Labor is a critical element of the profitability of your landscaping business. If you aren’t charging enough for labor, you’re going to hurt your bottom line. But how do you know if you’re falling short?
The most successful landscape businesses are those that are able to make real-time decisions. They recognize if a job is profitable—or not—and can make important changes before it’s too late. A company like this paying attention to “daily numbers” and not waiting until the end of the month to review vital metrics when it’s frankly too late to act.
Monitoring your landscaping company’s metrics is the way in which you keep your finger on the pulse of your business—and there’s no denying how essential that is to be successful.
Numbers are such an important aspect of running a company and can literally make or break you. In fact, poor financials is one of the main reasons that businesses ultimately fail. Research indicates that of small businesses that failed, 82 percent failed because of cash flow problems.
The key to preventing problems such as this comes down to knowing your numbers. But which metrics matter most? What are the ones that you need to be looking at weekly?
We’ve rounded up a list of the most important metrics that every landscape business owner should be reviewing each week.
Chances are you've used QuickBooks for landscaping, at least at some point in your business. Most landscape contractors have. Actually, most small business owners in general, have—after all, it is not industry-specific software. QuickBooks can work just fine for many businesses in their early stages. But as your business grows, your software needs are most likely going to grow, too.
If you are not a snow-exclusive business and securing snow plowing contracts is not constantly on your mind, then you could fall into the trap of waiting until the last minute to start working on your snow sales. This happens to a lot of landscaping companies, so by no means are you alone.
But that doesn’t make it any easier to deal with the ramifications.
The truth is, when you wait too long to plan for your snow season, you find yourself scrambling. You might not even be able to hire the right number of laborers or have all of the proper equipment lined up if you didn’t plan ahead.
Fortunately, you can prevent a lot of headaches by starting the planning process now.
As the CEO, it is your responsibility to oversee your landscaping company as a whole and make sure that it’s running as best that it possibly can. In order to ensure that, you’ve likely implemented various tools over the years, including potential software solutions. But how do you know when the tools you’ve implemented are no longer enough?
How do you know when it’s time for new landscape business management software?
Technology is part of our everyday lives—and becomes more so every day. From online shopping to using devices to remain informed or connect with others, technology is used daily and that’s no different for those age 50 and older. Over 90 percent of adults over 50 own a computer or laptop, 70 percent have a smartphone, and more than 40 percent own a tablet, according to a national study.
Data is so important when it comes to how you run your business. If you’re regularly looking at data through a landscape business report, then you’re likely making major decisions based on what you read.
But what you see is also so important. In fact, one might argue that seeing is understanding.
Getting paid in an efficient manner is important when it comes to maintaining a healthy cash flow at your landscaping business. After all, having multiple clients fall behind on payments can become quite detrimental when you have your own bills to pay.
Are you performing the right markup on landscape materials so that you are keeping jobs profitable? Or, on the flip side, are you marking materials up so dramatically that it’s making you lose sales?