BUSINESS OPERATIONS: Secrets to Success

As I end my column and begin to slow down my career in the landscape industry by traveling more, playing more golf and increasing my fly fishing expeditions, I would like to reiterate a few thoughts that, hopefully, will assist you in the success of your landscape business:

• Quality builds a business. Be the best and monitor quality frequently.  
• People are your biggest assets. Treat your people with respect and cull the non-performers from your workforce.
• Man-hours make you money. Never delegate a job to someone without  giving them the budgeted man-hours.
• Provide score cards. Inform all employees of the budgeted and actual man-hours, per crew per job and per week. Post this on a wall for all to see.
• Hold everyone accountable. Be sure they understand their expected job performance, preferably in writing and mentor them when they get off track.
• Create a financial budget. Budget all expenses by month and compare. Share as much of the budget results with others as you feel comfortable.
• Chart accounts. Items should reflect our landscape industry functions.  Educate your accountant as to our business.
• Accounts receivable is critical. Monitor  and hold someone accountable for the collections. Be firm with your clients and accept no excuses. Act quickly.
• Ask clients for referrals. It is an easy way to grow your business. Consider a reward if the referral is successful.
• Monitor sales activity. Set goals for number of proposals submitted per month and then track those closely. Number of proposals is more important than sales dollars. Zero proposals equals zero sales. 
• Grow or die. Always seek new clients. Life is too short to be small.
• Overtime is a killer. Monitor  this closely per employee, per week. Yes, we do have overtime, but it must be management’s decision – not the hourly employee’s.
• Strategic planning is good business. Develop a plan with your key employees annually. Set goals, assign responsibilities and hold each other accountable.
• Never decide to buy something while listening to a salesman. Rent your equipment first until it gets to be a hassle. Then determine if it is going to be sitting in your yard the majority of the time. Be careful. What you don’t owe won’t hurt you.
• Everyone needs a raise. But only when performance is acceptable and only per the company’s policy. Establish and distribute the policy for all to understand. Set hourly pay scale ranges for each position and  share them with all employees.
• Preventive equipment maintenance is essential. Establish and keep schedules.
• Have a party. Monthly or quarterly cookouts, etc. are great for morale.

It has been my pleasure sharing my thoughts with you these last few years and hopefully I was able to guide you to further success. My best to all of you and please stay in touch via e-mail. May you always be happy, healthy and wealthy.

Take care.