Are you looking for a chance to control your own destiny? If you don’t mind getting your hands dirty (figuratively), landscaping is a promising career path to take into account.
Since 2014, the landscaping sector has expanded by an average of 4.6% annually. It is a $99 billion industry in 2019 with more potential for growth. Additionally, it’s one of the few sectors where large corporations don’t generate the majority of the profits.
Small landscaping companies that make $500,000 or less annually generate more than 50% of the total gross revenue. Independent businesses have plenty of space.
How to build a profitable landscaping business
It takes work to expand a landscaping business, not just manual labour. To maintain the health of your business, back-office work will take up at least 20% to 25% of your time.
Before you even have your first client, the work begins. Start by following these pointers for managing a profitable landscaping company.
1. Write your business plan
If you don’t plan, you’ll plan to fail.
A strong landscaping business plan must be written. Your business plan serves as a road map for success.
Your landscaping company will get more complicated as you expand. The demands on your time will increase, and you’ll have more daily business decisions to make. It’s much simpler if you have a business plan in place. Your overarching plan of attack directs you. The correct decisions are clear-cut.
It’s not necessary for your business plan to be overly intricate. A solid plan starts with stating your objective and outlining your strategy for doing so. You’ll have a much higher chance of success if you start with a well-written strategy.
2. Manage your bottom line
One of the biggest challenges for small landscaping businesses is running into cash flow issues early on. A crucial business skill is effective money management. You must pay close attention to profitability throughout the process, from creating estimates to processing payroll.
Estimates can be challenging. If you underbid, you run the risk of having to perform work at a cost. If your quote is too high, you risk losing a good job.
Investigate the rates offered by competing landscapers for similar projects. Since prices are probably not going to be available online, you might need to call them for a quote.
Determine the cost of the project, including the amount you must pay your employees. Make sure your profit margin is sufficient to pay for your time before adding it. You might need to make some changes if your price is significantly higher or lower than what the competition is asking.
Keep in mind that your company also has other expenses. It depends on your phone line, website, office location, time management programme, and equipment purchases. Make sure your projections are high enough to assist in covering those costs.
3. Make marketing work
Lawn maintenance and landscaping services are in high demand. The chance is there, but you still need to make people aware of your presence.
Potential customers can be attracted through marketing. It’s a fantastic way of bringing up how much people appreciated the work you did.
That means you have a chance to not only attract new clients but also win their loyalty and trust. In actuality, repeat clients account for 74% of all landscaping business.
It takes effort to develop and maintain a great marketing strategy. Consider seeking advice from a small marketing firm based on your time and financial constraints. especially one that focuses on the expansion of small businesses. They’ll assist you in determining what sets your business apart and what you stand for.
There are many growing landscaping businesses out there. Decide what sets you apart from the competition and emphasise it as much as you can on your website, in social media posts, and in conversations with clients.
4. Cultivate referrals
For your clients, you provide quality work. Even though your work may speak for itself, you’ll attract more clients if your clients endorse you as well.
Getting attention through recommendations and referrals is an affordable strategy. People have a natural aversion to advertising, but they value their friends’ and neighbours’ recommendations and experiences. A solid recommendation comes from the heart.
How to increase referrals for your landscaping company is as follows:
- Request written endorsements that you can post on your website in a polite manner. Most people will be happy to assist you if you are sincere and ask in person. To make sure they remember, follow up once you’re back at your computer.
- increase the number of online testimonials on sites like Angie’s List. To request reviews from pleased clients, you can use a programme like Podium Reviews.
- gratify referrals. You can offer discounts, extra services, or other benefits in exchange for your customer sending you more work. To encourage your customers to tell their friends about your business, you can even set up a referral programme.
5. Build a solid team
You’ll discover that the adage “good help is hard to find” is accurate when it comes to landscaping.
There are numerous opportunities for employment in skilled labour, such as landscaping, but not enough applicants to fill the available positions. A 2019 survey revealed that 92% of green industry businesses struggled to find qualified candidates. It’s the biggest problem for one-third of those businesses.
Not all is lost. There are many things you can do to create a trustworthy, effective team.
- Employ subcontractors. Other landscapers can help if you need labour for a job but don’t have enough coverage.
- competitive pay. Make sure you’re paying enough, especially for your most skilled workers, by doing some research on what other businesses are paying for the same work.
- Provide on-the-job instruction. Develop highly skilled workers for yourself because it is difficult to find such labour. Give frequent feedback and be clear that you’ll pay more if they can complete the task with reliability.
- Fair treatment for all. Track your time with a tool like Hubstaff and pay yourself appropriately. Even if you and your team are not at the same workplace, Hubstaff creates transparency to ensure that everyone is on the same page.
- Be in touch frequently. If you keep your team informed, they are more likely to care about the company’s success. Talk to them about significant objectives, challenges you both face, and the importance of their work.
- Show interest. Discover the issues that are significant to your community. What do they enjoy doing? What about their family? What matters most to them? Treat your employees with respect because that is what they are: important people.
Consider this as you assemble your team:
Lawn care tasks are generally quite similar. They employ the same tools and charge the same fee for the same work. What can you bring to the team to improve it? You’ll be able to retain your key personnel in this way.
6. Invest in good tools
Without the proper tools, you cannot perform a task of high calibre. Finding your financial balance is crucial because purchasing tools can be a significant investment. Renting expensive items that you don’t use frequently is acceptable. Instead of purchasing everything at once, you can gradually fill your supply shed with high-quality equipment.
Although inexpensive equipment may appear to be a good deal, there may be significant hidden costs.
Equipment breakdowns are expensive. It must be fixed, replaced, or rented out while it is being fixed.
When your tools aren’t functioning properly, jobs take longer. For that time, you pay.
The actual cost of discounted equipment is frequently higher than what you would pay for an upgrade.
Think broadly and in the long term. Determine the total costs, accounting for maintenance, effectiveness, and eventual replacement. Renting something or purchasing used equipment could make financial sense. On the other hand, it might be a good idea to spend more money on a tool that will work more quickly and efficiently.
Keep a record of your tool expenditures. It will be easier for you to set your rates high enough to turn a profit if you calculate how much you spend on maintenance, rentals, and new purchases.
Landscaping business mistakes to avoid
Let’s discuss what to avoid doing. Six excellent lawn care business tips have just been discussed. Consider this section to be a bonus.
1. Don’t ignore safety rules
The phrase “safety first” is not just a catchphrase. You work with machinery that crushes, cuts, and makes a lot of noise. OSHA states that you and your staff must deal with the following safety risks:
- An amputation and cuts
- Electrocution
- Cold and heat stress
- injuries and strained muscles
- loss of hearing
- eye injury
Priority 1 is to seriously consider safety. Make it a priority to make safety a fundamental part of your company culture. Everyone should be responsible for following a law requiring workplace safety.
In addition to developing the programme, it is your responsibility to ensure that it is well understood, easy to implement, and has everyone’s support. Use your safety gear as an example, and strictly adhere to the rules. Ignoring workplace safety is not risk-worthy.
2. Don’t forget to increase your prices
The costs of running a landscaping company increase annually. Therefore, if you continue to charge the same prices as you did last year (or, oh no, even longer), your profit margin will be decreasing.
The price increases gradually. Making payroll, paying taxes, and enduring economic shocks all become more difficult. It’s possible that, despite working harder than ever, you’re having trouble paying your bills for the first time.
Don’t be afraid to increase your prices when costs go up. The majority of your customers are aware of this, as is everyone else. Profit is the reason you’re in business, so make one.
3. Don’t spend too much on equipment
It’s challenging to recoup the cost of significant purchases, especially when you’re just getting started. You don’t want to start out with no money. Maintaining cash reserves is more crucial than showing up in a brand-new truck in case of emergencies.
Adopt a practical attitude. Before making a significant purchase, consider the following:
- When will you use it next?
- Do you have the cash on hand to buy this, or will you have to borrow it?
- How soon will it become profitable?
- Can you carry out the task without it?
Don’t spend the money if it doesn’t seem wise. To save money, consider renting, purchasing a used item, or using a different tool. Prioritise large purchases.
One last tip for your landscaping business
Continue to learn. It takes a lot of work to run a business. Keep an open mind, read articles, and go to trade shows. You can never be sure what you’ll learn.
