🌿 How to Budget for a Landscaping Business Earning $100,000 a Year

Running a landscaping company isn’t just about mowing lawns and planting trees — it’s also about keeping your finances in check. A well-planned budget ensures you can pay your team, cover expenses, save for the slow season, and still make a profit.

Let’s look at an example budget for a landscaping business earning $100,000 in annual revenue, based on common industry percentages.

📊 Estimated Landscaping Company Budget

In this example, about 43% of revenue — or $43,000 — goes toward labor costs, including crew wages, the owner’s salary, seasonal help, payroll taxes, and workers’ compensation. Materials and supplies such as plants, sod, mulch, fertilizer, and small tools typically take up 15% of revenue ($15,000).

Equipment and maintenance account for 10% ($10,000), covering mowers, trimmers, repairs, parts, and depreciation. Fuel and transportation come in at around 6% ($6,000) for trucks, trailers, and equipment fuel. Insurance — including liability, vehicle, equipment, and workers’ comp premiums — generally runs 4% ($4,000).

For marketing and advertising, it’s smart to set aside 3% ($3,000) to keep the phone ringing with flyers, websites, and online ads. Licenses and fees such as permits and certifications may be about 1% ($1,000), while office and administrative costs like bookkeeping, software, phone service, and office supplies often take 5% ($5,000).

You should also budget 10% ($10,000) for income and self-employment taxes, and 3% ($3,000) for an emergency or reserve fund to cover the off-season or unexpected expenses.

💡 Key Takeaways for Landscapers

1. Labor Will Be Your Biggest Cost

At around 43% of revenue, payroll is the largest line item. Efficient scheduling, cross-training employees, and minimizing downtime can help keep labor costs in check.

2. Track Every Gallon of Fuel

Fuel costs eat up about 6% of your revenue, but you may be able to get some of that money back. Landscaping businesses that use fuel in off-road equipment (mowers, blowers, generators) can claim the Federal Fuel Tax Refund using IRS Form 4136 — averaging around $700/year back in your pocket.

3. Save for the Off-Season

Winter months can slow cash flow. Setting aside 3% (or more) into an emergency/reserve fund will help you cover expenses during slower periods.

4. Don’t Neglect Marketing

Even if you’re busy now, a slow sales funnel can hurt you later. Allocating 3% to marketing — like flyers, a professional website, and online ads — keeps the phone ringing year-round.

✅ Final Word

A budget isn’t just about limiting spending — it’s a tool to help you make smarter decisions, identify waste, and set your landscaping business up for long-term success.

By following this example, you’ll have a clear roadmap for where your money is going, how to reduce costs, and how to keep more of what you earn.

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