Dear Landscape Business Owner:
Did you see the new report from the BLS released Friday morning (3-10-23): More Jobs – Jobs – Jobs – up 311,000 for the month of February 2023. The unemployment rate is now 3.6%, near a 54-year low.
Wages…they keep going up too.
In spite of increases in interest rates and nasty inflation, the report shows the economy continues to be strong. Barring some March surprise like a government mandated shut down (circa 2020), the start of a war (circa 1991), a massive terrorist attack (circa 2001), a massive bank collapse (circa 2008) or some new (invented) crisis, we will see a strong Spring season for lawn and landscape business owners. That’s good news!
Lesson from the Doctor
It’s a well known story. We learned this lesson from the famous Dr. Suess. Remember the Grinch? Even though he tried his best, the Grinch couldn’t stop Christmas from coming. What’s the lesson?
Jerome Powell and Fedzilla won’t be able to stop the Spring season (nor Spring fever) from coming in 2023! There will be strong demand for landscaping services once again this Spring. This shouldn’t be a surprise.
We predicted and described the 20 year bull market for landscapers in this report we published in 2008. You can read the entire article here. Here’s an excerpt from the article originally published in September 2008.
The Coming Bubble in Landscape Contracting
If you own a landscape company, your future is bright. Three years ago, the bubble began. It was not announced on CNN, NBC, CBS or FOX News. The baby boom generation began to retire. For the next 15 to 20 years, millions more will retire. They will live longer than any generation before us. They will cling to their homes as long as they can. These aging retirees will hire landscape companies to help care for their property. There will be fortunes made serving these baby boomer retirees. The baby boomers are the most affluent generation in our history! They may hire you!
Here’s why we bring up a fifteen year old article in 2023.
For our dear readers who started their entrepreneurial journey since 2009, 14 years ago or less, you’ve only experienced bull market economic conditions. During the past decade and a half, growth in revenue has been fairly easy for quality-minded contractors.
As we described in the article we published in 2008. The retirement of baby boomers, the wealthiest and longest-living generation in our country’s history, will continue to hire you and your company. Again…good news.
But we want to share a few powerful lessons from owning and operating a business through five nasty recessions in 35 years of business.
When the next Fedzilla induced recession begins:
- Construction related landscape work on new development will dry up pretty fast.
- You will be happy if you operate a lawn maintenance service with steady recurring revenue.
- Commercial customers for lawn and landscape services will demand lower prices.
- Companies that have fat overheads and weak balance sheets will be crushed.
- The companies who develop a strong marketing plan will continue to grow, despite a poor economy.
- It will be easier to find employees.
- Those who focus energy and effort to increase productivity gain a steady advantage in the market.
- Fall in love with your profit and loss statement plus balance sheet. They tell an important story. In other words, know your numbers.
We encourage you to give serious thought to these lessons. How could you adjust your business model to make your business recession proof?
Here’s a key point. The best way to lower Landscaping Prices is to design projects and service plans with a lower cost structure. Lowering landscape prices doesn’t mean lower your profit margins. The winners in business (during recessions) must be more creative than their competitors. Got it?
Will we see a recession in 2023? We can’t be sure.
But Fedzilla seems to think a slow-down of demand is required to tame inflation. We won’t bet against Fedzilla.
We will focus on the fundamentals of this game we call business success. We will focus on revenue enhancement and cost control with creativity. That’s the plan for 2023.
Invest in your education. Improve your business skills. Your success is almost guaranteed when a motivated human being is equipped with creativity, good health and a steady dose of business education.
Hit reply and share your best advice. We enjoy your feedback.
More to come.
Tony Bass, founder
PS – If you need help improving profits, understanding your financial statements or pricing your services, we stand ready to help.
Since 1998 we’ve been helping lawn and landscape business owners grow profits and meet their business goals.
If you want to grow profits in 2023 and beyond…Shoot us an email and put “grow profits” in the subject line. We will follow up with you. Tony@TonyBassConsulting.com