How to Improve the Bottom Line

Article Provided by Cindy Odgers

Typically, it’s the little things that matter the most, but in business the little things can be the difference between success and failure. Small essential changes can result in a 10% increase in profits more often and faster than one, big change in the business. The landscaping industry has grown an average of 4.6% per year since 2014. Unlike many other industries, large corporations do not produce the bulk of the profits. More than 50% of the annual Cindy Odgers gross revenue is earned by small landscaping businesses earning $500,000.00 or less each year.

Review the company’s business plan. You are not in business to give your services away. Your business plan is your guide for success and should be reviewed regularly to keep you on track and to help you find and identify potential areas for savings. No business plan? Then write one. Business plans help you avoid costly mistakes by forcing you to go over all the tough aspects of the business. “By failing to prepare, you are preparing to fail.” -Benjamin Franklin

Manage the bottom line. Analyze every single line on your profit and loss statement. It does not have to take a lot of time and when scrutinizing every dollar spent, you may find and identify ways to cut down on costs in at least one area. The key is to work through your budget and understand your cost of doing business. Know your direct costs and overhead. Plan on a profit margin that aligns with these benchmarks so you can be sure you’re growing a business and not digging yourself into a hole. (Remember who is the last person to get paid when times are tough – and any time, for that matter.) Also, this may be the time to find green/sustainable options. “Beware of little expenses. A small leak will sink a great ship.” -Benjamin Franklin

Make marketing work. It is easy to fall into a rut: if a strategy is working, you may just keep doing the same thing, but change is inevitable or as in the case of the pandemic, forced on us all at unexpected times in unexpected ways. Brainstorm with the management/marketing team and together at least one new strategy should result. The process may only take an hour or so, but when executed it can result in a huge increase in business. “Marketing is enthusiasm transferred to the customer.” -Gregory Ciotti

Cultivate referrals. In most cases, landscaping whether it be design, installation or maintenance is a personal service at a client’s home or business. Client referrals instill trust and confidence in a business and its reputation. Many established companies work on referrals only. Get to know the client and focus on them-understanding both the job details and the client’s expectations goes a long way to a satisfied client. “People do not buy goods and services. They buy relationships, stories and magic.” -Seth Godin

Invest in good tools. Any job takes longer when your tools do not work right. You pay for that in your time. Think long-term and big picture. Rent or buy? Calculate total costs, including upkeep, storage, efficiency and eventual replacement. It might make more sense to rent or buy used equipment. Or, the wiser choice may be to invest in an expensive tool that is cheaper to operate and gets the job done faster. “You cannot mandate productivity. You must provide the right tools to let people become their best.” -Steve Jobs

Build a solid team. Every employee should understand their role in the success of the company and should be valued for that regardless of their title or their wage. Educate and train your employees and yourself. The Arizona Certified Landscape Professional program is there for your company. The result will be a more productive employee. “An investment in knowledge pays the best interest.” -Benjamin Franklin

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