Saturday, June 10, 2006

Gardening Services

Sub-division of the market
1. Outdoor or indoor gardening at private homes or blocks of flats
2. Outdoor or indoor gardening at public institutions
3. Hydroponic gardening
4. Municipal gardening on main highways, public parks and municipal parks
In general, it is advisable to concentrate on the two or three areas in which the entrepreneur is best capable of handling.

Market characteristics of Gardening Services
1. Relatively low entry threshold (at least at the low professional levels). Competition leads to a high turnover and the closure of many businesses.
2. The gardening sector suffers from considerable seasonality.

Customers
Are divided into three main groups:
Private customers – small garden maintenance, frequency according to the customer’s request.
Institutional customers – institutions with large areas require ongoing maintenance. Contractual arrangements are made by tender and the work is performed under a framework agreement.
Contractors – planning gardens at projects built by them.

Competitors
Competition in the sector is severe, before investing in a new business it is advisable to check the number of similar businesses in the area. In addition, it is possible to participate in tenders, but they require preparation and checking the competition.

Suppliers
Equipment for setting up gardens, for working independently and for ongoing maintenance can be acquired from the leading suppliers or small importers and various wholesalers. When purchasing mechanical tools it is important to ensure the receipt of service and spare parts on a regular basis.
Plants can be purchased from growers or at garden centres.

Marketing methods - Gardening Services
Following are a number of advertising methods:
• Yellow Pages, professional press, local press, dedicated telephone directory for gardening
• Distributing advertising sheets to post-boxes
• Sending letters to maintenance and housekeeping managers in the institutional sector
• Distributing various promotional products
• Hanging signs in gardens set up by the business, or in gardens that it maintains
• Signage on the vehicles and tools of the business
• Project portfolio – it is recommended to prepare one with the help of an expert
• Contacting landscape design firms and/or architects
• Purchasing an existing clientele from a gardener who is leaving the business

Equipment required for Gardening Services
For gardening work tools must be purchased from a supplier. Some of them are important for any gardener, regardless of the type of work he performs.

Investment required
The investment required is made up of five main components:
1. Equipment and tools – it is necessary to invest NIS 20,000 (for a staff of 2 – 3 employees), a vehicle and approximately NIS 9,000 more per team operating in the field independently
2. Vehicle – a van only
3. Warehouse – especially if a van was not purchased
4. Various set-up costs – registering the business, initial advertising, chartered accountant, solicitor, insurance and more
5. Working capital to enable business activity during the first few months

Licences and certification
No special licences for operating the business are required. There is a professional certificate granted after completion of studies at a number of institutions.

Insurance
Theft insurance, expanded third party insurance, professional liability insurance, employer’s liability insurance, mechanical breakage insurance (for mechanised tools), loss of work capacity insurance and personal accident insurance for the business owner and his employees. As a result of prolonged exposure to the sun, one should consider the worthwhileness of purchasing extended health insurance. Consulting with an insurance agent regarding additional insurance required is advisable.

| Gardening Services