The current business environment for many trades, including landscape contracting, is in disarray as the COVID-19 pandemic continues to wreak havoc across the globe. Many new business owners are utilizing this time to review best-practices and streamline their business model to ensure it can weather these financial storms.
In this article, I will review 4 common mistakes new landscape business owners make and how to avoid them. Over the past decade, through running my own design company (along with teaching, mentoring, and coordinating with other landscape professionals) I have seen what works and what doesn’t. Use these line-items to help calibrate your own business for the best possible future success.
#1 Jack of All Trades, Master of None
This is the most common mistake I see from new professionals. They are often energetic, excited, and idealistic about their future business plans, but don’t realize that their dreams of running a Fortune 500 company are depriving them of the initial cash-flow success of their current business. These individuals often wish to offer a bevy of services, ranging from lawn care to organic vegetable gardening, but fail to distinguish themselves from the broad (often saturated) competitive market.
My advice to them is this: It is better to offer a single high-quality service than to offer numerous low-quality ones.
So when you first begin, take time to set realistic financial goals for the first few years. I created a spreadsheet that helps new business owners do this, as part of my Business Planning Series.
#2 Adapting for Sustainable Growth
This mistake is similar to the first, but often affects contractors that have shown some success within the field. When new business owners find success, they mistakenly believe that their large profit margins will continue year after year with little adaptation or change to their routine (if it ain’t broke don’t fix it, right?).
While it is true that business practices stand the test of time (loyalty, dependability, good communication), it is naïve to think that how you complete projects will be the same ten years from now. (Don’t believe me? Just think back to how much landscape technology, software, and construction practices have changed over the past decade).
A savvy business owner must be able to adapt to changes in the marketplace and optimize their models to capture their share. If they simply presume their “tried-and-true” ways will always work, they are making a serious strategic error.
But, this type of adaptation doesn’t need to be something to be fearful of. Staying on top of changes within the market can be fun! I advise new business owners to contact their local trade industry associations (such and landscape and nursery associations or their local chapters of the ASLA or APLD). These organizations are always putting on great educational workshops for members and industry professionals on topics ranging from plant trends to construction specifications. They are valuable resources for staying centered in a rapidly rotating world.
Or pick up something new for your bookshelf, the industry is always pushing out great resources for professionals. Currently, here are a few of my favorites in the landscape world:
Planting the Natural Garden by Piet Oudolf & Henk Gerritsen – an updated edition to a resource that shows how perennial plant selection can dramatically enhance your designs.
Nature Play At Home by Nancy Striniste – a cute little resource on creating outdoor environments that stimulate childhood development.
#3 Maniac Marketing
I once had a conversation with an alumnus of the college’s horticulture program. She had started her own garden design business and was struggling. Before I had set up a conference call with her, I had asked what marketing channels she was using and how effective they were. Her response astounded me.
She had social media covered, with profiles for all the big platforms created (Facebook, Twitter, Youtube, Pinterest, Instagram) along with a paid ads in trade periodicals, truck wrapping, and lawn signs.
Upon hearing this, I asked the obvious question, “What is your marketing budget?” to which she replied, “I don’t really have one.”
When I conferenced with her, I told her about a local professional that I knew. His company name was not well known, he had little to no web presence, and he rarely took out ads. He had a rather simple strategy, go into a new neighborhood with his trucks, book a job, do a darn good job, and ask for a referral. Rinse and repeat. From my conversations with him, he told me that he had more customers interested in hiring him than he had time to book (a marvelous problem to have!).
The point I was making to my past student was marketing can be a vanity exercise. Just because you COULD market through numerous channels doesn’t mean you SHOULD. Learn who your customers are, how they get their information and streamline your approach to get their attention.
And most importantly, get feedback. A simple “How did you hear about us?” on the initial call can be tremendously helpful when thinking of how to spend your marketing budget.
#4 Owning Your Clients
When I first started in the industry, I slogged rough hours (close to 70 per week during the summer) doing lawn care for a local maintenance crew. The hours were rough, but the pay was good – well, until it wasn’t.
After a few seasons, all the work had dried up for our crew along with the business entirely. I didn’t understand why this had happened, as I was seeing other crews still mowing and maintaining properties. This is when I learned the valuable lesson of owning your clients.
The owner of the lawn care business I worked for only did subcontracting work for a general contractor that focused on new construction. They were close friends and had worked together previously in another industry.
Unfortunately, the general contractor had gotten into some financial trouble and had to cut back most of his services which only included architectural or interior work (in other words, no more landscaping).
With no marketing budget or business plan – honestly, I don’t even think we had a logo – my boss’s company quickly learned the value “owning your clients”.
By relying solely upon another business entity for work, and not diversifying or putting in the effort to win bids or jobs independently, your business will always be dependent on another person/company for your livelihood – a recipe for disaster.
So be sure to put in the effort, know your clients, and have a solid plan to win them.
For more information on Landscape Design and Landscape Business Development, please make sure to checkout our Youtube Videos and the Design Resources section of the website.
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