As landscaping companies across the country struggle to respond to the challenges of the coronavirus, we wanted to share with you all that we can to help our Grow Group community get through this together in the most effective and responsible way possible. Below you’ll find details about what Grunder Landscaping and other green-industry companies are doing, recordings of our weekly webinars on the topic, and a Q-&-A section that we’ll continue to add to and update as the situation unfolds.
Stay tuned, stay safe, and if we can be of help to you, please let us know.
To receive notice of upcoming free webinars, along with updates, tips, and tactics for running your business, please join our e-mail list here.
Grunder Landscaping Co. Response to the Coronavirus
Implementing Enhanced Safety Protocols
March 16, 2020
In response to the coronavirus, Grunder Landscaping implemented a number of new safety protocols:
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Suspend use of water coolers
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Suspend use of ice machine
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Wipe down trucks, tablets, etc., with Clorox in a.m. and p.m.
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Practice frequent and thorough hand-washing
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Practice social distancing
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Assign only one person per truck
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Lysol bathrooms every two hours
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Wipe down schedule board counter, keyboard, and mouse before and after use
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Contract Maid Right to spray Enviro-Mist on Mondays, Wednesdays, and Fridays
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Suspend use of three-part tickets and door hangers
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Suspend all in-person meetings and training; conduct via WebEx and Zoom instead
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Continue to monitor H-2B situation
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Prohibit onsite visitors to the office
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Designate a delivery drop-off area away from people
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Suspend attendance policy
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Limit client interaction and conduct any necessary at a safe distance
Complying with the Ohio Stay-at-Home Order
March 23, 2020
In the state of Ohio, where Grunder Landscaping is based, Governor DeWine issued a stay-at-home order, effective March 24–April 6. The order mandates that all non-essential businesses close, though it does allow employees to work from home. The order did not explicitly state whether landscaping qualified as essential or not.
After discussing the pros and cons, GLC made the decision to close for two weeks, in order to provide for the safety of their team, clients, and community, and to live up to their reputation as a trusted brand in the local market. “Essential” employees are working from home, full time and with full pay. “Partially essential” employees are working from home three days a week with full pay on those days, and are compensated through unemployment minus pay on a pro-rated hourly rate; they may also use paid time off. “Nonessential employees” are not working and may apply for unemployment. GLC is continuing to pay insurance premiums during this time.
Learn more about the GLC decision here and in the March 24 webinar recording below.
Restarting Maintenance Work after CISA’s Designation of Landscaping as Essential
March 30, 2020
On March 28, the GLC leadership team learned that the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency had added landscapers to their critical workforce list. This means that the federal government is now recognizing as essential “landscapers who provide services necessary to maintaining safety, sanitation, and essential operation.” You can read the the CISA’s latest classifications here.
In light of this new federal designation, GLC sent their maintenance crews back out Tuesday morning to mow, weed, and complete a limited list of other tasks; all other work on properties remains on hold until at least April 7, when the Ohio stay-in-place order is set to expire. The GLC crews are continuing to follow the enhanced safety protocols laid out above. They have also placed in every truck laminated copies of the CISA order, along with a GLC letter explaining why they are operating and the safety measures they are taking. You can learn more about why and how they’re operating in the March 31 webinar recording below.
Returning to the “New Normal”
May 4, 2020
With most businesses in Ohio now allowed to fully reopen so long as they comply with safety orders, GLC is back to operating at full capacity. Every morning, they hold a safety tailgate, with team members gathered in small groups and everyone at least six feet from one another. They run through a checklist of their newly enhanced safety protocols, and then each team member signs off on forms stating that they’ve heard and agreed to the steps they’ve outlined.
“I am seeing a lot of companies in our area who are ignoring the state of Ohio’s safety directives, and in addition to putting people’s health at risk, they’re putting their company’s reputation on the line,” Marty says. “In my opinion, it’s just not smart, and it’s not smart business, either.”
For landscaping training, they are relying on team leaders demonstrating—again, at a safe distance—to their crews how to perform any tasks they’re new to while they’re on the job site. In the coming weeks, they plan to add to this with videos they’ll post to their internal Facebook page.
Their greatest challenge now is making up for lost time and revenue, and ensuring decisions they make now serve them well in both the near term and the long run. For an inside look at how GLC is approaching sales and marketing now, watch the recording of the webinar Marty did with Aspire Software’s Keven Kehoe.
Marty Shares What He’s Learned from the Pandemic with Landscape Management Magazine
In a recent installment of Landscape Management’s At Home Edition, Marty shared with LM editor-in-chief Seth Jones what the companies who are succeeding now have in common, what his national network of landscape and lawn-care companies are telling him, and why he’s proud of the entire green industry. Check it out here.
Free Webinars
Recordings
Week One
Don’t Panic—PLAN!
Practical Tips and Tactics for Responding to the Coronavirus and Keeping Your Business on Course
Tuesday, March 24, 2020
In the last few weeks and days the coronavirus has brought—and continues to bring—sweeping changes across the country to the way we live and work. In this special webinar, Marty Grunder, president and CEO of The Grow Group and Grunder Landscaping Co., presents an inside look into how his landscaping company is responding to this challenging situation and provides practical tips and tactics you can use now to keep your business on course for success. The Grow Group’s Vince Torchia and Jim Cali share their insights as well.
Week Two
Don’t Panic—PLAN!
Practical Tips and Tactics for Responding to the Coronavirus and Keeping Your Business on Course
Tuesday, March 31, 2020
3 p.m. ET
In week two of our free webinar series on responding to the coronavirus, The Grow Group’s Marty Grunder, Vince Torchia, and Jim Cali bring you up to date on what Grunder Landscaping and other companies around the country have been doing in the last week to contend with this challenging situation. We also discuss:
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The US Cybersecurity and Infrastructure Security Agency’s very recent designation of landscapers’ work as essential, and what it means
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How to catch up if you’re reopening, like Grunder Landscaping, after a shut-down; how to communicate it; and how to protect your company and community
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The Families First Coronavirus Response Act
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The $2T federal stimulus package and the aid it provides for small businesses
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And all your questions, too!
Week Three
Leading to Win, through Thick and Thin:
A Conversation with Doug Black, Chairman and CEO, SiteOne Landscape Supply
Wednesday, April 8, 2020
2:30 p.m. ET
In week three of our free webinar series, The Grow Group’s Marty Grunder conducts a question-and-answer session with SiteOne Landscape Supply chairman and CEO Doug Black. A West Point grad with an MBA from Duke and a storied career in leading teams to success, Doug shares his insights into the current situation and what we can all do—regardless of title or position—to adapt, plan, execute, and motivate. This is a unique opportunity to learn directly from one the of sharpest and most engaging leaders in the industry.
Week Four
Recharging Your Sales and Marketing Efforts
Thursday, April 30, 2020
2 p.m. ET
When an economic downturn or recession hits, there’s a tendency for companies to panic, and to cut back on their sales and marketing. But sales are to a business what gas is to a car: Without them, you aren’t going anywhere.
Presented by Aspire Software cofounder Kevin Kehoe and Grow Group CEO Marty Grunder, this webinar provides practical strategies and tactics for calibrating your sales and marketing efforts. Studies have shown that companies that focus on improving their operational efficiency while also investing in sales and marketing fare the best in a changing market.
Watch the recording here.
Questions and Answers
Interpreting and Complying with Stay-at-Home Orders
How would you handle a scenario in which you’re allowed to work but are concerned about how the public perceives it? Do people think you just don’t care about public health, etc.?
In the March 24 webinar, Grow Group executive coach Jim Cali shared that after Hurricane Katrina in New Orleans, overgrown grass became a real health hazard; maintaining landscapes is essential for the health of our communities. Jim believes this will become an issue in the days and weeks ahead and will help make the case for landscaping as an essential service.
Marty added that in Ohio, the grass really doesn’t need to be cut just yet (as of the second week in March). In his area, a local landscaping company was pulled over by the police because they were out working during the stay-at-home period (the Ohio order did not explicitly stipulate whether landscaping was essential or not). Some landscaping services are essential for the health of the community, but if there’s a stay-at-home order in place and your state suggests the work you’re doing is non-essential, he doesn’t think it’s worth the risk.
The public’s response varies across the country. Gauge the situation in your market; if you opt to continue operating, prepare yourself and your team to be able to explain why your services are essential to anyone who asks.
Could you share some of the pros and cons the GLC team considered before deciding to shut down?
The financial ramifications for both the team and the company were at the top of the pro list for remaining open. The GLC team also felt that continuing to work would be better for their mental health.
But ultimately the GLC leadership team made the decision that the cons to sending crews out outweighed the pros. They were worried most about the safety and health of their team, their clients, and their community, as well as their reputation as a trusted brand.
Update: On March 28, the GLC leadership team learned that the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency had added landscapers to their critical workforce list. This means that the federal government is now recognizing as essential “landscapers who provide services necessary to maintaining safety, sanitation, and essential operation.” You can read CISA’s latest designations here.
In light of this new federal designation, as well as clarification from their local public health department, GLC sent their maintenance crews back out starting March 31 to mow, weed, and complete a limited list of other tasks; all other work on properties remains on hold until at least April 7, when the Ohio stay-in-place order is set to expire. The GLC crews are continuing to follow the enhanced safety protocols laid out above. They have also placed in every truck laminated copies of the CISA order, the county public health department letter, and a GLC letter explaining why they are operating and the safety measures they are taking. You can learn more about why and how they’re operating in the March 31 webinar recording above.
Is there a way for landscaping companies to get the essential business designation for mowing and other services so they can continue some operations even if their state issues a stay-at-home order?
NALP has resources to help you contact your local government and ask them to designate landscaping services as essential.
If you continue working in an area under a stay-at-home order, it may be wise to print their advocacy letter for your crews to carry with them in the event they are questioned. We also recommend placing in every truck laminated copies of the CISA order, along with a letter on your company letterhead explaining why you are operating and the safety measures you are taking.
When the two-week shut-down ends in Ohio, will you go back to work even if the governor says not to?
GLC will continue to follow the guidance that Governor DeWine provides. They want to do what is right and are focused now on keeping their team and their community safe and healthy.
How are you handling paying your salaried employees during your two-week shut-down?
“Essential” employees continue to work, in the office, at a safe distance from each other, and from home, and receive their regular salary. “Partial essential” employees are working from home M/W/F and are compensated through unemployment minus their pay on a pro-rated hourly rate; they may also use PTO. “Non-essential” employees may file for unemployment, or use PTO.
We are going to shut down for the two weeks given the weather and our state’s stay-at-home order. Are others paying salaries while they’re shut down?
Some companies are paying their teams through a shut-down, while others are not. That’s a decision you need to make for your business, based on what you can afford to do.
In Ohio, both those who are laid off and those with reduced hours are eligible for unemployment. Check your state government’s website for the policy in your area.
I believe Marty said before that there was gray area in whether the Ohio governor’s stay-in-place order applied to landscaping but Grunder Landscaping decided to suspend operations. I’m assuming there are other companies that have not shut down. Do you worry about losing employees who are now on unemployment to competitors who are still working?
GLC did lose one talented team leader for this reason, but overall it wasn’t a factor in GLC’s decision to close. They were hopeful that the work they’ve done to build a strong company culture and to show their team they value them would be an incentive for employees to stay.
We keep asking ourselves, just because we can work, does that mean that we should? If we are all truly trying to get the coronavirus under control, shouldn’t we be following the government’s orders to stay home?
If you’re struggling with this decision, start by making a list of pros and cons and weigh your options with your leadership team.
If you decide to work, do so safely. Follow the CDC and your local government’s safety guidelines, including social distancing, frequent hand-washing and disinfecting of surfaces, and telling employees who don’t feel well to stay home. Marty believes that if your state allows it, landscaping companies can be out working without spreading the virus if you take the proper precautions, but you have to take these measures very seriously and be exceedingly diligent about following them.
We followed your lead in temporarily stopping service operations. Can you share what led you to decide to reopen this week?
Over the weekend, GLC learned that the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency had added landscapers to their critical workforce list. This means that the federal government is now recognizing as essential “landscapers who provide services necessary to maintaining safety, sanitation, and essential operation.” You can read CISA’s latest designations here.
GLC’s local public health department also issued an announcement stating that lawn-care businesses could operate so long as they undertook certain safety measures and limited their work to certain activities and properties.
In light of these developments, GLC decided to send some maintenance crews back out on March 31, but they are strictly limiting the kinds of work they’re doing, and strictly following enhanced safety protocols. All other services remain suspended for now.
I am working for a company that is not providing guidelines on social distancing, safe working procedures, etc., and we are doing work that is not “essential.” I’ve tried to inform my coworkers where and when I can but have been told from the senior office staff that the boss “doesn’t follow the rules, never has and never will.” I feel I have an ethical and moral responsibility, but my hands are tied. Is there anything I can do for my coworkers without risking my position?
This is a very tough situation, and we’re sorry that you find yourself in it. To us, this is a matter of personal safety, for your team members, their families, and the community that you work in. We recommend sending an e-mail to your boss explaining your concerns and the steps you think the company should take to ensure everyone’s safety. By articulating it in an e-mail, you’re not putting your boss on the spot, and he or she will hopefully be less likely to react defensively.
We feel strongly that there should be no org chart when it comes to safety; in a well-run company, anyone who has a safety concern should be able—and encouraged—to speak up.
Do state-imposed mandates take precedent over the federal guidelines for essential businesses? If they conflict, what should we follow?
Many states have issued orders that are stricter than the guidelines the federal government has provided so far. If the two conflict, we would follow your state’s orders.
Our governor has said that landscaping is a non-essential service in Michigan. However, it was only a verbal statement during a press conference. I am confident we can operate safely, and that our maintenance services are essential. I also know that we are considered essential from a federal standpoint. How would you navigate this?
What your state says supersedes the federal guidelines, so for the time being we would recommend following your state’s orders. We would also recommend you continue reaching out to your state representatives to gain more clarity on this, now that the federal guidelines have designated landscape maintenance as essential.
Should we assume that new landscape installation is not considered essential and should be put on hold?
The guidance on this varies by state. In some, all landscaping work is being allowed to continue, while in others it isn’t.
We recommend you review the orders in your area to see if they specify which services are allowed, speak with your local representatives, and gauge the attitudes in your community. In Ohio and Michigan, for example, officials have been strict about what they will allow and won’t, while we’ve heard that Florida and Texas have allowed most work to continue. We’ve heard of other states that have allowed installations to continue if they are helping with erosion control, too.
We are under a stay-at-home order but are considered an essential business. What could happen if one of our team members tests positive for the virus? Our concern is that we would then have to close for longer than if we had chosen to stay closed during the order. Our clients are fine with us working at their properties.
If you continue to operate, we recommend keeping your team members on set crews; don’t mix people between them. This helps limit exposure in the event that someone contracts the coronavirus. Follow the social distancing and other safety measures, and encourage your team to continue those practices outside of work, too.
According to the CDC, if an employee is confirmed to have a Covid-19 infection, employers should inform fellow employees of their possible exposure to the virus but maintain the confidentiality of the employee as required by the Americans with Disabilities Act. The fellow employees should self-monitor for symptoms. OSHA has a guide for employers online for you to reference.
Other, larger companies in our area have chosen to shut down their operations. I’m worried that staying open is making me and my company look bad. How can I address the public perception and explain that we’re staying open but operating safely?
We’re all in this together, and your question highlights how the decisions companies make impact all of us.
Get ahead of perception issues by sharing externally the steps you are taking to keep your team, your clients, and your community safe. Social media is a great tool to use here, and if you’re comfortable with it a video can help make it feel more sincere. Outline the specific steps you’re taking to keep everyone healthy and explain why the work you do is essential to healthy landscapes and communities. Many of your clients may not know that allowing the grass to get too long can attract snakes and other vermin, and they may not be thinking about the bugs and other pests that will be more prevalent if measures aren’t taken now.
Share what led you to the decision to stay open and that doing so allows team members to continue receiving the paychecks they need to support their own families. Be transparent, stay positive, and focus on what is within your control.
Do you consider mulching and edging as maintenance and therefore essential work? What about installation work that is part of a larger construction project that needs to meet occupancy requirements (i.e. drainage, erosion control, etc.)?
Grunder Landscaping’s interpretation of this in Ohio is that edging is fine, but they aren’t putting down mulch right now. Ohio has been relatively stringent in what is allowed, and there is a lot of social pressure here as well. This differs by state. One company in Colorado wrote to us to let us know that they’re doing installation work for erosion control and that that is acceptable there.
Our home state, where our company is based, is not allowing us to work. However, we’re located near a state border and have clients in a neighboring state where the state will allow landscaping work. Is it ok for us to work in the neighboring state?
This depends on the enforcement and attitudes in your home state. If your trucks are on the roads in your home state, are they going to be stopped by police? Is your community going to think you’re violating the orders? Weigh these issues when making your decision.
If your team can safely get to, and safely operate in, the neighboring state, we don’t see a problem with doing so, in and of itself. But, again, you have to consider the bigger picture and carefully weigh your options.
Marty, you’re working from home now. How are you staying focused?
Just like always, Marty plans for the next day the night before. He is keeping his morning routine the same, waking up and getting showered and dressed at the same time, and sticking to a schedule. He’s using tools like Zoom, Microsoft Teams, and Slack to stay connected to his teams both at Grunder Landscaping Co. and at The Grow Group.
If your company has shut down, now is a great time to call clients and see how they’re doing. Hearing a kind voice on the phone can go a long way to helping us all feel less isolated and anxious during this challenging time.
Marty, you mentioned that you are mulching commercial properties but not residential. How is that different? Where did you find that it was spelled out to not mulch residential, or is it just a gray area? If it is spelled out, do you think it will be lifted anytime soon?
Grunder Landscaping Co. is considering businesses as commercial properties, but not HOA or apartment complexes right now.
In Ohio, the regulations on landscaping remain in a gray area. GLC expanded their work on these commercial properties because they felt they could do that work safely and without any community pushback for it. They believe they can do all of their work safely and abide by all the guidelines, but they have not extended the work they’re doing on residential properties yet. They are continuing to re-evaluate the situation daily.
Personnel Issues
Was taking the temperatures of employees a company policy at GLC or a state policy?
Governor DeWine asked all businesses that remained open in Ohio to start doing this as a safety precaution.
We have certain team members who aren’t consistently following safety protocols (social distancing, proper sanitation, washing hands, etc.). Would you recommend we send them home, lay them off, or dismiss them completely?
Don’t tolerate bad actors. Start with sending them home and escalate your response up to dismissal if you don’t see a change in behavior. Document the steps you take.
If for no other reason, you need to take these steps to protect your other team members.
I’ve heard you say that companies may want to delay laying off team members while new legislation is in the works. Can you explain why?
The federal stimulus package that just passed includes help for small businesses, but the aid you’re eligible for may be reduced if your company lays off workers.
We have a large maintenance job that we are expecting to gain in June. With the labor market getting tougher as we get closer to the summer months, should we still search/hire now, or wait until we get closer to the start date?
We would hire them now and if they are better than others currently employed, act accordingly. Can you push yourself to sell more work? Maybe take on some extra projects right now, as it’s normally very hard to find a landscape pro in the spring.
Can owners of companies qualify for the unemployment benefits?
It depends if owners are W-2 employees of the company or if they just get a distribution. If you are a W-2 employee, you should qualify for unemployment benefits.
Is GLC able to keep all construction department people busy doing maintenance? Or are construction staff staying home?
GLC is only doing limited maintenance work right now. They have called some construction teams back in to help with the maintenance work; so far there has been enough work to keep the crews busy, and the maintenance team is grateful for the extra help.
With the one person-per-truck policy, how do you handle people that either do not have a driver’s license or can’t drive company trucks because of insurance restrictions? Should we lay off employees who can’t drive to the job site?
If team members don’t have a license, start by seeing if there is someone in their family who could drop them off at the job site. In Ohio, they are allowing you to put two people into a truck if it’s a crew-cab, as long as they’re spread out within the truck. If you have a van or other large vehicle you could do the same. You have to be resourceful to address this.
Are companies paying their team members if they are shut down?
When GLC suspended operations, “essential” employees continued to work, in the office, at a safe distance from each other, and from home, and received their regular salary. “Partial essential” employees worked from home M/W/F and were compensated through unemployment minus their pay on a pro-rated hourly rate; they also could use PTO. “Non-essential” employees filed for unemployment, or used PTO.
Companies are all handling this differently. We’ve heard from some companies who have committed to continuing to pay their team members even through a shut-down, while many other companies are asking their teams to go onto unemployment. These are difficult decisions; consider the future of your business when you make them.
In regards to the CARES Act, does “subject to quarantine” include shelter-in-place orders from the state that cause employees to not be able to work? Is there any impact on being deemed essential?
It’s our understanding that the act applies to government-imposed or doctor-ordered quarantines, issued due to your recent travel history or possible exposure to the coronavirus, but not to shelter-in-place or stay-at-home orders. Again, this legislation is new and additional details are being released daily. We recommend checking the US Department of Labor and IRS websites for updates.
What documentation do we need to keep and provide to be reimbursed for an employee’s wages if they qualify for the CARES Act leave? Do we need to ask for doctor’s notes?
The IRS is expected to release further details regarding this matter shortly. We recommend carefully documenting everything now as best you can, and checking the US Department of Labor and IRS websites for updates.
What are a couple of things Marty and Doug are each doing to instill confidence in their team each day?
Marty shared that they are over communicating with their team. He’s being honest and is not giving them reasons to doubt anything their leadership has told their team. They’re also listening. They’re talking to each person to see what they’re concerned about, and doing what they can to ease those concerns.
Doug felt that being totally transparent and reminding your team of how strong the company and the team are is important. Being present is equally important. Model the safe behaviors you are requiring of them, and show your team that you care and you are trying to keep them safe. Being an empathetic leader will serve you especially well in times like these.
This is a question for Doug. How did you structure PTO sharing to make sure it was given out fairly?
For those of you who didn’t join the webinar on April 8, SiteOne set up a plan where team members could donate their unused PTO to a bank that could then be used by other team members in need. A tremendous number of team members have donated extra PTO.
SiteOne’s HR team manages the PTO bank and is handling all applications for it. They are the gatekeepers to prevent any misuse. They’re paying associates who are home sick or caring for someone who is sick already, so this PTO is just for people who fall outside of that. It’s been used mostly by team members who can’t continue working because their kids are home or because they live with someone who is more susceptible to the virus.
Marty just said that GLC is sending out trucks with two people. Was the distancing rule relaxed in Ohio?
In Ohio, they are allowed to have two people in a truck as long as both are wearing masks and they keep the windows down to provide ventilation. This may not be the case in all states, so check your local orders for more information.
How has your hiring process changed during these tough times?
Because Grunder Landscaping Co. is not operating at full capacity, they’ve been able to rely on their existing workforce for help and haven’t needed to recruit heavily. That said, they are actively looking to fill key positions for when they are back to operating at full capacity.
Other companies, like LOVING in Charlotte, NC, are continuing to recruit new team members. They are advertising their positions on social media as they typically would and are conducting virtual interviews instead of having them in person. They have hired a number of individuals who have been laid off from other industries, like hospitality and restaurants, and are adding to their video trainings to help them learn the skills they need.
Are there any employees you’ve had who are in the National Guard or Reserves who have been activated, and how are you supporting them if so?
A member of the GLC leadership team is in the National Guard and there is a high probability he will be activated at some point, and GLC will support him through that however they can. Marty feels strongly that the leadership that this team member has learned from his time in the National Guard is very valuable to the company, and he’s confident that this experience will add to that when he returns.
When you do the right things, the right things happen. This team member has been activated before, and the team has rallied together to get through it.
How are you keeping crews distant while on job sites?
GLC has a protocol that team members are required to follow, and they sign a form every day to renew their commitment to continue following it.
Bob Grover’s team at Pacific Landscape Management says that if you can hit someone with a rake, you’re too close. It’s been a funny way to keep the distance top of mind for their teams.
Ask your teams for help and involve them in the problem-solving if you’re looking for other creative solutions.
Investing in New Facilities and Fleets and Making Other Purchasing Decisions
We had planned on making upgrades to our fleet and purchasing a few mowers, a truck, and various material-handling and compaction equipment for our install crews. We don’t “need” any of this, but we budgeted for it because it will increase efficiencies. At this point, we’ve delayed all these purchases but I’m struggling with the decision because the retraction on spending is what kills economies. What are your thoughts?
It’s kind of you to consider how your actions will impact all of us, and we understand your concern about the potential impact on the economy.
That said, you should proceed with caution right now. If you’ve budgeted for this and have a contingency plan to cover the payments, then you should be fine continuing with the purchase. However, the equipment on offer won’t go away. You may want to wait and reevaluate your situation in 30, 60, or 90 days. See what happens—there may be a great deal in the next 60 days that can save you money in the long run.
We planned on expanding exponentially in Q1/Q2 this year and invested heavily in new vehicles and equipment in February and March. This past weekend we had clients cancel nearly a month’s worth of enhancement work from the uncertainty. We are still getting new leads and selling, but should we try to dump assets now or weather the storm? We have a plan to cover the debt service even on a reduced budget.
If you have a plan to cover the debt service, we would recommend you hold onto the equipment. Don’t jerk the wheel; if you have a plan already in place then try to stay the course.
Our company also operates a garden center. Should we be planning and ordering for the general public or reducing orders in anticipation of being closed? More broadly, how should all companies in our industry be ordering materials?
Yes, we think you should be reducing the materials you order. You want to be careful not to have too much plant inventory, especially right now.
Check with your supplier. They may be able to help you through this by allowing you to order now and return unused materials if you do have to shut down.
Specific to your garden center, there may be creative ways you can continue selling products since you’re direct-to-consumer. Plant shops in the GLC area closed their storefronts and went to online ordering with local delivery or curbside pick-up last week. Dennis’ 7 Dees Garden Centers in Portland, OR, just launched their own online store this week.
Also, talk with your local SiteOne representative; they handle procurement at Grunder Landscaping and at many of our Grow Group clients’ operations and they are an excellent partner to work with.
We currently rent our facility. The industrial real estate market in our area was very hot pre–Covid-19 and we have been looking to buy the right piece of real estate for years. Last week the perfect property/shop came available. Do you think it is a horrible time to put an offer in on the property? The site is not yet listed on the MLS public market yet. If we let the property sit, I am sure it will get bought if it hits the open market.
Similar to our response to purchasing equipment, if you have a plan that takes into account a worst-case scenario and you can still cover payments, proceed but do so with caution. This is a big move. Be careful not to overextend yourself with debt; right now cash is king. Talk it through with your accountant and other financial advisors. The best move Marty ever made with his landscaping company was building his facility, so he can relate.
I was in the process of getting software set up to better run my company. Should I continue with that work so that it’s ready to go when we’re back to full steam?
This is a decision that will set you up for success in the long run, but you should proceed with caution if continuing this will strain an already tight budget right now. As with other purchasing decisions, what is most important is to have a plan to cover the costs so that you don’t over-extend yourself. If you have a plan in place to pay for the software, then we would continue as planned.
Managing Client Accounts and Relationships
How should we be handling the work we have? Should we be trying to blow through our current job board to generate cash or should we pace it out to keep a steady flow of work?
Methodically go through the work and be careful. Keep your team members working a full 40 hours a week if you can, but be careful with overtime right now.
We’re based in a state under a stay-at-home order, but we are designated as an essential service. We are out working again but now I’m concerned that customers will be paying even later than usual. How do I combat that? What if they delay monthly contract payments?
Stay the course and operate your business as usual. Get deposits up front for the work you’re doing and set expectations for when you need to be paid. If services have been rendered, don’t be bashful about asking to be paid.
The squeaky wheel gets the oil. Keep communicating with your clients and letting them know your expectations.
How can we handle customers who are asking to postpone or reduce mowing services to save money?
Your clients are facing the same uncertainty you are, and are probably just grasping at straws. Give them a call and explain why your regular service is necessary for maintaining their property. Let them know that you care, and that you want their property looking its best while they’re home.
Hopefully a calm, thoughtful conversation can convince them of the value of keeping you on their property.
Are your pesticide applicators required to leave documentation with the customer? How are you handling that?
GLC is not worried about that right now. They’re still documenting everything they do but getting the clients the paperwork isn’t a priority right now. They are more concerned about the paperwork causing spread of the virus.
How are you handling concerned clients? Have you had to address questions since your crews started working again?
You’ve got to over-communicate. Marty has called all of his clients, and all of those calls have been positive save for one. The GLC team continues to be transparent about why the maintenance work they are doing is essential and how they are ensuring it’s being done safely.
It’s important to remember that everyone is dealing with a lot right now. Many people aren’t at their best; they’re stressed out and sometimes they take it out on others. Do your best to stay calm and be reasonable. Continue to communicate and be proactive so they know you’re concerned, too. If a client does not want you to work on their property now, then say you understand and obey their wishes.
Finance
Should we go to our banker or our accountant for help with SBA loans? Is there a list of banks that are approved for SBA loans?
You will ultimately need to go through a bank to get these loans, but an accountant may be helpful as you fill out the necessary paperwork and document everything required. As we mentioned on the webinar, this legislation includes a provision that caps the amount other professionals can charge you to help with these programs, so asking for help is logical if it saves you time.
The US Small Business Administration has guidelines and loan resources listed on their website. They publish a list of the 100 most active approved lenders, but this list doesn’t include all approved lenders. If you already have a relationship with your banker, check with them first.
If we have so far only been minorly impacted by the coronavirus, should we go ahead and apply for one of the small business loans available in case we need it later?
We recommend going through the process and seeing what your options are. There are not provisions for future relief past the spring yet, so your aid would be limited to between now and June.
Even if you aren’t sure if you’ll be impacted, go through the process to see what you may be eligible for. Just spend your time wisely; we recommend having your accountant or financial advisor help you so that you aren’t spending too much time on the applications.
Everything that I am seeing requires that you must show your company has suffered economically/financially to qualify for assistance. Is this the case for the assistance programs you spoke about today?
For the loans, you must initial that you agree to this statement: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
Do you know if you can apply for both the PPP loan and the EIDL loan?
It’s our understanding that you can apply for both loans, but you can’t be granted both loans at the same time. Keep in mind, too, that EIDL loans over $200,000 may require a personal guarantee.
If I need extra cash, can I put off making some of my debt payments or other monthly bills?
Many lenders are offering flexibility right now; for example, we’ve heard that GM is allowing payments to be deferred for up to 120 days with no penalty, and other lenders are offering similar deferments.
Keep in mind though that you have to make these payments no matter what; this is buying you time, not lessening your debt. Whether this is a useful tool for you will depend on the specifics of your business. If you have a plan in place to keep making your payments on a reduced budget, then stay the course. However, if you need the cash for other expenses right now, then this is a good option for you and can help your business weather this storm. As always with debt, be careful not to overextend yourself.
Marketing and Sales
Can you elaborate on the virtual project estimate for clients that you mentioned in the webinar? We were just discussing something similar earlier and I would love to look up how that company is implementing this.
The company we referenced is Property Pros in Indianapolis, IN. Check out their social media channels to see how they’re doing it.
What strategies can we take to ensure new business is coming in when many clients and communities are practicing social isolation?
People are home and they want to talk right now. Call your existing clients, past clients, and people you’d like to do business with. The phone is your most powerful sales weapon right now; use it to build relationships that will turn into sales later.
You can say something like, “We’re trying hard right now to overcome this. Would you mind if I walked your yard and gave you a quote for work I see that we could do? We can do everything over email, phones, and video conferencing so we can both stay safe.”
Or try digital quote platforms and share on social media that you’re able to quote work while practicing social distancing.
This is my first season in business. As a start-up that wants to keep a positive look in the public eye, what do you recommend for marketing techniques to stay relevant and weather the storm?
The number-one tactic you can use is calling the people you know, whether you currently do business with them or would like to in the future. Check in on them and make sure they know you’re thinking of them. People will remember your actions during this time, and building relationships is the best way to grow your business.
How should I handle clients who don’t understand that I am cancelling some services for the safety of my team and the client?
This is a tough question. Try to explore a creative solution to start. Maybe there is a way for you to still do this service and keep your team safe.
Or, if there isn’t a way to do it safely, just have the conversation. Sometimes the client hearing your voice, and seeing that you’re a real person, helps smooth over things like this. Say something like, “We’re committed to keeping everybody safe, including you, and this isn’t something we can do safely right now. We will gladly pick these services back up in the future when it becomes safe to do so.”
You may have to just agree to disagree on this one if they’re unwilling to work with you on this. Safety comes first.
How can we be marketing right now without clients viewing it as insensitive?
Focus on being helpful first. Share content that is helpful, and call, e-mail, or text to check in on your existing clients. Personal touch-points are very powerful right now.
GLC is mailing a card with a picture of a spring job to their existing client base; it thanks clients for their business, lets them know that GLC is there to support them, and that if they see anything that needs to be done in their yard while they’re spending more time at home, they should give GLC a call.
Health and Safety Precautions
Is there a non-toxic chemical that can be used to clean tools, equipment, and doors that kills the virus?
Grunder Landscaping Co. has contracted with Maid Right to spray their Enviro-Mist® throughout their office on a M/W/F schedule. The cleaner they use kills 99.9% of bacteria and viruses and is considered non-toxic by the EPA. Between visits, GLC is using Lysol and Clorox wipes and sprays to disinfect.
We’ve also heard of companies making their own cleaners using CDC–approved guidelines and recipes for effective cleaners. This seems to have become more common as more traditional cleaners have become harder to find.