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How in the heck do they do it?

Discussion in 'Business Operations' started by Bunton Guy, Apr 14, 2012.

  1. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Many Business Owners are risk takers, if they were not, then they would take a job instead. I am taking some risk now hiring people and buying some equipment with expectations that I can grow more and make more.

    What people need to know that risk and reward are connected. If I want safe I put money in the bank and on the opposite side I buy a lotto ticket. On one end I get my money back for sure but little reward on the other, I likely lose everything but might win big.

    Clearly businesses operate somewhere in the middle. The trick is knowing the risk and asking for a return for that risk. It is not about being greedy. It is about knowing that every time you bid a job you have risk.

    Risk of people not paying
    Risk of job over runs... so on and so forth. Not every job will generate a profit and some will go as planned.

    Our goal is to be fair to everyone and be competitive. Losing a job to a low bidders is perhaps not as bad as winning that job. My job and responsibility to my family, my employees and their families it to stay in business.


    It often keeps me up at night, lucky for me not late but rather early. My internal alarm clock gets me up at 4:30 AM thinking about what I can do to make this work. I do not dream of running 50 crews but I sure would like 5 crews.
     
  2. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    Yeah wasn't that Villa & Son out of Miami florida? What a shame to family run business.
     
  3. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    I think this is almost 100% the other way....to me its risky to take a job somewhere else. That "other" place isn't going to let me look at their "books" to determine how well the company is running. They may fire me tomorrow or the next day. If not one day they may go belly up with no notice. Being self employed I am in control of my own destiny MOST of the time. That's the way I see it at least :drinkup:
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    This is becoming more and more true. The days of going to work, earning a pension and having a life long job died long ago. The workers at the big three are seeing the final end of this.

    The thought did occur to me as I posted. However the underlying statement is true about being risk takers, most people do not want to run a business. The other part about risk reward is also true, the more risk the more return (reward) you need to make on the project or job.
     
  5. avernon0112

    avernon0112 LawnSite Member
    Posts: 124

    I an from Charlotte also. I see these crews everyday and wonder how they got so large? I still have not figured it out yet. My guess is they are great at marketing. I also wonder where they find 100+ employees that actually work?
     
  6. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    Avernon0112: They may have great marketing but who receives this marketing? It's not mass marketing because I have not seen any billboards,radio,tv,newsprint,magazine ads etc....

    I've never received a mailer or any of my clients. I have family and friends that live in upscale areas that they target and they keep an eye out for other people who have good marketing ideas to pass on to me.
     
  7. avernon0112

    avernon0112 LawnSite Member
    Posts: 124

     
  8. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    Must be money under the table. I have tried penetrating the invisible barrier that property management companies have....it seems near impossible. NONE want to give you the time of day. And I realize im just company number #241 for the week that has bugged them about it. It's just trying to find out what these larger companies have that we smaller guys don't have that enables them to crush through that barrier to get people to "listen" to what they have to offer.
     
  9. TYTILIDIE

    TYTILIDIE LawnSite Member
    Posts: 78

    It's who you know. You think these guys move in and just do some mysterious advertising? I've been in the industry since 1995 and have worked a lot of places and met a lot of people. I'll tell you how they do it.

    1. They have a superior system in place that works (training programs, schedules, billing)
    2. They often buy out companies doing well in other locations to expand. They make sure they develop the relationships immediately.
    3. They hire salesmen who generally have connections and managers who tend to know what they are doing.
     
  10. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 857

    Agree - it's about differentiating yourself. Anyone can mow, landscape, fertilize, etc... How do you bring value to the client? What processes do you in place so doing business with you is a zero risk proposition? How are you connected in the community and are you able to leverage those relationships.
     

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