In determining the location of your nursery, you must become familiar with federal, state, and county regulations. Check out the zoning laws. Learn about the regulations concerning registration, water use, and runoff containment. Getting a new business up and running involves financial investments, risk-taking, complying with regulations, and many hours of time and hard work. You must be dedicated and possess sound business skills.
There are federal regulations governing the type of business that you have. You must have a federal employer identification number if your business is a sole proprietorship and has at least one employee, or if you have a partnership or a corporation. You can get the proper application and other forms from the IRS. You will also need a business license from the state or county. Other licenses may be necessary, depending on where you are located.
Another thing to consider is insurance. You must have enough insurance to protect your property and equipment. What if someone steals your tractor? Or damages your greenhouse? And don't forget business liability and casualty insurance. You don't want to think about a customer getting hurt in your nursery, but it could happen. Be prepared, be covered, and be safe.
Maybe you own a farm already, and you want to open a nursery as a side business to increase your income. Maybe this will be your sole business. In either case, it is advisable to start small. “Small” may be five acres of container plants or fifteen acres of field production. It usually takes three to five years for any new business to begin to show a profit, but it may take a beginning nursery a little longer depending upon the state of the economy. You may want to have a full-time job somewhere else, until your nursery begins to turn a profit.
Marketing
When starting a nursery, it is important to know what crops to grow and how to market them. Choosing the right crops will depend largely upon the part of the country in which you live. It will also help to know what other crops in your area have been grown and sold successfully. Stay informed of legislative action that might influence your business. Check out the 10 year development plans of your county planning and zoning boards. Where are the new subdivisions going, and when will they be built? Also, check out your competition!
Marketing is all about knowing what to sell, how much, and to whom. You should decide who your customers are and what they want. Keep up with current trends and know which plants will bring the most profit. Where a large established nursery might carry a large variety of plants, you may want to develop a selling niche. Perhaps you want to sell just those plants that are native to your area, or maybe you want to sell rare plants, or just one or two types of plants. Maybe you want to specialize in roses or lilies or trees.
Once you are open for business, you must constantly monitor your sales. You must advertise and promote your business continually. You must ensure the reliable and consistent availability of quality plants that your customers want. You want to build your nursery's reputation as a place to purchase quality, and offer service with a personal touch. Guarantee your plants. That will keep your customers coming back.
Your Business Type
- Small grower/retail nurseries: You probably sell directly to the homeowner. Most of your crops are grown in containers, and your sales are local. You sell mostly seeds, small plants, shrubs, and a few balled and burlapped trees.
- Wholesaler: You grow plants to sell to other nurseries, landscapers, retail outlets, and mass merchandisers that sell large volumes of a few varieties of plants that sell quickly. Their sales are usually seasonal. They want fast shipment and low prices. They often give plants poor treatment once they receive them.
- Landscapers: You buy large, high-quality plants, trees, and shrubs. You buy most of your plants in the spring even though your work goes on all year. You offer landscape services at retail prices for the homeowner up to the large business park.
- Garden centers: You purchase your plants from wholesalers. Your business ranges between the mass merchandiser and the landscaper. You may sell everything from packets of seeds, container plants, balled and burlapped shrubs and trees, to garden hoses and flower pots.
- Other retail outlets: These include mail order, websites, and farmers markets. Mail order nurseries and websites sell nationally, while farmers markets are usually local.
Production: Container Grown
There are two types of production: field grown and container grown. Container-grown crops are seedlings and cuttings for both forestry and landscape businesses. Container-grown trees have a greater chance of survival after transplanting, and they need less time to adapt than field-grown trees. If you have a small nursery, container production is ideal for you. It takes up less space, and it enables you to extend the growing season. Container plants can be moved inside when the weather is bad. Homeowners usually prefer container plants because they are easier to handle. They are easier to transport and to transplant. Crops grown in containers sell much better than crops grown in the field.
