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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

Other advantages to the nursery are:

1. High plant densities: You can put a large number of containers in a small space.
2. Use of poor land: You can grow container crops on land that is unsuited for field production.
3. Planting times: Container crops can be planted regardless of the weather or the season.
4. Elimination of some operations: You don't have to worry about root pruning.
5. Lower costs: Because of the lightweight potting media, transportation costs are lower.
6. Greater survival: Because there is less root loss, the plant has a better chance of survival.

There are also several important disadvantages. Container plants need constant and frequent watering, and nutrients are lost very quickly. Plants can easily become root-bound and have to be reported. Containers cost money, and so does the labor required to plant the containers.

If you plan to sell container plants, keep in mind the costs involved, not only the costs of the containers, but that of the growing media as well. You must also be careful to control the moisture content and temperature of the growing media to encourage root growth. Mycorrhiza is helpful soil fungi that can be purchased commercially. It aids plants in absorbing water and nutrients.

The design of your containers is also important. Copper-lined, white, and light-colored containers are better for your plants than the old round black-plastic pots. Also, square and stair-step pots help to prevent bound roots. The shape allows roots to spread out more than the old round pots. Root growth is a very important aspect of growing container plants.

Research has shown that the use of copper in the containers is an excellent way to control root growth. Copper kills root tips and forces the roots to grow within the ball instead of around it. These plants tend to be taller, have higher survival rates, and require fewer applications of nitrogen.

Another method of controlling root growth is to expose the root tips to air. Air works in very much the same way as copper. It kills the root tips and forces the roots to branch out rather than grow around the ball. Tree seedlings are often grown this way in bottomless milk cartons. Plants can also be grown in bottomless tubes made out of plastic or Styrofoam. Tubes work well for the small nursery because you can grow large quantities of plants, such as perennials and tree seedlings, in a very small space.

In addition, we have a method called the pot-in-pot system. This system was developed to help solve some of the problems you may have with containers, such as blow over and moisture loss. It is disheartening to have to set up your trees and shrubs every time the wind blows. If they are damaged, then your profit is cut. With this system, you bury a pot in the ground and set a container plant inside it. This may be expensive initially, but these holder pots may last 15 years or more.

Recycling Plastic

Most nurseries use a lot of plastic-pots, flats, hanging baskets, greenhouse film, and even plastic mulch. You can reuse some of this, but mostly you need to find a place to get rid of it. There are recycling plants for plastic. To locate one near you, go to The American Plastics Council website (U.S.,Canada). Recyclers often have restrictions. They may require that sheet plastic be clean. It should be washed and stored properly indoors. They may also want to know the density of your pots. Most flats, trays, and pots are #6 polystyrene or #2 high density polyethylenes. This can be very important to some recyclers.

Weed Control

Weeds compete for water and nutrients, and they can also hinder sales. How attractive is a container plant with a pot full of weeds! To control the weeds, you need to treat the pot and the area under and around the pot. When treating weeds, ask yourself these questions: Are the weeds annuals or perennials? Are they easy to pull? Are they growing in one small group of containers, or are they widespread? Are the weeds monocots (grass) or dicots (broadleaf)? What time of year is most effective for controlling weeds? Knowing the answer to these questions should make your work a lot easier.

Sanitation is the cheapest and most effective method of weed control. Keep the areas around your containers clean and free of weeds. Try placing your containers on landscape cloth. The most modern types are quite durable and do a good job of controlling weeds. If your nursery is very small, you may hand weed your crop.

The most common method of weed control in container nurseries is the use of herbicides. Weeds love the almost perfect growing conditions in containers-the soft media, the just-the-right amount of moisture and nutrients, and the protection from bad weather. Herbicides are quick and easy to apply, and they usually work very well. Probably the best way to get rid of weeds, however, is a combination of hand weeding and herbicides.

There are other effective methods of weed control. One is the use of fabric weed barrier discs which are pre-slit and fit around the plant. They prevent weeds from growing while still allowing water and air to reach the plant. A new organic weed control is corn gluten meal. This is applied in early spring to the top ¼ inch of soil. It contains 10% nitrogen and acts as a slow release fertilizer. Corn gluten meal is classified as a natural herbicide, and it must be applied once every year. Another herbicide, called Weed Eraser, is made from pelargonic acid found in plants and animals. It lowers the pH of the plant that is sprayed and kills it within two hours. Other products-Nature's Glory, Burnout, and Bioganic-contain vinegar, lemon juice, eugengol, thyme oil, orange oil, and other natural ingredients. All of these products work in varying degrees on broadleaf and grassy weeds.

Fertilization

Advances in growing media and fertilizer combinations have helped container nurseries to be successful. Because of new Federal rules, many nursery growers are looking to organic fertilizers. The goal is to have zero runoff. The most common problems with runoff are excessive nitrates and phosphorus. Not only are these elements harmful to the environment, they are needed in the containers for plant growth.

Organic fertilizers that provide nitrogen are alfalfa meal, blood meal, cottonseed meal, feather meal, hoof and horn meal, soybean meal, and animal manures. Phosphorus may be obtained from oak leaves, bone meal, shrimp wastes, residues from sugar, and various forms of rock phosphate. To obtain potassium, use greensand, granite meal, soybean meal, ash from orange and potato skins, unleached wood ashes, K-Mag, and tobacco.

To maintain adequate levels of nutrients in the container medium is difficult because of limited container space and frequent watering. You might have better success if you combined two fertilizing systems-the slow release and liquid. Nitrogen is the main nutrient supplied by liquid feeding. It can be obtained from fish emulsion, fish powder, blood meal, bat guano, seabird guano, worm castings, and composted manure teas. Some of these work well in drip irrigation.

Foliar feeding can be used when you have plants that need help quickly. You may have received a shipment of plants that were stressed during transport, and they need a quick pick-me-up in order to survive. Seaweed is an excellent choice because it contains growth hormones as well as trace elements. Foliar feeding also helps control diseases and enhances the plant's ability to resist pests.

Production-Field Grown

Field grown is just as it sounds-plants and seedlings are planted in the field and sold as bare-root stock or as balled and burlapped shrubs and trees. This type of production works well for growing shade trees for the landscape industry. It is well adapted tap-rooted trees, mass plantings, and trees that grow large trunks. This is also fairly inexpensive to establish. If you are planning this kind of nursery, you need level ground with good drainage, good soil, and an agreeable climate.

You also need to know the length of time it takes to produce a saleable crop, and you need to know how to plan to have the right varieties available when your customers need them. You need storage space as well. Trees are normally dug in late fall or in early spring. Bare-root trees are then sprayed with fungicides and bacteristats and stored in warehouses until they are sold.

Some disadvantages would be: it requires a lot of space; there is a higher percentage of plant loss, and a longer recovery period after transplanting. There can also be a great loss of topsoil. Balled and burlapped production causes a loss of 200-250 tons of topsoil per acre at each harvest. You have two options: You can replace the topsoil with something else, or you can go to a bare-root operation that does not require soil to leave the farm.

A field-grown operation requires certain soil management practices. You have to be continually building up your soil, planting cover crops, and rotating crops. Living mulches can be planted in the aisles to hold soil and water and to suppress weeds. To improve your soil, integrate living mulches and cover crops with the application of high-quality composts. Also, plant a diversity of species for pest control. It is not good to plant the same type of crop in the same location over and over.

In the early 1980's, Dr. Carl Whitcomb at Oklahoma State University, created an in-ground container called root-control bags or field-grow bags. The bags are made of a nonwoven fabric with a bottom made of a woven fabric or a clear polyethylene. Their use enhances rooting, and fewer roots are lost at transplanting. They make harvesting easier; they save time and labor, and you don't need any special machinery.

Of course, there are several disadvantages. You have to make an initial investment. The bags aren't cheap. After transplanting, the plants need more staking and water. The damaged bags cannot be used. Mechanical cultivation and fertilizer application are difficult, and bag removal can be difficult and time consuming.

Irrigation

You must have an ample supply of water and have a system that can reach your plants adequately and easily. Two of the most widely-used systems are overhead watering and drip irrigation.

Overhead watering is designed for large areas and is probably the least expensive system. You see this often in greenhouses, because the pipes can be installed in the ceiling. Out in the field you will see sprinklers installed on tall pipes to enable the water to reach all areas of the field.

Drip irrigation is more expensive to install, but it uses less water. It waters only the good plants and not all the weeds growing between the rows. It waters evenly and efficiently, and it is less affected by the wind. We've all been sprayed in a nursery when the wind changed. With drip irrigation the water is never sprayed into the air. It goes directly to the plants next to the tape. Drip irrigation contributes to plant growth by supplying an ample amount of water and by discouraging disease and water runoff.

There are many other systems of irrigation, but most of them are expensive to install and use and have more disadvantages than advantages. Regardless of the system you choose, be sure that you give your plants enough water. So many times we will see a plant in trouble and think it needs a shot of fertilizer, when really all it needs is a good long drink of water.

Many states now have rules relating to water runoff and the levels of nitrates left in the water. This is one of the most important issues you will face as a nurseryman. Runoff can be collected in ditches and ponds to be recycled. This recycled water is actually good for your plants because it contains all the nutrients that were leached out of your container plants and the fields.

There are several things you can do to reduce runoff. You should avoid watering bare soil. Always have some kind of ground cover-mulch or a living cover. Rough up the soil to provide surface storage of water. Use less-porous media to retain moisture and nutrients, and use slow-release fertilizers. This will slow down the nutrients being leached from the soil. Research has determined now that plants do better when you decrease the amount of nitrogen fertilizer and increase the amount of water.

Pest Management

When controlling pests, you want to minimize the risks, especially to you and to your employees. Many of the older pesticides caused lung problems to the handlers. Now you have to take a course and pass an exam on pesticide safety and handling.

By combining several methods of pest control, you may be able to have a healthy nursery without damaging the economy, the health of your staff and customers, and the environment. Choose plants that resist the pests common in your area. Encourage the growth of helpful insects and bacteria, and spot treat the problems with pesticides that are not so harmful. It is important that you identify the pests and use the proper treatment.

Weed Control in the Field

Weed control in the field-grown nurseries is very important, and there is a variety of methods, which include herbicides, mechanical cultivation, cover crops, living mulches, weeder geese, flame weeding, plastic mulch, fabric weed barriers, and organic mulch.

There are many kinds of herbicides that affect different kinds of weeds. The use of many herbicides, however, require that you have a license.

If you have a large nursery, you may cultivate with tractors and other large equipment. An innovative tool is the brush hoe. This has stiff brushes attached to multiple heads on rotating drums. As they rotate, they disturb the soil surface and dislodge the weed seedlings.

Flaming works by searing and disrupting the plant cells. If you are careful, you can destroy the weeds and never harm the plants next to them. Broadleaf weeds are more susceptible to flaming than grasses.

Mulches limit the light and help retain moisture in the soil. Without sunlight weeds cannot grow. You can use most anything for mulch-pine straw, wood chips, sawdust, newsprint, or plastic. The mulch should be 3 to 4 inches thick, and it must be replenished once or twice a year.

A fast way to prevent weeds in the field is to lay landscape fabric or sheets of plastic down the rows and cut holes where you put the plants.

For living mulches you can use bird's-foot trefoil, winter rye, or grass sod. A good combination is 80% perennial ryegrass and 20% red fescue. The grass sod can be overly competitive with trees, and trefoil becomes infested with weeds. The ryegrass, on the other hand, can be killed by herbicides, but then it becomes excellent mulch. It provides good weed control, and it increases water infiltration and soil moisture. By improving the retention on nutrients in the soil, it reduces field maintenance costs.

Steam is another effective method of weed control, and it can be used to disinfect beds and greenhouses before planting. Steam is nontoxic, easy to apply, and controls the same types of soil pests as methyl bromide did in the past. It can also be used in a wide variety of climates and conditions. The Sioux Steam Flo, for about $5,700, is advertised to work well in greenhouses. It heats the soil to 140 degrees Fahrenheit for at least 30 minutes and kills pest fungi, bacteria, nematodes, and weed seeds.

In areas of the country that gets hot enough, solarization works. You put clear plastic sheets across moist ground only where plants are to be placed. The sun's radiation heats the soil and kills pests, weed seeds, and harmful insects.

Costs

It doesn't matter whether you are a beginner or an established nurseryman; there are several things you need to keep in mind. How much is your overhead? This can include income or other kinds of taxes, depreciation of your buildings and equipment, interest on loans, rent on your property and equipment, utilities, and insurance.

How much is your maintenance? You have to keep your property in good condition. You want your business to be safe and attractive so that customers will feel at ease as they check out your crops. You need to keep your equipment in good repair, and you need to replace machinery when it wears out. You may also wish to expand your business by constructing new buildings. You always have the costs of buying supplies and paying labor wages. In addition, you have the direct costs of purchasing seeds, plants, potting media, fertilizers, and containers.

When you are pricing your products, always consider how much it costs to produce this item, and for what price is your competitor offering it. Don't forget profit. This is one of your costs just as much as anything else. After all, why are you in business?