How to Start a Plant Nursery Business in Australia

Starting a plant nursery business in Australia can be a profitable venture. Wondering why? For starters, plant sales were up by 8% in 2021. 

If you have a green thumb or a knack for growing and maintaining plants, you might have what it takes to start a plant nursery business. 

Starting a plant nursery business is a perfect way to pursue your passion for gardening and plants. It can be an exciting opportunity for you to earn income whilst doing what you love! But before you think about even running a business, you need to carefully plan and conduct thorough research. Let’s go through a few basic steps to help you get started with a plant nursery business in Australia.

Table of Contents

What does a plant nursery business entail? 

A plant nursery business grows and sells plans to individual enthusiasts and companies. Some nurseries also grow plants for the purpose of research and academic study. Given that many plant species face a growing threat of extinction, plant nurseries can help in preserving them by growing them in a controlled environment and making them available for scientific studies and further propagation. 

Getting started: The Pre-Planning Steps

Starting a plant nursery business can be a complicated process. Following certain pre-launch steps can help you start your plant nursery. 

Research 

Research on your competitors can help you create a good business plan. A competitor analysis can highlight gaps in supply and demand and where your business can add to the competition. 

Research on the plan nursery businesses in your area can also provide insights on plants that are in high-demand in your region. Your research can also include plant nursery startup costs and plant nursery profit margins to get an idea of the costs you will encounter in your startup nursery business.

This is a crucial step in order to succeed in the long term. Consider reaching out to existing plant nursery businesses to learn valuable tips and examine which type of plants are currently most in demand. You can ask insightful questions such as:

  • What were your biggest struggles when setting up the business? How did you overcome this?
  • Is there anything you wish you did differently when starting up your business?
  • What is your number one tip for being successful?
  • How did you get your business name out there?
  • Who are your competitors at the moment?
  • What are normal plant nursery startup costs in your area?

Find a Location

A plant nursery will require space to grow, propagate and store plants. You will need to find space in a house or land that you own or rent a space to start your own plant nursery business.

Determine Your Niche

A competitor analysis can help in determining the types of plants offered by your competitors. You can establish your speciality in plants that are rare or in low-stock in your locality. For instance, if your locality doesn’t have many rare flowers sellers, your nursery can choose to specialise in growing rare flowers. 

Choose your plant nursery business structure

There are various types of plant nursery businesses. Some may choose to specialise only in certain types of plants whilst others may operate on a mail order basis. Retail nurseries sell primarily to homeowners whilst wholesale nurseries sell to landscape contractors, distributors and retail outlets. 

Do your research on the pros and cons of each type of plant nursery business and choose accordingly. You should consider your desired size and profitability of the business and practicability of obtaining resources in choosing the most suitable type of business you wish to run.

 Once you have decided the type of nursery you want to establish you also need to choose your business structure:

  • Sole trader: This can be a low-cost option for an individual running the business. A sole-trader and their company are considered the same entity and hence they are responsible for the company’s debts and obligations.
  • Partnership: A partnership is controlled by two or more people who also share the debts and obligations of the company.
  • Company: A company has a complex structure and can legally sue and be sued. In other words, it is a legal entity in itself. Companies are incorporated under the Corporations Act 2001 (Cth) and are governed by the Australian Securities and Investments Commission (ASIC).

Create a business plan

Arguably, this is the most important step when starting a nursery business. You need to map out the specifics of your business and understand your business goals. Grab a piece of pen and paper and start answering these questions in detail:

  • Who is your target market and how will you reach them?

Your target market will depend largely on the products you sell. You can conduct a consumer analysis in your area to determine consumption trends. You can then advertise your products to your target audience.

  • What is the name of your business?

Every business in Australia needs to register for an Australian Business Number with a business name to function as a business. You will need to name your business for the same. An ABN also enables you to apply for the goods and services tax (GST) concessions. 

  • Where will you be located?

Your nursery can be started from your backyard or from a leased store space. Depending on the size of your company, you might also need to rent office-spaces for your business.

  • What are the startup and ongoing costs? How will you cover these costs?

A startup plant nursery can be expensive. You will need to invest in gardening supplies, fertilisers, soil, equipment, etc. You will need to determine if you will fund the startup costs using your personal savings, take out a loan or find investors to invest in your company. 

  • Who will be your suppliers?

A plant nursery business will require regular gardening supplies. You can find a supplier in your locality to ensure you have a steady source of supplies.

  • What is your business goal? Do you have a mission statement?

A business objective or business goal can help you shape your business. A mission statement can also help consumers decide if they identify with your mission.

  • How much will you charge customers for each product?

Note, you must also comply with any legal requirements applicable to your type of business. Navigate your way through the Australian Securities & Investments Commission website here.

Note, you must also comply with any legal requirements applicable to your type of business. Navigate your way through the Australian Securities & Investments Commission website here.

 

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Sourcing employees 

Your company will also require employees to manage clients, load, store and ship goods. Employees might also be required for book-keeping, cleaning, packaging, etc. You need to determine if you want to hire casual, part-time or full time employees for your business.

  • Part-time employees: Part-time employees generally work for less than 38 hours a week. They can still receive some employment benefits, such as sick-leaves or annual leaves, on a pro-rata basis. 
  • Full-time employees: Full-time employees work consistently for fixed pay, subject to change on employer discretion. Generally full-time employees receive a wide variety of employment benefits such as sick leaves, health insurance, etc. 
  • Independent Contractors: Independent contractors are freelancers or individuals who offer their services for a fixed period of time to a company for a fixed price. 

Here is a webinar on how to hire the right employees for your business.

https://www.youtube.com/watch?v=kYV6NYJETBI&ab_channel=Lawpath

Advertise your business

Now that you’ve understood your business structure, plan and the industry, you need to wrap your head around how you will advertise your plant nursery business. You can choose to market on sites such as Google as well as popular social media platforms. Instagram in particular is a growing marketing platform for businesses. 

The algorithm allows for targeted advertising, distributing your business name in consideration of the age and interests of users. There’s no point wasting your money on advertisements for people who wouldn’t even give a second glance.

A plant nursery business can also be marketed in more organic ways. You can set up a pop-up store in your near-by farmer’s market, and reach out to potential customers through newsletters and emails. You can also form a partnership with local concept shops and cafes to place your products in busy stores.

Plant Nursery and the Legalities 


Your plant nursery business might need to meet certain legal requirements based on the type of products you sell. Here are some of the legal licences you might require:

  1. Retail trading hours: Retail trading hours are regulated across Australia and hence if you are selling any products you should ensure it is compliant with local laws.
  2. Workplace health & safety: As a business you will be expected to comply with Australia’s workplace health & safety laws.
  3. Propagation: You will need a licence based on if your nursery uses certain chemicals for plant maintenance, growth or propagation. You can apply for a Permit for Agricultural or Veterinary Chemicals. You might also require an artificial propagation approval if you export the plant specimen overseas for commercial purposes. If you breed new plants, you may also be eligible to apply for a plant breeder’s rights.
  4. Employment contracts: You might hire help to run your nursery business. Employment contracts can set the terms of employment for you and your employee. 
  5. Privacy Policy: If you are a retail store, it is likely that you will collect important customer information, such as email address, shipping address, phone number, etc. Since the company will collect sensitive data, they will also need to ensure that this data is responsibly dealt with. A privacy policy will outline how you deal with client data. 
  6. Refund policy: A refund policy informs your customers about your refund policy.

Your legal obligations will depend on the structure of your business and the products you sell or the types of plants your plan to grow or propagate. You can input your business type and retain a list of required licences and permits using the Australian Government’s website.

FAQs 

  1. What are plant breeder’s rights?

Plant breeder’s rights provide you with intellectual property protection for unique plants that you might breed and sell. It is especially important for you to establish a speciality in a highly competitive market. 

  1. Is it legal to sell plants from home in Australia?

You can start a plant nursery from your backyard! However, you will still need to apply for a business licence and comply with local regulations if you are selling plants or nursery products. Without a licence, it is illegal for you to sell or distribute certain plants.

Final Note

This can be a lot to take in at first. But once you get through the nitty gritty of planning, you’ll have a clear idea on how to start a nursery business. If you’re still unsure, you also have the option of obtaining legal advice on certain matters in starting a business. You can hire a lawyer using Lawpath. Now, get to work and live out your dreams!

Find the perfect lawyer to help your business today!

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