintain their property

on a regular basis as well as those wishing to build an exterior landscape structure in addition to

new home owners.

2. Gover

nment and Non-Profit Market

Like m

ost First Nations in Canada, the public administration and non-profit sector within

Anytown is a large employer. Additionally, this sector is a major purchaser of local goods and

services of all types – including landscaping services.

is estimated that the within the First Nation administration itself that those departments

responsible for administering programs in economic development, housing, public works, capital

projects and infrastructure will require the services of Henry John’s company regularly. At the

time this plan was prepared, the budgets of these correspondent First Nation departments were

unknown. It is however, estimated that approximately $150 - $350k is spent on services similar

in nature to what HJ’s Landscaping will provide.

Addit

ionally, Henry John met with Johnny Antwin, an employee of the Nation of Anytown to

inform him of the establishment of his company. Johnny informed Henry John that there will be

13 new residential sod jobs in the community this summary and another 35 next year alone. In

addition to this, an open bid to maintain all band properties will be held late May or early June.

As a result of this meeting, Henry John has been invited to submit a bid for this contract among

other landscaping jobs for this year.

From a non

-profit standpoint, there are several agencies and organizations that require the

landscaping services of a company like HJ’s Landscaping. Within Anytown alone, there are

approximately 15 separate non-profit agencies who are potential customers of the company.

Ideally, these entities have medium to large properties that need to be maintained and/or

landscaped regularly and also have the budget to pay for the service to up keep them.

3. Commercial Market

Wit

hin Anytown there are approximately 30 for profit enterprises operating. Types of businesses

include: arts and crafts, convenience store, laundry, banking services, day care services,

canoes, food supplier, post office, tackle shop, cleaner, real estate services, taxi, clothing,

furniture, restaurant, video rental and gasoline. Of these aforementioned businesses, John will

target those companies with properties that require one time and regular warm and cold

weather maintenance and services.

3.4 MARKET SUMMARY & CALCULATION

This sub-section will combine the data presented in the previous sub-section with expenditure

data from Statistics Canada along with conservative assumptions to calculate the overall size of

the landscaping services market within Anytown by market segment. In particular:

 Stat

istics Canada Survey of Household Spending reveals that the average household in

Canada spends approximately $74 annually on horticultural services, snow and garbage

removal services.

 Of

the entire residential market within Anytown, approximately 25 homes will build a

deck, stairway, patio etc. at a cost including material of $3,000.

 It i

s assumed that the Band Administration of the Nation of Anytown spends and

outsources approximately $200,000 per year on landscaping and property maintenance

services annually.

 It i

s assumed that the average non-profit organization or agency spends approximately

$5,000 on landscaping and property maintenance services annually.

 It i

s assumed that the average for profit business in Anytown spends approximately

$2,500 on landscaping and property maintenance services annually.

The table below summarizes the size of each market segment in units, expenditure on

landscaping and property maintenance services per year and the overall size of each segment

in dollars.

Market Summary and Calculation

Market Segment

within Anytown

Size in Units

Annual Expenditure

on Similar Service

Total Size of Market

Residential – Property

Care Services

683 $74 $50,542

Residential –

Landscape Structures

25 $3,000 $75,000

Government

$200,000

Non-Profit

$5,000

$75,000

Commercial

$2,500

$75,000

Total

$475,542

As identified in the table above, the market for landscaping services just within the Territory of

Anytown is worth approximately $475,542 annually. This calculation is very conservative and

does not take into account the service demand stemming from new home development. As

stated earlier in the plan, the First Nation will be building 13 homes which will need sod this

summer. With the average sod job at $3,000 per home built, there is a potential sod business of

$39,000 (13 homes x $3,000) in 2009 and $105,000 (35 homes x $3,000) in 2010.

Within the first year of operation, it is estimated that John will generate approximately $100,000

in sales. This represents a market capture of 21%. If John operates 6 days a week for 50

weeks each year this represents a daily sales figure of $333.33 for 300 days.

3.5

OMPETITIVE ENVIRONMENT

As doc

umented earlier in this plan, there are no other landscaping specific companies within

Anytown. There are however two other companies which compete for the landscaping jobs

within the community. They are M & J Transport and W-W Forestry Reg.

M & J T

ransport is a trucking company and is only awarded landscaping contracts mainly

because they are local and have some of the required equipment to fulfill some of the contracts.

W-W Fo

restry Reg is a forestry services company. They recently received landscaping

contracts, but sub-contracted another non-Native company to come to the community to

perform the services.

Some

key competitive advantages that HJ Landscaping will have over its aforementioned

counterparts are:

 A com

pany specializing in providing quality residential and commercial landscaping

services locally.

 Henry will be coached by a professional in the industry.

 Serv

ices will be rendered using new time and money saving equipment.

 Landscapi

ng services will be provided in accordance to the Code of Ethics in the

practice of Agrology.

 Prices offered will be at competitive and fair rates.

 All

services will be guaranteed and back up by a service warranty.

SECTION #4.0 MARKETING PLAN

4.1 SERVICES AND PRICING

A Landscaping Ser

vices

HJ Landscaping will offer its’ residential, government, commercial and non-profit clients a wide

array of specialized services.

 Lawn

Maintenance: Fertilizing, cutting, edging, trimming, installing sod, watering, and

sprinkler system set up.

 Carpent

ry: Deck, patio and fence design, maintenance, repair and construction.

 Bri

ck Works: Design and installation of interlocking brick for driveways, stairs,

walkways, yard separators and walls.

 Snow Removal: Driveways, walkways, stairs, decks and roofs.

B Servi

ce Pricing

Sim

ilar to other landscaping companies in Canada, HJ Landscaping will charge its’ clients on a

either a contract or one time purchase basis. For example, a particular agency may require a

service contract for the delivery of select services or a household may call to have their lawn cut

once. Whatever the case may be, Henry will price each service call or contract like any other

service provider industry which will be as follows:

Labor +

Materials + Fuel + Travel + Desired Mark Up = Selling Price

Henry

’s hourly rate per hour will be $30. The table below illustrates the average charge per

service provided by unit and service contract.

Pricing Table

Service

One Time

Seasonal Contract

Direct Costs

Profit

Lawn Care

Cutting, Edging &

Trimming

$20 - $50 $300 - $600 44% 56%

Installing Sod

.97 cents per

square foot

Contract by

Contract Basis

40% 60%

Fertilizing and

Surface and Sub-

Surface

Treatments

$40 or .15 - .30

cents per square

foot

$120 to $300

depending on lawn

size and treatment

40%

60%

Mechanical

Aeration

$10 - $40

depending on lawn

size

$20 - $80 25% 75%

Weed Control

$20 - $40

depending on lawn

$40 - $80 40% 60%

Pricing Table

Service

One Time

Seasonal Contract

Direct Costs

Profit

size

Watering and

Sprinkler System

Will Vary Will Vary Will Vary Will Vary

Carpentry

Deck & Patio

Design and

Construction

$2,500 N/A

Materials 30%

Labor 15%

55%

Fence Installation $2,000 N/A

Materials 30%

Labor 15%

55%

Brick Works

Interlocking Brick

Project

$3,000 N/A

Materials 30%

Labor 15%

55%

Snow Removal

Snow Plowing $10 - $20

$300 for

Residential

$1,000 for

Commercial

40% 60%

Henry John’s sales strategy will be to up sell his market while providing essential landscaping

services. It is estimated that the cost of sales for residential landscaping services will be 15%

excluding fuel. For other larger brick work and carpentry projects the cost of sales will be more

at 45% due to the cost of materials and additional labor.

4.2 D

ISTRIBUTION METHODS

HJ Lands

caping will deliver all services on site. The cost of distributing services this way

include travel and time to get to job sites.

For s

od jobs, Henry John will need to rent a mini excavator. The cost of this is approximately

$100 per day. This is included in the direct costs of sod jobs.

4.3 PROMOTIONAL PLAN

HJ Lands

caping will require a small budget to implement a community based start up and on-

going promotional campaign for specific reasons which include:

 To educ

ate the local market of the start up of HJ Landscaping.

 To promote an image of professionalism and quality.

 To generate consistent sales and sales leads.

 To advertise the company’s contact info to allow potential consumers to contact Henry

directly.

In or

der to meet the aforementioned objectives, Henry John will need to invest into the following

advertising activities:

Inves

t into the purchase of a corporate identity package. This will include: invoices, company

service and price lists, envelopes, business cards and letterhead.

Purc

hase vehicle and equipment signage. This form of advertising is fairly cheap with high

return. While the company is performing a job or driving down the road consumers are exposed

to the company’s advertising.

Purc

hase company apparel. Portraying a consistent and quality image of the company via

apparel is a good way to build a brand for the company.

Inves

t into the design and delivery of direct marketing materials. This will include designing

flyers and advertisements to be delivered directly to the company’s existing and potential market

within Anytown.

Purc

hase print advertisements and local listings. These advertisements are a good way to

ensure consumers hear about what the company is offering and how to contact them if and

when needed.

Henry

John will also expect good word of mouth advertising once his company begins to obtain

and complete contracts and jobs within the community.

It i

s estimated that the above activities will cost $5,000 to implement in Year 1.

SECTION #5.0 OPERATIONAL PLAN

5.1 GENERAL OPERATING REQUIREMENTS

HJ Lands

caping days and hours of operation will be 6 days a week from 7 a.m. to 6 p.m. These

days and hours of operation are subject to change and dependent on market need.

Henry

John will accept cheque and cash as payment. Only those clients who are able to

demonstrate financial stability will be offered credit.

The company’s headquarters will be located within Henry John’s personal residence in

Anytown.

5.2 HUMAN RESOURCES REQUIREMENTS

On an as needed bas

is, John will hire local laborers to assist him with completing jobs.

However, until John’s business is too much for him to handle for himself he will not hire anyone.

All laborers will be paid $10 per hour.

Henry

John will continue to meet with the CHRD seeking operating subsidies to hire part time

and full time staff.

5.3 INSURANCE REQUIREMENTS

Henry

John will need to incur costs for commercial, asset and liability insurance upon start up.

At the time this report was developed, John had received a verbal insurance quote of $5,000

per year.

5.4 GOVERNMENT REQUIREMENTS

Becaus

e the business will be located within the territory of Anytown very little issues

surrounding tax must be addressed. When a transaction is Native to non-Native the company

must collect and remit tax in any other instance tax collection is not needed.

The pe

rsonal income of Henry John will be exempt from taxation as it will be derived from

services provided within a First Nation. However, Henry John should ensure that financial

systems are set up properly in the case of an audit or tax inquiry.

5.5 WORKING CAPITAL REQUIREMENTS

As t

his is a service based business, there will be burden on the business financially upon start

up. However, Henry John should be prepared to invest additional operating funds into the

business early on in case expenses are underestimated or sales projections are not met.

5.6 CAPITALIZATION ACTIVITIES

As doc

umented throughout this plan, Henry John has taken the necessary time needed to

carefully choose and cost the necessary assets his business will need to provide professional

residential and commercial landscaping services. In doing so, he’s determined that he will to

invest into the following items:

 Inves

t into the purchase of a company vehicle to store and haul equipment, materials,

and employees to and from job sites ($35,000).

 Purc

hase a trailer to store and haul equipment and material to a from job sites

($11,500).

 Inves

t into new tools and equipment to perform a wide range of lawn care services

($8,000). Mowers, fertilizers, specialized attachments for aeration, sub-service

treatments, surface treatments for insects etc.

 Inves

t into hand and power tools needed to perform brick and carpentry work on-site

($18,000). Cutters, brick carriers, hammer drill, hand drill, saws, levels, work horse,

sanders, vacuum, etc.

 Purc

hase necessary snow removal equipment ($5,000). Plow, shovels, sanding

equipment etc.

 Purc

hase time and money saving office equipment and furniture ($5,000). This includes:

a desk, chair, filing cabinets, small office equipment, computer and peripherals and the

latest edition of word processing software.

SECTION #6.0 FINANCIAL PLAN

6.1 COSTS AND FINANCING

In orde

r to properly establish HJ Landscaping, owner Henry John is proposing a financing mix

that consists of: cash equity, First Nation contributions, Federal contributions, and traditional

debt financing. The table below illustrates this further.

Costs and Financing Table

Proposed Costs

Proposed Financing

Capital:

Vehicle and Trailer $46,500

Lawn Care Equipment $8,000

Carpentry & Brick Work Equipment $18,000

Snow Removal Equipment $5,000

Office Equipment & Furniture $5,000

Total Capital $82,500

Marketing Costs

Start Up & Ongoing Activities $5,000

Business Support:

Business Aftercare Costs $2,000

Mentoring and Support $3,000

Accounting Fees $3,000

Total Business Support Costs $8,000

Capital:

Cash Equity (10%) $8,250

ABC (32%) $26,400

Comm. Ec. Dev. Review Board (12%) $9,550

Comm. Ec. Dev. Review Board (5%) $4,775

Youth Strategy Loan (18%) $15,000

YET Economic Group (23%) $18,525

Total Capital $82,500

Marketing Financing

Cash from Operations (60%) $3,000

ABC (40%) $2,000

Total Marketing Financing $5,000

Business Support Financing:

ABC (29%) $2,250

Cash from Operations (71%) $5,750

Total Business Support Financing $8,000

Total Project Cost $95,500

Total Project Financing $95,500

identified in the table above:

 Henry John is prepared to invest $8,250 towards the capitalization of this business start

up.

 Henry

John is requesting that ABC contribute 32% or $26,000 towards capital, 60% or

$3,000 towards marketing and 75% or $6,000 towards business support costs.

 Henry

John is requesting that the Community Economic Development Review Board for

$9,550 towards capital costs in grant form and $4,775 in loan towards capital costs.

 Henry

John is requesting the maximum allowable amount of $15,000 from the Youth

Strategy Loan. This loan will be interest free for three years and will be repayable over 5

years.

 Henry

John is requesting that the YET Economic Group lend him $18,525 towards

capital. This loan will be financed at 8% for 7 years.

 60% or $2,000 in marketing and 29% or $2,000 in business support costs will be

financed through cash from operations and cash equity.

6.2 NOTES TO FINANCIAL PROJECTIONS

The

following pages contain:

 12 month projected cash flow statement;

 3 year projected income statement;

 3 year projected balance sheet;

 3 year projected sources and uses of funds statement;

 3 year amortization schedule; and

 Summary of financial indicators and break even analysis.

(A) Rev

enues

HJ Lands

caping will generate revenues by providing various residential and commercial

landscaping services to the market within and around Anytown. It is anticipated that the

company will generate $100,000 in sales in year 1. A moderate increase in sales is expected to

occur at 10% per year.

Of y

ear 1 sales, it is anticipated that $30,000 will be generated by completing minor landscaping

construction projects such as brick works, fences, and decks. The remaining $70,000 is to be

made up of residential and commercial landscaping services like mowing and edging grass,

laying sod, fertilizing, etc.

(B) Cost

of Sales

It i

s estimated that the cost of sales for residential landscaping services will be 15% excluding

fuel. For other larger brick work and carpentry projects the cost of sales will be more at 45%

due to the cost of materials and additional labor.

oss Profit Margin

The c

ompany’s projected gross profit margin is expected to be 69% in Year 1, 65% in Year 2

and 65% in Year 3.

(D) Cash Fl

Over

all, the cash flow of the business as projected appears stable. However, if sales

projections are not met early on, Henry John is prepared to invest more cash in the business to

sustain essential operations early on.

Alth

ough it is likely that Henry John will be approved for operating subsidies during year 1 for

salaries he is not relying on this funding which is why this has not been included in the cash flow

projection. Henry John’s decision to go into business is purely based on the merits of his

business idea without additional assistance.

(E) Financial Performance

The

following information provides a quick analysis of how the business is projected to perform

from a financial standpoint.

Break

Even Analysis

Break Even Analysis

Year 1

Year 2

Year 3

Total Variable Costs

$38,200

$49,500

$58,350

Total Fixed Costs

$38,113

$32,656

$32,038

Variable Cost Percentage

0.38

0.45

0.48

Contribution Margin

0.62

0.55

0.52

Break Even Point in Sales

61,672

59,375

61,878

Break Even Sales Cushion

38,328

50,625

59,122

As pr

ojected, the business is expected to exceed its break even point in sales in all three years.

Financi

al Ratios

Financial Ratios

Year 1

Year 2

Year 3

Current

2.41

3.42

4.78

Debt to Equity

0.66

0.55

0.41

Gross Margin

69.00%

65.00%

Net Margin

32.19%

29.50%

29.42%

Sales to Assets

1.17

1.32

1.44

Return on Assets

37.68%

38.96%

42.44%

Return on Investment

62.64%

60.27%

59.89%

(A) Cash Flow Projection

HJ Landscaping

12 Month Cashflow Statement

Start Up

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Total

Cash In

Opening Cash Balance

Landscaping Revenues

$5,833

$70,000

Brick Works, Carpentry & Fence Revenues

$2,500

$30,000

Cash Equity

$8,250

Aboriginal Business Canada

$30,650

Commercial Financing (Combined)

$38,300

Ec. Rev. Board Fund (Grant)

$9,550

Total Cash In (1)

$86,750

$8,333

$186,750

Cost of Goods Sold / Cost of Sales

Labour, Materials & Landscaping Jobs

$1,458

$17,500

Labour, Materials & Fuel Brick Works etc.

$1,125

$13,500

Total Costs of Goods Sold (2)

$2,583

$31,000

(3) Gross Profit (1 - 2 = 3)

$86,750

$5,750

$155,750

Cash Out

Capitalization Activities

$82,500

Marketing and Promotion Expenses

$1,500

$1,000

$500

$5,000

Communications

$200

$2,400

Repairs and Maintenance

$200

$2,400

Insurance

$1,000

$333

$5,000

Office Supplies

$100

$1,200

Fuel Costs

$400

$4,800

Bank Charges and Interest

$100

$1,200

Loan Interest

$255

$253

$251

$248

$246

$244

$241

$239

$237

$234

$232

$229

$2,910

Principal Repayment

$342

$344

$346

$349

$351

$353

$356

$358

$360

$363

$365

$368

$4,253

Professional Fees

$1,000

$3,000

$8,000

Owner's or Partner's Draw

$1,500

$2,000

$2,313

$25,000

Total Cash Out (4)

$86,000

$5,430

$4,243

$7,243

$144,663

(5) Net Cashflow (3 - 4 = 5)

$750

$320

$1,507

-$1,493

$11,087

(6) Cumulative Cashflow

$750

$1,070

$1,389

$1,709

$2,029

$3,536

$5,043

$6,551

$8,058

$9,565

$11,072

$12,579

$11,087

(B) Income Statements

HJ Landscaping

3 Year Projected Income Statements

Year 1

Year 2

Year 3

Revenues

Landscaping Services

$70,000

$77,000

$84,700

Brick Works, Carpentry & Fence

Revenues

$30,000

$33,000

$36,300

Total Revenues

$100,000

$110,000

$121,000

Cost of Goods Sold

Labour, Materials & Landscaping Jobs

$17,500

$16,500

$18,150

Labour, Materials & Fuel Brick Works

etc.

$13,500

$22,000

$24,200

Total Costs of Goods Sold

$31,000

$38,500

$42,350

Gross Margin

$69,000

$71,500

$78,650

Selling & Admin. Expenses

Marketing and Promotion Expenses

$5,000

$3,000

$2,000

Communications

$2,400

$3,200

Repairs and Maintenance

$2,400

$5,000

$8,000

Insurance

$5,000

Office Supplies

$1,200

$1,400

$1,600

Fuel Costs

$4,800

$6,000

$8,000

Bank Charges and Interest

$1,200

Loan Interest

$2,910

$2,100

$1,900

Professional Fees

$8,000

$4,000

Depreciation

$8,150

Total Selling & Admin. Expenses

$41,060

$39,050

$43,050

Net Profit (Loss) from Operations

$27,940

$32,450

$35,600

Add: Contributions for Operations

$4,250

Net Profit (Loss) from Operations

$32,190

$32,450

$35,600

HJ Landscaping

3 Year Projected Balance Sheets

Opening

Year 1 Ending

Year 2 Ending

Year 3 Ending

Assets

Current Assets

Cash

$11,087

$22,080

$35,842

Inventory

Other

Total Current Assets

$11,087

$22,080

$35,842

Fixed Assets

Vehicle and Trailer

$46,500

Lawn Care Equipment

$8,000

Office Equipment and Furniture

$5,000

Carpentry & Brick Work Equipment

$18,000

Snow Removal Equipment

$5,000

Less: Accumulated Depreciation

$8,150

$16,300

$24,450

Plus: Land

Total Fixed Assets

$82,500

$74,350

$66,200

$58,050

Total Assets

$82,500

$85,437

$88,280

$93,892

Liabilities

Current Liabilities

Accounts Payable

Current Portion of Loan

$4,253

$4,606

$4,988

$5,402

Long-Term Liabilities

Long-Term Portion of Debt

$34,047

$29,441

$24,452

$19,050

Total Liabilities

$38,300

$34,047

$29,441

$24,452

Owner's / Partner's Equity

Community Ec. Dev. Review Board

$9,550

Aboriginal Business Canada

$26,400

Contributed Equity

Cash Equity

$8,250

Beginning Equity

$44,200

$51,390

$58,840

Net Income

$32,190

$32,450

$35,600

Less: Owner's or Partner's Draws

$25,000

Total Owner's or Partner's Equity

$44,200

$51,390

$58,840

$69,440

Total Equity and Liabilities

$82,500

$85,437

$88,280

$93,892

(D) Sources and Uses of Funds

HJ Landscaping

Projected Sources and Uses of Funds

Year 1

Ending

Year 2

Ending

Year 3

Ending

Net Profit

$32,190

$32,450

$35,600

Add: Depreciation

$8,150

Less: Owner's / Partner's Draws

$25,000

Cash from Operations

$15,340

$15,600

$18,750

Financing Activities

Community Ec. Dev. Review Board

$9,550

Aboriginal Business Canada

$26,400

Cash Equity Injection

$8,250

Term Debt

$38,300

Less: Repayment of Debt

$4,253

$4,606

$4,988

Total Financing

$78,247

-$4,606

-$4,988

Capitalization Activities

$82,500

Total Capitalization Activities

$82,500

Net Cash from Operations

$11,087

$10,994

$13,762

Beginning Cash

$11,087

$22,080

Ending Cash

$11,087

$22,080

$35,842

(E) Depreciation Schedule

Depreciation Schedule

Year 1

Year 2

Year 3

Vehicle and Trailer

$46,500

Useful Life

$4,650

Lawn Care Equipment

$8,000

Useful Life

$800

Carpentry & Brick Work Equipment

$18,000

Useful Life

$1,200

Snow Removal Equipment

$5,000

Useful Life

$500

Office Equipment & Furniture

$5,000

Useful Life

$1,000

Total Depreciation

$ 8,150

This sample landscaping business plan will help you visualize what a professional business plan looks like

including all the necessary components. A very important consideration is to understand that all the

information in the financial section is mirrored in each of the main components of the sample landscaping

business plan. The financial assumptions in the main body of the sample business plan form the basis for the

financial projections.

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is led by experienced, Indigenous consultants serving projects that include traditional and western science

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CIPS provides both Indigenous and non-Indigenous clients with professional and technical consulting

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If you or your community needs assistance developing a professional business plan, strategic plan or

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1109 Mississauga Street

Curve Lake First Nation, Ontario

K0L 1R0

(705) 657-1126

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