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How to Grow and Scale Your Landscaping Business

How To Grow And Scale Your Landscaping Business

It’s a great time to be a landscaper, so long as you know how to build your business effectively. If it’s time to build up your landscaping business and take it to the next level, there are a few tips you should keep in mind to capitalize on this growth in the most positive way.

Being in business for a while can actually be a good thing when it comes to your finances. The reason is because without some liquid cash on hand and some business history, a bank is unlikely to loan you money at the outset of your landscaping business. Even though trying to figure out how to scale up your business may seem like  a challenge, you’re actually sitting pretty when it comes to getting the financial support you’ll need to take it to the next level. Especially if you already have three years of solid financial statements, it will make things much easier when you walk into the bank to talk about taking out a line of credit to grow things to the next level.

If you’re ready to grow, you need to understand that you can’t actually be a great landscaping contractor if you don’t have the systems in place to make it happen. With great systems that allow you to streamline and manage properly, you’ll be well-positioned to have more full-time crews on staff while still providing the high quality your customers are used to. You may need to hire people to design and create projects at your same quality level while you step back from being a hands-on owner to instead be a “business owner”. If you try to handle both of these positions at the same time, you’ll likely end up burned out and stressed out very quickly. Having the systems in place first makes the transition easier with fewer learning curves.

Make sure you don’t outgrow your working capital. Making mistakes in this arena is one of the most common ways that landscaping business owners can get overwhelmed quickly. Even if you’re earning a solid profit, you need some time to adjust to new cash flow pacing. If you find yourself in a bind and unable to pay up your vendor accounts, make sure you communicate the issue and always stick to your promise to pay back a debt. In order to avoid outgrowing your working capital, maintain 10 to 15 percent of annual sales in cash whenever possible.

Finally, make sure to tap into the talent of your best employees. You might notice as you grow that some people will be more suited to the transition than others. Those who are simply working for a paycheck might not feel the excitement of growth the way that you do, but you may have superstars in your midst that could be motivated even further with an adjusted pay structure and the development of a more entrepreneurial environment. Make sure you are able to identify these superstars and do what you can to keep them- it is far better to have someone who outperforms who is happy with their job as opposed to someone who leaves for another opportunity. Stay in touch with these employees and do what you can to keep them.

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