After 20 years in the lawn and snow business, I realize taking the time to reflect on each winter has helped me grow and change. Although this winter did not bring with her the gusto of years past, she still taught me three important lessons.
Lesson #1:
There is safety in a diversified portfolio that hedges contractors against all winters. The below-average plowable snow events this past season took all of us by surprise, especially following two winters that brought record-breaking amounts of snow and ice. It was this unpredictability that had me considering whether or not I would continue to plow both residential and commercial properties prior to the start of the 2015-2016 season.
My intent was to focus completely on commercial properties. However, the guarantee of prepaid residential contracts offsets the risk of a light winter and ensures certain profit margins for my company. Thankfully, I maintained my diversified portfolio. This decision helped me cover fixed costs and make predictable profit.
I now know it is more beneficial to have team members committed to the common goal as opposed to the best plow operators in the business.
By following our company’s plan, our net profit margin after owner draws was within 3 percent of the past five seasons and generated positive cash flow that was available to start the new lawn care season.
Lesson #2:
There is a never-ending need to educate both current and potential customers about the cost of slip and fall lawsuits.
Although there was minimal snow and ice accumulation, when there were snow and ice events, temperatures fluctuated enough to melt and refreeze snow. In addition, there were multiple ice events that required salting to safeguard against slip and falls. To protect our customers, we proactively salted their properties in these cases.
After receiving several calls questioning our salt runs, I realized I should have never stopped educating my clients once the season started. Through emails, phone calls and videos, I provided free educational content to my customers. The content included information about the proper plowing and salting techniques, and the financial implications and risks that property owners were assuming by neglecting to be proactive with snow and ice removal on their sites. By educating customers, we were able to proactively overcome objections to services rendered, protect our customers’ best interests and capture new customers in the process.
Lesson #3:
There is critical value in building a team that shares a common vision and values in order to successfully scale your company. Like many other companies in the process of scaling their businesses to $1 million and beyond in sales, I was struggling to get my team of employees to unite and focus on a common goal. By taking the time to build a company vision, I was able to unify my staff to strive toward this goal. In addition to this vision, the team worked together to create a set of three core values that the company would live by.
Suddenly, working in a major snow storm became more manageable as players were willing to help each other out to get the job done right the first time. By creating a new culture that our entire team became dedicated to, we have been able to overcome some of the hurdles associated with scaling the company quickly. I now know it is more beneficial to have team members committed to the common goal as opposed to the best plow operators in the business.
Reflection is not always easy because we must turn inward and reflect on the experiences we have through the winter months to become the best contractors in the business.
Explore the June 2016 Issue
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