Growth in Qty...or in Profits?

Discussion in 'Lawn Mowing' started by OnMyOwn, Jan 10, 2006.

  1. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    First of all, I can sure tell that winter season is here. Many of the threads are being supported by "GREAT" professionals and outstanding comments that can be used as a source of improvement. Thank You.

    My question regards growth. As I scan the threads, many of you are speaking about items you must complete to grow your business for the next year. I, myself, have been all over the spectrum from multiple crews, employees to a two-man operation. I no longer look at growth as a focus. This market is so easy to penetrate for a newcomer, growing a large company for selling purposes is out of the question. I focus my growth as "net" growth, or growing my profitability. I accomplish this by shopping insurance companies, seeking better methods, buying more efficient equipment, keeping my overhead low and pulling tips from this website.

    Thanks again to everyone that takes the time to post their knowledge on this site. My question to each of you, is: are you growing by adding clients, or fine-tuning your processes for improved profitability.
     
  2. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    As of right now Im growing by adding clients, eventually I will fine tune the way you speak of, but I can't do that until im satisfied with my clients. I need to pick up the type of volume I want, and the type of customer that Im looking for, people who want to pay for the service, and view it as a neccesity.
     
  3. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    Onmyown, I've been through the same spectrum in 11 years, from being solo when I started, to running with 7-8 employees, to where I am now, with 4. I stopped worrying about increasing my client base, and just focused on upselling my best clients. In fact, I sold about 30 clients in the spring, and only picked up 2 new ones. I also try to always watch my spending, and was able to get by with one less employee this past year. I'm still waiting for my year end statements, but when we ran the numbers in September, sales were down a bit from 2004, but the net was far better.
    I'll never be the biggest company around, and that doesn't bother me. I'll just keep focusing on keeping costs down and improving profits.
     

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