Archive for February 2012

Employee Interviews for Landscape Contractors

Lately, I have been reading about interview questions and protocol for interviews. The Landscape industry is a small close knit community of contractors, therefore if you have someone who is a job hopper chances are that calling references will point out the potential employees short comings. Calling references is always a must in small communities like Landscape Contractors, because while they may not give you all the details, most contractors don’t want to see a fellow contractor suffering the same fate they did. In fact, at certain levels it is appropriate to call the other contractor and let them know that you are discussing employment with one of their managers or key employees. It is a courtesy that should be extended to a fellow contractor.

During the interview process watch closely for employees throwing other contractors under the bus. This is a sure sign that they will do the same to you when the time comes. It s also a sign of poor attitude, which is always a key component to look for during the interviewing process. Attitudes are hard to change and almost impossible to alter with training. Skills can be taught, but attitude is something that comes as part of the package. Watch body language when interviewing, it can tell a lot about a persons truthfulness and honesty when answering questions. Observe the dress of the person, I would not expect that a laborer or technician level person to come dress in a suit and tie, but clean shaven, clean clothes and no holes in the clothes.

If you ask for a resume, check closely for spelling mistakes, if they make mistakes on the resume then they most likely will make mistakes on the job. Check the dates of employment, if there are no dates ask for them. It is a good sign that if there are holes in their employment they are not interested in discussing what was happening. Always have an employment application of your own for the interviewee to complete and make sure you ask the questions that are important to you and your customers on that application. Be aware that the government has very strict guidelines for questions to be asked on an application or during an interview. Make sure your are up to date on these restrictions, because your interviewees are.

For key positions in your company conduct several interviews of these potential employees, in fact never make a decision on the spot. Snap decisions most times will come back to bite you. At the very least sleep on your decision before offering any positions to an interviewee. It is sometimes helpful to have someone else interview a potential employee, as they may see or feel something that you missed. If your position is of interest to the interviewee, they will wait for your offer, don’t rush the process. It takes time to contact references. For key position make your offer in writing, and in all case have a job description for each position you are hiring for, whether it is laborer or superintendent.

In you job descriptions include the job duties, your expectations of the position, such as hours worked, number of days of worked per week, working conditions, etc. Make it clear that you have very strong expectations based on the level of the position. Even for laborers you want them to be on time each day, to dress per your dress code, to treat fellow employees and customers with respect, etc. Be very clear what you expect. Be clear if this is a full time job or seasonal, hours per week, days of the week they are expected to work.

This is your time to insure that you are getting employees that are going to do the job for your customers and that will represent your company to the public. Be very clear about expectations for your employees. Interviewing potential employees is another responsibility of management that can not be taken lightly, it is the face of your company that the customers see the most.

 

 

Diversifying your Landscape Contracting Business

Diversifying your landscape contracting business can be an important change for 2012. As the economy continues to slowly improve, the need to diversify services can be a boost to your revenue stream. The direction that I am asked about the most is adding a Landscape Maintenance department to an install and construction services. Where do you begin?

The best place to begin is with existing customers, they are familiar with your company and you can offer the services as part of your construction contract. Using your construction contract to offer maintenance services can be a great lead into your new department, it offers some  protection for your recently installed project, as your warranty is mostly likely one year. Who better to care for the landscape than the company that installed the project. Start now and offer a maintenance estimate and contract with every construction project, sell the two as a package.

The next opportunity for selling maintenance services is around your shop or facility, these customers see your trucks every day and know that you are close to them if something needs to be done. This also means that you have logos on your vehicles and that you have defined your services and are including maintenance as one of those services on your vehicles.

The old customer files are a gold mine of opportunity as well, while contacting existing customers, contact the old customers and let them know that you are now offering maintenance services and would  like to stop by and look at their landscape. It is also an opportunity to sell additional install services at the same time. Use your company newsletter to get the word out that you arr now offering maintenance services. Past customers are your best opportunity to sell services to, they know you and like your company.

There are the old standard marketing ideas, running a direct mail campaign, advertising in the local weekly mailers that are sent out to a specific region. These mailings offer a much more targeted marketing campaign than running ads in newspaper or magazines.

Cold calling on commercial customers can be affective, however, the residential market requires a different strategy. The commercial market in many cases is managed by property management companies that offer you, as a contractor, the chance to get in front of multiple property managers. This market also offers associations that the property manager may belong to such BOMA, Building Owner and Managers Association. Becoming active in these organization can assist in making your company more visible.

The residential market is more difficult to contact and in many cases the best methods may center around developing a referral program through your existing customers. Residential maintenance can and does require and different marketing and sales effort, as the residential market is much more personal. In many cases the the high-end residential market is very demanding and requires that you have a good knowledge of horticulture.

Diversifying  into the maintenance business offers you a number of  opportunities with reoccurring revenue stream which is certainly a great assistance with cash flow. In some parts of the country it offers off season services such as snow removal.

A plan to diversify your landscape contracting business is important, the  effort will reward you with a business that can grow in the future.  Think about the possibilities.

 

Spring is Around the Corner for Landscape Contracrtors

Spring is just around the corner for most landscape contractors.  It’s a time of excitement and anticipation, a new beginning.  Each spring, like in baseball, creates an opportunity to look ahead to the years successes and profit.  In baseball they have spring training to help prepare for the season, their time to plan.  Do you have spring training for your staff? A time to plan and develop the plan for the new season?  If not it is not to late to start planning now.

What planning should you be doing? Let’s look at some things that you can do to get ready for spring and the rush that is coming. Customer renewals should be well under way, with a plan to increase the revenues from last year. The employees that you need for your crews should be hired and trained. The equipment should be tested and repaired for the new season. New equipment should be ordered and ready for the start of the new season. You should anticipate the growth of your sales and be ready to start new crews when the time is right.

All of the items mentioned above should be underway and completed before the season starts, however most landscape contractors starting out don’t think about the planning that is necessary to have a successful business, much less a smooth transition in spring. This flying by the seat of your pants is a sure fire recipe for disaster. It is not too late, but starting now to create the plan is going to allow for a better result and a more profitable business outcome.

Creating a budget and a monthly plan for your finances is the next step to growing a successful business. Why is a budget useful you may ask? The answer lays in the ability of you to manage you business. Managing your business means that you can affect change in labor, materials, the number of crews you need, all part of managing a successful business. Managing a Landscape business is not just about installing a wall or patio or mowing the turf, it is about making a profit for your company which allows you to reinvest in your company, to grow and add new customers.

I can not stress enough the keys to any successful business lays in the management of the business. Management is the use of resources and tools to accomplish a given task. These resources are your employees, your equipment and the funds you have available to get the job done. Knowing and understanding your business allows you the ability to manage those resources to produce the best result for the company and your customers.

Don’t be caught in the spring rush with out a plan. Start today, develop a strategic plan that will give you a chance at success. Without a plan your only hope for success is lady luck and that will only last so long before the competition starts to take your customers from your company. Planning is part of every successful business.

Landscape Contracting Mentor?

Recently, I read a request from a young person entering the landscape contracting business wanting to find a mentor to help develop his business and his skills. The idea of a mentor is a great one that can produce positive

results for all involved. Mentoring is a great way to give back to the landscape community for the mentor and the mentee receives assistance that can be invaluable as they grow and build their business. The person asking the question suggested that that it was difficult to find anyone who provides these services.

The only group, that I am aware, that does so for no fee is the Professional Landcare Network, (Planet). Planet has a program call Trailblazers. You can submit an application to Planet and be assigned a Trailblazer from the group that has been recognized by their peers as an individual who knows their trade and are willing to share with others their experiences and expertise. This program is available to Planet members and over the years has created some long lasting friendships. It is a great program and one that gets a lot of attention from the Planet members.

One other way to find a mentor is to ask the people you know who they would suggest would be a good mentor for them. This industry is very close knit and rarely have I ever seen an industry member not willing to help a newcomer to the landscape community. Look at your local associations and see if there is someone who would be willing to mentor you. Attending events like Green Industry Expo gives you an opportunity to meet and talk with the industry’s best and brightest members. Take advantage of the event and network and I am sure you will find someone who will be willing to work with you.

I also suggest that there are individuals in the Green Industry who would be great mentor, that offer these services for a fee, Business Consultants and Business Coaches, with Landscape Contracting experience. As with any services you need to select someone that you are comfortable and think has the experiences that would assist you in growing your business. Selecting a Business Coach can be valuable, with the experience and knowledge that a coach can bring to your enthusiasm and desires, it makes for a great learning opportunity.

Another opportunity that is available is the peers groups that are available with some consultants. This brings together a number of contractors to discuss issues that they are facing in their business. The consultant or coach will act as the facilitator, asking questions and keeping the conservation moving in a positive direction. This method allows a group to share experiences and get the wisdom of an industry veteran. Finding someone that you can discuss issues with is a great idea Don’t be discouraged, get out there and look and you will find the right combination for you.

 

 

When is the Right Time to Hire a Landscape Industry Consultant?

Hiring any outside professional to work on your business is a very important decision. It will cost you time and financial resources, which you may not have currently. It will involve an outsider disturbing your business for a period of time. But will it pay dividends in the end, assisting you with a more clear direction for your business? So many Landscape Contractors know that they need the expertise of a coach or consultant but are unwilling to make the move. By the nature of the people who become business owners and Landscape Contractor, in particular, believe that they know the way, and will find their way on their own.

When is the right time? It is when you realize that the business is not producing to it’s potential and that your staff has a need for a new direction for the leadership of the company. Hiring a consultant is easy, but finding the right fit for your personality and company culture is difficult. The interview process to hire an accountant or legal counsel is no different. The interview process will take time and effort to find the right fit. But make the decision and go forward.

We always would say that in spring we have no time to be dealing with  consultants or coaches because this is when we make our money. However, it is also the time that you may be losing the most money. We take time for things that are important to us, when we feel the need the most. Spend some time thinking about your business, are you where you want to be or are you too busy to think about your business? As we would say to the partners, “we are too busy working in our business, that we don’t have time to work on the business.” Don’t make that mistake, survey your business and see where you are in your mind, with the dream that you had when you started the business. Are you making a profit, are you paying yourself, are your vendors and suppliers being paid timely? If not, these are all good indicators that something is not right.

Most importantly, are you happy at what you are doing? So many Landscape Contractors that contact me say I am not having any fun anymore running this business. How can you expect to make it fun when you are barely making the business run? It is time to ask for help, to do some reflections on where you are and where you want to go. Business is complex and it takes a very special person to run everything themselves and most business owners don’t have that ability. Hiring a professional to help is nothing to be ashamed of, but be proud that you know your strengths and weakness, because that is what makes a good business owner.

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Running a Landscape Contracting Business on a Shoe String Budget

Running a Landscape Contracting business on a shoe string budget is not an easy business to run. Most businesses and landscape contracting is no exception, need capital. But there are a number of companies that operate on a shoe string budget as a normal course of business. A shoe string budget is operating from job to job or from collection to collection. Not having the financial ability to support your overhead without getting the next customer payment. This is fine as a startup, but after several years in business you need to develop a plan that allows for a cushion of capital.

This sounds easy as you sit at the computer, but much more difficult in real life. First, getting over the hump takes planning and diligence on the part of the contractor’s management team. Setting money aside each time you receive a payment from a customer to begin to build a reserve of cash is the only way to build the equity necessary to grow. Once the business has demonstrated fiscal success and several years of business success then financial institutions are more likely to start lending money to your business. But it will not happen on the first or second year in business.

The business owner will need to demonstrate a planning process that includes a business strategic plan, an annual budget and financial reports that will allow the financial institution to see a path of success in the business. Without these tools and reports no financial institution will talk with you seriously about lending capital to grow your business. This is a planning process that should occur each year. Making a profit is important, but especially when you are seeking financing for your business.

The Landscape Contracting business has always had easy entry into the business, a pickup truck, a wheelbarrow and a shovel and you are a landscape contractor, but are you really a business person? The most successful Landscape Contractors are those that see the business side of the industry and work to build a company that is based on sound financial goals and customer service. If you ask a successful Landscape Contractor what made their company successful, they will tell you, luck, persistence, and sound planning.

The companies that start of a shoe string budget quickly learn that in order to survive you need capital to grow and expand. So living on a shoe string budget can only work for a very short time. Planning is the key to success, hiring a professional coach or consultant maybe the best investment you ever make. Start out on the right foot and get the help you need to start planning for tomorrow. Because the shoe string budget will run out after the next customer collection.

Start planning now for your future.

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How Do Landscape Contractors Find New Leads?

I have been asked several times, “how do I find new leads”? The answer is less complex than it may seem. The generation of leads can be difficult if you allow yourself to be easy deterred by rejection or lose the drive to probe for the answer. Lead generation is an art and not everyone has the God given ability to generate leads. Leads can be developed in a number of ways Networking, lead generation software, leads groups, marketing and lead generation companies are all ways to develop new leads. Each has it own advantages and disadvantages in providing lead generation. 

Networking is one of the best ways to generate interest and leads for your company. The down side is these leads may not be as targeted as you would like and may take time to turn from leads to sales opportunities. Networking generally is a great way to get your company name out to a large audience. Plus these are prospects that you know, or are familiar to you. Networking is an on going process that is never ending and likely to produce opportunities, but not in a timeframe that may be acceptable.

Lead generation software generally is a large data base with specific information and parameters that you can filter into your own date base. This may provide information that is helpful in the long term, but may not offer the most accurate and timely information. For example, we used a data base that offered new homes sales in our area, the list however included new homes, exciting homes, condos, and sold apartment buildings. Not necessarily what we were targeting. The information some times was, in fact, months old, which of course did not help for quick lead generation.

There are leads groups in most metropolitan areas that meet weekly and offer the opportunity to spread the word through more people, using the group members to look for leads that might work for you. Again, no one knows your business better than you and what in particular you are searching for in leads. BNI is one group that has developed a strong following across the country, and it depends on how active your group is.

There are companies like Angie’s List that offer leads through a network of clients that call in or search the data base for service providers in your area. This will provide leads that are already hot, as they are looking to purchase the service now. The difficulty with this lead is it may pit you against the low baller’s in your market place. However, they are hot prospects.

For construction companies there are services that will provide leads through a national service that will lead you to construction projects in your area and even provide bid documents for your estimators. This service is again a hot lead, but does not offer the opportunity to sell the lead. These type leads are generally directed at General Contractors, who most likely have subcontractors that they like and use.

It is important to recognize that not one or all of these methods of lead generation will work for your team, but that some combination of these lead generating methods will produce some results. Good luck.

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Landscape Contractors: Design/Build Faces a Slow Recovery

Landscape Contractors, whose main business is Design/Build, face a slow recovery as consumers wait out the economy and the elections in 2012. It has been since 2008 when the economy showed signs of weakness and a down turn that has affected most parts of the country. We are going on four years of slow growth and down sales figures.  Most contractors have noticed a 40% to 50% decline in their revenue numbers over the past several years. The good news is that the trend seems to be moving upward for 2012. We’re no where near the pre-recession numbers, butthere are signs of increased interest in their services

Those that have continued in the Design/Build business segment were forced to take smaller projects and cut staff to survive. Now with the prospects looking up, the challenge will be to find qualified employees that have the skills to build the designs. Many of the best employees went on to other positions and contractors were forced to lay off a good number of their best. It is now time to start rebuilding the labor force, as the economy shows signs of growth and customer becomes impatient. This pent up frustration to remodel or add to the landscape will start to increase in 2013 as predicated by economist.

The housing crisis will help the Design/Build contractor as many people will not be able to move to a new home, but instead spend the money on remodeling the old home. More and more families will be spending there vacations at home as the cost of travel increases. This offers contractors an opportunity to design and build the outdoor living space they have always dreamed of. This year will be a rebuild and retooling year for many contractors in the Design/Build world. Those who start now will be ready for the rush that is predicated in 2013 and 2014.

It is also a good time for the Design/Build contractors to start thinking about divesting these businesses to include more maintenances services or other services that will reduce the dependence on Design/Build clients. The new normal and many of the contractors that I deal with indicate that the Design/Build business will not return any time soon, or at least not to the pre 2009 level of construction for some time.

It is important to think about the future of your company and the future of the Design/Build world. Now is the time to think about the new norm in the Landscape Contracting world.

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Purchasing Equipment for Your Landscape Contracting Business

It’s almost spring and time to think about what new equipment you need to start the season. Sounds simple and easy, but let’s spend some time discussing the choices that you will be making. 

What do you purchase and from what supplier or vendor?

What are the criteria or specs for the equipment that you will be purchasing?

How do you select a dealer or vendor?

How will you pay for this equipment?

With all the different equipment and manufactures available today, how do you determine what is the best equipment for your needs? It is important to survey your employees that are using the equipment and find out what they want and how they will use the equipment. It is also important that they test the equipment before you purchase it. Most dealers will provide a demonstration and several days for your crews to test the equipment. Think about all the small issues that go along with servicing the equipment, maintaining the equipment, parts availability and finally moving the equipment from site to site.

Establish a specification for the equipment and how your employees intend to use it. This will assist in narrowing the field down to a more manageable group to test. Look at the features that the employees think is important when operating the equipment. Your company may use a piece of equipment differently than others in the industry, so insure, before you purchase the equipment, that it meets your specs and standards based on how your company uses it.  Think about older equipment you may already have in your fleet. Will this piece of equipment be compatible with your current equipment. For example if you are purchasing a new skid loader are the controls similar to the exiting skid loader you own or will it force the operator to relearn the new piece of equipment every time they switch skid loaders. This becomes a safety concern.

Selecting the vendor or dealer can be as important as the equipment you select. The dealer must be able to provide service and parts quickly. The dealer needs to be close to your shop so that you are not spending a lot time traveling to get it repaired or serviced. The dealer you select should offer you a loaner to use when yours is in the shop. As a small landscape contractor, when a mower breaks down you don’t have spares sitting around your shop. You need the piece of equipment available and producing revenue. Check out the dealers shop facilities, can they service your needs quickly and efficiently?

Finally, how are you going to pay the equipment?  You will want to look at the financing terms offered by the dealer on the new equipment. Many times the manufacturer will offer some great deals on financing their equipment. There is a lot that go into purchasing equipment, take your time and insure that you make the right decision.
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