TABLE OF
CONTENTS
Introduction: Why Would
You Start A Production
Nursery? .......................... 3
Step 1: What Species &
Quantities? ........................ 7
Step 2: How Do I Grow
These Plants? ................. 10
Step 3: Where Do I Sell My
Plants? ............................ 12
Step 4: What Resources Do
I Need? ........................... 14
Step 5: What Do I Charge?
........................................ 17
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
INTRODUCTION: WHY WOULD YOU START
A PRODUCTION NURSERY?
There are many reasons for starting a production plant nursery.
Here are some:
 Need a side hustle to generate income
 Love plants and need a paying hobby
 Need a change in pace of life
 Need a new career path or business venture.
 You are a Horticulture student that needs an income
Owning and operating a production plant nursery could be one of the most
fulfilling lifestyles ever. The producing, growing and selling of plants is a science
as well as an art that is misunderstood by many people. Some people over
complicate this, get an information overload, and it holds them back from ever
starting a nursery. You do not need ‘green fingers’, just a bit of help.
With some basic tools and basic knowledge of plants and propagation any
person can be successful at this. This is true if you start a small backyard
operation or a big commercial set-up. Imagine yourself owning a production
nursery. What would that mean to you? How would that transform your life, and
that of your family? Just think, you can move out of your 9-5 job and start your
own Nursery and be your own boss while working with nature.
I started my Nursery in the early 90’s. The internet was just starting up and in
general, information was not easily accessible. I had to operate and grow my
business by trial and error.
My biggest pains were:
 What plants and how many, should I grow?
 How do you grow these plants?
 Where do I sell these plants?
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
 What resources do I need and where do I get them?
 What do I charge for these plants?
Needless to say, I struggled for years and years. With every hurdle I learned and
adapted and over the years I developed a strategy that helped me grow a
successful production nursery that sells millions of plants to eager customers
every year. In this e-book I will share the 5 steps to start a profitable nursery. If I
had this information when I started, I would have had much less pain and
reached this point in my business years earlier. This 5-step framework is your
shortcut to success.
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
The Basics
If you follow the 5 Step framework, you stand a good chance of success. Our
Success Path is carefully designed to lead you on a pathway from where you are
now to a point where you have a profitable production nursery.
At each stage, we give you a brief description of some of the characteristics a
person in that stage will be able to identify with. For example, at the beginning of
this process you may have a keen interest in plant production but have limited
knowledge about how you can turn that interest into a profitable business model.
We also equip you with a list of actions which you will need to complete before
you can progress from one step to the next. These act as a checklist which you
can use to keep track of your progress.
If you follow the instructions described under the recommended actions, you will
be able to achieve the milestones. Each milestone represents a victory that links
your hard work with the reward that you will no doubt receive.
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
What and How
Many?
Actions
Characteristics
Interested in plant
propagation
Desiring to begin
your own
profitable
production
Unaware of the
requirements to
do so
Read magazines,
watch TV
programs, attend
shows etc.
Gather as much
info as possible
Milestones
Decide on the
type of nursery
you will establish
Understanding
which species you
produce in what
quantities
How?
Knowing what and
how many plants
you will grow
No or limited
knowledge about
plant propagation
Where Do I
Sell?
What
Resources?
What Do I
Charge?
Knowledge of how
Awareness of
you will produce
potential clients
your chosen
and market
plants
demands
You know what
you are
producing and
the intended
market you wish
to supply
Limited
experience with
the marketing of a
business
A desire to
become more
knowledgeable
Research the
possible
propagation
methods
Advertise your
product and make
the public aware
of your presence
Contact possible
suppliers
Set up social
media accounts
License
acquisition
Uninformed
when it comes to
determining the
exact resources
you will require
Determine
production costs
Resource
acquisition
(production area,
materials, plants
etc.)
Set up an online
store
List of suppliers
Licenses (if need
be)
A list of potential
clients
A social media
and online
presence
Consult the
competition
Calculate the
markup and profit
margin
Decide the final
selling price
Small-scale test
runs
Decided which
propagation
methods will suit
you best
Lacking the
information
needed to decide
how much you
will need to sell
your plants for
Fully informed
about the exact
resources you
will need for your
production
Unaware of how
much the entire
production will
cost
Formation of
completed
availability and
price lists
In the position to
launch your
business
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
STEP 1: WHAT SPECIES & QUANTITIES?
The most important aspect to consider before you can begin your production is
what plants you are going to produce and in what quantities. This is a researchintensive process that will require time and effort to gain a more in-depth idea of
what your nursery will produce.
Characteristics
 Interested in plant production
 Keen to begin your own production system
 In need of a new or supplementary income stream
 In want of a new and exciting business venture
 Unaware of the requirements for beginning a new nursery as a profitable
business
Actions
As aforementioned, Step 1 is a research-intensive process. The main objective of
this stage is for you to determine what plants you will grow and in what
quantities. You can do this by accomplishing the following:
 Determine what plants you will produce
 Purchase gardening and home improvement magazines. See what
products are being advertised. This will give you a good idea about
the current trends that are being followed.
 Pay visits to the local garden centers. Take note of what is on sale
and which plants the customers seem to be favouring. It will be
worthwhile to speak to the nursery salespersons and get their advice
on what they think will sell. Converse with the customers and ask
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STARTING YOUR OWN
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Success Path
about their preferences. If you have a sample of the plant/s you plan
on producing, bring it with and ask the public if they will be likely to
purchase the product and for what price.
 Take a drive around new property developments. Look at what kinds
of plants are being used in the landscape. These species will be more
likely to sell.
 Attend garden shows to get information on popular plants.
 Watch gardening shows on TV or listen to podcasts discussing the
topic. Take note of what plants are popular.
 All the while keep detailed notes on your findings and compile
detailed lists on what you plan on producing.
 Establish an estimate of the quantities you plan on producing
 Do you plan on supplying plants for landscape (general) or niche
(specialty) purposes? This can only be answered after determining
what kinds of plants on plan on producing.
 If you plan on supplying landscape plants, you will produce a bigger
volume. Therefore, you will need a larger production area and floor
space.
 Specialty nurseries that supply fruit trees or ornamental species will
require smaller volumes but will demand higher quality.
 How big is your target market? Your production should be large
enough to meet but not exceed demand.
Milestones
At the end of Step 1, you will have achieved the following:
 An understanding of what plants are in demand and therefore what species
will be worthwhile to produce
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
 A detailed list of what these plants are
 An estimate about the quantities you will produce based on market demand
and the production area you have at your disposal
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
STEP 2: HOW DO I GROW THESE PLANTS?
After you have determined how many of which plants you will grow, you can shift
your attention to focus on how you will produce the plants. This includes the
technical knowledge and expert know-how required to successfully mass
produce high quality plants. The principles will differ from specie to specie, but
our guidelines can be followed to suit any situation.
Characteristics
 You have a clear idea of what plants you want to produce and in what
quantities
 In want of more information to help you decide on how you will produce
your plants
 Perhaps have limited knowledge about the principles of propagation that
needs to be supplemented
Actions
Whilst Step 2 still requires the conduction of research, it is also suggested that
time be spent on perfecting the skills required to propagate your plants. You can
accomplish this by doing the following:
 Read books. Books are an invaluable resource that is often overlooked
nowadays. The information in books is often more reliable than that found
on the internet. Try to find specialty books relating to the propagation
principles of your specific plant/s.
 Perform internet searches and get as much information as you can about
the different and modern techniques used to propagate your plants of
choice.
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
 Tabulate the different techniques and summarize how long/how difficult/
how expensive it will be to produce a plant in a given manner. This will help
you decide which practice will suit you best.
 Contact suppliers who can provide you with the necessary seed or initial
plant material if you need it. Keep a list of who these people are and how
much they will charge you.
 If you are producing a plant on a mass scale, you may need to acquire a
grower’s license or pay royalties to the cultivar developers. Ask local
growers for their advice on how you can achieve this.
 Consider where you will be producing your plants. Will you need containers
or trays? Where will you source your soil/medium and fertilizer from? How
will you irrigate your plants? Will they be sold in bags or pots?
 Perform small-scale test runs. This can be used to refine your techniques
and become more aware of the potential challenges you may face.
Milestones
Once you have completed the actions outlined above you will have gained:
 An in-depth analysis of the different propagation methods you may use to
produce your plants
 A tabulated comparison thereof which will help you choose the best option
 A grower’s license, if need be
 Supplier lists where you can source your additional materials (growing
medium, containers, fertilizers etc.) from
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
STEP 3: WHERE DO I SELL MY PLANTS?
This is one of the biggest problems facing you when you start out. Knowing
where to sell your product makes the difference between success and failure.
Characteristics
 You know what you will produce
 You know how you will produce
 You need more information about the marketing strategies you can employ
to maximize sales
Actions
If you are selling to a retail market or niche suppliers:
 Contact the local garden centers and supermarkets – these are your
potential buyers. These can also be the same contacts who informed you in
Step 1.
 Talk with the managers or sales reps about your plants. Tell them what
plants you have on offer.
 Suggest visits to your production to show that you wish to operate
transparently.
 Book a stand at the local markets and advertise your plants to the public.
The benefit of supplying directly to the public is you have an opportunity to
get a higher price for your plants.
 Don’t underestimate the power of social media. Set up Facebook,
Instagram or Twitter accounts to promote your business. Invest in a decent
camera or phone and boast about your product.
 Online sales may also be a viable option if you have the technically inclined
and wish to set up your own website.
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If you are selling to landscapers:
 Compile a detailed list (or use your contacts from Step 1) of potential
clients.
 Reach out to these landscapers and make them aware of your ability to
supply them with certain plants.
 Compile mailing and availability lists. Send out monthly newsletters to
your clients about what you have on offer.
 Visit trade and industry expos. This may aid you in establishing new
business relations.
Milestones
By following the stages described in Step 3, you will have attained:
 A thorough list of potential clients
 Agreements with retailers or businesses to which you can sell your pants
 A social media presence to advertise your business and enhance public
awareness
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
STEP 4: WHAT RESOURCES DO I NEED?
Depending on the type and size of nursery you plan to set-up, your resource
requirements will vary.
Characteristics
 You have considered almost every aspect of production and have a market
to whom you can sell.
 You have yet to determine the exact resources which you will require and
how much these will cost you.
Actions
You will need to source certain materials for your production to flow smoothly.
Establish production areas and find suppliers from whom you can source the
resources listed below. It is likely you will not need all of the resources listed
below. Create your own personalized check list that is tailored to your
requirements. The following factors need to be considered:
 Production area for germination and rooting (If you will be rearing your own
seedlings from seed)
 This area should be lightly shaded with high humidity.
 High humidity can be obtained with either misting or fogging and a
controller unit.
 This area can vary in size from a couple of sqm to 1000’s of sqm.
 This area can be a tunnel, under shade trees or trays covered with
plastic with the help of wire hoops.
 The main purpose is to have an environment with relative high light
and humidity levels to prevent the cuttings from wilting.
 In general, it is possible to produce 200-300 young plants per sqm
every 8 to 12 weeks.
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STARTING YOUR OWN
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Success Path
Production area for plant growth (If your nursery is going to sell fully grown
and established plants)
 This area is used to transplant seedlings or rooted cuttings into pots
or bags, and grown up until point of sale, and can be either shaded or
not, depending on plant type and irrigation.
 A simple light weight shade structure would be adequate.
 In general, you can place between 55- 35 plants in 4l bags/15cm pots
per sq. meter.
 It is advisable to have weed guard under the pots to suppress weeds
without restricting drainage of excess water.
 Make sure you have adequate drainage under the plants to prevent
disease and water standing.
 Materials (growing media)
 For rooting, coir/ peat or a commercial seedling mix must be used
 For potting up plants it is advised to use a weed free commercial
potting mix.
 The use of garden soil is not advisable as you will have drainage,
weed and growth problems. Garden soil is also very heavy and will
increase the weight of deliveries.
 Materials (seedling trays)
 To produce cuttings and seed plants, it is advisable to use either
polystyrene cavity trays in 128, 200 and 98 cavities, or plastic 20, 45
and 84 packs.
 Plastic open trays are used for fine seed germination. Young plants
should then be pricked out and transplanted into bigger cavity trays.
 Materials (pots and bags)
 Pots are especially good if you supply to the retail market. Their sizes
vary from 8 to 23 cm, and they are available in a variety of colours.
 Pots are more expensive than plastic bags and handling starts to be
become an issue when moving large volumes of plants.
 Pots are easy to handle in the production phase.
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STARTING YOUR OWN
PROFITABLE NURSERY
Success Path
 In general, the retail market prefers to buy plants in pots.
 Bag sizes vary from 1.2l to 100l bag sizes. They are cheaper than
pots but are cumbersome to handle during the production of plants.
 Landscapers use plants in bags on a big scale. Plants in bags are
easy to transport as they can be stacked.
 Materials (chemicals)
 Depending if you are setting up an organic nursery the chemicals
used will differ.
 In general, you would use: Rooting hormone 1 2 and 3; Liquid smoke
for certain indigenous species; fertilizer for plant growth (liquid and
granular); pesticides; fungicides and herbicides
 Materials (tools)
 For a start you will need: shears, buckets, a knapsack, a budding
knife and shovels (large and handheld).
 Materials (plant tissue)
 This would include material for cutting, division or seed.
 This material can be obtained from mother stock in your garden.
 There are several seed and young plant suppliers that sell seed and
rooted cuttings.
Milestones
After successfully completing Step 4 you will be:
 Aware of all the aspects of production that need to be provided to
propagate your desired plants in your desired manner
 In possession of clientele to whom you can sell your plants to
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STARTING YOUR OWN
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Success Path
STEP 5: WHAT DO I CHARGE?
Plant pricing consists of determining the cost (direct and indirect) as well as the
mark up percentage (your profit).
The spreadsheet below serves as an example for determining unit cost of a
plant, mark-up value and sales price.
Description
Estimated Cost (per Plant)
Bag or pot
a
Young plant cost
b
Potting soil
c
Irrigation
d
Plant protection
e
Indirect cost
f
Total cost
(a+b+c+d+e+f)
Mark up (%)
30
Mark up value
0.3 x Total cost
Sales price
Total cost + Mark up value
Characteristics
 You know what you are producing and who you are producing it for
 You do not know the estimated costs of production
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STARTING YOUR OWN
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 You do not know how much you will need to charge for your plants in order
to be profitable
Actions
 Determine your production costs
 Use the table provided above to get a rough idea of the total
production cost per plant
 Ask fellow growers about what their costs are. You can expect yours
to be similar or a bit more in the beginning of the operation.
 Create a pricing list based on all of the resources and requirements
described in Steps 1 to 4
 Familiarize yourself with your competitors pricing. Your costs should not
far-exceed theirs if you wish to ask a reasonable price for your plants.
 Determine what markup you will add on the plants. This markup will be
your profit margin.
 Add your total costs and markup together to get your selling price per plant.
Add these to your availability lists and make clients aware of your pricing.
 Do not try to be the cheapest. Rather focus on quality and service for a
good return on investment.
 Warn clients about possible price fluctuations depending on season,
demand etc.
 Contact local printers about getting price tags and stickers printed for your
plants. Remember to add this to your production cost if you choose to do
so.
Milestones
Step 5 has equipped you with:
 A rough idea of what you can expect your production costs to be
 An indication of where you may need to cut costs if expenses are too high
 An awareness of how much you will need to sell each plant for in order to
be profitable
 An inventory of skills to help you launch your business
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