If you’re like many landscape company owners, you started your business because you have a love for working outside and caring for plants. However, a business comes with a number of topics that can leave you feeling out of your depth if you don’t have the right background knowledge.
Yet, some of these aspects of the business that may fill you with dread are critical to get a handle on. Not only so you can continue operating in general but also so you can grow and continue to offer more opportunities to your team.
Below are some of the common business subjects that may haunt you and how to overcome them.
The Specter of Legal Compliance
When you started your business, legal processes were probably the last thing on your mind. Navigating laws, regulations and permits can feel like wandering into a spooky maze. Yet you don’t have to proceed aimlessly. Connecting with a reputable business lawyer can guide you through this unfamiliar territory.
Be mindful that what is legal will vary in your state, city and municipality. Not being aware of a law is not an excuse and the law comes above your culture, so ‘that’s just how we do it’ is not an acceptable answer.
Pay attention to legal areas like employment laws and safety regulations, as well as whether your customer contracts are enforceable. Some of the common issues that can occur with contracts are when there is ambiguous language that can lead to disputes or failing to specify details, which can create confusion.
Legal compliance can be intimidating, but exposing your company to lawsuits is far more of a hassle.
The Phantom of Tax Planning
Taxes are another topic that can feel shrouded in mystery, but working with industry-specific tax professionals can help you stay on top of changing rules.
Checking in with your tax professional on a regular basis can also make preparing for tax season far less daunting. They can also advise you on deductions to take advantage of. Keeping detailed records on expenses related to tools, equipment, vehicles, supplies, and subcontractor payments can help streamline your tax process.
Seek out a CPA who is invested in your business and doesn’t just do tax preparation services. They should serve as an important and advisory role in your organization that can help you reduce your tax burden.
The Wraith of Workforce Management
Almost every landscape company has dealt with fears around their workforce, whether it’s high turnover rates, recruiting struggles, or not receiving their H-2B visas on time or at all.
While labor is a common issue in the industry, it’s not impossible to improve your retention and recruitment. If you’re losing employees constantly, take a step back and ask if you’re hiring the right people and whether you have a company culture that makes employees feel valued.
From day one, you need to nurture your new hires so they feel they belong with your organization. Holding an appreciation event at the end of the long season is one way to emphasize how much your employees matter to you. You always want to make sure you are hiring individuals who align with your mission and values.
One of the most successful recruiting methods is utilizing employee referrals. This rewards your team members for bringing on like-minded individuals and incentivizes the new hire to stay on longer.
When dealing with H-2B woes, your team always needs to be recruiting so it is not such a struggle to replace the workers who were unable to come. Seek out your labor pool in places like laundromats or local churches after hours, as field workers are often out working on a job for another industry.
If the H-2B program is essential to you, don’t forget to advocate for it with your elected officials.
The Zombie of Debt Management
Carrying too much debt can feel like the undead is dragging down your profits. While debt can be used to purchase equipment that will allow your landscape company to continue to grow, too much of it or debt with high interest rates will quickly eat away at your bottom line. Your debt-to-equity ratio should be below 2.
If your debt has already gotten out of hand, focus on paying off the high-interest-rate debts first. Strive to renegotiate with creditors or consolidate your debt into manageable payments.
One option is to operate your landscape company debt-free. This path does require growing at a slower pace, but it can provide stability to your team.
The Ghost of Growth and Innovation
Deciding when and how to expand your business can feel like stepping into the unknown, and even investing in different innovations can be quite formidable.
One way to demystify the decision to open a new branch is to base your choices on data like client demand and current profitability. When you are certain you have the staff to scale up, it will seem less like a risk and more like a natural progression.
You can also test the waters for a new market by opening a smaller satellite location first. Lean on peer groups and industry consultants to provide additional guidance and expertise in growing the size of your landscape company.
Implementing new technology in your organization can seem so troublesome it’s not worth even trying to roll out, but failing to adapt will result in your company losing out on efficiencies that can keep you competitive.
Test out new tech one piece at a time and ensure employee buy-in. Don’t be afraid of some ideas failing. The key is to be willing to try and continue to seek out other innovations that could benefit your organization.
