How to be a profit pro

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We are coming off a great year at Grunder Landscaping, but success one year is no guarantee for the next, and there have been more years than I’d like to admit when we haven’t hit our numbers. To win consistently, you must stay vigilant and continuously improve.

Over the years, I’ve identified a list of things that “profit pros” are keenly aware of. I define a profit pro as a person or company who knows how to make money. Profit pro companies are ones where the team enjoys working, where they understand what is required for success and their culture allows them to do their work without causing unnecessary headaches.

There are three key steps that companies striving to be profit pros can take this year to improve efficiency, reduce the chaos and increase profitability.

1. Sell to your ideal client.

To find your ideal client, you need to ask three questions about the relationship: Is it enjoyable, is it sustainable and is it profitable? If you can answer “yes” to each of those questions, and the client fits your strategy, you’re on a path to success. Profitable companies have a well-defined ideal client, and they work to find more clients like them, while turning down jobs that aren’t a fit.

2. Use detailed site maps.

Selling work is great, but producing the work is where the profits come in by the truckload. Create and use a detailed job site map to ensure you make the most of a job. Note where you will park the truck, where you will start the work, where you will end the work and where the trouble spots are. Doing this ahead of time saves you time and aggravation on the job site.

Every wasted motion matters, and using tools like industry-specific software and even Google Maps to eliminate wasted time will improve profitability and make jobs easier for your team.

3. Bill and collect promptly.

People who follow me know something I love to teach are the four steps to great cash flow: sell the work, do the work, bill the work and collect the work. Imagine those four steps as gears connected to a crank. The faster you crank those four pieces, the healthier your company is.

Having a clear and precise process for billing and collecting on your work allows you to crank faster. At Grunder Landscaping, we bill maintenance work a month ahead of any production. For construction work, we collect a deposit upfront, then bill the remainder as soon as work is completed. We avoid letting construction jobs stretch on, so we can promptly bill for work already done. Collections are something everyone in our company is aware of, and our team knows that a sale doesn’t count if it isn’t collected. In our weekly sales meeting, we always talk about accounts receivable to keep us on track.

Profit pros understand that running a successful and profitable company depends on doing many, many things well. At Grunder Landscaping, we’ve figured out what the critical list is for us, and on April 15, we’ll share strategies, tips and tactics your company can use to complete your jobs this year with the greatest efficiency and the least amount of headaches. At the end of the day, a profitable job is one that the whole company enjoys doing, and we’ll help you do more of them. Learn more and register.