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thegreenlady

Charging hourly? Client contracts?

TheGreenLady
19 years ago

Since I am new to the Garden Web I have enjoyed everyone's suggestions on starting up a gardening business. After many years of wanting to start my own, I have finally done it. The business will mostly be small scale design, installation, maintenence and a large focus on container gardening. I have maintained,and installed gardens for friends and reletives in the past and am pretty familier with tracking time and expenses.

I have usually charged by the hour for my services and plan on starting the business that way, however I was wondering if anyone had any input on not charging hourly but "bidding" the job? Is this more cost effective? I have always felt that I may short myself if the job takes longer than I have already quoted.

My second question deals with contracts. Do you have to have them? And if so what type of outline is typical of a contract? As I have said dealing with family and friends is usually verbal, but dealing with the public is most likely a different story.

Any input you may have will be greatly appreciated.

Comments (2)

  • The_Mohave__Kid
    19 years ago
    last modified: 9 years ago

    "As I have said dealing with family and friends is usually verbal, but dealing with the public is most likely a different story."

    It is indeed !!!

    "My second question deals with contracts. Do you have to have them? "

    Look at it this way ... if there is a disagreement and worst case scenario you end up in court in front of a judge ... a well written contract will serve you better then ... "I said this and they said that" .. Also a well written contract is a major factor in avoiding disagreements and ending up in court in the first place.

    Written contracts are also part of your internal record keeping ... there is much to learn by looking over past projects .. we are not cave men .. written records are important ... right ??

    "And if so what type of outline is typical of a contract? "

    This tells me you need to do a lot more homework before getting started ... thats a big question ... get some professional advice ( best bet , really spend a $100 - $150 and see a contract lawyer .. no need for a lawyer to write your contract but get some input on formats , what the heck it's only your economic future ?? ) or at least hit the library or the contractors board. By the way do you need a license ???

    Remember contracting / business is about money not gardening .. you are now leaving the world of gardening and entering a new stage.

    "I was wondering if anyone had any input on not charging hourly but "bidding" the job?"

    There are lots of ideas here regarding this issues... and your busines service desciption is very varied ...

    There is no simple answer ... myself .. I would suggest forgeting the hourly rate idea alomost completely ... calculate your own work hours in your day to day estimates but charge a flat fee whenever you can ... my only exception to this is when in your experience you feel it is not plausable to give a set price because of many unknown factors .. that you the estimator have uncovered ... then use a time and material fee.

    Business is not about breaking even you need more then that you need to make a profit... above your pay for the day.. week or year. Otherwise get a job.

    Good Day ...

  • cris
    19 years ago
    last modified: 9 years ago

    A contract, without a doubt, will be your strongest ally in running your own business. I have learned through the school of hard knocks not to touch a pencil, plant or pot until I have a signed contract in hand.

    My contracts have evolved with my business over the years and what I learned from here a couple of years ago, everyone's contracts and proposals are different. Being able to draft up a successful contract may take visiting a lawyer and your experience with bidding jobs. The time and money you will invest in drafting up a great contract that protects you and your time will be worth its weight in gold. It's not a matter of if but when you will come across someone who will try to take advantage of you. As the saying goes, a verbal contract is only worth the paper it's written on...and man, is that true.

    I would also invest in some small business books or take some continuing ed classes on small business management. I needed to learn vast amount about book keeping, state laws that cover the landscaping and design business, etc. I spent two years learning the basics of running a business before I cut myself loose and flew on my own. I am so glad I took that time to do so or else I would have crashed in a raging inferno.

    Just out of curiousity and something else you should be thinking about...other than maintaining friends and family's gardens, what other experience do you have in the green industry? Some people here will suggest if you haven't done so to work in the retail aspect of the green industry. I will admit that will be a serious help to you because you will learn how to deal with customers, be able to answer questions, learn about different plants and their culture. I worked retail as a sales associate in a garden center and was a nursery manager and landscape designer at another. An education in the field will also help emmensely...it adds credability to your business. I'm in my early 30's and people seem to think that I'm young and therefore I don't know anything at first glance or when they hear me on the phone (the tone of my voice sounds like I'm still in high school LOL). Then I tell them I'm a Cornell Grad with a bachelors in Plant Sciences with a minor in Ornamental Horticulture and my experiences in the field, and the organizations I belong to they are more than happy to have me come out for an initial meeting. There are a lot of people out there in the green industry who have a shovel and a truck and they go into business as a landscaper. There are so many of those types of businesses and an equal amount of clients who have had bad experiences with them. Being able to build credibility to you and your business will help you gain clients and a following. People but a lot of weight in your resume and portfolio when hiring a designer/landscaper. Do you have nursery or garden center experience? Formal training in design or horticulture? Do you have a portfolio ready for people to see and a bunch of professional references (other than friends and family as clients) for people to contact if they wish to and some will. What is it about you, your knowledge and your business will sell yourself to a new client?

    It sounds like and will sound like lots of information to take in before starting your own business...but it needs to be done. I'm sure others will add lots of other issues too. Five years ago...I was on your side of this discussion here and thought "Dang, there's so much to know and do!" But I took everything into account that people told me and did it. I am so thankful I did.

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