There is one number that doesn’t readily show itself on your financial statements and yet has the power to make or break a landscaping company. That number is indirect labor costs, and if you want to succeed in this industry, you can’t afford to ignore this metric.
Without a doubt, one of the most common questions we get at The Grow Group from the landscape pros we work with is What numbers should I be looking at?
This discussion invariably leads to the need for a financial and efficiency dashboard, a central location with meaningful data points from which you can run your whole company and always have a pulse on how well you’re doing.
A few weeks back, we discussed the importance of monitoring numbers in your business. Financials truly are the ultimate scorecard, and focusing on them will put you and your team on the path to success.
This week, let’s drill down on profitability and tactics you can use to drive yours.
Academics and CFOs have identified seven main levers you can pull to increase profits:
We talk a lot here about the importance of leadership, culture, and exceptional customer service for your company to succeed in the landscaping business. But the truth is you can get all those right and still lose if you don’t get your financials right too.
In short, your company’s financials are the ultimate scorecard, revealing where you need to improve if you want to win.
I’m sitting down to write this column after having just wrapped up an exhausting, inspiring, whirlwind tour around and across the country, speaking to and coaching green-industry pros who are all striving to get better.
We spent a lot of time talking about vision, mission and core values, about finding prospects and closing sales, and about leadership. These factors are all critical to success. Mastering them can be the difference between a mediocre business and an extraordinary company. That’s why I never shut up about them, both in my work with landscape professionals and at my own landscaping company.
But it’s also true that you can get these things right and still not find yourself in the black at the end of the season. Why?