How to Start a Horticulture Business

The modern horticulture business can be one of many enterprises that service a broad clientele. From the greenhouse business that caters to retail customers to the commercial wholesaler who provides landscaping products to builders and retail garden centers, the desire for flowers and shrubbery continues to be in great demand. Starting a horticulture business requires specific horticultural know-how as well as basic managerial and business knowledge. Both can be learned through first-hand experience as an employee at another business or through college courses, county extension service programs or self-teaching.

Things You'll Need

• Business plan
• Business and tax licenses
• Occupancy permit
• Business checking account
• Merchant credit card account
• Greenhouse(s) or planting fields
• Cultivation tools
• Office space

Instructions

1. Write a comprehensive business plan. Like all start-ups, the horticulture business suffers from an 80 percent failure rate within the first five years of operation. A traditional business plan will focus on the requirements of your business, your immediate competition and your risk and reward.

2. Get financing. With your comprehensive business plan in place, make applications to lenders for financing that you will need until your sales are able to sustain your business.

3. Decide on the location for your business. Either purchase it or lease it. A retail business must have an easily accessible location while a wholesale enterprise will require trucking access. Both types of businesses need adequate space for growing plants as well as access to electricity, water and heat.

4. Get the appropriate permits and licenses. Most jurisdictions require occupancy permits and business licenses. You must also get your Federal Tax Employer Identification Number (EIN) as well as your state and local sales tax licenses.

5. Open a business bank account and set up at least two different major merchant credit card accounts.

6. Apply for business credit with suppliers, shippers and business-related vendors. The success of your business will depend on your ability to quickly purchase raw material, ship the product if you are a wholesaler and take advantage of discounts and preferential client statuses.

7. Stock your shelves with products purchased from your wholesalers and display plants grown in your greenhouse and field.

8. Advertise your business. Customers can’t spend money with you if they don’t know you exist. According to the Small Business Administration, many businesses fail because of their owner’s neglect to market their services and products vigorously and continuously.

Tips & Warnings

• According to the University of Arkansas’ Division of Agriculture, a population of 6,500 people will marginally support a one-greenhouse retail horticulture business. Using this formula and noting the number of active competitors servicing that population, you will be able to calculate the size of your new business.

References

• University of Arkansas, Division of Agriculture: Starting a Greenhouse Business
• U.S. Small Business Administration: Small Business Planner
• Oregon State University Extension Service: Starting a Plant Nursery or Greenhouse Business

Resources

• Read this Article in Spanish
• Horticultural Business Information Network: Nursery Firms