Archive for November 2011

Is Becoming a Full Service Landscape Contractor Right For You?

In today’s economic climate it is important to consider every opportunity to to increase revenue. One way is to consider becoming a full services landscape contracting firm. Consider adding maintenance services or adding irrigation services to the list of services you provide to to your customer. It gives you a competitive edge when you are able to meet your clients every need. In today’s market the more diversified the more opportunities you have to get the sale.

As a former Design/Build contractor, we found that maintenance services were not our most enjoyable services to sell, but we recognized that the service was necessary for our clients and started offering the service to them. We also found that after an installation was complete most customers did not want to deal with maintenance themselves and wanted us to deal the issue for them. Who better to handle the maintenance than the installation company who knew more about the landscape than anyone else? It was not easy moving from install to maintenance, the hand off was always full of finger pointing, but in the end those were internal issues and the client never knew that it was happening.

The idea of a full services contractor can also be handled by subcontracting some services out to others. However, if you can manage the services for the customer it keeps you in the game. Making you and your company indispensable is most important when it comes to taking care of the client. Being full services does not require that you internally provide all the services, but that you are managing the landscape for the customer, providing the best value, quality and service to each of your customers.

Think about what it might mean for your company to become a full service landscape contractor.

 

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Is Going Green a Good Move for Your Landscape Company?

 

The Green Movement is becoming a large issue in many communities around the country. The questions that I often hear from contractors is, “should we, as a company, get involved or is this a fad?” The answer to the second part of this question is easier to answer. The Green Movement is not a fad, it is a movement that has begun to take over the landscape industry with great zeal. The more difficult question is how much of a commitment to the Green Movement should your company make and how expensive is this commitment? The cost of commitment to the Green Movement is a bigger issue than whether it is a fad because customers are asking about your companies commitment to the movement. You need to develop a strategy to help your sales people answer the question for your customers.

The cost of converting to a Green Company can be substantial. You can purchase vehicles that are electric, eliminatie all paper in your company, these things can be expensive, but there are ways that you can contribute to the movement without it costing your company an arm and a leg. For example, as a maintenance company you may start composting the green debris that is collected each day, using it for soil conditioner or mulch. The commitment is to find a location on your property and turning the material twice per month. The cost can be as much as you are willing to invest, if you purchase a tub grinder then the commitment and the cost go up substantially.

There are ways to invest in the Green Movement that can be done with a slower conversion than purchasing all new vehicles. For example, start by purchasing small equipment that runs quieter and with less emissions. Think about a paperless system for your company. The cost is in the training and not necessarily the equipment or devices to complete this change. Things as simple as routing and scheduling your crews can contribute to the “greening” of your company. Have employees report to a job site using time recording devices that are cellphone driven.

This is a movement that is not going away, and it can contribute to cost saving if implemented correctly and with consideration for your company culture. This is a change in company culture that will require a commitment from upper management. It will require that upper management support this movement and contribute to the buy-in of the employees.

Don’t miss the opportunity to market the change in your company to the public. The Green Movement is here to stay you can either buy-in to it or watch it pass you by.

 

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The Time is Now to Make Changes in Your Landscape Business!

Now is the time to make changes in your company for the new landscape season. It is like a sports team, you know the players and it is time to make the changes that you feel will help make 2012 a more successful and profitable year. Now is the time to try the changes that you have been considering, changes with staff, changes with marketing and sales and changes in your plan for the new year.

Changes in staff can provide you with a vision of how a new supervisor may work with your current team. It may offer opportunity for someone you have wanted to promote. Give them the opportunity to show what they can do without creating too much turmoil with clients or other staff. This  is the time to offer education to your employees, determining who will step up and want more responsibility. Use this time to test the waters.

If you have been considering a new marketing plan, now is the time to check it out. Try some things that are trial opportunities. For example,  test the market for new services that you have been considering, try it now. Use this time as your test period, making changes that you might not otherwise make to your marketing ideas. It’s a good time to try a customer focus group, invite them into your office and ask the questions that can help you improve your company’s services.

Now is the time to experiment with ideas and concepts that you would not want to do during the season. Make use of this time. It is difficult to get your clients to think about anything other than the holidays, so use this time to make the changes that you have been considering. New logs or graphic on the trucks, now is the time to test market those ideas. Use this time for the things that you have been wanting to do, you can always change them back if they don’t turn out the way you wanted.

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The Landscape Season is Almost Finished, What is New for Next Year?

Thanksgiving has past and the season is almost complete. It’s time to plan for next season and start the season on a positive note. It is sometimes very difficult to be positive with all the negative economic news we read every day, but the role of an owner is to keep the people around you positive and upbeat. It is sometimes lonely at the top, no matter what size company you manage or own. As part of your plan for 2012, include some up beat fun things for your team and your clients.

You may ask what kind of up beat things can we do? Start will employees: develop a safety program that allows the crews to be rewarded for safety in the field. For example; once a month at a company meeting offer a gift card drawing for employees who have been safe and had no workmen’s compensation accidents. Hold a quarterly meeting for the company and have a company event each quarter. Do a weekly cookout on a Friday for the crews, with the management staff doing the cooking. For your office staff have a pizza Friday once per month or a dress down day once per week allowing all of the staff to wear jeans.

Make sure you include the clients in this plan. Try a neighborhood cook out for the clients and neighbors at a location where you had a large construction project to thank them for all their cooperation during the project. Offer a free patio pot for referrals, or have a game in your monthly newsletter for the customers that offer some type of prize.

During this down time think about what you can offer to help brighten the day for your employees and clients. Change the way you do business and see the results of an upbeat positive attitude.

 

 

Happy Thanksgiving!

 

Happy Thanksgiving!

 

 

Today’s Businesses Need to Think Outside the Box.

Today’s pressures on business require that a business owner or manger think outside the box. Look for new innovative ways to manage the business. Things like Lean principles and equipment saving labor devices are all part of the new way to view your business. It is important that your business benchmarks it self against similar business. This can be done by joining a peer group. The peer group is a safe way to measure your business against other businesses in your specialty areas, but in a a market that you don’t compete.

Peer groups offer an opportunity to share ideas and concepts with company owners like yourself that are looking for new innovative ways to grow and be more successful. In a peer group you can speak freely without concern that your competition will be listening in and it allows you to compare your company to others, and how you measure up to the other companies. Being part of a peer group is also a great way to get information about innovation that you may not have considered. It is a great learning experience for everyone in the peer group.

It is also is a place that you can ask questions and discuss issues in your business that you may not otherwise discuss with anyone. As you all know, running a business can sometimes be a lonely position. You can’t talk with your employees about somethings and it is hard to take some of your problems home, so who do you talk to? The peer group offers that opportunity to share concerns and problem with someone who has most likely faced a similar problem.

Keep in mind that peer groups are not a replacement for your legal counsel, your accountant or your banker, but they offer a real world opportunity to discuss issues that you and others are facing right now. In todays businesses you need to think outside the box! Try a Peer Group you might find it refreshing.

 

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Landscape Contractors Face a Margin Squeeze.

The margin squeeze is being felt by most contractors. As you begin your planning and budgeting for next year keep in mind that this squeeze will not go away. It would appear that customers and contractors are looking at the new norm for pricing. This squeeze has caused pricing in some markets back to 1997 level pricing, thus affecting the profit margins of most businesses. As you are well aware, fuel and equipment prices have not decreased, but in fact have continued to rise. Employees are demanding wage increase and benefit costs continue to increase even though the promise was that health care costs would decrease.

What can you do to plan for this margin squeeze? Start by looking at way to increase productive in your company: new equipment that will reduce the cost and increase efficiency, more productivity with less employees, look at routing to reduce the amount of travel, look at satellite locations and lastly leave no stone unturned in your operations. The businesses that continue to review and refine their operation are the businesses that will survive this margin squeeze. It is a good idea to review all benfit and insurance costs to look for reduction in expenses, whether it is health care or workman’s compensation insurance.

Don’t forget that customer service improvement also plays an important part in what you can charge for your services. Most customer understand that you provide a services that they can find some where else, but making your team indispenable by doing the little things may also help to maintain the higher margins. Cutting expesnes and reducing cost is not the only way to improve margins. In fact I believe that providing the best customer service in your market will gain far more increases in your margins than decreases.

Develop a review process for your company each year, allowing time to reflect on what worked and what did not work. What were the highest revenue producing activities in your company?  Build on those services. Don’t let the margin squeeze change the way you do business, but instead make a way to grow the buttom line.

 

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It the time of the year to give Thanks!

This is the time of the year when you can thank your clients, your employees and the friends of your business. Most of the time we are focused on our businesses and don’t have time to reflect on those that have supported our businesses. The client, employees and friends. Most contractors slow down at this time of the year because of the seasonality of the landscape business, so now is the time to get out and market your company and get in the holiday spirit.

Between Thanksgiving and the New Year’s Holiday the landscape business can be slow, most clients are not interested in discussing the landscape and are busy getting ready for the holidays. This is an opportunity to get out and visit your clients and let them know how much your company appreciates their business. It can be done in a way that does not seem like marketing but yet keeps you in front of your clients. Sending greeting cards is another way to express your thanks to your clients.

Don’t forget your employees, the ones that worked all year for you, let them know how much they mean to you as well. This recognition can go a long way to keeping good employees. And don’t forget your suppliers and vendors. Sometimes we forget that without their help we would be spending a lot more time looking for products and services. Let them know that you appreciate them.

Make good use of the down time in the next six weeks and spread some good cheer to your business family. Say thanks to all that have helped you this year.
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Planning, Planning and Planning for the Next Landscape Season!

Now is the time to plan for next year, Most customers are getting in the holiday mood and landscaping is the last thing on there minds. So let’s look at the process and where to begin. You know your business better than anyone else: start planning for the next year by reviewing last year. What worked well and what didn’t work so well? What areas provided the best profit margin and the least? What areas do you want to expand or perhaps not offer next year? Simple questions with very complex answers. Start to make notes for yourself and use this as the beginning of your plan.

As you review last season and your departments within the business, think about what is the best way to grow these areas. What marketing and ad campaigns might work best in your market and for your customer? I suggest that you break down your business by department, creating smaller issues to deal with at one time. As you build your plan you can bring all the departments back together for one grand plan. Think about people, equipment, sales and clients, this will allow you to dream and plan with the knowledge that you can change or move dollars around in the budgeting phase of planning.

Take notes and create a page for each budget categories. Listing things included in that category. As you build the plan you will have several phases; the written plan or a narrative, the budget by line item and monthly break downs and your labor budget with costs and expenses. Create a cash flow projection to determine when you need the cash to pay vendors and suppliers. This may sound like an overwhelming task but it will help you plan the next year and offer a better understanding of what it will take to be successful and most of all, profitable.

A written plan and budget are the guide in the business world to help keep you on track. I know that things change and that new opportunities come along when you least expect them to, but this offers you the chance to know whether now is the right time to look at a new opportunity or not. Business is about planning a smooth direction for growth and profit, don’t let this time pass without planning for next year.
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Business Coaching for the Landscape Industry

While Coaching is not new to the sports world, it is relatively new to the business world and specifically to the Landscape industry. Business Coaching has been around for some 20 to 30 years in large corporate settings, and is now working it’s way into small and medium size businesses. The concept of engaging a Coach to help with everything from life skills to spiritual well-being to business success has developed into a large business. Selecting someone to be your coach is an important and  personal choice. A business coach is more than a consultant, but someone who you can share your feelings and beliefs without fear of judgment or ridicule.

A Business Coach has a very specific agenda that is agreed upon by both parties. This agenda is something that you, as the business owner, want to address in your business. The agenda should have a time frame assigned to it with goals and objectives to be completed in that time frame. Most coaching sessions are not more than an hour, with a specific goal for each session. Things like strategy planning, budgeting, pricing strategies and leadership development are excellent topics for Coaching sessions. Plan that there will be homework for you to complete as you work through the issues. It is also common that you will have access to the Business Coach by phone or e-mail between sessions.

The important element in my mind is that you have a partner to assist as you move through issues that may not be familiar to you. This partner will be there to answer questions and, more importantly to guide you to the right answers by asking questions of you. We all need someone to motivate us to achieve our goals and a Business Coach is that person.

We have all heard the saying “Behind every great business owner there is a Business Coach!”

 

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