[catbert]

I'm considering starting a landscaping business. But I'm also looking at a number of other businesses. So I'm wondering which business would bring the best return on investment. I know that there are lots of factors that would affect ROI, but I'm just trying to understand which business has better profitability vs. investment.

Anyway, other than landscaping, I'm also conisdering
- Carpet Cleaning
- Coin Laundry
- Self-Storage
- Pizza and/or chicken wing shop

What do you think? Thanks for sharing your views.

[Stonehenge]

I wish you luck in whatever new venture you choose - that being said, it'd be hard for me to compare because I have no experience with carpet cleaning, coin-op laundry, self-storage or a pizza place.

One thing to consider about these ventures:

Coin-op laundry and self-storage don't require anything other than solid business knowledge.

For a pizza place you'll need to know how to make pizzas (and have that business knowledge), and for a carpet cleaning company you'll need to know how to clean carpets (but I would imagine a franchise fee would solve that problem).

Depending on what kind of landscaping you want to do, that option may require the most industry knowledge before you start. If you spent a few years working for a landscape company, you may already have that knowledge. If not, you might be in for a surprise. Heck, there's still a ton of things I don't know or haven't faced yet.

I'm not sure that's any help, but it's my $.02, for what it's worth.

[Bill Schwab]

Hands down, self storage. Matter of fact my wife and I are negotiating some land to build one. You fill the slots, put everything on automatic lock in and out, and you can get $200.00 per month for a 30x10 outdoor spot made of air. Indoor slots 10x10 can run between 120 and 150 per month. the buildings are basic steel-sheet metal. It's a business that you don't need to be at as often as any service company, and, you could yuppify the affair by adding a small livre on grounds unit for a retired couple who needed a job and place.

[cutntrim]

Franchising can come with hefty start-up fees (and on-going costs) but likely most operations have ROI figures for you to look at. Depending on what location you choose, your returns are probably fairly predictable with a franchise. Starting your own business would be a different story...I wouldn't want to try a restaurant given the failure-rate of start-ups.

Carpet cleaning may or may not be franchised, but start-up costs I would not expect to be too high. Possibly the lowest of any of the choices. I hear there is new technology that allows carpet cleaning without "shampooing" the carpets. Supposedly leaving the rug cleaner, longer, and without soaking the rug in the process.

I would not start a landscape/maintenance company (at least in my area) if I were looking into it for the first time right now. Too much competition offering work at cut-rate pricing.

I'd go with self-storage for the reasons Bill lists. The drawback would be the start-up costs, especially in certain urban markets. Land here is insane. Although Bill is probably negotiating $100,000,000 for 1 acre in San Diego... Anyway, I keep my equipment in a self-storage facility (have done so for 14 yrs.) and I could run the place with my eyes closed. There is VERY little maintenance required once it's up-and-running. You just need the coin to get it to that point.

[Mac]

To add to the self-storage idea, the exit strategy for these are fairly straightforward. You are basicly selling a known revenue stream. In my area, 5 local storage places sold to a national chain for over a million a piece (if i remember correctly). Not too shabby IMO.

[catbert]

Hey thanks for the great feedback. I've posted this same question on professional sites having to do with these other industries, and nowhere have I seen as many responses warning me away from a particular industry. That’s really surprising. You're all probably right about landscaping being a very complex industry where good professionals are being undercut by new entrants. Although I've heard it said that a major part of success in landscaping is just keeping your word and showing up. If that's true, it says a lot about the dilatants getting in the way of the pros. I’m not a pro in any of these industries, but whichever industry I go with, I’ll be committed to becoming a pro.

Anyway, obviously there are both positive and negative aspects to each of these industries. For example, it seems that with such a low investment needed in order to get started in the carpet cleaning business, going this route opens you up to a constant barrage of new competitors. On the other hand, such a low initial investment may also mean that the business becomes profitable much sooner.

[P-Train]

If you don't know plant material, design or have any experience with equipment, drainage knowledge or business in the industry or at least a few years apprenticeship then you may as well flush your money down the toilet.

I doubt anyone here ‘just started a landscaping company ‘ instead of something else. We were landscapers and/or interested in it with experience before we decided to take a plunge.

There are business owners who own landscaping companies and there are landscapers who own landscaping companies.

[Bill Schwab]

Catbert:

I'm not taking what has been posted as warning you away from anything. I for one love what I do and encourage anyone who is serious and wants to learn the ropes and add to the professional mix to join.

When you loook at all the industries you posed as choices,
Pizza, Carpet care and landscaping are very hands on. Lesser hands on is laundry, and the least is self storage. The problem with self storage as cutntrim elluded to, is start up costs. Land is outrageous, and there are the rigors of getting the site approved. I know this well.

Landscape has about the least start up costs, as you can get some mowers, and hand equipment, buy a truck and you are off.

Same as carpet cleaning. Get a van and a cleaner vacuum for the back, and off you go.


A pizza joint requires a lease, and them pizza ovens are good for about $30K each. All to make 412.00 for a large with 2 toppings. And there are the crazy insane hours of running a restaurant. 16 plus, 7 days a week, and even if you close one day, you still are there doing the stuff you can't do when open.

Coin laundry has machine leases and repairs. And, the taking of the money and cleaning of the machines. Day thing.

Self storage, after you open, is pretty much run it as you like, the computer locks those who don't pay out, the gate only opens when it is coded. It also has the absoute highest start up costs. A secondary business with self storage is running a second hand shop from when you repossess and seize all the junk in the bins.

For me, it will be retirement. I would not have imagined myself doing any other job than the one I have right now, digging dirt and thumping the earth.

[Lanelle]

In our area some of the self-storage places are magnets for small businesses which is pretty stable and easy. If you cater to that group you'll get referrals for more business tenents.
The other thing about landscaping is that in the beginning you will physically work hard everyday for long hours unless you don't have much financial responsiblity to meet and you aren't wanting to work hard.

[catbert]

Hey, thanks for your feedback everyone.

Clearly the landscaping industry is more than just running around cutting lawns in the neighborhood. Although I'm sure many people started just that way.

I'm sure you're right P-Train. And having no direct experience in landscaping (other than around my properties), I would be the former rather than the latter.

Yeah, I guess I could just get a truck and a mower and get on with it. And most people probably don't ask for more than that. Maybe trim the hedges now and then, or trim or take down a tree. But I really would be lost if someone wanted more. Of course there are courses and books, and franchises that could help me get the necessary knowledge.

I do have experience working in a restaurant, though not a quick service food business. My experience with coin-laundries and self-storage facilities is as an investor not a day-to-day operator. And unfortunately, my experience with carpet cleaning and landscaping is also just as a consumer.

Well that's why these questions and a lot of other research I'm doing will hopefully help me figure out which industry is the right one for me.

Perhaps I should have asked a different question. Hmm...

If you had 100k to start a business, which business would you go into? Would it still be landscaping?

Anyway, please keep the feedback coming. This is just what I need to get my head around the idea of working in these industries.

[trees]

One common denominator amongst all the pros here is that we love what we do. If you are just looking for a business to make money... don't do this.

If, on the other hand, you have a passion for groundskeeping, plants, bugs, soils, machinery, stone, biology, the outdoors, aesthetics, etc., etc., etc. then this is a great gig. There's a whole lot to learn to do this job well & you've got to have it in your gut to make it work out.

[mdvaden]

From a casual reading of the opening post, I'd hope that you did not start in the landscape field.

It's best for we who are committed to it, that we love the profession first, then the money next.

But aside from that, I've personally known several people that started window cleaning businesses.

The overhead is rediculously low if you start with one or two story.

Going higher takes some training, but I believe there are forms of education and training available outside of employment.

Anyway, one of those people evolved into one of the largest companies of that kind in the state of Oregon, including all of the county buildings for Oregon's most populous county - Multnomah, where Portland is. They had work from Salem to Portland and beyond.

It was a matter of quality and consistency and manners.

But you can start with a ladder, a squeegee and towels.

If you have more to invest, or can acquire a large amount of debt like land to build buildings, other alternatives may seem well too.

There's not enough good Pizza places in southern Oregon, so I'd love for you to pick that avenue here !!