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Some landscape company owners run their business like it’s “just
a job.” Others realize that they can build equity in their companies.
The latter group of owners is the wiser of the two.
Whether you intend to remain as the owner, pass your company on to the
next generation of your family or sell it, you should be growing its value.
The equity within your business can fund your retirement or it can provide
you the money to follow another dream.
Get a workable plan
But you need a workable plan to do this. You can’t “wing it”
and expect a big payoff when it’s time for you to leave the business.
I’m always surprised by the number of company owners in this industry
who:
- don’t use contracts,
- have no written processes for job functions,
- don’t keep accurate records and see no need to budget or to
review monthly profit-and-loss statements, and
- insist upon wearing too many hats. If they get sick or leave their
business in the hands of somebody else, it will struggle and, perhaps,
collapse.
It ain’t easy
Most landscape people enter our industry because it’s relatively
easy to attract customers, allows for a flexible schedule, and they like
the work. I suspect that most think it’s an easy way to make a living,
too.
Building a successful business isn’t easy. It requires more than
just hard work. The owner needs to acquire a wide variety of skills or
hire others that have them. And it requires a workable plan.
In fact, every day the owner of a landscape or lawn care company goes
to the office or a job site, he or she should be following a plan that
aims, apart from generating wages and profits, to build the value of the
business.
How successful have you been in doing this? Assess your business the
way a buyer might. Ask yourself questions like, “Would I want to
buy this company?” and “How much would I be willing to pay for
this business?”
Develop a plan to grow your business, attract top talent, delegate responsibility
and build the value of your operation. Don’t be content to just chug
along.
There’s never a bad time to start putting together your plan. If
you need professional help to guide you through the process, get it. It
will pay huge rewards for you some day.
When it’s time to sell or hand the business to another family member,
you’ll be much happier that you had something valuable to pass along.
That’s part of your reward for all of those long days — and
the extra hours you spent putting together your plan.
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