Business Management: Revenue/Customer Profile

To know exactly where the money comes from, a business needs to have an in-depth understanding of every profitable aspect surrounding it.

In this section of the Business Management Resource Guide, Lawn & Landscape magazine compiled six charts for comprehending business costs, tracking equipment costs per hour and non-productive labor time costs, identifying the productivity of granular applications, keeping a daily checklist and inventory and estimating landscape construction. The information provided came from green industry organizations, contractors and consultants, including the Associated Landscape Contractors of America, Herndon, Va.; Smith Huston, Inc., Orange, Calif.; and Jon and Vicky Cundiff, Turf's Up Lawn Service, Lee's Summit, Mo. These forms can be copied and tailored to fit any green industry company.

REVENUE/CUSTOMER PROFILE. To truly succeed, a business’ selection of services offered and type of customers must compliment each other. This balance is left almost to chance without some measure of planning.

According to the Revenue/Customer Profile chart in the Associated Landscape Contractors of America’s Operating Cost Study, firms are torn between trying to build a reputation as a focused specialist and building an image of supporting one-stop availability when developing an appropriate mix between services and customers. The business needs to ensure that every category of service offered supports the overall strategy and justifies the investment level required.

Yet, for many companies, a great amount of time is spent servicing unprofitable customers or attempting to support too large of a customer base. A business’ list of customers should be reviewed regularly in light of the sales being generated for the company.