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The First Three Phases of a Landscaping Business

The First Three Phases Of A Landscaping Business

Owning a landscaping or lawn care business is exciting because you probably hope that the company will ultimately grow. This is part of the reason why many people in the industry start their own business, because they see the possibility of growth down the road. Understanding the three main stages of a landscaping business can help you understand where you’re at, where you want to go, and the best ways to mitigate risk at each particular stage.

Stage One: Revenue Up to $100,000

At this point, you’re likely in the startup stage. As the owner, you’re probably doing a lot of the work yourself. You’re going to start noticing less availability to do that as time goes on, so you might consider bringing in an office assistant to help you focus on growing the business. You might even have a small team already working for you, but breaking into the second stage of the business will require even more assistance. Having someone to do administrative tasks is crucial, and even  a part-time office employee can take a lot off your plate.

Stage Two: $250,000 in Revenue

Moving into this stage of the game requires support staff you can count on. When you avoid adding more talent to the team in stage two, you’re limiting the upward mobility of the company. Hiring the necessary support staff can increase sales.

Don’t jump into a hiring craze just yet, though. You need to determine how much room you have in the budget and you need to work through creating very detailed job descriptions for each role. Ensure that the people you bring on are set up to thrive in these roles. Your team at this stage is about much more than just laborers- you need crew leaders and possibly more office support.

Stage Three: $500,000 + in Revenue

Once your company has broken through this threshold, the value of your leadership is increasingly important. You need to think of yourself as the owner driving a sales engine that helps continuously grow business. You may be more involved in high-level marketing projects as opposed to overseeing delivery of actual landscaping work. You will definitely need crew leaders on the scene managing workflow and reporting to you. A general manager, designer, and operations manager may all be critical members of your overall team. Over time, you should focus on transitioning to more of a head role in leadership. While you may hear about projects being rolled out at the lower levels from time to time, you alter your role in the business significantly at this stage.

With each new stages comes the need for analysis of your risks and proper protection through insurance and other strategies. Make sure you’re annually reviewing your numbers and comparing  them against your insurance policies. Your insurance policies need to grow and evolve with you.

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