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Discussion in 'Business Operations' started by Lawnworks, Feb 1, 2007.
How big are your goals for your business and how are you going to get there?
BIG... and hard work!
Most of our business revolves around new construction and since residential construction is down 30-40% (In my area) and I had my best year last season I am actually setting a goal just to maintain my numbers from last year. But in-order to do that I am going to aggressively seek additional service accounts and enter into another nearby market. I am going to keep advertising where it pays off and try to think out of the box to drum up other leads. But since we are irrigation only and Rain Bird and Hunter keep raising there prices 2-3 times a year we are forced to raise our prices 12-17% to cover the increases and increases in overhead.
How about you guys
Here is my opinion on markets where the housing markets are going to take at dip over the next couple of years, see if you agree or not.
Well the past couple of years when interest rates were low we seen a lot of people moving into homes that they normally could not afford and they were not spending the $$ that someone would normally spend on the Landscape for the price of the house. The upside to that was a tremendous amount of housing starts. Now that interest rates should go up along with the mortgage payments we will see people building a 400K home that can actually afford the home and they should start spending more money on the landscape. But I think this will take 2-3 years and in the meantime you will see everyone bidding extremely low just to have work and over the course of the 2-3 years the weaker companies will get weeded out. This is another reason why I am going to concentrate more on service and over the next couple of years since it won't make any sense to install a complete irrigation system with the profit being a couple hundred bucks.
How many crews? Start a nursery, tree farm? At what banking account amount do you consider yourself successful?
What about targeting repair?
I guess my original question is more of where do you hope to be financially and business wise in 10 years or so?
(Irrigation Only) We run only one install crew (4-5guys) and two service techs. I consider myself successful if I still look forward to working everyday and I am not worry about paying bills and can afford to take nice vacations other things that I enjoy.
In ten years I would hopefully have sold my company or take on a silent role with the company. I have another business that will $$ out grow the irrigation company within the next two years. And I would like to hopefully invest wisely in real estate sometime in the next 5-10 years or so. And if all else fails my wife could support us. How about yourself?
I have my goals set out to 2012 so far (equipment, Trucks, Nursery,ect.). So far I have been right on track with my goals and hope to keep it that way .
Starting my third season, first year was about $130K with alot of snow removal this past year was 267K with little snow removal, I an shooting for 325K this year and so far we have had under 2" of snow this season! I am looking at doing this whole # with landscaping, which is doable if I can pull off my service area growth goals and get some decent help including a foreman to run a second crew. I have the next ten years planned for growth and it amounts to roughly 65K per season with a profit of 25-30% which is about where I'm at now now. Lofty goals in the short term but I think another 2 years and we'll really hit stride and they will come much easier. Good luck to everyone!