How to Start a Plant Nursery

Soil, seeds, and cuttings – can it be that simple? If you have a green thumb, you might have what it takes to earn some green by starting your own nursery.

Did you know that there are nearly 400,000 types of plant varieties? Which ones are best suited to your location and goals?

You can make your own schedule. And unless you talk to your plants, business operations are nice and quiet.

What is a Plant Nursery?

In simple definition, a plant nursery is a business where plants are propagated, grown and sold. The plants can be sold to home gardeners or to commercial entities such as landscape companies or groceries.

Whether nursery owners grow big plants or smaller plants, or specialize in growing trees, the seedlings or trees are grown until they are ready for the intended customer to buy. In other words, grown to a usable size.

How Much Do You Make Starting a Nursery?

The earnings of retail nurseries vary – according to the location and the size of the nursery.

Smaller backyard nurseries can generate annual earnings ranging from $7,000 to as much as $40,000. In these small-scale operations, a standard potted plant may sell for around $1, while a specialty plant, like a rare orchid, could fetch hundreds of dollars.

The range for large-scale nurseries is from $40,000 to $625,000 annually. Big nurseries sell large quantities of plants, such as acres of ground cover or a thousand trees. In the past few years, the most popular trees are Japanese maples.

As a general estimate, you can expect to make $20 for every square foot you use to grow plants.

How to Make Money with a Plant Nursery

It’s not as simple as planting a seed, raising a plant, and selling it – even if you have the greenest thumb imaginable and love plants.

At the same time, you need careful planning and business savvy. Here are some tips:

• Education – Engage in extensive reading, gain experience by working at a greenhouse, and consider pursuing professional training. It’s essential to develop the ability to identify various plants and recognize plant issues, including fungi, diseases, and insects.
• Sound Techniques – From the home based nursery to the huge plant nurseries, one thing is standard with successful nurseries. You must follow careful steps from the beginning to the “sell ready” stage of a plant or tree.
• Mix It Up – Most nurseries at the start count on having the bulk of sales from a standard, easy-to-grow plant product. Many nurseries, even small growers, also add a specialty, such as a higher dollar plant or propagate trees. Your specialty item may be one plant.
• Planning and Timing – If you reside in a region with an extended growing season, you’re in luck. However, if not, you will need to begin planting indoors using artificial lighting and heating. Although this approach requires a larger investment, it is essential to ensure that your plants are ready to meet customer demand.
• Organized Set-Up – Whether you plan to sell to walk in customers or deliver your plants and trees to buyers, you need to be organized. It should be easy to water and tend plants, and easy to move them.
• Start Small – Starting a plant nursery can be done in your spare time, even as a family venture. The smallest of children can push seeds into soil. Add employees (even part time seasonal employees) as needed.

Aspect	Tips to Make Money with a Plant Nursery
Education	Engage in extensive reading, work at a greenhouse, or seek professional training to identify plants and handle plant problems.
Sound Techniques	Follow meticulous steps from the initial stages to the “sell ready” phase of plants or trees for successful plant nursery operations.
Diversify	Offer a mix of standard, easy-to-grow plants and specialty, higher-priced plants or propagate trees to attract a broader customer base.
Planning and Timing	If your area has a short growing season, utilize artificial lighting and heat to start plants indoors to meet customer demand on time.
Organized Set-Up	Create an organized setup for watering, tending, and moving plants, whether for walk-in customers or delivery to buyers.
Start Small	Begin with a small-scale nursery, possibly as a family venture, and scale up gradually by adding part-time or seasonal employees.

Types of Plant Nursery

Flowers and Flower Seedlings

This category includes a wide range of outdoor annuals, which are typically sold as young plants ready for transplanting into gardens. These may include popular varieties like petunias, marigolds, and pansies. Additionally, nurseries may specialize in blooming plants sold as cut flowers, such as roses, lilies, and tulips, catering to both retail and wholesale markets.

Vegetable Seedlings

Vegetable seedlings are particularly popular among home gardeners and small-scale commercial farms. Nurseries can offer a variety of seedlings, from common vegetables like tomatoes, peppers, and cucumbers to more exotic or heirloom varieties. These seedlings are often started in greenhouses and sold ready for planting, offering a jump-start to the growing season.

Woody Ornamentals

Woody ornamentals include a broad range of bushes, shrubs, and small trees used for landscaping. Popular examples include boxwoods, hydrangeas, and azaleas. Many of these plants are grown from cuttings and can be sold in various sizes. They are favored for their aesthetic appeal in landscape design and their ability to create natural privacy screens.

Trees

Tree nurseries can range from those focusing on fruit trees like apples, cherries, and peaches, to ornamental trees like maples, oaks, and birches. Trees are usually sold either bare root, which is common for mail order and wholesale, or potted with their root ball, which is typical for retail sales. Special care is required to grow and transport these larger plants.

Outdoor Perennials

This category includes plants that return year after year, like daisies, hostas, and various bulb flowers such as tulips and daffodils. Perennials are popular for their low maintenance and ability to provide consistent beauty in gardens over multiple seasons. They can be sold as bulbs or as established plants.

Indoor Houseplants

Indoor houseplants have seen a surge in popularity, particularly among urban dwellers. This category includes a variety of plants suitable for indoor conditions, ranging from decorative foliage plants like ferns and philodendrons to flowering plants like African violets and orchids. Houseplants are appreciated for their air-purifying qualities and the touch of nature they add to indoor environments.

Each type of nursery caters to different customer needs and market demands. Understanding these differences is crucial for a successful nursery business, as it informs decisions about which plants to grow, how to care for them, and the best marketing strategies to reach the intended customer base.

How to Start a Nursery: 26 Crucial Steps to Having Your Own Plant Nursery Business

In these tough times, nurseries are growing as a small business (pun intended). People work from home and enjoy working in their home environment.

Learn the Trade

Read, work with experts, and take courses. Go to plant shows and garden shows. Find out how to start a tree farm or anything about the types of plants you want to sell.

Research the Competition

Study the local market with an eye to finding the gaps in it.

Know Your Target Market

Who is your ideal customer? What is the timing for the plants or trees that the customer will need? Which high-value plants should you grow?

Create a Plant Business Plan

Will you save money by starting small, as other backyard growers have done? Will you lease or buy land? To start, or as the business grows? How many plants can you grow and sell, working by yourself?

Will you have walk-in sales or deliver to customers? Will you sell plants to wholesale nurseries or garden centers? Will you sell tree seedlings or potted trees?

At what point will you hire employees?

Set Up a Business Bank Account

Even if you’re a backyard nursery, open a business bank account and acquire a business credit card.

Choose a Location

A successful nursery strikes a balance between having an ideal space for growth and a convenient location for sales. A small-town nursery can thrive if it is easy to locate and accessible to customers from nearby larger towns.

Register, Brand, and Name Your Business

Your business should be registered with your secretary of state – where you should also check to make sure your chosen business name isn’t already taken.

A successful plant nursery has an easy-to-remember name which sums up its position in the marketplace. For example, if you plan to specialize in fruit trees, choose a name that reflects that focus.

Choose a Business Entity

Many small businesses opt for a limited liability company (LLC) structure. An LLC distinguishes your business as a separate entity, thereby safeguarding your personal assets.

Get Permits and Licenses

If you’re going to move any type of plant across state lines, you’ll need a permit from the state Department of Agriculture to do so. You’ll also need a permit from the Dept of Ag if you import or export plants to other countries.

In most states, you’ll need a Nursery Floral License (for each of your locations), and/or a License to Sell Nursery Stock.

You’ll need a Business Sellers Permit because you’ll be selling a taxable item.

Sort Out Your Taxes

In addition to sales tax, you’ll pay real estate tax on any land you purchase for your operations.

If you’re a sole proprietor, you’ll use Schedule C to report income and expenses.

Especially when you’re beginning, it’s advisable to hire a tax professional who can guide you on the best way to establish your business.

Get Insurance

In addition to general Business General Liability Insurance, you may need “business-specific” insurance. For example, if you’re growing outdoors on a large scale, you may be able to purchase crop insurance (so that you can make a claim for damages in the event of catastrophic damages, such as hail or flood.

Develop a Risk Management Strategy

After getting insurance, it’s important to develop a risk management strategy. This includes planning for unexpected events like natural disasters, market fluctuations, or pest infestations. Establish protocols for mitigating these risks and ensuring the continuity of your business.

Purchase the Necessary Equipment and Find Suppliers

Cow manure is a vital ingredient of fertilizer, but not all manure is the same. For example, the “fresh” type may be loaded with weed seeds and only used commercially bagged or well-aged.

In addition to fertilizer, here are some other basic equipment needs:

• A few hand tools
• Potting soil
• Pots and containers
• Seeds, starter plants (for cuttings)
• Gardening gloves
• Watering equipment

Establish Sustainable Practices

Following the purchase of equipment and finding suppliers, it’s beneficial to establish sustainable practices in your nursery. This can include using organic fertilizers, implementing water conservation methods, and adopting eco-friendly pest control. Sustainable practices not only help the environment but also can appeal to eco-conscious consumers.

Choose Your Irrigation Method

Given the cost of metered water, your best bet is to supply your water from your own well.

You can hand-carry water if you’re operating in a smaller space, or if larger, set up an irrigation system.

Create an Online Presence

Create a professional website with lots of color images. Link an email to the website. Make sure you pop up on a Google search.

Use social media such as FB to promote your business.

Set Your Prices

Analyze what your competitors are charging. List prices on your website and on social media accounts. If open to the public, make sure your prices are clearly displayed.

Look for Lenders

At some stage, you’ll likely want to grow your business. It’s always a good idea to explore the potential options available to you for the future.

Employ Staff and Get an EIN

An EIN, or Employer Identification Number, is necessary when you begin hiring employees. This number will be used to report payroll taxes to your state.

Develop an Employee Training Program

After employing staff, develop a comprehensive training program. This program should cover plant care, customer service, and sales techniques. Well-trained employees can significantly improve the efficiency and quality of service in your nursery.

Start Growing Plants or Buy Plants

You will begin by starting plants from seeds or by nurturing already established plants. Additionally, you might buy plants like woody ornamentals that you can use for cuttings.

Market Your Business

Send business cards along with every sale to reach more potential customers.

Reach out to outlets such as flower shops, groceries, and landscapers.

Can you write an advice column in a local newspaper or on social media? Use your business FB page to provide this service. That’s an awesome form of free advertising.

Establish Partnerships with Local Businesses

In addition to traditional marketing, consider establishing partnerships with local businesses like florists, home improvement stores, or event planners. These partnerships can open up new sales channels and increase the visibility of your nursery.

Sell Your Crops

Unless your business is solely “walk-in” customers, you’ll need a reliable delivery vehicle for selling plants. Depending on the climate where you live, you may need a refrigerated vehicle. That’s a sure way to ensure you’ll be delivering healthy plants.

Scale Your Business

A successful small business is always on the lookout for ways to grow. Don’t put all your plants in one basket or pot. Diversify.

Explore New Market Trends and Opportunities

As you look to scale your business, keep an eye on new market trends and opportunities. This could include expanding into exotic plants, offering gardening workshops, or exploring online sales of seeds and gardening supplies. Staying attuned to market trends can help you find new growth opportunities for your nursery.

Conclusion

Starting a plant nursery can be a fulfilling and potentially profitable venture, but it’s not as simple as just planting a seed and selling the plants. It requires a combination of gardening skills, business savvy, and careful planning. Education is crucial, so do plenty of reading and gain professional training to identify plants and handle potential issues like fungi and insects.

To succeed, follow sound techniques from the home-based nursery to the larger ones, ensuring plants are nurtured and grown to the “sell ready” stage. Diversify your offerings by combining standard, easy-to-grow plants with specialty, higher-priced ones to cater to a broader customer base.

Effective planning and timing are vital, especially if you’re in an area with a short growing season. Utilize artificial lighting and heat to start plants indoors, ensuring you have stock available when customers want them. Organize your setup to efficiently water, tend, and move plants.

Starting small is a practical strategy that lets you expand gradually as your business develops. Think about hiring part-time or seasonal staff when necessary. Conduct research on your target market and competitors to determine the most suitable plants to cultivate and sell.

Register and name your business, and choose a suitable location for growing and selling. Obtain the necessary permits, licenses, and insurance to ensure compliance and protection. Plan your finances, set your prices, and market your business through a professional website, social media, and other local outlets.

Remember that success in the plant nursery business requires continuous efforts to grow and evolve. Diversify your offerings, stay open to new opportunities, and scale your business strategically. With determination, a green thumb, and the right approach, your plant nursery can blossom into a thriving and rewarding venture.

Image: Depositphotos

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