land management business plan

The Step By Step Guide: How To Start Your Own Business

How to Start a Land Clearing Business

What is a land clearing business.

Starting a business is one of the smartest long-term investments you can make to accelerate your path to financial freedom and retirement. Whether you’re looking to make some extra income on the side or build a renowned business, the construction industry is a great one to get into!

If you have a relatively more considerable amount of capital to launch your startup and some interest in construction, starting a land clearing business may be the next lucrative move for you!

A land clearing business offers services such as removing trees, stumps, roots, rocks, and other elements that need to be cleared before construction.  If you’re curious about how to start a land clearing business of your own, read on!

How to Start a Land Clearing Business  

Starting a land clearing business is slightly more complex than other businesses due to the various factors that need to be considered. Because of that, it’s essential to be aware of the following vital components when deciding to pursue this venture. Below is a general land clearing business plan to help guide you throughout the process:

The first step you need to take is to conduct thorough research on the land clearing industry in your particular region. You want to investigate the area you’re willing to operate in and consider the following factors when making your decision:

• How many competitors are in the region?
• How large are your competitors?
• How established is your competition?  
• Is there a high demand for construction in the area?

Suppose you’ve discovered that there’s a higher density of competition in one part of the region than another. In that case, you may want to consider operating with fewer competitors. If construction is more in demand in a particular region, that may be an opportunity you want to capitalize on. When choosing your active region, weighing in the above factors will set you up for success, as you’re now backed by a well-researched strategy rather than choosing to operate locally for convenience.

As with any business, paperwork is one of the most crucial steps to undertake before you can begin offering your services. When forming your land clearing business, you may choose to register as a sole proprietorship, limited liability company (LLC), or a corporation. Most service-based businesses register as an LLC or a corporation to protect themselves from legal liability.

For tax structure, you will want to consult an accountant after registering your business to ensure that you’re compliant by law. If you’re located in the USA, you will need to apply for an EIN, a simple and free process.   

In many countries, you’ll also need a license to perform land clearing services, so make sure to do a quick Google search on the legal requirements in your specific area!  

Last but not least, it’s time for business insurance. Business insurance covers your costs in the case that your business causes material damage or harm to one of your employees. This is arguably one of the most important pieces of paperwork, so be sure to take your time researching local insurance companies and vetting them properly.

Consult with Experts

Another step that can help set you apart from your competition is to consult with land clearing experts. A good rule of thumb is to tap into your network and see if you can get in contact with someone who operates a land clearing business in an area that doesn’t overlap with yours. They will likely be more willing to share some advice and tips since you won’t be in direct competition with each other.  

Equipment is the lifeline of a land clearing business. Without the proper equipment, you risk delivering poor-quality work, which could have tremendous consequences after building the infrastructure on the cleared land.

Equipment is the largest expense when starting a land clearing business. You will need a substantial amount of cash to purchase equipment such as a dozer, an excavator, a grinder, a cutter, and other heavy machinery. This business should only be seriously considered if you have financial wiggle room or are confident in your ability to get a loan and pay it back. 

If you are determined to make this work and don’t have the capital investment, an alternative option is to negotiate low-interest loans from family and friends or visit your local bank and consider their business loan options.  

The Franchising Option 

If you feel strongly about starting a land clearing business but have a fear of failure (which is understandable given the large cash outlay required!), consider going down the franchising route. To do this, take a look at this  franchise directory  and see if there are any appropriate franchising options given your budget.  

How Much Does it Cost to Start a Land Clearing Business?

The cost of starting your land clearing business includes the paperwork filing fees, equipment cost, insurance fees, vehicle maintenance for supply transportation, equipment maintenance costs, and employee salaries if you decide to hire. 

What Should You Charge?

As a general principle, take a look at your closest competitors and consider charging at a similar price point. Due to the high cost of operating a land clearing business, the last thing you’d want to do is undercut your competition since this will only result in a race to the bottom. Rather, focus your energy on differentiating yourself throughout your branding and marketing strategy.

How to Market Your Land Clearing Business?

Marketing your land clearing business starts with focusing on identifying your target market. Are you catering your services to homeowners? Industrial companies? Or real estate agencies?

Next, after narrowing down who you want to serve, you can start by spreading the word about your business through your network to build credibility, trust, and a good reputation. From there, you can invest in paid search ads on Google and Facebook to show your services to people actively looking to have land cleared. Eventually, as your business grows and you invest in a professional website, you can outsource your digital marketing needs to an agency so you can focus on perfecting your craft and building a high-performing team.

Final Words

So, although starting a land clearing business is no easy task, it has the potential to be tremendously rewarding if done right. By keeping your head high, having the willingness to pivot, and facing challenges head-on, you can build a successful land clearing business of your own!

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Land Clearing Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business ideas » Construction & Engineering Industry » Land Clearing

A land clearing business  is a company that specializes in the removal of vegetation, trees, and other obstacles from a piece of land to prepare it for construction, agriculture, or other purposes.

Land clearing involves the removal of trees, shrubs, rocks, and debris, as well as grading and leveling the land to create a clean and usable space.

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Land-clearing businesses use various equipment and techniques to clear the land efficiently. This may include bulldozers, excavators, chainsaws, mulchers, and other specialized machinery.

The reasons for hiring a land-clearing business can vary. Developers and construction companies often require land-clearing services before building new structures.

Similarly, agricultural businesses need their land cleared for farming or ranching purposes. Additionally, landowners may seek land-clearing services to enhance the aesthetics of their property.

Steps on How to Write a Land Clearing Business Plan

Executive summary.

Clear Cut® Land Clearing Company, LLC is a professional land-clearing business based in Albuquerque, New Mexico. Our company specializes in providing efficient and environmentally responsible land-clearing services to meet the diverse needs of our clients.

With a team of highly skilled professionals and state-of-the-art equipment, Clear Cut® Land Clearing Company, LLC is dedicated to delivering exceptional results while ensuring compliance with local regulations and promoting sustainable land management practices.

Our team consists of highly skilled professionals with extensive experience in land clearing. We have completed numerous projects, gaining a reputation for delivering quality results on time and within budget.

We utilize advanced land-clearing equipment and machinery to ensure efficient and effective operations. Our investment in cutting-edge technology allows us to tackle projects of varying scales and complexities.

Company Profile

A. our products and services.

At Clear Cut® Land Clearing Company, LLC, we offer a comprehensive range of land-clearing services designed to prepare land for various purposes, including construction, agriculture, and landscaping. Our services include:

Vegetation and Tree Removal: We safely and efficiently remove vegetation, trees, and stumps from the land, employing advanced equipment and techniques to minimize environmental impact.

Grading and Leveling: We provide grading and leveling services to create a smooth and even terrain, optimizing the land’s usability for our client’s specific needs.

Debris and Rock Removal: Our team efficiently clears rocks, debris, and other obstructions from the site, ensuring a clean and debris-free area.

Invasive Species Management: We employ strategies to address invasive species, promoting the health and integrity of the cleared land while preventing the spread of harmful plants.

b. Nature of the Business

Our land-clearing service company will operate the business-to-consumer business model and also the partnership business model. We will work with investors and major players in the construction and real estate market.

c. The Industry

Clear Cut® Land Clearing Company, LLC will operate in the construction and land development industry.

d. Mission Statement

At Clear Cut® Land Clearing Company, LLC, our mission is to provide professional and reliable land-clearing services that meet the diverse needs of our clients.

We are committed to delivering exceptional results through our expertise, advanced techniques, and state-of-the-art equipment.

We aim to create clean, safe, and usable spaces while promoting environmental responsibility and sustainable land management practices.

Our mission is to be a trusted partner in the development and enhancement of landscapes, contributing to the growth and prosperity of our clients and the communities we serve.

e. Vision Statement

Our vision at Clear Cut® Land Clearing Company, LLC is to be the leading land clearing service provider in Albuquerque, New Mexico, and the surrounding areas.

We envision a future where our company is recognized for its excellence, professionalism, and commitment to environmental stewardship.

f. Our Tagline (Slogan)

Clear Cut® Land Clearing Company, LLC – “ Clearing the Path to Progress”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Clear Cut® Land Clearing Company, LLC. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (President)
• Project Manager
• Sales and Marketing Officer
• Land Clearing Technicians

i. Ownership/Shareholder Structure and Board Members

• Noel Quest (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
• Daniel Ziggy (Board Member) 14 Percent Shares
• Innocent Marley (Board Member) 10 Percent Shares
• Bib Jones (Board Member) 10 Percent Shares
• Elena Smith (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Clear Cut® Land Clearing Company has a highly skilled and experienced team of professionals with expertise in land clearing techniques, equipment operation, and project management.
• The company invests in state-of-the-art land-clearing equipment and machinery, enabling efficient and effective operations.
• Clear Cut® is committed to adhering to local regulations, permits, and environmental standards, promoting sustainable land management practices.
• The company has built a strong reputation for delivering quality results, meeting deadlines, and providing excellent customer service.
• Clear Cut® offers a comprehensive range of land-clearing services, catering to various needs in construction, agriculture, landscaping, and more.

b. Weakness

• As a local land clearing company based in Albuquerque, New Mexico, Clear Cut® may have limited market reach beyond its immediate vicinity.
• The company’s operations are subject to factors beyond its control, such as weather conditions, local regulations, and client demand fluctuations.

c. Opportunities

• The thriving construction industry in Albuquerque and the surrounding areas present opportunities for Clear Cut® to serve developers and contractors
• The rising demand for sustainable land management practices creates an opportunity for Clear Cut® to differentiate itself and attract environmentally conscious clients.
• Collaborating with other businesses in related industries, such as construction firms or landscaping companies, can expand Clear Cut®’s client base and create new opportunities.

i. How Big is the Industry?

The land clearing industry can be considered a big industry. This is so because the land-clearing industry is closely tied to the construction, agriculture, and forestry sectors. It serves a wide range of clients, including developers, construction companies, agricultural businesses, landowners, and government agencies.

ii. Is the Industry Growing or Declining?

The growth or decline of the land-clearing industry can vary depending on several factors, including regional economic conditions, population growth, infrastructure development, and environmental regulations.

iii. What are the Future Trends in the Industry?

The land-clearing industry is evolving in response to changing societal expectations, environmental concerns, technological advancements, and market demands.

Technological advancements are reshaping the land-clearing industry. Companies are utilizing advanced machinery, such as precision GPS-guided equipment, drones for surveying and mapping, and remote sensing technologies to improve efficiency, accuracy, and safety in land clearing operations.

Data-driven approaches are becoming more prevalent in the land-clearing industry. Companies are leveraging data and analytics to assess site conditions, optimize workflows, and make informed decisions regarding vegetation management, grading, erosion control, and resource allocation.

iv. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the land-clearing services business. This is so because the land clearing services line of business is a subset of the construction and land development industry.

v. Can You Sell a Franchise of Your Business in the Future?

Clear Cut® Land Clearing Company, LLC. has plans to sell franchises in the nearest future and we will target major cities with thriving construction and real estate markets in the United States of America.

• The land-clearing industry may have intense competition from both established companies and new entrants offering similar services.
• During economic downturns, there may be a decrease in construction projects and a reduced demand for land-clearing services.
• Changes in local regulations or permits related to land clearing activities can pose challenges and require the company to adapt its operations.

i. Who are the Major Competitors?

• Davey Tree Expert Company
• Lewis Tree Service Inc.
• Bartlett Tree Experts
• Asplundh Tree Expert Co.
• The Davey Resource Group
• Wright Tree Service
• PennLine Service Inc.
• Environmental Restoration LLC
• Phillips & Jordan Inc.
• Ceres Environmental Services Inc.
• Reliable Contracting Company
• Kiewit Corporation
• Phillips & Jordan Environmental Inc.
• Ecology and Environment Inc.
• Mason Construction Ltd.
• Vanderwist of Cincinnati Inc.
• James Construction Group LLC
• Arborwell Professional Tree Management
• A&A Environmental Services Inc.

ii. Is There a Franchise for Land Clearing Service Business?

There are no specific franchise opportunities exclusively focused on land clearing, although some franchise opportunities exist within related industries, such as landscaping, tree services, and property maintenance.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Land Clearing Businesses?

Yes, there are policies, regulations, and zoning laws in the United States that affect the land-clearing business. These regulations vary at the federal, state, and local levels and aim to ensure environmental protection, manage land use, and promote sustainable development.

Federal laws such as the Clean Water Act (CWA), Clean Air Act (CAA), and Endangered Species Act (ESA) have provisions that regulate land-clearing activities to protect water quality, air quality, and endangered species habitats.

If land clearing involves timber harvesting, there are specific regulations regarding sustainable forestry practices, reforestation requirements, and the protection of forest resources. These regulations vary by state and may include forest management plans and logging permit requirements.

Many states and local jurisdictions have regulations and requirements for erosion and sediment control during land clearing and construction activities. These regulations aim to prevent soil erosion, protect water bodies from sedimentation, and maintain water quality.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target audience may primarily consist of adults aged 25 and above. This demographic is more likely to be involved in land development, construction, agriculture, or property management, which often require land-clearing services.

ii. Level of Education

Our target audience may have a range of education levels, from high school graduates to individuals with advanced degrees.

iii. Income Level: Our target audience will include individuals and businesses with moderate to high-income levels.

iv. Ethnicity: Our target audience will be diverse and include individuals from various ethnic backgrounds.

v. Language

The primary language of communication with the target audience may depend on the geographical location of Clear Cut®. In English-speaking regions, English would be the main language.

However, in areas with a significant non-English-speaking population, bilingual communication or translation services may be necessary.

vi. Geographical Location

The target audience for Clear Cut® Land Clearing Company, LLC would be specific to its geographical location. It may focus on serving clients in a particular city, county, or region.

vii. Lifestyle

Our target audience’s lifestyle may vary depending on their involvement in land development, construction, agriculture, or property management.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the real estate and construction industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Clear Cut® Land Clearing Company, LLC. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each land clearing service carried out, In all our pricing strategy will reflect;

• Penetration Pricing
• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the real estate and construction industry, and freelancers to help refer clients to us.

Clear Cut® Land Clearing Company, LLC will build partnerships with related businesses, such as property management companies, construction firms, or landscaping companies, which can create referral networks and collaborative opportunities.

Attending industry events, joining local business associations, and participating in networking activities can help establish connections and generate leads.

b. Inventory Strategy

Clear Cut® Land Clearing Company, LLC will develop strong relationships with reliable suppliers and manufacturers of land-clearing equipment and supplies. This includes evaluating suppliers based on factors like product quality, pricing, lead times, and customer service.

Maintaining open lines of communication with suppliers can help ensure the timely delivery and availability of inventory items.

We will implement a Just-in-Time (JIT) inventory strategy which will help minimize storage costs and reduce the risk of obsolete inventory. This involves maintaining inventory levels that are closely aligned with current project needs and replenishing supplies as required, rather than stockpiling excessive inventory.

While implementing a JIT strategy, Clear Cut® Land Clearing Company, LLC will maintain a stock of essential land-clearing equipment and supplies. This acts as a buffer to address unexpected fluctuations in demand, supplier delays, or other unforeseen circumstances.

c. Payment Options for Customers

• Bank Transfers
• Credit or Debit Card
• Electronic Payment Systems such as PayPal or Venmo.

d. Return Policy, Incentives, and Guarantees

At Clear Cut® Land Clearing Company, LLC, we offer land clearing services hence our service offerings do not accommodate return policy.

While land-clearing services are typically not eligible for traditional returns like retail products, we have policies for addressing customer concerns and ensuring satisfaction.

For example, if a customer is dissatisfied with the outcome due to an error or issue on our part, we will offer to rework to meet their expectations.

We will offer discounts, credits, or other incentives to customers who refer our services to others. We will offer discounted rates for larger projects or multiple surfaces within a single project.

We will implement a loyalty program that rewards repeat customers, and provide benefits such as discounted rates on future projects, priority scheduling, or additional services at a reduced cost.

e. Customer Support Strategy

Clear Cut® Land Clearing Company, LLC will implement a customer relationship management (CRM) system to track customer interactions, manage inquiries, and facilitate effective communication.

We will provide excellent customer service by addressing customer inquiries, resolving issues promptly, and maintaining positive relationships with clients.

Operational Plan

Our operational plan involves developing a system for efficient job scheduling, taking into account factors such as project size, location, customer preferences, and equipment availability.

We will implement project management tools and software to track and manage ongoing projects, ensuring timely completion and customer satisfaction.

Implementing an effective operational plan ensures that Clear Cut® Land Clearing Company, LLC operates efficiently, delivers high-quality services, and maintains strong customer relationships. Regular monitoring, evaluation, and adaptation are essential for success and long-term growth.

a. What Happens During a Typical Day at a Land Clearing Business?

• The office is open for the day
• Documentation and other administrative works are conducted throughout the day
• Marketers go out in the field to market our land-clearing services
• If there is an ongoing land clearing service project, the required team and machinery are sent to the field to carry out the project.
• The team and machinery return to base (office) after the day’s job
• The report for the day is written and submitted to the required authority
• The office is closed for the day.

b. Production Process 

There is no production process when it comes to the land-clearing service business.

c. Service Procedure

Develop a system for efficient job scheduling, considering factors such as project size, location, customer preferences, and equipment availability.

Implement project management tools and software to track and manage ongoing projects, ensuring timely completion and customer satisfaction.

Establish safety protocols and guidelines to ensure a safe working environment for employees and customers during land clearing operations.

Conduct regular quality checks to maintain high standards of workmanship and ensure customer satisfaction. Comply with industry standards and regulations regarding safety, environmental impact, and product usage.

d. The Supply Chain

The supply chain for Clear Cut® Land Clearing Company, LLC involves various components and stakeholders. The company would typically establish relationships with equipment suppliers and manufacturers to purchase or lease the necessary machinery.

Land-clearing operations require a significant amount of fuel to power the equipment. Clear Cut® would engage with fuel suppliers to ensure a steady supply of diesel or gasoline for its machinery.

Depending on the specific services provided, Clear Cut® may require raw materials such as erosion control materials, mulch, or seedlings for reforestation efforts. The company would establish relationships with suppliers of these materials to ensure a reliable supply.

e. Sources of Income

Clear Cut® Land Clearing Company, LLC will make money from offering land clearing services.

Financial Plan

A. amount needed to start your land clearing service company.

Clear Cut® Land Clearing Company, LLC. would need an estimate of $150,000 to successfully set up our land clearing company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $45,000.
• Operational Cost (salaries of employees, payments of bills et al) – $40,000
• Start-up Inventory – $7,500
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Equipment and Machines – $40,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Clear Cut® Land Clearing Company, LLC. will not build a new facility for our land clearing service company; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our facility.

d. What are the Ongoing Expenses for Running a Land Clearing Service Company?

• Equipment Maintenance and Repair
• Fuel and Energy Costs
• Employee wages and benefits, including salaries for operators, crew members, administrative staff, and management
• Permitting and Licensing Fees
• Rent or Mortgage Payments
• Marketing and Advertising
• Various administrative expenses, such as office supplies, software subscriptions, accounting services, legal fees, and general overhead costs.
• Safety and Compliance
• Vehicle Maintenance and Insurance
• Professional services such as legal counsel, accounting, consulting, or IT support.

e. What is the Average Salary of your Staff?

• Chief Executive Officer – $55,000 Per Year
• Project Manager – $42,000 Per Year
• Business Developer/Sales and Marketing – $34,000 Per Year
• Accountant – $34,000 Per Year
• Customer Service Executive/Front Desk Officer – $32,000 Per Year
• Land Clearing Technicians – $32,500 Per Year
• Drivers – $30,000 Per Year

f. How Do You Get Funding to Start a Land Clearing Service Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

Land clearing companies have various pricing models, including hourly rates, project-based fixed fees, or a combination of both.

Hourly rates can range from $100 to $300 per hour or more, depending on the equipment and expertise required for the job.

Project-based fees can vary greatly depending on factors such as acreage, terrain, density of vegetation, disposal requirements, and any additional services such as stump removal or grading.

b. Sales Forecast?

Based on thorough market research and analysis, we anticipate steady growth and profitability for Clear Cut® Land Clearing Company, LLC. Our projected revenues for the next three years are as follows:

• First Fiscal Year (FY1): $350,000
• Second Fiscal Year (FY2): 400,000
• Third Fiscal Year (FY3): $500,000

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Clear Cut® Land Clearing Company, LLC. will be between 25 and 35 percent on service charges.

d. Profit Margin of a Land Clearing Service Company 

Clear Cut® Land Clearing Company, LLC. will collect initial service fees as the project progresses that will range from 60 percent to 70 percent aside from making profits off the total fee charged for any land clearing service.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Clear Cut® Land Clearing Company, LLC. will grow our land clearing service company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Clear Cut® Land Clearing Company, LLC. plans to expand to the following cities in the nearest future.

• New York City, New York
• Los Angeles, California
• Dallas, Texas
• Atlanta, Georgia
• Seattle, Washington
• Denver, Colorado
• Miami, Florida
• Chicago, Illinois
• Houston, Texas
• Phoenix, Arizona

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the most thriving construction and real estate market in the United States.

The founder of Clear Cut® Land Clearing Company, LLC. plans to exit the business via family succession. The company has placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor.

This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.

OSU Extension Service

• OSU Extension Catalog

From Vision to Reality: Creating a Land Steward Property Management Plan Land Steward Program Rural Resource Guidelines

• What's in a management plan?

Why make a plan?

Creating your plan.

One of the most effective tools for caring for your land is a management plan for your property. Using this rural resource guideline, our plan template and the assessments from the other rural resource guidelines in this series, you can create a plan that will help you achieve your land stewardship goals. Learn why land management planning is important, what makes up a land management plan and how to put one together.

What’s in a management plan?

In a nutshell, a plan is a written document that describes your property, identifies what you want to do with it, and outlines a strategy for accomplishing your property management objectives.

There are many different plan formats. We have created a template that is relatively simple but comprehensive. The Land Steward plan template includes:

• A cover page.
• Property specifics (location, zoning, acreage, etc.).
• A property map and description.
• Resource assessment summaries that describe the conditions on your land.
• A description of your values and vision for the property.
• Clearly defined and attainable management objectives.
• Planned activities or projects and timeline.
• Project record and monitoring guidelines.

Surveys of participants in the OSU Extension Land Steward program tell us that making a plan for their land is one of the most effective aspects of the program. Stewards care about their land, and a plan empowers them to make informed and strategic decisions. It helps them follow through to achieve their goals for their land.

Benefits of creating a plan

• Learn more about your property. As you go through the process of creating a land management plan, you will collect information that will give you insight into past and current conditions and potential future outcomes for your property.
• Clarify your property management goals. Creating a plan will force you to hone in on what’s truly important to you. What do you really want to do with your property? What do you want it to look like in five or 10 years? How do you hope to use it?
• Focus and prioritize. There are always many possible projects that require time and money. A plan helps you prioritize the most essential actions.
• Communicate your intentions and plans to others. A plan is a great tool to use with advisers, contractors and even heirs or other family members who help care for the property now or will do so in the future.
• Demonstrate your commitment to stewardship. Completing a plan shows that you’re organized, serious and that you have a concrete vision for the future of the property. Management plans are often prerequisites for cost share assistance and various types of forest and farm certification programs. While the plan you create here might not completely meet the requirements of these programs, it will give you a great starting place.

A plan is a living document

Your plan is not cast in stone. Life happens, and circumstances may change. The plan is meant to be used and updated as needed, not sit on a shelf gathering dust.

Review your plan once a year to schedule activities and update your progress. Consider updating the plan at least every five years to reflect new goals or objectives.

The plan is also a great tool for organizing business records and keeping track of activities on your property. We recommend you put it in a three-ring binder.

Your plan can change. Review it once a year to schedule activities and chart your progress. Consider updating the plan every five years as your goals shift.

Eric and Emma Keys craft a management plan for their property. Use resource assessment worksheets in the Rural Resource Guideline Series to measure how things are going on your land.

Vision, goals, objectives — separate but critical parts of your overall plan

As you work through your plan, you will clarify your vision for your property.

You will create goals that need to be accomplished to achieve your vision.

Finally, you’ll identify specific priority actions or objectives with a timeline that will help you attain your goals and create your vision.

You may have many goals to achieve your vision, and many objectives to achieve each goal.

Vision: A landscape with diverse native habitat that supports wildlife

Goal: Maintain control of invasive plants.

Priority actions/objectives: Begin work on Scotch broom weed priority area. Winter 2021 pull all plants. Revisit site every spring and pull new seedlings. Do not let any plants bloom. (This is a specific action on a timeline that will bring about your goal.)

Examine the Land Steward Property Management Plan template. Page through it and look at the organization and components. Reference the plan template as you continue reading below. Each content box has some guidance. You can fill in this template or use the categories as an outline to create a plan document from scratch.

Cover page and property information

The first three pages cover basic information and are straightforward to complete. Much of the information will be available on your deed or your county website.

There are boxes to list your zoning and any special assessments. Note that these are not necessarily the same! Review Economics and Enterprise: Financial Considerations of Rural Life, EM 9315 , for more information on zoning and special assessments for farm and forest land.

Use the Land Steward Property Management Plan template to sketch out your vision for your property.

Property map

Creating a property map (page 3 on the template) is a helpful exercise. It will show you the relationships between the main features on the property such as the home site, outbuildings, woodlots, pastures, streams and so forth. To create a property map you’ll need a base map, ideally a current or recent aerial image that shows your property lines. You can find or create a base map using various online mapping tools. Links to a few of the many online mapping resources can be found in the resources section. How to Create A Property Map with Google Maps shows you basic steps to use Google Maps for creating a map. Land Mapper is a quick way to get a variety of maps for your property. Additionally, your county assessor’s office may be a resource for a map of your property. You could even draw a map by hand if you have a small property.

Divide your property into zones

We recommend subdividing the property into different management zones or units and delineating these on the aerial photo. Google Maps and other online mapping tools mentioned can help you do this, but all have a learning curve.

Management zones are based on things like:

• Land use or objectives (such as farm, forest, residential, wildlife reserve, etc.).
• Major vegetation zones (including pasture, oak woodland, mixed conifer forest, etc.).
• Soil types and topography.
• Access (including roads, fences and gates).

Management zones are often separated by features like roads, streams, fences, vegetation type and terrain (distinctive features of the landscape).

The benefit of identifying and mapping subzones is that you can hone in on the specific management needs of each subzone, which are likely to be different from those of adjacent zones.

Use a recent aerial image such as this from Google maps that shows your property lines to create a base map. See how this property is divided into zones.

Property description

Page 4 of your template provides a place to briefly summarize the property history, terrain, current uses and landscape context. This section of the plan is optional — but it’s great background information.

Your vision for the property

What’s your vision for your property five to 10 years or more down the road? What would you like to do with it? What do you want it to look like? This is one of the most fun parts of the planning process, but also among the most challenging. You have to decide what you really want and what’s feasible given limitations of time, funding, energy and competing commitments. It may help to draft your vision at the start of working on your plan, and then come back and refine your vision after you have completed your resource assessments and learned what is possible for your land.

Your vision will depend partly on your personal values and overall goals. To jump start your thinking, complete “Worksheet 1: My land stewardship values.”

On page 5 of your plan, briefly describe your five-to-10-year-property-management vision.

Sample Land Steward vision statements

“We want to develop and maintain a healthy, fire-resilient, diverse forest that is aesthetically pleasing, provides desirable wildlife habitat and contains large trees of species adapted to the site. “

“Live on the property and make responsible, ecologically sensitive use of firewood, garden products and other goods and amenities generated on the site.”

“Develop an organic, sustainable farm that will generate a profitable income from various small (manageable and efficient) enterprises.”

Natural resource assessment summaries

Using the land steward rural resource guideline series to help build your plan.

The next section of your plan is a list of natural resource assessment summaries for a variety of resources you may find on your land (forest, stream, pasture, etc.). Use the Land Steward Rural Resource Guideline series to evaluate your natural resources and create these summaries. Each guideline provides introductory information on how to care for natural resources. Each document includes assessment worksheets that will help you evaluate the condition of that resource and identify some actions you may want to take. Summarize your assessment findings in the natural resource assessment section of your plan.

Reading the guidelines and completing the assessments will help you:

• Understand the current condition of your resources.
• Identify possible needed actions or projects.
• Identify questions you may have.
• Suggest resources to find assistance.

Use any of the guideline topics that are relevant to your land and include your assessment findings in your plan.

Completing the resource assessments in the Rural Resource Guidelines

Each resource assessment consists of one or two worksheets. The first worksheet helps you assess the condition of the resource. The second helps you evaluate your management activities as they relate to that resource.

To complete the assessment, print out the worksheets and get a clipboard and a pencil. Then go outside to look at what you see on your land. For each assessment, plan to spend about 30 minutes to an hour making observations.

When you’re done, summarize your findings in the boxes on pages 6–10 of your management plan.

In the first box, summarize your goals for the resource. Examples of goals might be: maintain a healthy riparian zone and good water quality, or support a forest with diverse wildlife habitat and low fire hazard.

In the second box, you’ll summarize the main findings of the assessment. These include resource concerns and good conditions. Examples of resource concerns are soil erosion on a steep slope and noxious weeds in a pasture. Examples of good conditions are clear, sediment-free water in a stream and beneficial, weed-free forage in a pasture.

In the third box, list potential follow-up actions. Using the examples from above, these might include re-vegetating a bare area to reduce erosion or eliminating a patch of noxious weeds. The idea is to summarize the important findings of the assessment and the important follow-up actions.

As you work through the assessment, you may have questions. You may not be certain whether something you’re seeing is a resource concern or not. One of your follow-up actions might be to research key questions you have as a result of the assessments.

Major goals

Once you have completed all of your resource assessments, it is time to identify major goals for your property that will help you create the vision you have for your land. Take a moment to revisit the vision statement you created earlier. Some of your thinking may have changed due to what you have learned about your land. Review the goals you listed for each resource in your resource assessment summaries (pages 6–10 of the plan).

Next, identify three to five major goals that support your vision. These may contain goals from your assessments or they be more general goals. You also may want to subdivide your major goals into three categories:

• Quality of life.
• Natural resources.
• Production/economic goals.

The choice is yours. They are your goals.

Sample goals

• Develop a trail system so I can access the property for enjoyment and maintenance (Categories 1 and 2).
• Create a defensible space around my home for fire safety (Category 2).
• Establish crop production zones (blueberry, vegetable garden and small fruits) (Category 3).
• Maintain control of invasive plants (Category 2).
• Have fun! (Category 1).

Reality check

OK, it’s time for a quick reality check:

• Do your goals match the time you have available and your financial resources?
• Do you have the knowledge and equipment needed? If not, can you acquire them?
• Are there any significant regulatory, legal or technical constraints?
• Do you manage your land in partnership with others? Are all managers in agreement? How about kids or other family members?
• Do your vision and goals fit with the potential and capabilities of your land?

In many cases Land Stewards have found that they have needed to modify their initial vision for the property due to one or more of these real life constraints — and that’s OK. For example, one couple decided they wanted to find a smaller piece of land with less to manage after completing their assessments and plan. Another couple decided they wanted to buy another 120 acres to be able to steward more of the landscape. Yet another landowner was hoping to clear a stream-side area for agriculture, but found riparian regulations did not allow for his goal. To paraphrase the saying: “Well informed is well planned.”

Priority actions (objectives)

Now it’s time to list your priority actions. These are concrete steps that will help you achieve your goals. Consider your vision, major goals and the results of your resource assessments. What are the most important actions needed to meet your goals and address resource concerns? List one to five priority actions in your plan.

Goals versus priority actions: Goals are broad statements of purpose and intent. Priority actions are similar to objectives — they should be specific, measurable, time-bound and realistic. Completing these actions will help you meet your broader goals and achieve your long-term vision. Review the example in the box on page 2.

Develop an action plan and timeline

Now that you’ve established your vision, goals and priority actions, it’s time to develop your priority action plan (see page 10 of plan). This is a straightforward process. For each of your priority actions, describe specifically what will be done. Add a start and completion date.

List who will do the work. Identify needed resources, such as equipment, technical assistance or additional funding.

Sample action plan

Priority action/objective.

Establish stream side buffer of trees and shrubs along creek.

Project description (what will be done?)

Plant trees and shrubs along 400 feet of creek, on south and west sides.

Goal: 30-foot buffer, ¼ acre to plant in total.

• Get advice from watershed council, Soil and Water Conservation District or Extension, about what species will do well and desired spacing. Also, can I get cost share assistance?
• Order trees from nursery.
• Pick up trees.
• Install weed and deer protection during planning.
• Monitor with before and after photos.

Completion target date

Spring 2017

Who will do it

Me, assisted by family

Resources needed

• Planting shovels
• Weed barrier (cardboard and chips)
• 50 tree protection tubes

Total budget: $750

Monitoring: Show change and impact

Photo point monitoring.

We strongly encourage you to document your projects with repeat photos. On an everyday basis, change in vegetation is usually slow and subtle. But over time, the impacts can be dramatic.

Repeat photo monitoring is pretty simple: Take a photo at the start of your project, at the end, and repeat photos from the same location over time. This will show change and impact. You will be happy you did it!

Photo monitoring tips

• Put a stake (capped rebar is better) in the ground where you take the photo, so you can re-locate your photopoint.
• Include an object, such as a recognizable tree, in the frame of your photo so that you’ll be able to duplicate the original photo.
• Take repeat photos at the same time of the year, so seasonal differences such as vegetation changes in winter versus summer don’t mask the impact of your work.
• File the photos with descriptive name and date.
• Just do it! You will be glad you did!

For details, see the link in “Resources,” below.

Take a look at these examples of photo monitoring of a fuels reduction project — before, and two years later. As you can see, repeat photography is a powerful tool for documenting the results of your project and capturing change over time.

Other monitoring methods

If taking photos isn’t an option for you, you can simply keep notes in a dedicated journal, or walk the land with a with a clipboard and a copy of the project monitoring sheet provided in the plan template on page 15. Be sure to include your monitoring notes in your plan later.

Creating a map of your land

• How to Create a Property Map with Google Maps, a tutorial by Amy Grotta
• Digital mapping tools: part one, the basics
• Land Survey and Mapping: An Introduction for Woodland Owners
• Quick Guide to Photo Point Monitoring

About the authors

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Free Landscape Business Plan Template (+PDF Download)

Read Time 6 minutes

Author Stephanie Figy

Published February 21, 2023

Table of Contents

1. Executive summary

2. company overview, 3. landscaping services, 4. landscaping pricing, 5. market analysis.

• 6. Competitor analysis
• 7. Marketing plan and sales strategy

8. Management plan

9. financial plan, set up your landscaping business for success.

A landscape business plan is essential for securing bank loans, managing startup costs, and maintaining cash flow. Even the most seasoned landscape business owner needs a dynamic roadmap to guide operations and inform goal-setting.

Annually reviewing and adjusting your company’s business plan helps you to scale your landscape business strategically. 

This article describes what to include in a landscape business plan and provides a free landscape business plan template to get started. 

>> Download Aspire’s FREE landscape business plan template. 

The executive summary serves as a strategic snapshot of your landscape business plan. It should be compelling to capture the attention of potential partners and lenders. 

The executive summary briefly describes the new business, its mission, and its goals. Summarize the most critical aspects of the plan, such as:

Market opportunities

Services offered

Financial projections

If you’re applying for funding, specify the amount , how you intend to use it , and, more importantly, how it will increase your profit margins .

Even though the executive summary comes first in the plan, write it last to identify and highlight the most crucial elements of your plan, ensuring that it presents a well-rounded and compelling case for your landscape business.

The company overview is where you start to dig into the details of your landscaping or lawn maintenance business. It should include specifics, such as:

Landscaping business name

Business address

Phone number

Email address

Business website

In addition to the nuts and bolts, a company overview is where business owners state their mission statement , vision statement , and core values . This gives the reader a comprehensive understanding of the company’s business identity.

In this section, list your various landscaping services, such as routine lawn care services, landscape design, or mulch installation. For each service type, detail the: 

Potential profitability

Scalability

Industry relevance

Strategic importance

List any specialized equipment or certifications that enable you to perform unique services or differentiate you in the marketplace. Also, determine whether you plan to provide these services to homeowners, commercial clients, or both.

Some landscape companies in colder climates pivot to snow removal during the winter. If that’s a part of your business model, include the related services in this section. This demonstrates your capacity to diversify and sustain your business during off-peak seasons, contributing to overall revenue stability and client retention.

Next, outline your pricing strategy, including the pricing model or models your business uses, such as flat-rate , project-based , or hourly pricing. Note that pricing depends on factors like:

Market demand

Competition

You may also list prices from a few competitors to show where your business stands in the marketplace. Include how your pricing strategy positions your business, whether as a cost leader , a premium service provider , or a value-driven option .

Explain if your pricing strategy allows flexibility, such as offering package deals or customizing services based on client preferences. If applicable, discuss strategies to attract and retain clients, such as:

Discount programs

Seasonal promotions

Membership programs

Referral incentives 

Include a market analysis within your business plan to show potential investors and partners what the landscape industry looks like in your area, such as:

Market size

Growth trends

Opportunities

Identify market gaps, whether certain services are not offered, or areas are not sufficiently served.

Discuss emerging trends and innovations within the landscaping industry. This could encompass:

Eco-friendly practices

Sustainable landscaping

Advancements in technology and equipment

Your awareness of industry trends indicates your readiness to adapt and stay competitive.

In addition, outline your target audience or buyer persona , including demographics and psychographics. If your key target market includes discerning families, this could help determine specific service offerings, such as organic cleaning products and methods. 

6. Competitor analysis 

In the competitor analysis section of your business plan, list the top landscape industry players in your service area and their strengths and weaknesses. Discuss competitive advantages that set the business apart and strategies for outperforming competitors, which may include capitalizing on the weaknesses of your peers. 

→ When performing a competitive analysis, due diligence requires consulting market research and industry benchmarks. This guides strategic decision-making .

In addition, detail the marketing and promotional tactics employed by competitors, including their:

Online presence

Social media engagement

Advertising campaigns

Customer acquisition strategies

Explain how your marketing efforts aim to stand out or compete effectively.

7. Marketing plan and sales strategy 

You’ve already established your target audience. Now, outline how you plan to reach potential customers and convert them into new customers. List your marketing channels and tactics, like direct mail, email marketing, and social media marketing.

When crafting a marketing strategy , consider each step of the buyer journey and how your company will effectively target customers through those steps, which include:

For your sales strategy, define your approach, such as value-based or consultative selling . 

In addition, define your follow-up strategy for unsold estimates–consider what will convert them–and how to utilize customers you’ve serviced to garner reviews and referrals. 

Your management plan provides an overview of the company’s business structure and key personnel responsible for executing the business plan. It acts as a roadmap for:

Making staffing decisions

Defining internal processes

Developing leaders 

You may start with an organizational chart, which provides an overview of the company hierarchy from the management team on down. Then, go into further detail, listing the roles and responsibilities of each team member. 

A company’s recruitment and retention relies on quality management. Discuss strategies for attracting and retaining talent and your plans for talent development and growing your landscape business . This could include mentorship programs , career pathing , and feedback mechanisms . 

The financial plan breaks down the numbers side of your landscaping business, outlining the company’s economic viability and the leadership’s financial acumen. 

For businesses seeking funding, outline the capital requirements to start the company and how the money will be used. Include personal income statements for each owner and major stockholder, showing assets and liabilities outside the business and personal net worth.

A financial plan should include financial statements, such as:

12-month profit-and-loss projection

Cash flow statement projection

Projected balance sheet

Break-even calculation

Take into account the average profit margins for a landscaping business . Also, list financial risks and mitigation strategies. 

→ Your financial plan is a moving target, as you can’t always predict and plan for changing economic landscapes. Regularly r evisiting and updating this section of your business plan is crucial .

You might use resources to help implement your financial plan, such as landscape business software like Aspire, which provides visibility into every aspect of operations. 

With real-time data readily accessible via custom reports and dashboards , and features to accurately and immediately calculate job costs, Aspire helps landscaping businesses make informed decisions to improve:

Productivity

Accountability

A landscape or lawn care business plan helps secure funding, uncover your business differentiators, and guide day-to-day landscape business operations. Check out our sample business plan to get started. 

Field service software helps implement the business plan, leading to growth, profitability, and landscape business success .

Aspire ’s end-to-end business management software delivers industry-leading features for:

Job costing

Labor management

Purchasing 

For more than a decade, landscape contractors have trusted Aspire’s tools to help them operate profitably and efficiently.

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How to Write a Landscaping Business Plan: Complete Guide

• January 30, 2023

👇 Check all our resources on landscaping businesses 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your landscaping business, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your landscaping business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

This is the first part and the most important section of your business plan. This is the first thing lenders and/or investors will have a look at.

Before we dive into the specifics, keep in mind the executive summary is a summary: keep it to 2 pages maximum. Indeed, your executive summary should briefly sum up the key sections of your business plan as well as presenting the funding ask.

Why do you need a business plan for your landscaping business?

The funding ask (or funding requirement), as explained below, is the reason why any business would have a business plan. Business plans are prepared for one of the 3 following objectives:

• Obtain financing from a bank or any other lender (a SBA loan for example)
• Obtain financing from private investors (business angels, investment funds, etc.)
• Get approval for a private or public grant

How to write an executive summary for a landscaping business plan?

The executive summary of your landscaping business plan should include the following important information:

• Business overview : the name of your company, its legal structure, the business model (franchise vs. independent landscaping business), the type of services you will offer (lawn maintenance, hardscaping, design, etc.), the customers you target (individuals or businesses, etc.)
• Market analysis : how big is the landscaping industry in your area? How many competitors are there? What services do they offer? etc.
• People : who is the management team? what is your/their experience in the landscaping industry?
• Financial plan : what is your expected revenue and profitability for the next 5 years? When do you expect to break-even? Simply include here a chart of your key financials (e.g. revenue, gross Profit, net profit , cash flow)
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Landscaping Business Overview

The business overview section of your landscaping business plan highlights what services your landscaping company offers, to whom as well as how your business is structured legally. 

Ideally, this section should include the following details about your business;

• The history of the project: why do you want to start this business today?
• The services you offer and their price range
• Your target customers: who are your customers (businesses or individuals?)
• Your company legal structure

a) History of the Project

Why did you decide to start your own landscaping business? Here a brief company history comes in handy if you want to outshine your competitors in the eyes of an investor (or a lender). 

Use this section to mention 2 vital things about your landscaping business, including;

• Your interest and passion for getting into the landscaping business
• The rationale behind you starting a landscaping business today

For example, you might be an experienced landscaping worker and found out there was no company offering landscaping services to businesses in the area where you’re from.

b) Services

Landscaping companies have a number of services they offer to local customers, businesses or individuals. Ultimately, you should prioritize what suits your target audience depending on your market analysis. There are 2 main types of services for landscaping companies:

• Lawn maintenance: one of the most common services. It includes cleanups, pruning, fertilizing, aeration, lime application, mowing, and weed control
• Landscaping services instead include planting, mulching, landscape designing, hardscaping and foundation planting, to mention a few

Of course, there’s nothing wrong with offering both services if you have enough resources. You can also offer your landscaping services individually or as comprehensive packages based on your clients’ needs and budget. 

c) Pricing Strategy

It’s crucial to outline your pricing list when writing a landscaping business plan. Focus on the most important details about your pricing structure without going overboard. For example, whilst lawn mowing costs on average $45 per week in the US, the cost of lawn care services ranges from $48 to $211 for homeowners .

Similarly, the cost of landscaping services may vary from one location to another, depending on the target audience. On an hourly basis, average landscaping services cost $50 to $100 per hour on average. 

A clear pricing strategy can give you the upper hand when seeking financial support from potential investors and lenders, making it an important part of your landscaping business plan. 

Also, it’s important to outline your pricing strategy in your business plan so investors can tie it into your financial projections later on (see more on that below).

d) Target Audience

What’s your target market ? Knowing your consumers will always play a key role in the success of your landscaping business. It also gives you a competitive advantage by helping you identify the existing market gap. 

Are you targeting homeowners, commercial property managers, or businesses offices and headquarters? Understanding your target market will help you better define your marketing strategy and retain customers.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

Landscaping Financial Model

Download an expert-built 5-year Excel financial model for your business plan

3. Landscaping Market Analysis

Now that we have covered all about your business, let’s now look at your industry, and more precisely the landscaping industry in your area, your competitors and target audience.

Indeed, before you reach out to lenders or investors, you must prove to them that you understand your market. This helps earn their trust and can make the difference fo them to invest in your business.

a) Landscaping Business Market Overview

You should present in this section the status quo of the landscaping industry in the US, as well as in your city / area. You must address 2 main points here:

How big is the landscaping industry in your area?

• How fast the market is growing?

How big is the landscaping industry in the US?

Before diving into your specific city or area, it’s always good to get a clear overview of the US market first. Indeed, getting national data will help you address all the factors that could affect your business, such as demographics, market demand, and environmental activities. 

The landscaping industry has grown at a steady rate of 2.5% per year in the last few years, up to $105 billion in 2021 . 

After the US, assess the status of the landscaping market in your city or area. Focus on the zone where you plan to offer your landscaping services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup . To give you an example, let’s assume you plan to operate in a radius where there are 40 competitors:

As we know the US landscaping industry is worth $105 billion today, and there are about 604,000 landscaping businesses (small and large) in the US in total, we can deduct that the average annual revenue per landscaping company is $175,000.

So we can safely assume the landscaping industry is worth $7,000,000 in the area where you plan to operate. Now, assuming there are 30,000 houses, this means each household that owns a house spend $195 per month in landscaping services, pretty close to the national average.

How fast is the landscaping industry growing in your area?

Growth is an important metric for assessing the status of the landscaping industry in your region. 

Here if you don’t find information online or via your research, you can calculate growth using the total number of landscaping businesses in your area. 

For instance, if there were 40 landscaping businesses in the region in 2019, which increased to 45 in 2022, it’s safe to assume that the market is growing at 4% per year. 

b) Landscaping Competitor Analysis

At the very least, your competitor analysis should answer all or some of these questions:

• How many landscaping businesses are in your region?
• What services do your competitors offer? What’s their average price?
• How many employees do they have on the payroll?
• What’s the approximate number of customers/contracts they serve per month?

After answering these questions, it will be easier to tailor your services and prices to suit the target market. 

c) Landscaping Business Customer Analysis

We presented in the Business Overview section who were your target customers. Here instead instead you must show in your business plan that these target customers actually live in the area and need the services you offer. 

Indeed, it would be pointless to start a landscaping business in your region when nobody needs your services in the first place. 

And having competitors doesn’t necessarily mean your target customers are there. For example, you might not focus on the same customer segment (e.g. individuals homeowners vs. businesses).

There are here a few important questions you must answer:

• What landscaping services do your target customers need?
• How many potential customers are there in the area (for example, if you focus on homeowners, you can use the number of houses in the area as a proxy)?
• How much does the average customer spend on landscaping in the area (if you can’t find the information for your city, use the national average instead)?

4. Sales & Marketing Strategy

The next section of your landscaping business plan gives you a chance to highlight your strategic plan for acquiring new clients. 

Start by exploring your unique selling point, the suitability of the proposed marketing strategies, and the overall marketing budget. 

a) Landscaping Marketing Channels

Here are a few examples of marketing channels landscaping businesses use:

• Email marketing
• Social media
• Website 
• Local advertising (newspapers)
• Register with the online business directories (Yelp, Yellow Pages, etc.)
• Google Business profile and ratings
• Word-of-mouth recommendations

b) What are Your Unique Selling Points (USPs)?

A unique selling point makes you stand out in a competitive market. When getting started, it is the easiest way to win over multiple customers and one of the best strategies for edging out your biggest competitors. You can build your USPs around the following aspects;

• Price : affordable services will most likely appeal to most customers
• Specialization : choosing a specific service helps you stand out (for example, you might focus on landscape design and hardscaping)
• Additional services : you can provide extra services not available in the area 

5. Management & People

The 5th section of your landscaping business plan should be about people. It should include 2 main elements:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Here you should list all the management roles in your company.

Of course, the amount of details you need to include here varies depending on the size of your company. For example, a landscaping business with a number of vehicles and teams would need more detail vs. a small landscaping business run by 1 or 2 persons.

If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.

b) Organizational structure

No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.

What are the different teams (management, sales, operations, mechanics, finance, etc.)? Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and investors that you have a solid hiring and management plan to run the business successfully.

A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles, employees and contractors. Make sure to highlight with reporting lines who manages/supervises whom.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors instead, a solid financial plan will prove them your landscaping business is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you start a new landscaping business or if you plan to purchase new equipment and vehicles, etc.)
• Your 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Landscaping Startup Costs

Starting a small one-person landscaping business can cost as little as $500 , but most large-scale landscaping businesses need to spend more on equipment, marketing and staff. That’s why most landscaping businesses typically cost between $15,000 and $50,000 to start (excluding the cost of a vehicle). 

As you can see, startup costs vary significantly according to factors like the size of your business, the number of employees, the quality of equipment, the services you offer and the tools needed, etc. 

So, we have given you a clear overview below of all the essential costs you can expect to start a small landscaping business with 4 employees. There are 2 types of costs: startup costs and operating costs . For more information on how much it costs to start and run a landscaping business, read our complete guide here .

Note that these costs are for illustrative purposes and depend on several factors which might not fully apply to you.

c) Landscaping 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your landscaping business.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of contracts (customers) you will win over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of contracts as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your landscaping business. Now that we have explained what type of landscaping services your company offers and to whom, at what price, but also what’s your marketing strategy, where you go and how you get there, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the vehicles, tools and equipment? Or will it cover mostly the cost of the salaries of your employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our landscaping financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Related Posts

How Profitable is a Landscaping Business? Profits Analysis

• May 7, 2023

How to Build a Financial Model for a Landscaping Business

Starting a Landscaping Business Costs $39,500 to $43,500

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Steps for Creating a Successful Ranch Management Plan

The relationship between ranchland and its landowner is one of America’s oldest love stories, complete with romance, reward, heartache, hard work and unending commitment to living a life on the land. Ranch ownership offers plenty of allure, but before you purchase your own ranch property , it’s imperative to create a comprehensive ranch management plan to ensure healthy land, profitable seasons and longevity.

Follow these Ten Steps for a Holistic Approach to Properly Managing Your Ranch.

1. establish the “big picture” or mission statement for your ranch.

Start by specifically defining the Ranch’s land use and general purpose. Do you dream of raising commercial cattle? Or is your ranch intended for your family’s sustainable living only, offering a collective means of living off the land?

Before you purchase your dream ranch property, it’s important to clarify what you want to do with it. This guiding philosophy provides a road (or trail) map for ranch operations, management, marketing, upkeep and profitability. 

2. Qualify Your Key Resources

These can be the land itself. From pastures to quality soil and natural water sources – your livestock and other animals, and the people who manage the property.

It’s important to understand the unique aspects of your ranch and enhance them over time with special attention paid to natural resource management, proper equipment maintenance and providing a fun, engaging work environment for ranch managers.

3. Create a Management and Business Plan

Treating your ranch like a business is important to its long-term viability & sustainability.

Determine your goals and objectives. Establish key performance indicators you can track from season to season. Then revisit the plan frequently throughout the year. 

4. Develop a Pasture Management Plan

Understand your soils, water sources, forages and potential for erosion to ensure your pastures remain productive and your cattle are happy. 

5. And a Cattle Management Plan

Ranches are most productive when every element of them work in harmony – and this is certainly the case with cattle and the land.

Things to consider are which types of cows are best for your land, how you will keep them healthy and well nourished, and how they’ve been bred or if you will breed them. 

6. Make Sure Your Bookkeeping is Organized and Up-to-date

Toss the shoebox full of old receipts and invest in proper bookkeeping software. You’ll want to keep track of revenue streams, spending, employee wages, invoicing and profits and losses. Being diligent about your bookkeeping throughout the year is an important way to ensure you’re working toward your ranch’s mission statement and it will save you time, energy and headaches come tax season. It’s also worth noting that profitable ranches are much more likely to be passed down from one generation to the next, ensuring their legacy in your family’s history. 

7. Consider If and How You Want to Market Your Ranch

Is it family-owned and operated? Do you focus on raising organic cattle or does your ranch support speciality breeds? Establishing your ranch’s unique aspects and competitive advantages is elemental to a successful marketing plan. From there, consider how you want to communicate that message. These days, effective marketing can range from sponsorship opportunities at your local livestock auction to highly targeted social media advertising. 

8. Keep Personnel Management in Mind

Happy employees stick around. It’s important to create a fun and inviting work environment for your ranch management team. 

9. Continue to Observe and Adjust Accordingly

Ultimately, ranches are complex living entities at the cross-section of humans, animals and nature. It’s important to learn your ranch inside and out. Continually look for ways to improve soil and water sources. Stay up-to-date on emerging ranch and farm technologies and equipment. Tap into local scientists and land managers to better understand the environment around you. Then apply your learnings to your ranch management plan. 

10. Enjoy the Process!

Owning your own ranch can be a dream realized. It offers an incredible amount of freedom and responsibility, independence and teamwork and an undeniable connection to the land. 

The ranch property experts at Hayden Outdoors are an excellent resource in helping you find a ranch that meets your needs and aligns with your ranch management goals.

• Bowhunting Blog

How to Develop a Land Management Plan

You wouldn’t start building a house without house plans, yet many landowners and land managers are quick to jump into habitat improvement projects without any type of land management plan to guide their efforts. Creating a management plan for your land can be a great way to develop a long-term vision for your property and provide you with a road map to reach your goals.

Since every property is different and each landowner is going to have different goals for their property, there’s no way to provide you with a cookie cutter guide on how to manage your specific tract of hunting land. I wish it were that easy! 

What I can do, however, is outline the things you need to consider when creating a land management plan, what to include, where you can get assistance, and even show you where you can get a free management plan template to get started. Then, you can decide if it’s something you should tackle on your own, or if you need to enlist the help of a professional wildlife consultant.

Considerations Before You Get Started

There’s a lot to consider before you jump into creating a management plan for your hunting property, starting with your overall goals for the property. Some questions you’ll want to be able to answer include:

• Are you managing strictly for deer hunting, or will you manage for multiple species?
• Will cattle or other livestock be involved?
• Is future timber value a consideration?
• Are there crops, hayfields or pastures on the property that will need to be maintained?
• Are there other owners/partners/family with a say in the management of the land?
• What resources do you have available as far as equipment, finances and manpower?

These are all important questions that can have a major impact on how you will ultimately manage your property. You’ll have to consider each of these as you begin creating a plan of action.

Take Inventory

Before you start doing any kind of real habitat or deer management work on your hunting land, it is important to have a firm understanding of what is currently there. Having a good inventory will go a long way in determining what steps you’ll need to take to get the property where you want it to be. Most of this work can be accomplished sitting in front of a computer using various mapping websites.

Begin the inventory process by breaking the property up into units with similar vegetation types. For example, each opening would be a unit, as well as any stands of timber similar in age and composition. The overall number of units may vary from one on a small property to a dozen or more on large tracts of land.

Once you’ve mapped your units out, you should do some ground-truthing to assess the vegetation composition of each unit. This doesn’t have to be a complete inventory of every plant and tree on the property, but you do want to note the dominant species, as well as any potential problem plants — invasive species such as autumn olive, privet,  Sericea lespedeza , bush honeysuckle, kudzu or a whole host of others. Be sure to mark these findings on your inventory map for future reference.

In addition to knowing where various vegetation types are located on your property, it’s also important to know your soil types. Knowing what soil types are on your property will help you make better decisions about what should be planted where. Don’t fall into the temptation of planting food plots in an opening just because it’s convenient. Make sure the soil is right to produce a quality food plot. If not, you’d be better off managing the area for trees or native vegetation. Soil maps are available online at the USDA Web Soil Survey webpage .

To get a true big-picture view of your property, it’s also important to have an idea what the surrounding properties look like, as well. Much of that can be determined with aerial photos and some drive-by ground-truthing. This bigger picture will give you an idea of what food and cover sources are currently available, as well as what may be lacking in your area. If you can provide a resource that deer prefer and isn’t readily available on surrounding properties, that can be just the ticket to draw deer to your property.

Start With the End in Mind

Once you have a good grasp of what is currently on the property, and a general idea of what the surrounding properties look like, you can start making decisions about how you’d like your property to look. Keep in mind this is a long-term view. Don’t get hung up at this stage on when or how you’ll get the work done. That will come later in the plan. This stage is simply to get on paper how you ultimately want your property to look.

With a new map in hand, start laying out the key pieces you’d like to have in place — things like bedding areas, food plots,  hard and soft mast trees , fallow fields and managed forests. This is by far the most difficult part of creating a plan and the one that requires the most knowledge about deer habitat and management. 

Ultimately, you will have to make the decision about what your property needs to provide the best habitat possible based on what you currently have and what is available on surrounding properties. It’s important to understand the limitations of what you can realistically create and maintain, and plan accordingly.

The end goal, providing your main focus is deer, is to make every single acre beneficial to deer, providing either food, cover or water.

Many land managers focus their efforts on food plot creation and maintenance, and that can certainly be beneficial for both growing and killing deer. Keep in mind, however, that without good cover to create a sense of security for the deer, much of the food plot usage will occur at night — especially by mature bucks. 

This cover can be created in openings by managing them for early successional habitat or in forested areas using timber stand improvement techniques or even clear-cutting small areas where appropriate.

If you’re not comfortable making timber management decisions, don’t hesitate to enlist the help of a licensed forester. Just be sure to seek one who has a background in wildlife and understands your overall goals, as most foresters are geared toward helping landowners grow trees for maximum revenue rather than for wildlife.

Don’t forget to consider the huntability of the property as you are laying out food plots and bedding areas. You’ll want to consider the predominant wind direction, potential stand sites and entrance and exit routes for those stands. You wouldn’t want to spend your valuable time and money to install a beautiful fall food plot only to find out you can rarely hunt it because it requires an uncommon wind direction.

How Will You Get There?

Now that you know where you are, and you’ve laid the property out on paper as to how you would like it to look, it’s time to start laying out an actual game plan to get from point A to point B. Don’t get overwhelmed by the amount of work to be done. Depending on the size of the property and the amount and complexity of habitat work to be done, it may be a five-year plan or it may be a 20-year plan. From this long-term plan, you can develop smaller annual work plans where you decide what steps you will need to take in the coming year to get closer to the end goal.

Make sure, as you’re planning your improvements, you not only keep in mind time constraints of completing the work but the financial constraints as well. You may have plenty of time to plant 50 acres of openings this year, but the cost of buying 50 acres of herbicide, seed, fertilizer and lime may prohibit you from doing so. That’s okay. Little improvements over time can yield big results, so don’t worry if you can’t get everything you want done in the first or second year.

Final Thoughts

To get the most from your hunting land, it’s important to have a detailed, long-term management plan in place to guide your efforts. If you enjoy a challenge and learning about deer and habitat management, don’t be afraid to get started! 

Now is a great time to grab a map and notepad and head to your property to start taking an inventory. QDMA even has a free management plan template that you can download from their website to help guide you through the process. 

As you get further in the process of laying out your dream property, you can always enlist the help of a wildlife or forestry professional. In the end, you’ll have a plan of attack to guide your efforts, making for better deer and better deer hunting where you hunt.

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• Sample Business Plans

Landscaping Business Plan

Beautiful and well-maintained lawns are a treat to look at. But with today’s hectic lifestyle, few people have the time and energy required to maintain one.

And with more income at their disposal, people like to outsource this task to professionals who can manage their gardens well and design them in a way that enhances their house’s beauty.

With artistic lawns cropping up at every corner of our cities, the demand for landscaping architects is at its peak. Be it offices, residential spaces, or public areas, every space needs an aesthetically pleasing lawn.

But not everyone has the amount of creativity and precision that goes into maintaining beautiful gardens. And if you have it, then a landscaping business might be the right choice for you.

All you need is a little bit of groundwork and a proper landscaping business plan .

Industry Overview

According to recent statistics, the landscaping industry employs over 1 million people and has grown 4.9 percent since 2020.

So, if you are a creative individual who can think out of the box, a landscaping business can help you reach your maximum potential. The best part about the landscaping business is that it takes minimum entry conditions and minimal costs to set up.

Now, you may wonder, why do so many landscaping businesses owned by highly creative individuals fail? The reason is as simple as it gets; The lack of a proper business plan.

Although creativity is essential to help you stand out, a landscaping business plan is of utmost importance for the sustenance of your business.

Here, we’ll share a few tips to make your setup process smoother.

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Things to Consider Before Writing a Landscaping Business Plan

Decide what services you want to offer.

Landscaping comes with a lot of sub-niches and additional services. Deciding what you can and should offer as per the needs and requirements of your target audience is essential.

It helps you stay prepared for the service, including getting the right equipment and hiring the right people. Picking your niche is also a great help while formulating business strategies.

Get the required permits

Although the landscaping business does not have strict entry conditions, there are a few licenses and permits that you should have before getting started.

The easiest way of doing this is by checking out all the permits required by your state and area and making a checklist for keeping track of what you have got and what not.

Having all the necessary permits helps you stay on the right side of the law.

Develop a pricing strategy

As you have a service that is mostly based on skill and equipment cost, you’ll have to give your pricing strategy a serious thought before getting started.

It is essential to ensure that your pricing is neither too much for your customers nor too little for your business to make any profit. There are several ways you can set a pricing strategy, depending on your competitor’s pricing, your market position, and the demand for your services.

Know your target audience

Knowing your target audience is crucial to business success. Researching who your target audience is, what are their motivations to avail landscaping services, how they avail such services, what kind of service they prefer  (This can also help in deciding your niche and additional services), what prices they are willing to pay, etc.

How Can a Landscaping Business Plan Help You?

A business plan can become a constant guide in your business journey. It’ll aid you while sailing through the roadblocks, prevent you from having chaotic finances, help you in knowing the market and your competitors better, and save you from the trap of having a static business model that becomes irrelevant as the industry changes.

Apart from that, in the landscape business, it would help you in developing your unique style and technique that sets you apart from your peers.

How to Write a Landscaping Business Plan?

As we have discussed the benefits of a business plan , it brings us to our next question.

How do you write one? Moreover, how do you know if you have written a good one?

Don’t worry! There are several quick and cost-effective solutions to your problem.

If you find writing a business plan intimidating, there are several options like business consultants, premade templates, and online business plan software which can help you create a complete and evolving business plan anywhere and at any time.

We have created this sample landscaping business plan for you to get a good idea of what a perfect landscaping business plan should look like and what details you need to include in your stunning business plan.

Landscaping Business Plan Outline

This is the standard landscaping business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Vision Statement
• 3 Year profit forecast
• Products and Services
• Startup cost
• Market Trends
• Target Market
• Market share
• Sales Strategy
• Marketing strategies
• Personnel Plan
• Average Salary of Employees
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

Now Let’s Understand How You Should Complete Each Section.

1. Executive Summary

The executive summary is one of the most crucial sections of your business plan, as it is the first and foremost document in it and serves as a pitch to your prospective investors. Hence, this section should sum up your business idea and function with utmost precision.

It should also consist of a mission statement and clearly state your vision for the business. For a landscaping business, it would consist of your growth model, your source of labor and raw material, as well as how your style of design sets you apart from the others.

2. Description of your niche

Next up, you’ll need to define the niche your business functions in. As landscaping consists of several areas like,

• Commercial Landscaping
• Residential Landscaping
• Art-based designs(for public and tourist spaces)

It is necessary to define what kind of services you’ll offer and who would be your primary client base. So, how can you select a niche? We’ll discuss that in the competitive and market analysis section.

3. Competitive and Market Analysis

Before you enter any market, it is the wisest thing to carry out an analysis of the current market situation and the recent trends in the industry. Also, it is a good practice to know what your competitors are doing, because if you are aware of what’s going on, deciding what you should do and what gaps you can fill through your services becomes easier. Hence, this helps you in identifying what your niche would be.

For example, if there is a dearth of good landscape architects for office spaces in your area, you can accordingly modify your skills and marketing strategy to serve the purpose of capturing that market.

4. Website Strategy

In today’s fast-paced environment, most people prefer getting their work done online. Hence, having a website is necessary for your business to be discovered. Thus, including a website strategy in your plan is essential. Also, as a creative business, your website needs to lean on a more artistic side and represent what your style stands for.

5. Management Summary

In this section, you are supposed to include important information about people responsible for a company’s management, the tasks they have been delegated, their roles and responsibilities, etc. As a landscaping business has a large scale of functioning, you need to include this section in your plan.

6. Financial Plan

Writing a financial plan is a necessary step toward creating a well-rounded business plan. A financial plan helps your business in becoming cost-effective and profitable. It also helps you pre-plan and stay afloat in times of recession and instability in the market. Hence, this section is necessary for the sustenance of your business.

Download a sample landscaping business plan

Need help writing your business plan from scratch? Here you go;  download our free landscaping business plan pdf  to start.

It’s a modern business plan template specifically designed for your landscaping business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Landscaping Business Plan Summary

In conclusion, a business plan can turn to conduct your landscaping business a hassle-free activity. Moreover, a well-planned business with clearly defined goals and dynamic strategies has a higher chance of succeeding than one which doesn’t have either of these things.

Besides the above things, in the landscaping business, it is also important to have a thorough knowledge of advanced technology and newly improved techniques to improve the efficiency of your business’s day-to-day activities.

After getting started with Upmetrics , you can copy this sample landscaping business plan template into your business plan and modify the required information and download your landscaping business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

So, are you ready to reach far and wide in the landscape market with your well-written business plan?

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About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Landscaping Company Business Plan Template

Written by Dave Lavinsky

Landscaping Business Plan

You’ve come to the right place to create your landscaping business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their landscaping companies.

Landscaping Business Plan Example

Below is a sample landscaping business plan and template to help you create each section of your landscaping business plan.

Executive Summary

Business overview.

Beautiful Gardens Landscaping Service is a startup landscaping business located in Dallas, Texas. The company is founded by John Martinez, an experienced entrepreneur who has gained valuable knowledge on how to manage a landscaping business during the past five years while working as the manager at Lake Landscaping & Lawn Care. Now that John has experienced managing a landscaping business, he is ready to start his own company, Beautiful Gardens Landscaping Service. John is confident that his landscaping skills, combined with his understanding of business management, will enable him to run a profitable landscaping company of his own. John is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of residential landscaping – sales and marketing, scheduling, customer service, financial management, and landscaper training and support.

Beautiful Gardens Landscaping Service will provide a variety of professional landscaping and lawn care services for residential customers in Dallas, Texas. Beautiful Gardens will be the go-to landscaping business in Dallas for high quality landscaping services of all kinds. The company will be the ultimate choice for prompt, reliable, and courteous customer service that goes above and beyond the competitors.

Product Offering

The following are the services that Beautiful Gardens Landscaping Service will provide:

• Lawn Care and Chemical Application
• Landscape Maintenance
• Landscape Design
• Landscape Construction
• Trimming and Pruning
• Trees and Ornamental Planting and Care
• Perimeter Pest Control
• Vegetation Management
• Gardening and Plant Care Consulting Services

Customer Focus

Beautiful Gardens Landscaping Service will target homeowners in Dallas. The company will also target owners of multi-family residential buildings such as apartment complexes and condominiums. No matter the customer, Beautiful Gardens Landscaping Service will deliver the best communication, service, and high quality landscaping.

Management Team

Beautiful Gardens Landscaping Service will be owned and operated by John Martinez. John is a graduate of Texas University with a Bachelor’s degree in Business Management. He has over five years of experience working as a manager for another local landscaping business. John will be the company’s Chief Executive Officer. He will steer the vision of the business and provide direction for the other managers and executives of the company.

John has recruited a landscaping expert, Lisa Smith, to be the company’s Chief Operating Officer and help oversee the business operations. Lisa will handle the day-to-day operations, including training the landscape personnel, providing consultation services, and overseeing the landscape design process. Lisa is a graduate of California University with a degree in Landscaping Design.

John and Lisa have recruited an experienced marketing director, Robert Johnson, to become a member of the Beautiful Gardens Landscaping Service management team. Robert is a graduate of the University of Maine with a Master’s degree in Sales and Marketing. John and Lisa rely on Robert’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Beautiful Gardens Landscaping Service will be able to achieve success by offering the following competitive advantages:

• Skilled team of landscaping experts who will oversee the process and conduct inspections regularly to ensure all landscapers are adhering to stringent quality standards.
• Beautiful Gardens Landscaping Service makes it easy for customers to obtain its services. The company uses a proprietary software application to engage with customers and ensure transparency throughout the process. Customers can use the app to schedule service, pay their bill, monitor the work being done, leave feedback, and receive customer support. For customers who prefer to communicate in person or over the phone, the company maintains an office space with a customer support representative available during regular business hours every day of the week.
• The company offers competitive pricing and discounts for regular customers.

Financial Highlights

Beautiful Gardens Landscaping Service is seeking $350,000 in debt financing to launch its landscaping business. The funding will be dedicated towards securing the office space and purchasing landscaping equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Office space build-out: $120,000
• Landscaping equipment, supplies, and materials: $80,000
• Three months of overhead expenses (payroll, utilities): $130,000
• Marketing costs: $10,000
• Working capital: $10,000

Company Overview

Who is beautiful gardens landscaping service.

Beautiful Gardens Landscaping Service is a newly established landscaping company in Dallas, Texas. Beautiful Gardens will be the go-to landscaping business in Dallas for high quality landscaping services performed by expertly trained professionals. The company will be the ultimate choice for prompt, reliable, and courteous customer service that goes above and beyond its competitors. Beautiful Gardens Landscaping Service will be able to provide a wide variety of landscaping and lawn care services for homeowners who value high quality, reliable service and easy-to-use communication systems.

Beautiful Gardens Landscaping Service will be able to guarantee the quality of its services thanks to the latest and most innovative landscaping project management technology and stringent quality control standards. The company’s team of highly qualified professionals are experienced in landscaping, lawn care, and gardening, thus will be able to provide exceptional results for a wide variety of services from routine maintenance to new landscape design and build-out. Beautiful Gardens also provides consulting services in the areas of landscaping, gardening, and lawn care.

Beautiful Gardens Landscaping Service History

Beautiful Gardens Landscaping Service is owned and operated by John Martinez, an experienced entrepreneur who has gained valuable knowledge on how to manage a landscaping business during the past five years while working as the manager at Lake Landscaping & Lawn Care. Now that John has experienced managing a landscaping business, he is ready to start his own company, Beautiful Gardens Landscaping Service. John is confident that his landscaping skills, combined with his understanding of business management, will enable him to run a profitable landscaping company of his own. John is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of residential landscaping – sales and marketing, scheduling, customer service, financial management, and landscaper training and support.

Since incorporation, Beautiful Gardens Landscaping Service has achieved the following milestones:

• Registered Beautiful Gardens Landscaping Service, LLC to transact business in the state of Texas.
• Has signed a lease to rent the office space.
• Reached out to numerous contacts to include previous employees, landscapers, friends, family, and professional networks to inform them of the new business.
• Began recruiting a staff of accountants, landscapers, and sales personnel to work at Beautiful Gardens Landscaping Service.

Beautiful Gardens Landscaping Service Services

Industry analysis.

The United States Landscaping Services industry is valued at $128.8B and is expected to increase by 2.3% this year. There are more than 600,000 businesses and over 1M people working in the industry nationwide. The states of Florida, California, and New York have the most landscaping businesses of all the states, while Texans spend the most on landscaping services of all states.

Households with higher than average levels of disposable incomes (over $100,000 per year) spend the most on landscaping services for their homes. While these households reduce their spending on non-essential items during times of economic downturns, they are still more consistently spending on landscaping during these times versus lower income households. The number of households in the U.S. in this higher income bracket is expected to increase this year, resulting in growth opportunities for operators in the landscaping industry. Additionally, there is a rising demand for residential landscaping services from millenials and Gen Z consumers as more of them are participating in gardening activities.

The industry faces several challenges including shortage of quality labor, numerous price-based competitors, economic downturns, and high insurance costs. Industry operators can overcome these challenges and find success by researching their competitors, providing quality service by capable personnel, implementing a targeted marketing campaign, and charging fair prices for customers and employees.

Customer Analysis

Demographic profile of target market.

The precise demographics for Dallas, Texas are:

Customer Segmentation

Beautiful Gardens will primarily target the following customer profiles:

• Homeowners with annual household incomes of $100,000 or more
• Owners of multi-family residential properties such as apartment complexes and condominiums
• Millennials and Gen Z homeowners who need help starting their own gardens

Competitive Analysis

Direct and indirect competitors.

Beautiful Gardens Landscaping Service will face competition from other companies with similar business profiles. A description of each competitor company is below.

Leif’s Lovely Landscaping Service

Leif’s Lovely Landscaping Service has been operating in the Dallas area for over ten years and has gained a loyal customer base for its excellent service and low prices. Leif’s provides residential homeowners with general landscaping and lawn care services. The company is a small operation and the founder does most of the landscaping work himself. Customers come to Leif’s for reliable, friendly service and the lowest prices in Dallas. The company offers lawn care and chemical application, mulching, tree trimming, and debris cleanup services.

Lake Landscaping & Lawn Care

Founded in 1990 by Henry Lake, Lake Landscaping & Lawn Care is a well-known landscaping and lawn care business that serves all of Dallas-Fort Worth and surrounding areas. The company offers a wide variety of landscaping services for residential homeowners. Services include regular lawn care, trimming, and maintenance, design, construction, and maintenance of landscaping features, and pool service. Lake Landscaping & Lawn Care is owned and operated by Henry Lake, an experienced contractor who designed some of the most prominent outdoor spaces in the area before starting his own business over 30 years ago.

Pete’s Perfect Landscaping

Pete’s Perfect Landscaping is a new Dallas-Texas based company providing landscaping services to customers throughout the city. The company was founded by Peter Smith, an experienced gardener who has been working in the landscaping industry for over 20 years before deciding to start his own landscaping company. Pete’s Perfect Landscaping provides a variety of landscaping services including pruning, trimming, planting, mulching, debris removal, and lawn maintenance.

Competitive Advantage

Beautiful Gardens Landscaping Service will be able to offer the following advantages over its competition:

• Beautiful Gardens Landscaping Service uses a proprietary software application to engage with customers and ensure transparency throughout the process. Customers can use the app to schedule service, pay their bill, monitor the work being done, leave feedback, and receive customer support.

Marketing Plan

Brand & value proposition.

Beautiful Gardens Landscaping Service will offer the unique value proposition to its clientele:

• Beautiful Gardens Landscaping Service makes it easy for customers to obtain its services. The company uses a proprietary software application to engage with customers and ensure transparency throughout the process. Customers can use the app to schedule service, pay their bill, monitor the work being done, leave feedback, and receive customer support.
• For customers who prefer to communicate in person or over the phone, the company maintains an office space with a customer support representative available during regular business hours every day of the week.

Promotions Strategy

The promotions strategy for Beautiful Gardens Landscaping Service is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Beautiful Gardens maintains an active social media presence with regular updates and fun content to get customers excited about the company’s landscaping services.

Professional Associations and Networking

Beautiful Gardens Landscaping Service will become a member of professional associations such as the Landscaping Association, American Gardening Society, and the Texas Lawn Care Association. The leadership team will focus their networking efforts on expanding the company’s vendor and client network.

Print Advertising

Beautiful Gardens Landscaping Service will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also invest in ads to display in industry publications and local newspapers.

Website/SEO Marketing

Beautiful Gardens Landscaping Service will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Beautiful Gardens is able to provide. The website will also list information on the company’s events and testimonials from satisfied clients.

The marketing director will manage Beautiful Gardens’s website presence with SEO marketing tactics so that when someone types in a search engine “Beautiful Gardens” or “landscaping business near me”, Beautiful Gardens Landscaping Service will be listed at the top of the search results.

The pricing of Beautiful Gardens Landscaping Service will be moderate, but higher than low-end competitors so customers feel they receive value when purchasing the Company’s services.

Operations Plan

The following will be the operations plan for Beautiful Gardens Landscaping Service.

Operation Functions:

• John Martinez will be the CEO of the company. He will oversee the management team and lead the direction of the business. John has spent the past year recruiting the following staff:
• Lisa Smith – Chief Operating Officer who will manage the design and build process, train landscapers, and oversee the activities of the staff.
• Sam Garcia – Bookkeeper who will provide all accounting, tax payments, and monthly financial reporting.
• Robert Johnson – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.
• Joe Williams – Quality Control Manager who will oversee all inspections of the landscapers to ensure stringent compliance with quality standards are met.

Milestones:

Beautiful Gardens Landscaping Service will have the following milestones complete in the next six months.

11/1/2022 – Finalize lease on office space.

11/15/2022 – Finalize employment contracts for the Beautiful Gardens Landscaping Service management team.

12/1/2022 – Begin build-out of the office and purchase equipment.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for initial landscaping product suppliers and employment contracts for landscapers.

2/15/2023 – Beautiful Gardens Landscaping Service officially opens its office up to customers and starts taking appointments.

Financial Plan

Key revenue & costs.

The revenue drivers for Beautiful Gardens Landscaping Service are the fees charged to customers in exchange for the company’s services. When it comes to pricing, the business will monitor operational costs, average prices charged by competitors, and local market demand to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a landscaping business. The expenses will be the payroll cost, utilities, landscaping equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of appointments per month: 600
• Average fees per month: $15,000
• Overhead costs per year: $400,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Landscaping Company Business Plan FAQs

What is a landscaping company business plan.

A landscaping company business plan is a plan to start and/or grow your landscaping company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your landscaping company business plan using our Landscaping Company Business Plan Template here .

What are the Main Types of Landscaping Companies?

There are a number of different kinds of landscaping companies , some examples include: Commercial, Residential, and Arborists.

How Do You Get Funding for Your Landscaping Company Business Plan?

Landscaping companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for landscaping  and a lawn care business plan.

What are the Steps To Start a Landscaping Company Business?

Starting a landscaping company business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Landscaping Company Business Plan - The first step in starting a business is to create a detailed landscaping company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your landscaping company business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your landscaping company business is in compliance with local laws.

3. Register Your Landscaping Company Business - Once you have chosen a legal structure, the next step is to register your landscaping company business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your landscaping company business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Landscaping Company Equipment & Supplies - In order to start your landscaping company business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your landscaping company business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful landscaping company business and how to write landscape business plan :

• How to Start a Landscaping Company Business

Where Can I Get a Landscaping Business Plan PDF?

You can download our free landscaping business plan template PDF here . This is a sample landscaping business plan template you can use in PDF format.

Get instant access to detailed competitive research, SWOT analysis, buyer personas, growth opportunities and more for any product or business at the push of a button, so that you can focus more on strategy and execution.

Table of contents, the role of land management consulting.

• 13 June, 2024

Starting a Land Management Business

Overview of land management consulting.

Land management consulting involves overseeing the use, development, and conservation of land resources through planning, administration, and implementation of strategies for sustainable and responsible land management. The goal is to balance the various needs of stakeholders, such as government agencies, private landowners, indigenous communities, conservation organizations, and local communities, while ensuring the long-term sustainability and health of the land and its resources ( Greif ). Effective land management requires collaboration and partnerships to address the environmental challenges faced by our planet and contribute to the preservation of finite resources and natural habitats ( Greif ).

To start a land management business, it is important to have a clear understanding of the industry, including the services offered, market dynamics, and potential business opportunities. Conducting thorough research and analysis will help you identify the specific niche or focus area within land management that aligns with your expertise and interests. This can include services such as land management services , conservation planning, habitat restoration, or sustainable land development.

Importance of Sustainable Practices

Sustainable practices are at the core of land management consulting. As the world faces environmental challenges, responsible land management becomes increasingly important for the preservation of natural resources and the health of ecosystems. Sustainable land management focuses on optimizing land use while minimizing negative impacts on the environment and future generations.

Implementing sustainable practices in land management can include:

• Conservation efforts to protect and restore natural habitats and biodiversity.
• Responsible land development to ensure the efficient use of resources and minimize environmental degradation.
• Adoption of best management practices to reduce soil erosion, enhance water quality, and promote ecosystem health.
• Implementation of land-use planning strategies that consider the long-term sustainability of natural resources.

By incorporating sustainable practices into your land management business, you can not only contribute to the well-being of the planet but also attract environmentally conscious clients who value responsible land stewardship.

As you embark on your journey to start a land management business, it is essential to develop a comprehensive land management business plan . This plan will serve as a roadmap for your business, outlining your goals, target market, services offered, marketing strategies, and financial projections.

Remember, starting a land management business requires substantial upfront investment, including the purchase of necessary equipment. Additionally, you may encounter scheduling challenges due to the seasonal demand for land management services, particularly during the spring planting windows ( Bill Winke ). However, with dedication, expertise, and a commitment to sustainable practices, you can build a successful land management consulting business that contributes to the responsible use and conservation of land resources.

Essential Steps to Begin

Starting a land management business requires careful planning and strategic decision-making. This section will outline the essential steps needed to begin your journey in the field of land management consulting.

Business Planning and Strategy

Before launching your land management business, it’s crucial to develop a comprehensive business plan . This plan will serve as a roadmap for your company’s success, outlining your goals, target market, services, and financial projections. Conduct market research to identify potential land management business opportunities and competition in your area.

Your business plan should also include a well-defined strategy for attracting and retaining clients. Determine your unique value proposition and how you will differentiate yourself from competitors. Consider factors such as your expertise, services offered, pricing structure, and customer satisfaction strategies.

Legal Considerations and Licensing

Ensure that you comply with all legal requirements and obtain the necessary licenses and permits to operate your land management business. Research the specific regulations and licensing requirements in your jurisdiction to ensure full compliance. This may include obtaining certifications, insurance coverage, and registering your business with the appropriate government agencies.

Consult with a legal professional to ensure that you have a solid understanding of the legal framework surrounding land management consulting. They can provide guidance on contracts, liability issues, and other legal considerations that may arise in your business operations.

Equipment and Investment Needs

Starting a land management business typically requires a significant upfront investment in equipment. The specific equipment needed will depend on the services you plan to offer. For example, if your business focuses on tasks like putting in food plots, you will need equipment such as tractors, plows, seeders, and sprayers ( Bill Winke ).

Additionally, transportation means, such as a truck and trailer, may be necessary to transport equipment to customer properties. Consider the costs associated with purchasing or leasing equipment, as well as ongoing maintenance and repairs.

To determine your equipment and investment needs, evaluate the services you plan to offer and the demands of your target market. Careful financial planning is crucial to ensure that you have the necessary resources to acquire and maintain the equipment required for your land management business.

By carefully considering these essential steps, you can lay a strong foundation for your land management business. A well-crafted business plan, compliance with legal requirements, and proper investment in equipment will set you on the path to success in the field of land management consulting.

Building a Clientele

To establish a successful land management consulting business, it is crucial to build a solid client base. This involves identifying target customers and implementing effective marketing and networking strategies.

Identifying Target Customers

The first step in building a clientele is to identify your target customers. Land management services are often sought by landowners who lack the equipment or time to perform specific tasks themselves. These customers may include farmers, ranchers, land developers, and private landowners looking to optimize their property’s potential ( Bill Winke ).

Understanding the needs and preferences of your target customers is essential for tailoring your services to meet their specific requirements. Conduct market research to gain insights into the demographics, land types, and specific challenges faced by your potential clients. This knowledge will help you position your land management consulting services effectively.

Marketing and Networking Strategies

Once you have identified your target customers, it’s time to implement effective marketing and networking strategies to reach them. Here are some strategies to consider:

Online Presence : Establish a professional website that showcases your expertise, services, and testimonials from satisfied clients. Optimize your website for search engines to improve its visibility. Leverage social media platforms to engage with potential clients and share informative content related to land management.

Referrals and Word-of-Mouth : Encourage satisfied clients to refer your services to others. Offer incentives or referral programs to incentivize referrals. Positive word-of-mouth can be a powerful marketing tool in the land management industry.

Networking Events : Attend local agriculture and landowner events, trade shows, and conferences to connect with potential clients and industry professionals. Actively participate in discussions and share your knowledge to establish yourself as an expert in the field.

Collaborations : Build relationships with complementary businesses, such as agricultural supply stores or real estate agencies, to explore collaborative marketing opportunities. Cross-promote each other’s services to expand your reach.

Targeted Advertising : Consider targeted online advertising campaigns on platforms like Google Ads or social media platforms. Tailor your advertisements to reach specific demographics and geographic areas where your target customers are likely to be located.

Remember, building a clientele takes time and effort. Consistently deliver high-quality services, maintain excellent customer relationships, and continuously evaluate and refine your marketing strategies to ensure long-term success.

By effectively identifying your target customers and implementing targeted marketing and networking strategies, you can attract clients who are in need of your specialized land management services.

Managing Operations Efficiently

Running a successful land management business requires efficient management of operations. Two critical aspects to consider are scheduling challenges and handling seasonal demand.

Scheduling Challenges

One of the main challenges faced by land management consultants is effectively managing and organizing their schedules. The nature of land management services, such as planting, maintenance, and harvesting, often involves working within specific time frames and seasons. This can lead to potential scheduling conflicts and difficulties in accommodating multiple projects simultaneously.

To navigate these challenges, consultants should prioritize effective planning and communication. Developing a land management business plan that outlines project timelines, resource allocation, and client expectations can help in managing schedules more efficiently. Additionally, utilizing digital tools and software for scheduling and project management can streamline operations and ensure smooth coordination among team members and clients.

Handling Seasonal Demand

The demand for land management services tends to be highest during specific seasons, particularly in the spring when planting and maintenance activities are prevalent. This seasonal nature of the work can create additional challenges for consultants in managing multiple projects concurrently.

To effectively handle seasonal demand, consultants should proactively plan their capacity and resources. This involves assessing their team’s capabilities, equipment availability, and the number of projects they can realistically undertake during peak periods. By carefully managing client expectations and setting realistic timelines, consultants can ensure that they can meet the demand without compromising the quality of their services.

It’s also important for land management consultants to explore the possibility of diversifying their services and expanding their client base beyond the peak season. This can help in maintaining a steady workflow throughout the year and mitigating the impact of seasonal fluctuations. Additionally, building long-term relationships with clients and providing exceptional service can lead to repeat business and referrals, further stabilizing operations.

By effectively managing scheduling challenges and handling the seasonal nature of the work, land management consultants can ensure the smooth operation of their business and provide consistent, high-quality services to their clients.

Overcoming Business Challenges

Starting a land management business comes with its own set of challenges. However, with careful planning and perseverance, these challenges can be overcome. Two significant hurdles to consider are high initial costs and reputation building and expertise.

High Initial Costs

Establishing a land management business can be capital-intensive, requiring significant upfront investment. Purchasing the necessary equipment, such as machinery, tools, and vehicles, adds to the initial costs. Additionally, transportation means like big trucks and trailers may be necessary to efficiently carry out land management tasks ( Bill Winke ).

To overcome this challenge, it is essential to create a comprehensive land management business plan that includes a detailed analysis of the startup costs. Seeking financing options, such as business loans or grants, can help alleviate the financial burden. Careful budgeting and prioritizing essential equipment needs can also ensure efficient utilization of resources.

Reputation Building and Expertise

Establishing a reputable brand and gaining expertise in the field of land management consulting takes time and effort. Building trust with clients and showcasing your expertise are crucial for attracting new customers and securing repeat business. Clients often seek experienced consultants who can deliver high-quality land management services.

To overcome this challenge, focus on providing exceptional service and exceeding client expectations. Word-of-mouth referrals play a significant role in reputation building, so ensure that each client interaction leaves a positive impression. Consider showcasing your expertise through case studies, testimonials, and examples of successful land management projects.

Networking within the industry and participating in relevant professional associations can also help build credibility and establish connections with potential clients. By continuously expanding knowledge and staying updated on the latest land management practices, you can position yourself as an expert in the field.

Remember, reputation building and expertise are developed over time. Consistency, professionalism, and a commitment to delivering exceptional results are key to overcoming this challenge.

By addressing these challenges head-on and implementing effective strategies, you can navigate the initial hurdles of starting a land management business. With dedication, perseverance, and a focus on providing top-quality services, you can establish a successful and thriving land management consulting venture.

Professional Development and Certifications

In the field of land management consulting, ongoing professional development and certifications play a crucial role in ensuring expertise and credibility. Professionals in this industry have the opportunity to pursue various certifications and educational programs to enhance their skills and knowledge.

Accredited Land Consultants (ALCs)

One notable certification for land management consultants is the Accredited Land Consultant (ALC) designation. The ALC designation is offered by the REALTORS® Land Institute and is recognized as a mark of excellence in the industry. To obtain this designation, individuals must complete a total of 104 course hours through the REALTORS® Land Institute’s LAND University (LANDU) program ( National Association of Realtors ).

Applicants for the ALC designation must also meet specific work experience requirements. The designation is designed to demonstrate a high level of expertise and professionalism in land management consulting. Holding the ALC designation showcases a commitment to ongoing education and a dedication to providing exceptional land management services.

Educational Requirements and Advantages

In addition to certifications like the ALC, educational programs can provide valuable knowledge and insights for land management consultants. Pursuing a bachelor’s or master’s degree in real estate or a land-related program can offer a comprehensive understanding of the industry and its practices.

Certain designations such as CCIM, CRE, SIOR, AFM, ARA, RPRA, AAC, MAI, and CAI, as well as individuals with a B.S. or M.S. in real estate or land-related programs, may qualify for an accelerated “Fast Track” program to obtain the ALC designation, as recognized by the REALTORS® Land Institute ( National Association of Realtors ). This allows individuals with relevant experience and qualifications to streamline their path towards obtaining the ALC designation.

By pursuing professional development opportunities and certifications, land management consultants can stay up-to-date with industry trends, expand their knowledge base, and enhance their credibility. These qualifications demonstrate a commitment to providing high-quality services and can attract potential clients who value expertise and professionalism.

More information on the ALC designation and the application process can be found on the REALTORS® Land Institute website or by contacting the Institute directly ( National Association of Realtors ). Investing in professional development and certifications is a strategic move for land management consultants aiming to excel in their field and build a reputable business that offers exceptional land management services .

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Landscaping Business Plan Template

Written by Dave Lavinsky

Landscaping businesses run the gamut from one-person lawn care services to huge companies with dozens of locations. As long as people and businesses have lawns, there will always be work, yet many landscapers fail in the first year, often due to haphazard and unsustainable growth. A written business plan can help you avoid this trap by delineating a clear road map for organized growth. In addition, if you plan to seek outside funding, your business plan is essential to convincing investors or lenders to take a chance on your company.

Over the past 20+ years, we have helped over 2,000 entrepreneurs create business plans to start and grow their landscaping companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a landscaping business plan step-by-step so you can create your plan today.

Download our Ultimate Landscaping Business Plan Template here >

What is a Landscaping Business Plan?

A business plan provides a snapshot of your landscaping business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Landscaping Company

If you’re looking to start a landscaping business or grow your existing landscaping business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your landscaping business in order to improve your chances of success. Your landscaping business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Landscaping Businesses

With regards to funding, the main sources of funding for a landscaping company are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a landscaping company is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

How to write a business plan for a landscaping company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of landscaping company you are operating and the status; for example, are you a startup, do you have a landscaping business that you would like to grow, or are you operating a chain of landscaping companies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the landscaping industry. Discuss the type of landscaping company you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of landscaping company you are operating.

For example, you might operate one of the following types:

• Commercial : this type of landscaping company provides services to commercial facilities, municipal buildings, and campuses. This type of business provides lawn maintenance, as well as tree and shrub services and exterior landscaping installation.
• Residential : this type of landscaping company typically focuses on lawn maintenance for households and multifamily properties.
• Landscape design : this type of landscaping company includes the construction of embankments, terraces and retaining walls used in landscape structures, in addition to walkways, decks, fences, ponds and similar structures.
• Arborist services : Arborists undertake the cultivation and management of individual trees or trees within a small area, as opposed to similar professionals in the forestry industries. Arborist services also include tree felling and surgery.

In addition to explaining the type of landscaping company you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

While this may seem unnecessary, it serves multiple purposes.

First, researching the landscaping industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards residential outdoor kitchens, it would be helpful to ensure your plan calls for employing plenty of skilled labor.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your landscaping business plan:

• How big is the landscaping industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your landscaping company. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your lawn care business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families, baby boomers, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of landscaping company you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than businesses.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most landscaping companies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other landscaping businesses.

Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes DIY platforms such as TaskRabbit, or doing the landscaping themselves. You need to mention such competition to show you understand that not everyone uses a landscaping business for lawn maintenance.

With regards to direct competition, you want to detail the other landscaping businesses with which you compete. Most likely, your direct competitors will be landscaping businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products/services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior landscaping services?
• Will you provide landscaping services that your competitors don’t offer?
• Will you make it easier or faster for customers to schedule your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a lawn care business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of landscaping business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to mowing and trimming lawns, will you offer services such as insect and weed control?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your landscaping business. Document your location and mention how the location will impact your success. For example, is your landscaping business located near a garden supply store, or greenhouse, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your landscaping business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Pay per click advertising
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your lawn care business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your landscaping business such as serving customers, procuring supplies, keeping the equipment maintained, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch in a new city.

Management Team

To demonstrate your landscaping business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the landscaping business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in landscaping businesses and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per week or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your landscaping business (purchasing equipment, etc.), that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a landscaping business:

• Cost of equipment like mowers, trailers, weed trimmers, clippers, etc.
• Cost of maintaining an adequate amount of supplies (i.e. bug and weed killer, etc.)
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Landscaping Business Plan Summary

Putting together a business plan for your landscaping business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the landscaping business, your competition and your customers. You will have developed a solid lawn care business plan and will really understand what it takes to launch and grow a successful landscaping business.

Download Our Landscaping Business Plan PDF

You can download our lawn care business plan example pdf here. This is a business plan template you can use in PDF format to help you get started on your own business plan.

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Landscaping Business Plan Template & Guidebook

How to write a landscaping business plan in 7 steps:, 1. describe the purpose of your landscaping business., 2. products & services offered by your landscaping business., 3. build a creative marketing stratgey., target market, customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a landscaping business, 5. management & organization of your landscaping business., 6. landscaping business startup expenses & captial needed., 7. financial plan & projections, frequently asked questions about landscaping business plans:, why do you need a business plan for a landscaping business, who should you ask for help with your landscaping business plan, can you write a landscaping business plan yourself, related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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Infrastructure

A strong infrastructure is critical for BLM’s stewardship of our public lands. Effective natural resource management doesn't rely only on built structures to keep physical and natural systems resilient, conserve critical resources and support economic sustainability of communities.

Effective management also relies on natural infrastructure – healthy, functioning ecosystems that deliver clean air and clean water, support wildlife, sequester carbon and are less prone to the effects of catastrophic wildfire. Our infrastructure initiatives aim to work with the landscape: to restore critical ecosystems and deliver environmental, social and economic benefits. 

The Inflation Reduction Act is a key component of the Biden-Harris Administration's Investing in America agenda . The BLM has received $161 million under this law for ecosystem restoration and resilience on public lands in 11 western states. This funding will be directed to projects in 21 Restoration Landscapes , with the aim of passing these lands on to the future in better condition than we find them today. 

The President and the Secretary of the Interior were also key proponents of the Bipartisan Infrastructure Law that was signed into law in November 2021. In concert with other recently enacted legislation, this law will deliver on the need to address deferred maintenance backlogs as a priority and to invest in restoring our ecosystems. 

Click below for information on these programs. 

The BLM has selected 21 Restoration Landscapes in which to infuse $161 million for ecosystem restoration and resilience on public lands, while also strengthening communities and economies that depend on these lands.  

Funded projects will improve ecological function on public lands that are being significantly degraded by invasive species, unprecedented wildfire, unregulated use and climate change. Work will be coordinated and sequenced across BLM programs, including Fire & Fuels , Rangelands , Wildlife , Forestry , Aquatics and Recreation . 

The BLM will also prioritize projects funded through the Bipartisan Infrastructure Law in these landscapes, to maximize the return on these investments, enhance durability and more efficiently engage partnerships. 

Tour the Restoration Landscapes virtually   

The Infrastructure Investment and Jobs Act, also known as the  Bipartisan Infrastructure Law (BIL, Public Law 117-58), was signed into law on November 15, 2021. The BIL contains several provisions that fund Interior Department initiatives and benefit the communities we directly serve.  For BLM, BIL will help us tackle some major issues, including these: 

Wildland Fire: BLM has already taken steps to increase firefighter salaries under this law. The BIL also provides funding for fuels treatments, increasing partnerships with communities and Tribes, modernizing our radio infrastructure, and improving technologies for wildfire detection and monitoring.

Categorical Exclusion for Forest Management: The BIL authorizes BLM to work with other agencies to create new categorical exclusions (a category of actions that have been determined not to have a significant effect on the environment, so further analysis is not required), to establish fuel breaks that will reduce the risk of wildfire on Federal lands and adjacent communities. 

Ecosystem Restoration: Funding for restoration projects will increase the use of native vegetation, mitigate environmental hazards, improve recreation sites, prevent and control invasive species, and implement collaborative landscape-scale restoration efforts. Agencies are required to develop a ranking system to prioritize lands at risk of unnaturally severe wildfires, insect infestations, and diseases and determine if wood processing facilities would assist in vegetation removal and ecological restoration.

Orphaned Well Clean Up: Establishes funding to monitor idle wells and plug, remediate, and reclaim orphaned wells on Federal lands.

Clean Energy Technologies on Mine Lands: The BIL encourages demonstration projects for using abandoned mine lands as possible locations for clean energy, such as solar energy.

The Great American Outdoors Act (GAOA, Public Law 116-152) was signed into law on August 4, 2020, providing five years of funding to several agencies including the BLM. Congress funds up to $1.9 billion annually in FY21-FY25, of which the BLM can receive a maximum of 5 percent of the funds, or $95 million dollars.

A Department of the Interior Task Force, of which BLM is a member, developed four overall goals for GAOA: (1) to maximize the return on investment to citizens served, (2) to improve the financial health of maintenance programs, (3) to protect those we serve by improving safety for the public and employees, and (4) to plan for the future by modernizing infrastructure. 

In addition to practical maintenance considerations, BLM is also interested in advancing administration goals through GAOA, including such issues as: climate resiliency, preventing resource threats, advancing clean energy solutions, benefitting underserved communities, creating opportunities for youth and job corps programs, and contributing to the improvement of the economy through good paying jobs. 

Current Projects

• New Mexico: Prehistoric Trackways National Monument Road Projects

BLM's annual fiscal appropriation from Congress includes funding for construction and maintenance projects through its Deferred Maintenance program. The Deferred Maintenance program manages projects that are part of our infrastructure backlog: improvements and repairs that can't be accomplished as part of regular annual maintenance. 

• Oregon: South Fork John Day Road
• Idaho: Slate Creek and White Bird Boat Launches
• Montana: Middle Two Calf Road Reconstruction
• Idaho: Spokane River, Ross Point Day use area
• Utah: Anasazi Valley Trailhead Improvements
• Virginia: New field station opens at Meadowood SRMA in Lorton
• California: Ma-le’l Dunes South area road improvements

From the Blog:

Native Seed Collection Project Lays the Groundwork for Habitat Restoration Projects in the Sonoran Desert (June 22, 2022)

In the News

• ECOSYSTEM RESTORATION:  Watershed Initiative agreement with Utah partners (10/17/22)
• ECOSYSTEM RESTORATION:  Investment to boost watershed restoration in Alaska (9/27/22)
• WILDFIRE: Partnership to reduce wildfire risk in Nevada  (9/21/22)
• ORPHANED WELLS: Contracts to plug and restore orphaned wells in Utah and California (8/18/22)

Federal Orphaned Well Program

• Invitation Memo
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• Webinar Slides, 1-6-2022 ( PPTX  3 MB) ( PDF  807kB)
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Blm, foundation for america's public lands to address drought, blm invests $6 million from bipartisan infrastructure law for ecosystem restoration partnerships in eight states, biden-harris administration invests more than $18 million in public lands projects as part of investing in america agenda.

• What is a land loan? 

Types of land loans

• How do land loans work? 

The process of obtaining a land loan

• Considerations

Benefits and challenges

Understanding land loans in 2024.

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• You can get a loan for raw, unimproved, or improved land purchases.
• Land loans tend to have shorter terms and higher interest rates than home loans.
• You may need a fairly large down payment to qualify for a land loan.

Buying land is an investment with endless opportunities. You can build a home, start a business, or just hold the land to sell later once it increases in value. And with the supply of existing homes woefully short of demand, more and more consumers are turning to land in hopes of putting down roots.

To buy land, though, you'll need a land mortgage — a financing method used just for purchasing plots of raw, improved, or unimproved land. Typically, these loans are a bit more difficult to obtain than a regular home mortgage, but not impossible by any means. 

Here's what to know about land loans and how to get one.

What is a land loan? 

At its most basic level, a land loan is a loan used to purchase a piece of land. You'll apply for the loan with a bank or mortgage lender , you'll make a down payment , and they'll loan you the rest of the money to cover the costs of buying the land. 

You can then pay off that debt — plus interest — over the next few years (sometimes decades). 

There are three different land loan types — raw, unimproved, and improved —  that come into play. Here how each of these financing options for buying land differ:

Raw land loans

A raw land loan "applies to the purchase of completely undeveloped land — no roads, sewers, or electricity," says Paul Sundin, a certified public accountant and CEO of Emparion , a provider of strategic retirement services. "When starting with raw land, you'll have the most work ahead of you to build a home on the lot." 

Unimproved land loans

Another common type of land loan is for unimproved land. "Unlike raw land, this type of property has some utilities and amenities," Sundin explains. There is usually at least the foundation to build a property on.

Improved land loans

Finally, you can use an improved land loan to finance the purchase of property that already has access to electricity, water, and roads. Of all three options, this one offers the most streamlined path for building a home or property, Sundin says. 

How do land loans work? 

In many ways, a land loan is similar to a traditional mortgage . However, there are some important differences.

Loan terms and conditions

Land loan terms tend to be much less than you would have to pay off a mortgage, which is typically 30 years. Lenders typically offer terms anywhere from a few years to 10 or even 20 years, in some cases.

"Most land loans are shorter in term," says Will Curtis, a certified commercial investment member (CCIM) at Crossed Sabers Commercial Real Estate. "Three to five years is not unheard of."

Some land loans are structured with balloon payments at the end of the term to finish paying them off. A balloon payment is a one-time payment at the end of the loan term. Typically, this is a large lump sum that makes up for lower payments during the loan term. 

Interest rates and down payment requirements

Down payment requirements for land loans typically range from 20% to 50%. (You can get a conventional home mortgage with as little as 3% down.)

In addition to higher down payments, you'll likely face higher interest rates with a land loan, too. 

"Land loans are a more specialized product and not every bank will do them or will have the same level of comfort in doing them, which means you could be charged a higher down payment or a high interest rate given the perceived higher risk," Curtis says.

To get a land loan, you'll first need to find a bank, credit union, or mortgage lender that offers them. 

Then you'll:

• Fill out an application: When you apply, the lender will evaluate your credit score and finances as a part of the loan decision. Criteria for qualifying for a land loan vary by lender, but you can typically expect to need at least a 720 credit score or higher. 
• Provide documentation: As with a home loan, you'll need to provide extensive documentation of your finances including bank statements and pay stubs. 
• Submit a building plan: According to Jeffery Zhou, co-founder and CEO of FigLoans , "You need to have a detailed building plan to show lenders and assure them that you can complete your building project."
• Pay your down payment and closing costs : You can expect to need at least a 20% down payment or higher.
• Close on your loan : After you sign your paperwork, you'll own the land and will need to start making monthly payments on your loan.

Stay in contact with your loan officer throughout the process, as they may need additional documents or information along the way. Responding quickly to these requests can keep your loan on track.

Considerations before applying for a land loan

Buying land — and taking out a land loan — is no cheap or easy feat, so make sure it's a sound decision before moving forward. You can do this by:

Assessing land use and development plans

Before you buy a plot of land, it's important to know how you'll utilize it. There are many strategies for developing purchased land, so make sure you weigh your options carefully. 

Lenders will typically ask for an explanation of how you plan to develop the lot, and they usually require a detailed building plan as well — at least if you're hoping to put a structure on the property. 

Understanding zoning and land-use regulations

You'll need to research any regulations, easements, or zoning rules that apply to your land before purchasing it, as these can greatly impact your options for both developing the lot and using it. They can also impact what sort of business you can conduct on the property, what developments can crop up around your land later on, and more. (That last one is important, as it will impact your land's future value considerably.) 

Evaluating the long-term investment potential

Last but not least, you need to think ahead — to how the property's value will grow and change over time. A real estate agent can help you gauge this, and research into the area surrounding your land — the developments that are planned, the amenities and school systems nearby, and other features — can point you toward possible trends as well.

As with anything, there are both pros and cons to using a land loan. Here's what to consider before taking one out. 

The appeal of owning land

Land offers endless possibilities and can be used for both financial and personal purposes. You can build a home, start a farm, open a business, and achieve many other goals by purchasing land. 

It can be particularly appealing for consumers who are unable to find existing homes in an area they want to buy. (According to the National Association of Realtors, the US is over 5 million homes short of demand.)

The complexities of land loan financing

Land loans can be a good way to help you finance construction of a new home or business venture. But they're more complicated than a traditional mortgage, so it's important to fully understand what you're getting into and how much it's all going to cost in the end.

For one, both down payments and interest rates are higher on land loans. Some come with balloon payments, too, meaning you will need to repay the full remaining balance in one lump sum payment. 

You could also have a shorter repayment term, too. Most land loans last only a few years (up to 20 max). 

Lenders view land loans as higher risk due to the lack of collateral (in terms of structures) and the potential challenges in developing the land. These can both impact the land's value and the borrower's ability to repay the loan.

Raw land loans are for completely undeveloped land without access to utilities or roads. Unimproved land loans might have some basic utilities but lack significant improvements, and improved land loans are for land that has access to most or all utilities and infrastructure.

Yes, you can build a home on land purchased with a land loan, but you may need to secure a separate construction loan to finance the building process, which can later be converted into a mortgage or combined with the land loan into a single loan product, depending on the lender.

Down payments for land loans can be higher than traditional mortgages. They often range from 20% to 50%, due to the perceived higher risk by lenders.

Long-term planning for land investment is critical. You can prepare for your land purchase by researching the land's value, understanding zoning laws, having a clear plan for the land's use, and assessing your financial readiness, including the ability to make a significant down payment and cover potential development costs. Evaluating the future value of the land you're considering is crucial, too.

If you're doing a one-to-one comparison of land loan interest rates vs. traditional mortgage rates , land loan rates are usually higher, as lenders see them as riskier (and there's no collateral). Land loans also require bigger down payments.

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Elektrostal , city, Moscow oblast (province), western Russia . It lies 36 miles (58 km) east of Moscow city. The name, meaning “electric steel,” derives from the high-quality-steel industry established there soon after the October Revolution in 1917. During World War II , parts of the heavy-machine-building industry were relocated there from Ukraine, and Elektrostal is now a centre for the production of metallurgical equipment. Pop. (2006 est.) 146,189.

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2024 Investment Climate Statements: Chile

• EXECUTIVE SUMMARY

With the third highest GDP per capita in Latin America, Chile has historically enjoyed significant economic stability and prosperity. After a wave of civil unrest in 2019, Chile’s political leadership launched a constitutional rewrite process to address social concerns. Although Chileans rejected the proposals of two constitutional referendums, the government’s use of peaceful and democratic tools was largely credited for diffusing social tension. Chile’s solid macroeconomic policy framework gives the country one of the strongest sovereign bond ratings in Latin America and provided fiscal and monetary space to reactivate the economy after the COVID-19 pandemic. According to its Central Bank, Chile’s economic growth was 0.2 percent in 2023 and is projected between 2 and 3 percent in 2024.

Despite its relatively small domestic market, Chile has successfully attracted Foreign Direct Investment (FDI), with an FDI to GDP ratio of nearly 85 percent. The country’s market-oriented policies create significant opportunities for foreign investors to participate in the country’s economic growth. Chile has a sound legal framework and there is general respect for private property rights. Sectors that attract the most FDI are mining, financial services (including pensions and health insurance), and utilities (including electricity, energy, water, and telecommunications). Mineral, hydrocarbon, and fossil fuel deposits within Chilean territory are restricted from foreign ownership, but companies may sign resource extraction contracts with the government. According to Transparency International’s 2023 Corruption Perceptions Index, Chile ranked 29 out of 180 countries worldwide and second in Latin America – behind Uruguay which ranked 16th.

Although Chile is an attractive destination for foreign investment, challenges remain. Some government reform proposals caused concern about potential impacts on investments in the healthcare, insurance, and pension sectors. Despite a general respect for intellectual property (IP) rights, Chile has not fully complied with its IP obligations set forth in the U.S.-Chile Free Trade Agreement. Environmental permitting processes, indigenous consultation requirements, and cumbersome court proceedings have made large project approvals increasingly time consuming and unpredictable, especially in cases with political sensitivities. The current administration prioritizes attracting foreign investment, especially into technological sectors and natural resource extraction associated with the green transition (lithium, copper, and green hydrogen), and continues to implement measures to streamline the investment process.

1. Openness To, and Restrictions Upon, Foreign Investment

• Policies Towards Foreign Direct Investment

For more than four decades, promoting FDI has been an essential part of the Chilean government’s national development strategy. The country’s market-oriented economic policies create significant opportunities for foreign investors to participate. Laws and business practices do not discriminate against foreign investors, who receive treatment no less favorable than Chilean nationals and domestic companies. Chile’s business climate is generally straightforward and transparent, and its policy framework has remained consistent despite administrations of different political leanings, episodes of social unrest, and two unsuccessful attempts to rewrite the Chilean Constitution. However, permitting processes for infrastructure, mining, and energy projects are lengthy and outcomes are less predictable in cases involving politically sensitive environmental impact assessments, water rights issues, and indigenous consultations. InvestChile is the government agency responsible for promoting the entry and retention of FDI into Chile. InvestChile carries out programs and services to attract investment, provide legal and sectorial information, facilitate the establishment of new businesses, and provide export and reinvestment assistance.

• Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign investors have access to all industries, except for the domestic maritime freight sector, where companies are subject to a 49 percent foreign ownership limit. Since 2019, transit between domestic ports was allowed for foreign cruise vessels with over 400 passengers. Some international reciprocity restrictions exist for fishing.

With few exceptions, enterprises in Chile may be 100 percent owned by foreigners. Chile only restricts the right to private ownership or establishment in what it defines as certain “strategic” sectors, such as nuclear energy and mining. The current Constitution establishes the “absolute, exclusive, inalienable and permanent domain” of the Chilean state over all mineral, hydrocarbon, and fossil fuel deposits within Chilean territory. However, Chilean law allows the government to grant concession rights and enter into lease agreements with individuals and companies for exploration and exploitation activities, and to assign contracts to private investors, without discrimination against foreign investors.

Chile does not have an investment screening mechanism. FDI formal approval procedures are expeditious, and investments are usually approved. Some transactions require an anti-trust review by the office of the national economic prosecutor (Fiscalía Nacional Económica) and possibly by sector-specific regulators.

• Other Investment Policy Reviews

The World Trade Organization (WTO) conducted its sixth Trade Policy Review for Chile in December 2023. The full report is available here: https://www.wto.org/english/tratop_e/tpr_e/tp551_e.htm   . The Organization for Economic Co-operation and Development (OECD) latest Investment Policy Review for Chile is from 1997, available here: http://www.oecd.org/daf/inv/investment-policy/34384328.pdf . On March 27, 2023, the OECD published a new report named “FDI Qualities Review of Chile: Boosting sustainable development and diversification,” which contains an updated assessment of Chile’s FDI policy framework as well as policy recommendations. Chile is not part of the countries covered to date by the United Nations Conference on Trade and Development’s (UNCTAD) Investment Policy Reviews.

• Business Facilitation

The Chilean government has taken significant steps towards facilitating business transactions over the past decade. Starting in 2018, the government introduced an updated electronic and online systems for providing tax information, submitting complaints related to contract enforcement, and completing online registration of closed corporations (i.e., non-public corporations). In June 2019, the Ministry of Economy launched the Unified System for Permits (SUPER), an online single-window platform that brings together 182 license and permit procedures, simplifying the process of obtaining permits for investment projects. However, as noted previously, the private sector still considers the permitting process lengthy and overly cumbersome. Chile participates in the WTO Joint Initiative on Investment Facilitation for Development, which is coordinated by the country’s Permanent Representative to the WTO.

According to the World Bank, Chile has one of the shortest and most user-friendly processes among Latin American and Caribbean countries – 11 procedures and 29 days – to establish a foreign-owned limited liability company (LLC). Drafting statutes of a company and obtaining an authorization number can be done online at https://www.registrodeempresasysociedades.cl/   . Electronic signature and invoicing allow foreign investors to register a company, obtain a taxpayer identification number and get legal receipts, invoices, credit and debit notes, and accountant registries. A company typically needs to register with Chile’s Internal Revenue Service, obtain a business license from a municipality, and register either with the Institute of Occupational Safety (public) or with one of three private nonprofit entities that provide work-related accident insurance, which is mandatory for employers. In addition to the steps required of a domestic company, a foreign company establishing a subsidiary in Chile must authenticate the parent company’s documents abroad and register the incoming capital with the Central Bank. This procedure, established under Chapter XIV of the Foreign Exchange Regulations, requires a notice of conversion of foreign currency into Chilean pesos when the investment exceeds $10,000. The registration process at the Registry of Commerce of Santiago is available online.

• Outward Investment

The Government of Chile does not have active policies to promote or incentivize outward investment, nor does it impose restrictions on FDI.

• 2. Bilateral Investment and Taxation Treaties

Chile has signed 55 bilateral investment treaties (BITs), 34 of which are in force to date. Currently Chile has agreements in force with Austria, Belgium and Luxembourg, Costa Rica, Croatia, Cuba, Czechia, Denmark, El Salvador, Finland, France, Germany, Greece, Guatemala, Honduras, Hong Kong SAR, Iceland, Italy, Malaysia, Nicaragua, Norway, Panama, Paraguay, Philippines, Poland, Portugal, Romania, South Korea, Spain, Sweden, Switzerland, Ukraine, the United Kingdom, Uruguay, and Venezuela.

Chile has 32 free trade agreements (FTAs) with 66 countries. On January 1, 2004, the United States and Chile brought into force the investment chapter in their bilateral FTA. Chile has additional investment chapters in force under FTAs, or supplementary investment agreements to the FTAs with Argentina, Australia, Bolivia, Brazil, Canada, China, Colombia, Hong Kong SAR, Japan, Mexico, the Netherlands, Republic of Korea, Peru, the Pacific Alliance (composed of four countries: Chile, Colombia, Mexico, and Peru), and the Comprehensive and Progressive Transpacific Partnership (CPTPP). Chile is currently negotiating investment dispute resolution chapters that are part of FTA negotiations between the Pacific Alliance and Associated States (Australia, Canada, and New Zealand), and signed on January 26, 2022, the FTA between the Pacific Alliance and Singapore. Chile signed the Advanced Framework Agreement with the European Union on December 13, 2023. As of April 4, 2024, it has not yet entered into force.

The U.S.-Chile Bilateral Tax Treaty, signed in 2010, entered into force December 19, 2023. Chile has 36 other double taxation treaties in force with Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Croatia, Czechia, Denmark, Ecuador, France, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Paraguay, Peru, Poland, Portugal, Russia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, the United Arab Emirates, the United Kingdom, and Uruguay. Chile also signed a double taxation agreement with the Pacific Alliance countries (Colombia, Mexico, and Peru), that has not yet entered into force.

Since the 2014 Tax Reform, the total income tax rate on dividends or profits earned by Chilean firms’ shareholders who are residents in other countries at 44.45 percent (a result of adding the 35 percent “retention tax” on dividends and profits to a 9.45 percent corporate income tax). Residents in countries, such as the United States, with a tax treaty in force with Chile are subject to a 35 percent retention tax rate, and no corporate income tax. Chile’s 2020 Tax Modernization bill reformed real estate and income taxes and applied Chile’s 19 percent value-added tax to foreign digital services.

3. Legal Regime

• Transparency of the Regulatory System

Chile’s legal, regulatory, and accounting systems are transparent, generally provide clear rules for competition and a level playing field for foreigners and are consistent with international norms. However, environmental regulations, which include mandatory indigenous consultation required by the International Labor Organization’s Indigenous and Tribal Peoples Convention (ILO 169), and other permitting processes have become lengthy and unpredictable, especially in politically sensitive cases.

Chile does not have a regulatory oversight body. Four institutions play key roles in the rule-making process: the General-Secretariat of the Presidency (SEGPRES), the Ministry of Finance, the Ministry of Economy, and the General Comptroller of the Republic. Most regulations come from the national government; however, some, particularly those related to land use, are decided at the local level. Both national and local governments are involved in the issuance of environmental permits. Regulatory processes are managed by governmental entities. NGOs and private sector associations may participate in public hearings or comment periods.

In Chile, non-listed companies follow norms issued by the Accountants Professional Association, while publicly listed companies use the International Financial Reporting Standards (IFRS). Since January 2018, IFRS 9 entered into force for companies in all sectors except for banking, in which IFRS 15 will be applied. IFRS 16 entered into force in January 2019. On January 1, 2022, Chile’s Financial Market Commission (CMF) began implementation of the IFRS 17 accounting standards in the Chilean insurance market.

The legislation process in Chile allows for public hearings during discussion of draft bills in both chambers of Congress. Draft bills submitted by the Executive Branch to the Congress are readily available for public comment. Ministries and regulatory agencies are required by law to give notice of proposed regulations, but there is no formal requirement in Chile for consultation with the public, conducting regulatory impact assessments of proposed regulations, requesting comments, or reporting results of consultations. For lower-level regulations or norms that do not need congressional approval, there are no formal provisions for public hearing or comment. As a result, Chilean regulators and rulemaking bodies normally consult with stakeholders, but in a less formal manner.

All decrees and laws are published in the Diario Oficial (similar to the Federal Register in the United States), but other types of regulations are not always found there. There are no other centralized online locations where regulations in Chile are published.

According to the OECD, regulatory compliance rates in Chile are generally high. The approach to enforcement remains punitive rather than preventive, and regulators still prefer to inspect rather than collaborate with regulated entities on fostering compliance. Each institution with regulation enforcement responsibilities has its own sanction procedures. Law 19.880 from 2003 establishes the principles for reversal and hierarchical recourse against decisions by the administration. An administrative act can be challenged by lodging an action in the ordinary courts of justice, or by administrative means with a petition to the Comptroller General of the Republic. Affected parties may also make a formal appeal to the Constitutional Court against a specific regulation.

Chile still lacks a comprehensive, “whole of government” regulatory reform program. The OECD’s April 2016 “Regulatory Policy in Chile” report asserts that Chile took steps to improve its rule-making process, but still lags the OECD average in assessing the impact of regulations, consulting with outside parties on their design and evaluating them over time. According to the World Bank´s Global Indicators of Regulatory Governance, Chile has made limited progress on transparency, impact assessment and ways to appeal and challenge regulations. In a recent positive step, the government submitted to Congress on January 10, 2024, a bill that aims to reduce timeframes for obtaining permits, by imposing deadlines on permit procedures, with default decisions in case of no reply by authorities.

Chile’s level of fiscal transparency is excellent. Information on the budget and debt obligations, including explicit and contingent liabilities, is easily accessible online.

• International Regulatory Considerations

Chile does not share regulatory sovereignty with any regional economic bloc. However, several international norms or standards from multilateral organizations (UN, WIPO, ILO, among others) are referenced or incorporated into the country’s regulatory system. As a member of the WTO, the Chile notifies draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT).

• Legal System and Judicial Independence

Chile’s legal system is based on civil law. Chile’s legal and regulatory framework provides for effective means for enforcing property and contractual rights.

Laws governing issues of interest to foreign investors are found in several statutes, including the Commercial Code of 1868, the Civil Code, the Labor Code, and the General Banking Act. Chile has specialized courts for dealing with tax and labor issues.

The judicial system in Chile is generally transparent and independent. The likelihood of government intervention in court cases is low and state-owned enterprises or other government institutions are not given favorable treatment. If a state-owned firm is involved in the dispute, the Government of Chile may become directly involved through the State Defense Council, which represents the government interests in litigation cases related to expropriations. Regulations can be challenged before the court system, the National Comptroller, or the Constitutional Court, depending on the nature of the claim.

• Laws and Regulations on Foreign Direct Investment

Chile’s framework for foreign investment is set by Law 20848 of 2015, which created InvestChile and the Agency for the Promotion of Foreign Investment (APIE), the successor to the former Foreign Investment Committee. The InvestChile website ( https://investchile.gob.cl/   ) provides relevant laws, rules, procedures, and reporting requirements for investors. For more on FDI regulations and services for foreign investors, see the section on Policies Towards Foreign Direct Investment.

Competition and Antitrust Laws

Chile’s anti-trust law prohibits mergers or acquisitions that would prevent free competition in the respective industry. An investor may voluntarily request a ruling by an anti-trust court that would state a planned investment would not have competition implications. The national economic prosecutor (FNE) is an active institution in conducting investigations for competition-related cases and filing complaints before the Free Competition Tribunal (TDLC), which has jurisdiction over those cases.

In February 2023, the FNE approved the sale of Soprole –a Chilean dairy products firm – by New Zealand-based Fonterra to Gloria – a Peruvian holding. The FNE found that, even though the overlap between Gloria’s and Soprole’s operations in some dairy products would increase market concentration, the presence of other competitors and potential entry of imported products meant there were no significant risks to competition in the sale.

In April 2023, the FNE ordered the TDLC to fine TWDC Enterprises 18 Corp. – owned by Disney Group – US$ 3.6 million for submitting false information when it notified FNE about a merger with 21st Century Fox in the cable television services market in 2018.

In July 2023, the FNE approved Germany-based holding Hapag Lloyd’s acquisition of SAAM Ports y SAAM Logistics, integrating shipping services with port operations and extra-port services. The FNE estimated that current regulations in the ports sector reduce risks of anti-competitive behavior such as blocking supplies, blocking clients or conglomerate risks.

In December 2023, the FNE approved, OnNet Fibra’s (partially owned by U.S.-based investment fund KKR) acquisition of Chile-based Entel’s fiber optic infrastructure assets subject to mitigation measures. The measures include eliminating exclusivity and non-competition clauses in the services contract between both companies, and Entel selling part of its fiber optic assets to a third company.

• Expropriation and Compensation

Chilean law grants the government authority to expropriate property, including property of foreign investors, only on public interest or national interest grounds, on a non-discriminatory basis and in accordance with due process. The government has not nationalized a private firm since 1973. Expropriations of private land take place in a transparent manner, and typically only when the purpose is to build roads or other types of infrastructure. The law requires the payment of immediate compensation at fair market value, in addition to any applicable interest.

Dispute Settlement

• ICSID Convention and New York Convention

Since 1991, Chile has been a member state to the International Center for the Settlement of Investment Disputes (ICSID Convention). In 1975, Chile became a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention).

National arbitration law in Chile includes the Civil Procedure Code (Law Num. 1552, modified by Law Num. 20.217 of 2007), and Law Num. 19.971 on International Commercial Arbitration.

Investor-State Dispute Settlement

Apart from the New York Convention, Chile is also a party to the Pan-American Convention on Private International Law (Bustamante Code) since 1934, the Inter-American Convention on International Commercial Arbitration (Panama Convention) since 1976, and the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States since 1992.

The U.S.-Chile FTA, in force since 2004, includes an investment chapter that provides the right for investors to submit claims under the ICSID Convention, the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules, or any other mutually agreed upon arbitral institution. Under the U.S.-Chile FTA, companies have the option to initiate a claim if they do not achieve a resolution in a previous consultations process with the Chilean government. One U.S. investor filed an arbitration claim against the State of Chile on January 31, 2024, under ICSID, invoking the U.S.-Chile FTA after ending a consultations process in 2023 with no agreement. According to the investor’s claim, the Chilean government breached the terms of a school food program’s public procurement contract by imposing arbitrary discounts in the price set for their services between 2019 and 2021. Another case involves three U.S.-based insurance companies that alleged financial losses because of the pension withdrawal bills of 2021 (Law 21.330), which allowed some retirees to seek an “advance payment” against their annuity accounts. In the case of these insurance companies, the consultations stage expired and there was no agreement with the government of Chile. The companies may still decide to initiate a case before ICSID.

Over the past 10 years, there were only four investment dispute cases brought by foreign investors against the state of Chile before the World Bank’s International Center for Settlement of Investment Disputes (ICSID) tribunal. In the first case, a Spanish-Chilean citizen demanded US$ 338.3 million in compensation for the alleged expropriation of Chilean newspaper El Clarín in 1975 by Chile’s military regime. ICSID issued a final ruling on January 7, 2020, in favor of the Chilean state and rejecting the claimant’s case. The second case was brought in 2017 by a Colombian firm, which held concession contracts as operators of the public transportation system in Santiago de Chile. The firm claimed US$ 347 million for Chilean government actions that allegedly created unfavorable operating conditions for the claimants’ subsidiaries and resulted in bankruptcy proceedings. On January 7, 2021, ICSID ruled in favor of the Chilean state, rejecting the claims. Two more cases pending resolution were brought by foreign investors in 2021. On April 13, 2021, a Chilean subsidiary of a Colombian power company filed an arbitration request against Chile related to an electrical transmission project. The authorities fined US$ 72.8 million for construction delays that the firm argues were due to unforeseeable circumstances. Hearings took place during 2023, and the ruling is expected in the first half of 2024. On August 13, 2021, two French firms operating the Santiago International Airport filed an arbitration request against the Chilean state for allegedly not taking measures to alleviate the temporary drop in their revenues from the decrease in air traffic and commercial airport activity due to the COVID-19 pandemic and the sanitary measures taken by the State, such as border closures and imposition of quarantines. In this case, the arbitration tribunal was constituted in 2022 and the Chilean state filed a request to address the objections to jurisdiction as a preliminary question.

Local courts respect and enforce foreign arbitration awards, and there is no history of extrajudicial action against foreign investors.

• International Commercial Arbitration and Foreign Courts

Mediation and binding arbitration exist in Chile as alternative dispute resolution mechanisms. A suit may also be brought in court under expedited procedures involving the abrogation of constitutional rights. The U.S.-Chile FTA investment chapter encourages consultations or negotiations before recourse to dispute settlement mechanisms. If the parties fail to resolve the matter, the investor may submit a claim for arbitration. Provisions in Section C of the FTA ensure that the proceedings are transparent by requiring that all documents submitted to or issued by the tribunal be available to the public, and by stipulating those proceedings be public. The FTA investment chapter establishes clear and specific terms for making proceedings more efficient and avoiding frivolous claims. Chilean law is generally to be applied to all contracts. However, arbitral tribunals decide disputes in accordance with FTA obligations and applicable international law. The tribunal must also accept amicus curiae submissions.

The Chilean Judiciary Code and the Code of Civil Procedure govern domestic arbitration. Local courts respect and enforce foreign arbitral awards and judgments of foreign courts. Chile has a dual arbitration system in terms of regulation, meaning that different bodies of law govern domestic and international arbitration. International commercial arbitration is governed by the International Commercial Arbitration Act that is modeled on the 1985 UNCITRAL Model Law on International Commercial Arbitration. In addition to this statute, there is also Decree Law Number 2349 that regulates International Contracts for the Public Sector and sets forth a specific legal framework for the State and its entities to submit their disputes to international arbitration.

No Chilean state-owned enterprises (SOEs) have been involved in investment disputes in recent decades. A Chilean government agency filed an arbitration case in February 2021 against a U.S. firm at the International Chamber of Commerce International Court of Arbitration which remains pending.

• Bankruptcy Regulations

Chile’s 1982 Insolvency Law was updated in October 2014. The current law aims to clarify and simplify liquidation and reorganization procedures for businesses to prevent criminalizing bankruptcy. It also established the new Superintendence of Insolvency and created specialized insolvency courts. Creditors’ approval is required to select the insolvency representative and to sell debtors’ substantial assets. The creditor also has the right to object to decisions accepting or rejecting creditors’ claims. However, the creditor cannot request information from the insolvency representative. The creditor may file for insolvency of the debtor, but for liquidation purposes only. The creditors are divided into classes for the purposes of voting on the reorganization plan; each class votes separately, and creditors in the same class are treated equally.

4. Industrial Policies

• Investment Incentives

The Chilean government generally does not subsidize foreign investment, nor does it issue guarantees or joint financing for FDI projects. There are, however, some incentives directed toward isolated geographical zones and to the information technology sector. These benefits relate to co-financing of feasibility studies as well as to incentives for the purchase of land in industrial zones, the hiring of local labor, and the facilitation of project financing. Other important incentives include accelerated depreciation accounting for tax purposes and legal guarantees for remitting profits and capital. The 2020 Tax Reform, contained in Law 21.210 from 2020 established a Value Added Tax (VAT) exemption on capital goods (machines, vehicles, equipment, and accessories) for investments of at least US$5 million. Additionally, the Start-Up Chile program provides selected entrepreneurs with grants of up to US$80,000, along with a Chilean work visa to develop a “startup” business in Chile over a period of four to seven months. Chile has other special incentive programs aimed at promoting investment and employment in remote regions, as well as other areas that suffer development lags. All these opportunities are available in the same terms for both domestic and foreign investors.

• Foreign Trade Zones/Free Ports/Trade Facilitation

Chile has two free trade zones: one in the northern port city of Iquique (Tarapaca Region) and the other in the far south port city of Punta Arenas (Magallanes Region). Merchants and manufacturers in these zones are exempt from corporate income tax, value added taxes (VAT) – on operations and services that take place inside the free trade zone – and customs duties. The same exemptions also apply to manufacturers in the Chacalluta and Las Americas Industrial Park in Arica (Arica and Parinacota Region). Mining, fishing, and financial services are not eligible for free trade zone concessions. Foreign-owned firms have the same investment opportunities in these zones as Chilean firms. The process for setting up a subsidiary is the same inside as outside the zones, regardless of whether the company is domestic or foreign owned.

• Performance and Data Localization Requirements

Chile does not follow “forced localization.” A draft bill that is pending in Chile’s Congress could result in additional requirements (owner’s consent) for international data transfers in cases involving jurisdictions with data protection regimes below Chile’s standards. The bill, modeled after the European Union’s General Data Protection Regulation (GDPR) also proposes the creation of an independent Chilean Data Protection Agency that would be responsible for enforcing data protection standards.

Neither Chile’s Foreign Investment Promotion Agency nor the Central Bank applies performance requirements in their reviews of proposed investment projects. The investment chapter in the U.S.–Chile FTA establishes rules prohibiting performance requirements that apply to all investments, whether by a third party or domestic investors. The FTA investment chapter also regulates the use of mandatory performance requirements as a condition for receiving incentives and spells out certain exceptions. These include government procurement, qualifications for export and foreign aid programs, and non-discriminatory health, safety, and environmental requirements.

Chile does not apply requirements for foreign IT providers to turn over source code and/or provide access to encryption, nor are there restrictions for the free transmission of customer or business-related data outside the country. As a rule, there are no local data storage requirements. Chile’s Intellectual Property Law protects computer programs “whatever the mode or form of expression, as source program or object program, and the preparatory documentation, its technical description and user manuals.”

5. Protection of Property Rights

• Real Property

Property rights and interests are recognized and generally enforced in Chile. There is a recognized and generally reliable system for recording mortgages and other forms of liens.

There are no restrictions on foreign ownership of buildings and land, and no time limit on the property rights acquired by them. The only exception, based on national security grounds, is for land located in border territories, which may not be owned by nationals or firms from border countries, without prior authorization of the President of Chile. There are no restrictions to foreign and/or non-resident investors regarding land leases or acquisitions. Unoccupied properties can always be claimed by their legal owners and, as usurpation is a criminal offense, several kinds of eviction procedures are allowed by the law, though they can sometimes be onerous and lengthy.

• Intellectual Property Rights

According to the U.S. Chamber of Commerce’s International IP Index, Chile’s legal framework provides for fair and transparent use of compulsory licensing; extends necessary exclusive rights to copyright holders and maintains a voluntary notification system; and provides for civil and procedural remedies. However, IP protection challenges remain. Chile’s framework for trade secret protection has been deemed insufficient by private stakeholders. Pharmaceutical products suffer from relatively weak patenting procedures, the absence of an effective patent enforcement and resolution mechanism, and some gaps in regulation governing data protection.

The Government submitted to Congress in 2018 a bill to reform to Chile’s pharmaceutical drugs law called “Ley de Fármacos II”. A mixed committee tasked to reconcile conflicting amendments made by the Senate and the Lower Chamber indefinitely postponed its final review due to deadlock in Congress. While the pharmaceutical industry reports that the reconciliation process addressed some of their concerns regarding the new regulations, it identified the lack of coverage being offered in price regulations as an outstanding issue of concern.

In addition to Law 21.335 that modernizes certain aspects of Chile’s patent and IP regime, Law 21.426 against trade in illicit and counterfeit goods entered into force in 2022. Chile enacted two laws in 2023 that may strengthen IPR enforcement: Law 21.577 against organized crime established special investigative techniques and bolstered the confiscation of illicit profits, and Law 21.595 created new categories of “economic crimes,” new penalties, such as the confiscation of profits, and new criminal liability for legal entities. Chile also issued Decree 7/2023 on Information Security and Cybersecurity Policy compliance for government agencies. Right holders understand that this Decree will prevent government computer systems from having unlicensed software.

The Intellectual Property Brigade (BRIDEPI) of the Chilean Investigative Police (PDI) reported that it seized 51,312 counterfeit products in 2023, worth a total of US$ 13.6 million, and arrested 194 individuals on charges related to IPR infringement. Additionally, the National Customs Service reported that it seized more than 4.2 million counterfeit products in 2023.

Chile’s IPR enforcement remains relatively lax, particularly in relation to piracy, copyright, and patent protection, while prosecution of IP infringement is hindered by gaps in the legal framework and a lack of expertise in IP law among judges. Rights holders indicate a need for greater resources devoted to customs operations and a better-defined procedure for dealing with small packages containing infringing goods. The legal basis for detaining and seizing suspected transshipments is also insufficiently clear.

Since 2007, Chile has been on the U.S. Trade Representative’s (USTR) Special 301 Priority Watch List (PWL). In October 2018, Chile’s Congress successfully passed a law that criminalizes satellite piracy. In December 2021, the Government of Chile submitted legislation to implement a legal framework to penalize the circumvention of technology protection measures (TPM) by amending Chile’s existing IPR law. This legislation remains pending in Congress. However, other challenges remain related to longstanding IPR issues under the U.S.-Chile FTA: the pending implementation of UPOV 91; the implementation of an effective patent linkage in connection with applications to market pharmaceutical products; adequate protection for undisclosed data generated to obtain marketing approval for pharmaceutical products; and amendments to Chile’s Internet Service Provider liability regime to permit effective action against Internet piracy.

On December 13, 2023, Chile signed the updated Association Agreement with the European Union, accepting the protection of 222 product terms as Geographic Indicators (GI), including mostly cheeses and processed meats. The EU and Chile also agreed to give GI protection for some common product names such as parmesan, feta, and gruyere, which are also produced in many countries globally, including the United States and Chile. Chile’s broad acceptance of EU GIs and the inclusion of common names affects market access for U.S. dairy exports to Chile as provided for in the U.S.-Chile FTA. There is an ongoing engagement between the United States and Chile to preserve market access for U.S. products marketed in Chile using common names.

Chile is not listed in the USTR’s Notorious Markets List. For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/   .

6. Financial Sector

• Capital Markets and Portfolio Investment

Chile developed capital markets and keeps them open to foreign portfolio investors. Foreign firms offer services in Chile in areas such as financial information, data processing, financial advisory services, portfolio management, voluntary saving plans and pension funds. Under the U.S.-Chile FTA, Chile significantly opened its insurance sector, with very limited exceptions. The Santiago Stock Exchange is Chile’s dominant stock exchange, and the third largest in Latin America. However, when compared to other OECD countries, it has lower market liquidity.

The free flow of financial resources into Chile’s real economy allows its commodity export-dependent economy to adjust to external shocks. Chile accepted the obligations of the International Monetary Fund’s Article VIII (sections 2, 3 and 4) and maintains a free-floating exchange rate system, free of restrictions on payments and transfers for current international transactions. Credit is allocated on market terms and its various instruments are available to foreigners. The Central Bank of Chile (CBC) reserves the right to restrict foreign investors’ access to internal credit in case of a credit shortage but has not exerted this authority to date.

• Money and Banking System

Chile has the highest banking services penetration rate in Latin America: 92 percent of residents older than 18 have a bank account. There are 13.5 million credit cards and 27.3 million debit cards in the Chilean banking system, along with 10.8 million current accounts and 20.7 million savings accounts. State-owned Banco Estado supports financial inclusion through CuentaRut, a commission-free card with an electronic account available for all Chilean residents (national and foreigners) with a RUT (national ID number). As of December 2023, nearly 14.6 million people (82 percent of Chilean residents) had a CuentaRut account.

The Chilean banking system is healthy and competitive. The 2019 General Law of Banks (LGB) provides general guidelines for establishing a capital adequacy system in line with Basel III standards and gave the Financial Market Commission (CMF), the regulator for banks, insurance companies and the stock market, the authority to establish its framework. All Chilean banks meet Basel III requirements, even though its implementation process ends on December 1, 2025. The system’s liquidity position (Liquidity Coverage Ratio) is on average above 200 percent, more than twice the regulatory limit (100%). Capital adequacy ratio of the system was 16.16 percent as of December 2023 and remains robust even when including discounts due to market and/or operational risks. As of December 2023, non-performing loans (i.e., loans 90 days past due) were 2.13 percent compared to 1.68 percent in December 2022. This result was influenced by the end of the expansive fiscal and monetary policies implemented in 2021 in response to the economic shock from the COVID-19 pandemic, and currently higher interest rates.

As of December 2023, the total assets of the Chilean banking system amounted to US$ 458.9 billion, according to the CMF. The largest six banks (Banco de Crédito e Inversiones, Banco Santander-Chile, Banco Estado, Banco de Chile, Scotiabank Chile, and Itaú Chile) accounted for 87.4 percent of the system’s assets. Chile’s Central Bank conducts the country’s monetary policy, is constitutionally autonomous from the government, and is not subject to regulation by the CMF.

Foreign banks have an important presence in Chile, comprising three out of the six largest banks of the system. Out of 17 banks currently in Chile, five are foreign owned but legally established banks in Chile and three are branches of foreign banks. Both categories are subject to the requirements of the Chilean banking law and to supervision by the CMF. There are also 25 representative offices of foreign banks in Chile, six of them from the United States. There are no reports of correspondent banking relationships withdrawal in Chile.

To open a bank account in Chile, a foreigner must present his/her Chilean ID Card or passport, Chilean tax ID number, proof of address, proof of income/solvency, photo, and fingerprints.

Foreign Exchange and Remittances

• Foreign Exchange

Law 20.848, which regulates FDI (described in section 1), prohibits arbitrary discrimination against foreign investors and guarantees access to the formal foreign exchange market, as well as the free remittance of capital and profits generated by investments. There are no other restrictions or limitations placed on foreign investors for the conversion, transfer or remittance of funds associated with an investment.

Investors, importers, and others have access to foreign exchange in the official inter-bank currency market without restriction. The Central Bank of Chile (CBC) reserves the right to deny access to the inter-bank currency market for royalty payments more than five percent of sales. The same restriction applies to payments for the use of patents that exceed five percent of sales. In such cases, firms would have access to the informal market. The Chilean tax service reserves the right to prevent royalties of over five percent of sales from being counted as expenses for domestic tax purposes.

Chile has a free floating (flexible) exchange rate system since 1999. Exchange rates of foreign currencies are fully determined by the market. The CBC reserves the right to intervene under exceptional circumstances to correct significant deviations of the currency from its fundamentals. These interventions are not designed to maintain a determined exchange rate level, which results from the currency market supply and demand, but instead aim to preserve financial stability when there is an excessive volatility in the foreign exchange market. This authority has been used seven times since 1999, the latest being an announcement in July 2022 when the CBC injected US$ 25 billion into the foreign exchange market following an unusual depreciation of the Chilean peso (CLP) due to external shocks.

• Remittance Policies

Remittances of profits generated by investments are allowed at any time after tax obligations are fulfilled; remittances of capital can be made after one year following the date of entry into the country. In practice, this permanency requirement does not constitute a restriction for productive investment, because projects normally need more than one year to mature. Under the investment chapter of the U.S.–Chile FTA, the parties must allow free transfer and without delay of covered investments into and out of its territory. These include transfers of profits, royalties, sales proceeds, and other remittances related to the investment. However, for certain types of short-term capital flows, this chapter allows Chile to impose transfer restrictions for up to 12 months, as long as those restrictions do not substantially impede transfers. If restrictions are found to impede transfers substantially, damages accrue from the date of the initiation of the measure. In practice, these restrictions have not been applied in the last two decades.

• Sovereign Wealth Funds

The Government of Chile maintains two sovereign wealth funds (SWFs) built with savings from years with fiscal surpluses. The Economic and Social Stabilization Fund (FEES) was established in 2007 and was valued at US$5.1 billion as of February 2024. The purpose of the FEES is to fund public debt payments and temporary deficit spending to keep a countercyclical fiscal policy. The Pensions Reserve Fund (FRP) was built up in 2006 and amounted to US$8.6 billion as of February 2024. The purpose of the FRP is to anticipate future needs of payments to those eligible to receive pensions, but whose contributions to the private pension system fall below a minimum threshold.

Chile is a member of the International Working Group of Sovereign Wealth Funds (IWG) and adheres to the Santiago Principles.

Chile’s government policy is to invest SWFs entirely abroad into instruments denominated in foreign currencies, including sovereign bonds and related instruments, corporate and high-yield bonds, mortgage-backed securities from U.S. agencies, and stocks. Approximately 65.5 percent of the FEES (US$2.7 billion), as well as 50.3 percent of the FRP (US$4.3 billion), were invested in assets based in the United States as of January 2024.

7. State-Owned Enterprises

Chile had 28 state-owned enterprises (SOEs) in operation as of 2022. Twenty-seven SOEs are commercial companies and the newest one (FOINSA) is an infrastructure fund that was created to facilitate public-private partnership projects. At the same time, 25 SOEs are not listed and are fully owned by the government, while the remaining three are majority government owned. Ten Chilean SOEs operate in the port management sector, six in the services sector, three in the defense sector, three in the mining sector (including CODELCO, the world’s largest copper producer, and ENAP, an oil and gas company), two in transportation, one in the water sector, one is a TV station, and one is a state-owned bank (Banco Estado). The state holds a minority stake in four water companies after a privatization process. In 2022, total assets of Chilean SOEs amounted to US$ 81.8 billion, while their total net income was US$ 3.0 billion. Chilean SOEs employed 47,669 people in 2022.

Twenty SOEs in Chile fall under the supervision of the Public Enterprises System (SEP), a public agency that oversees SOE governance. The rest – including the largest SOEs such as CODELCO, ENAP and Banco Estado – have their own governance and report to the Executive Branch. Allocation of seats on the boards of Chilean SOEs is determined by the SEP or outlined by the laws that regulate them. In CODELCO’s corporate governance, there is a mix between seats appointed by recommendation from an independent high-level civil service committee, and seats allocated by political authorities in the government.

The Budget Directorate published an updated list of SOEs, including their financial management information, available in the following link: http://www.dipres.gob.cl/599/w3-propertyvalue-20890.html   .

In general, Chilean SOEs work under strict budget constraints and compete under the same regulatory and tax frameworks as private firms. The exception is ENAP, which is the only company allowed to refine oil in Chile. The main Chilean SOEs compete in the domestic market according to commercial terms. TVN (national TV broadcaster) and Banco Estado (Chile’s third biggest bank) operate in very competitive markets. Several other SOEs operate in sectors with characteristics of natural monopoly such as water, infrastructure, ports, and transportation, in some cases in public-private partnerships or join ventures with private firms. In general, Chilean SOEs operating in the domestic market provide non-discriminatory treatment in their purchases. CODELCO competes internationally as one of the world’s biggest copper producers, and it is developing a lithium division to operate Chile’s largest deposits in partnership with private companies. ENAP has oil and gas investments abroad with branches in Argentina, Ecuador, and Egypt. There are no significant investments from Chilean SOEs in the United States. As an OECD member, Chile adheres to the OECD Guidelines on Corporate Governance for SOEs.

• Privatization Program

Chile does not have a privatization program.

8. Responsible Business Conduct

Awareness of the need to ensure corporate social responsibility has grown over the last two decades in Chile. However, NGOs and academics who monitor this issue believe that risk mapping and management practices still do not sufficiently reflect its importance.

On November 12, 2021, the CMF published new annual reporting requirements for publicly traded companies on policies, practices, and metrics adopted to meet environmental, social, and governance goals. The new regulation will require companies to restructure their annual reports to integrate sustainability issues throughout the report. The new annual report structure includes sections on company profile, corporate governance (including sustainability risks, particularly climate change), strategic objectives, personnel (include diversity, equity, inclusion and accessibility, workplace and sexual harassment, training, and benefits), business model, supplier management, regulatory compliance (related to customers, workers, environment, and free competition), and sustainability indicators (in line with international standards). The requirements went into effect for large businesses (of consolidated total assets of approximately $850 million or higher) for reporting year 2022, published in March 2023. For companies with less than $45 million consolidated assets, the requirements go into effect for reporting year 2023.

The government of Chile encourages foreign and local enterprises to follow generally accepted Responsible Business Conduct (RBC) principles and uses the United Nations’ Rio+20 Conference statements as its principal reference. Chile adheres since 1997 to the OECD Guidelines for Multinational Enterprises. It also recognizes the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy; the UN Guiding Principles on Business and Human Rights; the UN Global Compact’s Ten Principles, and the ISO 26000 Guidance on Social Responsibility. The government established a National Contact Point (NCP) for OECD MNE guidelines located within the Undersecretariat for International Economic Relations, and has a Responsible Business Conduct Division, whose chief is also the NCP. In August 2017, Chile released its National Action Plan on Business and Human Rights based on the UN Guiding Principles. Separately, the Council on Social Responsibility for Sustainable Development, coordinated by Chile’s Ministry of Economy, is currently developing a National Policy on Social Responsibility.

Regarding procurement decisions, ChileCompra, the agency in charge of centralizing Chile’s public procurement, incorporates the existence of a Clean Production Certificate and an ISO 14001-2004 certificate on environmental management as part of its criteria to assign public purchases.

No high profile or controversial instances of corporate impact on human rights have occurred in Chile in recent years.

The Chilean government effectively and fairly enforces domestic labor, employment, consumer, and environmental protection laws. There are no dispute settlement cases against Chile related to the Labor and Environment Chapters of the Free Trade Agreements signed by Chile.

Regarding the protection of shareholders, the Superintendence of Securities and Insurance (SVS) has the responsibility of regulating and supervising all listed companies in Chile. Companies are generally required to have an audit committee, a directors committee, an anti-money laundering committee and an anti-terrorism finance committee. Laws do not require companies to have a nominating/corporate governance committee or a compensation committee. Compensation programs are typically established by the board of directors and/or the directors committee.

Independent NGOs in Chile promote and freely monitor RBC. Examples include NGO Acción Empresas Inicio – Acción Empresas (accionempresas.cl)   , Chilean chapter of the World Business Council for Sustainable Development (WBCSD); the Catholic University of Valparaiso’s Center for Social Responsibility and Sustainable Development VINCULAR: http://www.vincular.cl/;   ProHumana Foundation; and the Andres Bello University’s Center Vitrina Ambiental.

Chile is an OECD member but is not participating actively in the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas.

Chile is not part of the Extractive Industries Transparency Initiative (EITI). Chile joined The Montreux Document on Private Military and Security Companies in 2009. However, there are no private security companies based in Chile participating in the International Code of Conduct for Private Security Service Providers’ Association (ICoCA).

• Additional Resources

Department of State

• Country Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/ )
• Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/ )
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/ )
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/ )
• Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/ )

Department of the Treasury

• OFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions   )

Department of Labor

• Findings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings   )
• List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods   )
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab   )
• Comply Chain ( https://www.dol.gov/ilab/complychain/   )
• Climate Issues

Chile is one of the signatories of the Paris Agreement. The Environment Ministry published its 2050 Long-Term Climate Strategy (ECLP), a roadmap that details how Chile will fulfill its commitments, considering a 30-year timeframe. It was incorporated into Law 21.455, known as the Framework Law of Climate Change, enacted on June 13, 2022. The law also includes the Nationally Determined Contribution (NDC), which contains Chile’s commitments to the international community in mitigation and adaptation to climate change, which will be updated every five years. In 2022, Chile joined the Regional Escazu Agreement, which aims to guarantee full and effective access to environmental information, public participation in environmental decision-making process, and access to environmental justice.

The main climate-related policy measures introduced by the government belong to six categories: sustainable industry and mining; green hydrogen production; sustainable construction of housing and public/commercial buildings; electromobility in the public transport system; phasing out coal-fired power generation plants; and other energy efficiency measures.

Under the Framework Law of Climate Change, the Environment Ministry is responsible for drawing up an emissions mitigation plan with limits for each productive sector. There will be specific strategies and goals for the main sectors contributing to greenhouse gas emissions, some of them already in place. These will include: in the energy sector, phasing out coal-based power generation plants, with an aim to have closed 18 plants by 2025 and all of them by 2040; in the mining sector, reduction of greenhouse gas emissions to a minimum level by 2050 under the ECLP (both for emissions generated from the extraction and production processes, and indirectly, such as from electric power consumption); in the agricultural sector, Chile adhered to the COP26 goal to reduce methane (CH4) emissions by 30% by 2030, and joined the U.S. sponsor Global Methane Pledge.

In 2023, Chile passed the Nature Law that creates the Service for Biodiversity and Protected Areas (SBAP) complying with international protection and conservation commitments. Through SBAP, Chile standardizes the classification of protected areas based on the six categories defined by the International Union for Conservation of Nature (IUCN). Three of the categories – strict nature reserve (Ia) and wilderness area (Ib), national park (II), natural monument or feature (III) – prohibit all commercial exploitation of natural resources and industrial infrastructure.

Chile introduced in 2020 an emissions compensation mechanism for companies that pay green taxes, which are currently applied to emissions of particulate matter, sulfur dioxide, nitrogen oxide and carbon dioxide. This mechanism created a regulated carbon market, which allows industries to reduce their tax burden by financing emission reduction or emission absorption projects carried out by NGOs, foundations, or other institutions. Some examples of projects that can use this mechanism include energy efficiency initiatives, heater replacement, clean transportation, and reforestation.

There is increasing incorporation of environmental considerations into public procurement. In 2012, the government published the Socially Responsible Purchasing Policy, containing strategic sustainability guidelines, which are non-binding recommendations. In 2016, the Ministry of the Environment launched a public procurement policy with environmental criteria, both for the bidder’s operations and the characteristics of the products purchased.

9. Corruption

Chile implements various laws to combat public corruption, including the 2009 Transparency Law that mandates disclosure of public information related to all areas of government and created an autonomous Transparency Council in charge of overseeing its implementation. Subsequent amendments expanded the number of public trust positions required to release financial disclosure, mandated disclosure in greater details, and allowed for stronger penalties for noncompliance.

In March 2020, the government proposed new legislation aimed at combatting corruption, as well as economic and electoral crimes. Four new pieces of legislation seek to strengthen enforcement and increase penalties for collusion among firms; increase penalties for insider trading; provide protections for whistleblowers seeking to expose state corruption; and expand the statute of limitations for electoral crimes. This legislation remains under discussion in the Chilean Congress.

Anti-corruption laws, in particular mandatory asset disclosure, do extend to family members of officials. Political parties are subject to laws that limit campaign financing and require transparency in party governance and contributions to parties and campaigns.

Regarding government procurement, the ChileCompra (central public procurement agency) website allows users to anonymously report irregularities in procurement. An executive decree defines sanctions for public officials who do not adequately justify direct contracts. The Corporate Criminal Liability Law provides that corporate entities can have their compliance programs reviewed by domestic firms authorized by Chile’s Financial Market Commission (CMF) to certify them as sufficient. The General Comptroller’s office oversees the control of the legal aspects, management, pre-audit and post-audit functions of all civil service activities. Private companies have increasingly incorporated internal control measures, as well as ethics committees as part of their corporate governance, and compliance management sections. Additionally, Chile Transparente (Chilean branch of Transparency International) developed a Corruption Prevention System to facilitate private firms’ compliance with the Corporate Criminal Liability Law.

Chile signed and ratified the Organization of American States (OAS) Convention against Corruption. The country also ratified the UN Anticorruption Convention on September 13, 2006. Chile is also an active member of the Open Government Partnership (OGP) and, as an OECD member, adopted the OECD Anti-Bribery Convention.

NGOs that investigate corruption operate in a free and adequately protected manner. U.S. firms have not identified corruption as an obstacle to FDI.

• Resources to Report Corruption

Dorothy Perez Gutierrez General Comptroller Comptroller General’s Office Teatinos 56, Santiago de Chile +56 2 32401100

David Ibaceta Medina Director General Consejo para la Transparencia Morande 360 piso 7 (+56)-(2)-2495-2000 [email protected]  

Michel Figueroa Executive Director Chile Transparente (Chile branch of Transparency International) Perez Valenzuela 1687, piso 1, Providencia, Santiago, Chile (+56)-(2)-2236 4507 [email protected]  

Octavio Del Favero Executive Director Ciudadania Inteligente Holanda 895, Providencia, Santiago, Chile (+56)-(2)-2419-2770 https://ciudadaniai.org/contact  

Benjamín García Executive Director Espacio Publico Orrego Luco 087, Piso 3. Providencia, Santiago, Chile T: (+56) (9) 6258 3871 [email protected]  

Observatorio Anticorrupción (Run by Espacio Publico and Ciudadania Inteligente) https://observatorioanticorrupcion.cl/  

Ma nuel Henriquez Executive Director Observatorio Fiscal (focused on public spending) Don Carlos 2983, Oficina 3, Las Condes, Santiago, Chile (+562) (2) 4572 975 [email protected]  

• 10. Political and Security Environment

Pursuant to a political accord in response to the 2019 civil unrest, Chile held a plebiscite in October 2020 in which citizens voted to draft a new constitution. In September 2022, Chileans rejected by a nearly 62 to 38 percent margin a draft constitution that reflected the vision of the political left. In December 2022, lawmakers established a second constitutional process. Voters also rejected, in December 2023, the second constitutional draft, penned by the political right, by a nearly 55 to 44 percent margin. In January, President Boric closed discussions on constitutional reform during his administration, leaving the current constitution unaltered.

Prior to 2019, there were generally few incidents of politically motivated attacks on investment projects or installations except for the southern areas of Araucania region and Arauco province in neighboring Bio Bio region. This area, home to nearly half a million indigenous inhabitants, has seen an ongoing trend of politically motivated violence and organized criminal activity. Land claims and conflicts with forestry companies are the main grievances underneath the radicalization of a relatively small number of indigenous Mapuche communities, which has led to the rise of organized groups that pursue their demands by violent means. Incidents include arson attacks on churches, farms, forestry plantations, forestry contractors’ machinery and vehicles, and private vehicles, as well as occupation of private lands, resulting in over a half-dozen deaths (including some by police forces), injuries, and damage to property. Since October 2021, the Chilean Congress has extended the State of Emergency in the Araucanía Region every 15 days. The State of Emergency permits the Chilean army to support Carabinero police actions, specifically to secure important transportation corridors. Government data suggests the State of Emergency’s success – pointing to a 30 percent reduction in rural violence. President Boric announced the creation of a Presidential Commission for Peace and Understanding on June 21, 2023, to find a solution to Mapuche land claims.

Since 2007, Chile has experienced several small-scale attacks with explosive and incendiary devices, targeting mostly banks, police stations, and public spaces throughout Santiago, including metro stations, universities, and churches. ATMs have been blown up in the late evenings or early mornings. Attacks generally occur during times of minimal civilian foot traffic and have generally avoided causing civilian casualties. Eleven incidents of bombs that either exploded, were defused by authorities, or failed to detonate have occurred since May 2019. Anarchist groups often claim responsibility for these acts, as well as violent incidents during student and labor protests. According to analysts and media reports, these anarchist groups do not have a unified manifesto, but their motives revolve around general anti-government sentiment, including environmental degradation; restitution of public lands to indigenous groups; imprisoned acquaintances; protest of public transportation costs; and denunciation of “corporate greed.” Half a dozen activists are currently convicted and imprisoned for attacks that claimed about 15 injuries among civilians and police officers.

While the security environment is generally safe, street crime, carjackings, telephone scams, and residential break-ins are common, especially in larger cities. Law enforcement agencies have observed an increase in transnational criminal activity and attempts by narcotics organizations to gain footholds in Chile. Vehicle thefts are a serious problem in Valparaiso and northern Chile (from Iquique to Arica), with most of those vehicles allegedly smuggled into neighboring Bolivia. On occasion, illegal activity by striking workers resulted in damage to corporate property or a disruption of operations. Some firms have publicly expressed concern that during a contentious strike, law enforcement has appeared reluctant to protect private property.

Chilean authorities have attributed an increase in violent crime in Chile, in part, to an increase in Chile of migrants connected to transnational criminal organizations. President Boric and the Interior Ministry view border control as one of the primary methods to reduce crime in Chile. In July 2023, President Boric introduced a new National Policy on Migration and Foreigners. In June 2023, President Boric announced that he would fast-track a bill to create a new Ministry of Public Security, and Chile’s Congress continues to debate numerous security-related bills.

Chilean civil society is active, and demonstrations occur frequently. Although most demonstrations are peaceful, criminal elements have taken advantage of civil society protests to loot stores along protest routes and clash with the police. Annual demonstrations to mark March 29, the Day of the Young Combatant; September 11, the anniversary of the 1973 coup against the government of President Salvador Allende; and October 18, the anniversary of the outbreak of the 2019 civil unrest, have resulted in damage to property, looting, and scuffles between police and protestors.

• 11. Labor Policies and Practices

Unemployment in Chile averaged 8.6 percent of the labor force during 2023, while the labor participation rate was 62.1 percent of the working age population, estimated as 16.3 million people in December 2023. The labor participation of migrants was 75.8 percent of the working age foreign population in Chile, estimated at 1.0 million people in December 2023. Chilean workers are adequately skilled and some sectors such as mining, agriculture, and fishing employ highly skilled workers. In general, there is an adequate availability of technicians and professionals. The National Institute of Statistics (INE) estimates informal employment in Chile in 27.6 percent of the workforce as of December 2023.

Article 19 of the Labor Code stipulates that employers must hire Chileans for at least 85 percent of their staff, except in the case of firms with less than 25 employees. However, Article 20 of the Labor Code includes several provisions under which foreign employees can exceed 25 percent, independent of the size of the company.

In general, employees who have been working for at least one year are entitled to statutory severance pay, upon dismissal without cause, equivalent to 30 days of the last monthly remuneration earned, for each year of service. The upper limit is 330 days (11 years of service) for workers with a contract in force for one year or more. The same amount is payable to a worker whose contract is terminated for economic reasons. Upon termination, regardless of the reason, domestic workers are entitled to an unemployment insurance benefit funded by the employee and employer contributions to an individual unemployment fund equivalent to three percent of the monthly remuneration. The employer’s contributions shall be paid for a maximum of 11 years by the same employer. Another fund made up of employer and government contributions is used for complementary unemployment payments when needed.

Labor and environmental laws are not waived to attract or retain investments.

During 2022 (latest data available), Labor Directorate data showed that 11,256 unions and 2,493 workers federations were active. In the same period, 411,390 workers were covered by collective bargaining agreements. Unions can form nationwide labor associations and can affiliate with international labor federations. Contracts are normally negotiated at the company level. Workers in public institutions do not have collective bargaining rights, but national public workers’ associations undertake annual negotiations with the government.

The Labor Directorate under the Ministry of Labor is responsible for enforcing labor laws and regulations. Both employers and workers may request labor mediation from the Labor Directorate, which is an alternate dispute resolution model aimed at facilitating communication and agreement between both parties.

Labor Directorate data shows that 661 legal strikes occurred in 2022 (latest data available), involving 106,821 workers during the same period. As legal strikes in Chile have a restricted scope and duration, in general they do not present a risk for foreign investment.

Chile has and generally enforces laws and regulations in accordance with internationally recognized labor rights of freedom of association and collective bargaining, the elimination of forced labor, child labor, including the minimum age for work, discrimination with respect to employment and occupation, and acceptable conditions of work related to minimum wage, occupational safety and health, and hours of work. On January 1, 2023, Chile raised its monthly minimum wage to CLP 410,000 – US$ 496– for all occupations, including household domestic staff, more than twice the official poverty line. Workers older than 64 or younger than 19 years old or younger are eligible for a special minimum wage of CLP 305,851 (US$ 370) a month. Information on potential gaps in law or practice with international labor standards by the International Labor Organization is pending.

Collective bargaining is not allowed in companies or organizations dependent upon the Defense Ministry or whose employees are prohibited from striking, such as in health care, law enforcement, and public utilities. Labor courts can require workers to resume work upon a determination that a strike causes serious risk to health, national security, the supply of goods or services to the population, or to the national economy.

The U.S.-Chile FTA, in force since January 1, 2004, requires the United States and Chile to maintain effective labor and environmental enforcement.

In April 2023, congress passed a law to enact a 40-hour work week by May 2028 by gradually decreasing the 45-hour work week. The lowering of the maximum number of labor hours is implemented gradually from 44 hours since its promulgation, 42 hours the second year, and 40 hours starting the third year of its promulgation. Provisions on premium compensation for overtime work are not affected by the new law. The law provided exemptions from restrictions on hours of work for some categories of workers such as managers; administrators; employees of fishing boats; restaurant, club, and hotel workers; drivers; airplane crews; telecommuters or employees who worked outside of the office; and professional athletes.

• 12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs

Since 2013, Overseas Private Investment Corporation (OPIC) partnered with U.S. solar energy developers to finance five large-scale power facilities throughout the Atacama Desert in northern Chile, one of which remains operational. Other OPIC-financed projects in the country include the run-of-river hydropower project Alto Maipo, and the toll road Vespucio Norte Express. There are no investment incentive agreements between Chile and the United States that support them. Since the World Bank categorized it as a high-income country, Chile is ineligible for U.S. International Development Finance Corporation financing.

• 13. Foreign Direct Investment Statistics

* Source for Host Country Data: Central Bank of Chile, 2022 year-end data released in March 2023.

According to the IMF’s Coordinated Direct Investment Survey (CDIS), total stock of FDI in Chile in 2022 amounted to US$ 256.5 billion, compared to US$ 237.0 billion in 2021. Canada, the United States, and the Netherlands are the main sources of FDI to Chile (same rank order as in 2021) with US$ 35.5 billion, US$ 22.8 billion and US$ 21.2 billion, respectively, concentrating 31.1 percent of the total.

Chile’s outward direct investment stock in 2022 amounted to US$ 136.0 billion, compared to US$ 132.5 billion in 2021. It is less concentrated in South America than in previous years, with Brazil, Peru, and Colombia combined representing nearly 23.5 percent of total Chilean outward FDI. The United States and Germany are the second and fourth destination, respectively, of Chilean FDI with 16 percent of the total, combined.

The data below is consistent with host country statistics. Although less prominent than in previous years, some tax havens are relevant sources of inward FDI to Chile, with Bermuda, the British Virgin Islands, and Luxembourg ranking eleventh, twelfth, and sixteenth, respectively, according to the Central Bank of Chile. However, the category “Not Specified (including Confidential)” totals US$ 93.9 billion, more than any other country source of inward FDI into Chile.

• 14. Contact for More Information

Alexis Gutiérrez Economic Specialist Avenida Andrés Bello 2800, Las Condes, Santiago, Chile (56-9) 4268 9005 [email protected]  

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