The Third-Oldest Industry

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Zoning matters. Check local zoning codes before starting a home-based nursery. Land zoned for farm, commercial, or industrial use shouldn't encounter any problems, but smaller residential lots may be restricted as to the size of the greenhouse that can be built or may be prohibited from allowing customers to stop by for pickup.

License required. All plant sellers are required to obtain an annual nursery license from their state or county department of agriculture. The Harlans pay $100 for their half-acre plot. And while a license is not difficult to get, it may not be necessary. Some states permit hobbyists to obtain a no-fee license, which allows the gardener to sell up to $500 worth of plants within a limited distribution area. Before parting with your cash be sure you're ready to operate a for-profit business and not still practicing a hobby.

Seed Money. The Harlans' initial capital investment amounted to two shovels, two sprayers, a wheelbarrow, pruning shears, and a water delivery system—also known as a garden hose—all still in use. The couple's one major expense was a $1,200 used pickup, which they were able to claim as a business deduction on their tax returns.

Growers in the Southwest may need to construct a shade cloth to protect plants from the sun, while those in colder climates will need a greenhouse if they plan to cultivate plants year-round. A better method for cold-weather entrepreneurs may be to sell all the containers before winter hits and begin again with new plants in the spring.

Time is Money. You've probably noticed that a tomato plant in a 5-gallon container costs more than one in a six-pack flat. Same plant, higher price. Why the difference? You're paying for someone else's investment of time. You could plant tomato seeds for pennies, but you'd have to wait a couple months before biting into the season's first ripe tomato.

With this "bigger plants bring bigger profits" theory in mind, the Harlans opt for fast-growing plants that they can turnaround quickly. For the past few years, the couple has concentrated their efforts on growing trees, primarily birch and maple. But the Harlans don't plant seeds and wait years for their trees to grow large enough to sell. They buy 2-year-old saplings, shipped UPS from Montana. They repot the trees into 15-gallon containers and then sell the trees after about six months.

Every plant has a slow-growing period and a fast-growing one, Michael says. Buy plants at the end of their slow-growing phase, repot and care for them during their fast-growing period, and then sell them when they're lush and full and the root ball fills out the larger pot. Verbena is fastgrowing, thrives with minimal care, and is a good choice for beginners. "Keep it simple," Michael advises. "Try the hard stuff for fun. You want something that you can do quickly."

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