Growing your landscape company can be very rewarding.
There’s nothing as personally satisfying as looking at a completed landscape job…
or a well-groomed lawn…
after a hard day of work that makes you feel gooood.
The personal satisfaction of seeing your lawn or landscape ideas come to life can keep a guy (or gal) motivated and excited about their landscaping or lawn care career for years.
But let me remind you of a very important lesson I’ve learned in three plus decades of business.
Money. The green stuff…it matters!
There will come a time when you’ll need more than good feelings to keep you motivated about your landscape work.
That’s why I have been repeating these powerful words to my clients (owners of landscape companies) for over a decade.
Post these words on your wall or bathroom mirror today…
THE PURPOSE OF YOUR BUSINESS IS TO CREATE AND KEEP A CUSTOMER… WHILE MAKING A DESIRED PROFIT! Tony Bass, 2010
Around the time you start to:
- admit the pain of having a sore back…
- face the frustration of dealing with wore-out equipment that is killing productivity…
- dread dealing with the endless employee challenges one more day…
- become aggravated with demanding customers…
- (many landscapers) pause and reflect on their progress meeting their personal financial goals.
I’m betting that you’ve paused a time or two to ask yourself:
“Is the money I’m making worth all the hassle I put up with?”
This is a SMART question my friend!
Money earned from landscaping is a byproduct of effective marketing, well-planned pricing systems, and efficient job management.
And…YOUR money (what you take out of your company) should be growing every single year!
If YOUR money is NOT GROWING…there’s a problem!
Here’s how you figure out if the hard work, long hours and financial risks are really worth your effort.
Each and EVERY YEAR…for your entire business life…you need to pause and check your scorecard.
Your scorecard (on how well you are doing on the MONEY SIDE of your business) is a report called your personal financial statement (PFS).
Your PERSONAL FINANCIAL STATEMENT tells you how much money you have accumulated in your lifetime.
If you have been in business for a few years and you have applied for credit at a bank, the banker MAY have asked you to complete a PFS.
But…if you borrowed money for a lawn mower or a truck – an asset based loan – you may have not been asked to provide a PFS.
Here’s why I’m sharing this information today…
Your PFS should include a line-item that lists your lawn or landscape company as an Asset with a specific value on your PFS.
How can you figure out the value of your company (without having to hire a CPA)?
And…more importantly…is your company getting MORE valuable year after year?
I recommend that you use this formula:
Cash Flow x I-B-M = Equity
We shared the details of how to calculate your Cash Flow and learn what the I-B-M is in the article titled:
You should click on the link above to learn about all four kinds of money in your business.
Money… it’s a very personal matter.
Some folks don’t like to talk about it.
Some folks don’t even want to think about it!
I’ve learned the more I talk about it, the more I learn about it…then the easier it is to get my hands on the green stuff.
Unfortunately…we were not taught much about money in school.
That’s why I believe that each and every business owner has to get on a steady diet of financial education.
The risks we assume as business owners far outweigh the financial risks assumed by non business owners.
Tools like the PFS and the business Equity formula are tools that can help make you very wealthy from landscaping.
Don’t let 2021 be a year that you just keep getting by financially.
Make this year your very best.
You deserve it.
Tony Bass, founder
PS – If you are interested in growing your wealth from operating your landscape company, I’d like to invite you to join us at the highly acclaimed Profit Builder Training event. Click here to save your seat or just learn more!
PSS – If you want to see if your company would be a good candidate to attend a Profit Builder training program, just follow this link to schedule a 20 minute private phone call. We can quickly help you calculate your sales per FTE and see how your financial results compare to other landscaping companies near you.