Business growth rate

[Russ]

We had a good season here last year. I'm looking for advice on how to manage growth. We did 2055 mows with 3115 income producing events and I about went nuts. I went through 14 people trying to maintain a 3 man crew, Sehedualed 41/2 days work to allow for weather and ended up working 7, started work about 5AM (maint.) and was able to quit bout 10PM,and managed with diligent finnacial planning to produce about 16,000 less profit than the previous season (mostly labor). I would like to continue to grow but were just going to have to add about 10 hrs to the day 2 to 3 days to the week and 5 or 6 months to the year. I missed a lot of work I just could not get to. Now Im working on my schedual for this year.and I'm lost. How are you guys doing it?

[double e]

Up your rates?
Work smarter not harder

[HOMER]

What all are you trying to do?

Cut
Landscape
Irrigation
Maintenance?????????????????????????????????

[kutnkru]

>Reasess your maintenance routes;
>look at the options for more productive equipment;
>evaluate what went wrong with employees and try to remedy the situation accordingly;
>re-evaluate what your charging for services and eliminate those that are costing you money to maintain.

Just my .02
Kris

[HOMER]

I got an idea he's got too many irons in the fire. Some of the other posters on the other forum here have made comments and references to the "mow and go" bunch! There is something to be said about finding your niche and sticking to it. One can try to take on too much, become too diverse, and lose control of the whole mess. I learned last year that 2 man crews can accomplish more than 4 on most properties, I think most will agree, the more people your trying to manage the more problems your gonna have. It takes very good foreman to manage YOUR interests. If you haven't found one better to manage it yourself.

I'm guessing here so correct me if I'm wrong.

[65hoss]

Maybe growth isn't what you should be worrying about. Start looking at being more productive with what you have first, and then look for growth. Find a way to make the same work more profitable.

The others mentioned prices, equip, employee problems, your routes, to many fires, etc. Start with these. Find where your going wrong. Streamline these, make them more profitable or growth will always hurt you. Look at raising prices, you will cut less and make the same amount of revenue. With less maintenance and expenses from that alone will up your bottom line.

You need to stop looking at quantity, that type of thinking has put many small business out of work. With the quantity mentality, you will always have ever increasing expenses and lower profitability. You alone must find "Herbie" (business school mgmt teaching tool). If your interested in what this is, let me know.

[TGCummings]

Excellent advice from all above! The very first thing you should look at is your rates on new jobs. You're obviously doing a good job to be rolling in the new clients, so up your proposals. Charge what you're worth! I've read here on this forum that it's been said that if you're getting more than 15% of your proposals, you're charging too little! Whether that number is accurate or not, it should give you pause to think at the very least.

Good luck!

-TGC

[Kent Lawns]

You're at that critical juncture where you have to stop mowing yourself. Hire a good foreman, (yes, for the big $) that'll run the mowing and you focus on your sales, paperwork, extra work, customer service and sanity.

[Russ]

Thanks for the advice guys! This is a great board!! Here is a little more detail. I'm running 2 DC-60s and 1 48WB where the DC's wont hold the hills. Im 80% upper end residential and 10% commercial, 8%mid range residential 200 to $500,000 price range, 2%mercey mowing for disabled and elderly. We provide full service to residential, mow,apps,clean-ups, landscape installation where heavy equp. isnt needed. just about everything except irrigation(we do repair the heads we damage). I est. jobs at $30.00 per man hour and am about 80% accurate (spring is tough). Down time from equp., less than 5 hrs in 3 years. Laborers cant take the work. I pay $8 to start $9 when he can trim & blow without correction & $10 when he can mow, and they are leaving me to work at gas stations and fast food joints. Labor was 28% of gross last year. Routing is geographical(max is 22 miles away,$1,500 mow and we mow 2 on the way there and 1 on the way home). How do you turn down a 4 acre mow next door to one your doing in June?? I've beared my ##'s to the net? What is "Herbie Business" small and efective?

[Russ]

P.S. Can I be under pricing at $90.00 per hr for a 2 man and me crew??? How are you guys doing it? P.S.S. Foreman? I can"t seem to find a guy who will stay with me over a month. Love to be able to speek spanish.

[Bluegrass Lawn Service]

I believe like those above. Work smarter not harder. You need to split up your crews. When you can one dixie on a trailer and the other on another trailer mowing somewhere else. Then you getting more done with the same equipment. This won't always work but you'll be supprised. Also if it's like you say no employee is going to work those kinds of hours and days. You need to set it up where you can be done in 9 hours per day and 5 days a week, using the sixth day for mulching or general catch up. You may have to kick some to the street and just keep you most profitable clients. I would be interested in knowing about "Herbie" Good luck in the coming year.

[parkwest]

Used to be an old joke that went "I didn't make any money on the job but I'll make it up in volume." Seems like today a lot of contractors are using that as their standard oprating procedure instead of a joke.

Make sure your business is producing a profit. That means a return on your investment after all expenses, including your salary, have been deducted. Otherwise why invest your time and money into something that only is paying you wages. Go work for someone else.