As the owner of a lawn care or landscape company, there are a multitude of business concerns that can keep you awake at night. Some of your worries are quite common and shared with many others in the industry.
Below are some of the prevailing stressors as well as how different owners handle these sleep disturberers.
Finding Labor
The main concern for many in the landscape industry for years has been finding labor. Having enough employees on staff directly impacts your organization’s ability to grow.
Some solutions owners have turned to are creating a larger year-round workforce and striving to train and retain their employees long-term. Bill Dysert, owner of Exscape Designs, based in Novelty, Ohio, says the key is to fill the pipeline by finding people outside of the industry who love the outdoors and don’t realize what the industry has to offer.
“We have pushed heavily to recruit at NCLC, through universities across the U.S., and at local career fairs and high schools,” says Joshua Pool, COO of Timberline Landscaping, based in Colorado Springs, Colorado. “We have also created a ‘gap year’ program for those students either finishing high school or college who still do not know what they want to do. With our ‘gap year’ program they can come and have an adventure in Colorado while working with us for a year.”
Some companies are particularly concerned about the volatility of the H-2B program when it comes to their seasonal labor. Bob Grover, owner of Pacific Landscape Management, based in Hillsboro, Oregon, says he actively lobbies for this program.
“I personally have gone to Washington up to three times a year to meet with congressional staff and have ongoing relationships and correspondence with these folks throughout the year as legislation comes up,” Grover says.
Maintaining Company Culture
Another concern that ties into labor is protecting the workers you have – physically, mentally and emotionally. Many owners can lose sleep over the safety of their team and ensuring that they enjoy what they’re doing.
This all comes down to the type of company culture you are creating at your landscape business. If your company culture doesn’t emphasize safety or work-life balance, your employees will struggle with these aspects.
Even if you have a strong company culture, as you grow you can deal with fears of losing what made you great in the first place.
“One thing I personally do to try to retain our culture as we grow is have lunch with one or two managers each week to touch base,” says Doug Delano, owner of Level Green Landscaping, based in Upper Marlboro, Maryland. “As we continue to grow, I become more separated from the day-to-day activity. But just getting out there and talking to account managers, operations managers, branch managers and salespeople does make a difference. I think it is important to see how they feel and what troubles they are having.”
Competing Against Low-Ballers
Because the industry has a low barrier to entry, many landscape company owners face the challenge of competing against individuals who underprice their services. This can be troublesome when seeking sales from the same customer base who are looking at the cost alone.
One option is to try to educate these customers about why your services are higher priced than the one-man operation, including your need to pay a living wage to your entire staff. Another is to start pursuing clients who are willing to pay your higher rates because they do understand the level of quality that you’re able to offer.
Don’t be afraid to ask for what your services are worth. Point out everything that makes your company a professional operation to the client when they ask what it is they’re paying for.
Maintaining Cash Flow
Cash flow can keep many owners awake as you wonder if you can pay bills and make payroll that week. Additionally, a lack of cash flow is the reason many businesses fail. Improving your cash flow is multifaceted.
In some cases, if you perform large commercial bid work, these jobs can take a long time to pay out.
“We are trying to solve that by always being the squeaky wheel,” says Dean DeSantis, owner of DeSantis Landscapes, based in Portland, Oregon. “We’re always on the phone, sending reminders and finding out what we can do on our end to keep things moving and get paid.”
Having a robust invoicing process where timely and accurate invoices are sent out and automated follow-up strategies, such as late fees, can reduce the time it takes to get paid. Also, securing money through loans or bank lines of credit can provide you with the cash you need to get the job done.
