A Lawn Care Profit Calculator Can Change How You Do Business!
In Tuesday’s post I mentioned shedding my old identity for a new one. When I started my business I had no idea what I was doing. I didn’t have all the information and resources that you have access to today. I completely lacked confidence, and because of that, I wasn’t charging what I was worth. Remember that $12 push mow lawn? That alone should show you that I did not know my worth, and more importantly, I didn’t “know my numbers!”
Today, I can say I’m a risk-tolerant person. I don’t mind a little risk, but I’m not into guessing. I am not going to throw numbers at a wall and hope they stick. I am a pragmatic person. I want my business goals to be practical and realistic. My business should profit, not lose year over year. It should also profit significantly, not just barely make ends meet. It was not practical for me to charge $12 a lawn. Today, I won’t even drop my gate for less than $45. I know times have changed, and inflation is at its peak, but $12 was never a wise business decision. Now, I have a better understanding of my numbers, and I know how to properly run my business. I know what I should be charging down to the minute. It took time for me to gain the knowledge and develop the skills to know what I should be charging. I read all the books, did endless research, and number crunching to answer the following questions:
1.) What's your labor rate?
2.) How much do you need to make to recover your fixed costs?
3.) How much do you need to make to recover your job expenses?
4.) At what rate do you need to charge to cover your expenses?
5.) What is your profit margin factor?
6.) What is your total labor hours?
7.) How much time do you spend on each property?
8.) Are you able to provide accurate job pricing? (No guessing!)
If you can’t answer those questions, it may be time to hit the books or, better yet, a calculator. I had always wanted a tool to help me to determine those numbers. I not only wanted an understanding of what those number meant, but I also wanted something to spit them out for me because I didn’t have time to calculate all of that by hand. I wanted to create something so that you could skip all the research and rely on just the tool I had been looking for and never found.
Some of the larger, more expense CRMs have tools within them to help with that, but I wasn’t ready for that yet. I was and still am a small business with one crew. I didn’t need a CRM for handle my multimillion-dollar revenue because my revenue wasn’t there. I needed a tool for the six-figure revenue guy, not the seven-figure revenue guy. I also really like free version of Yardbook; it has been a steady, reliable tool that suits my needs quite well. I wasn’t ready to put a whole bunch of money into software that I didn’t really need and wasn’t ready for. That’s why I created the “Know Your Numbers” Profitability & Cash Flow Calculator.
If you'd like to hear more, not only about the calculator but about why knowing your numbers is so important, check out the Fullerton Unfiltered podcast. Episode 466. "PROFIT & CASH FLOW Calculator in Now Available!" In the episode, I take a deep dive into what it means to know your numbers, and am I passionate about this topic! If you have the time, take a listen. I think you'll be glad you did.
I encourage you to sit down and take the time to be able to answer those eight questions. With knowledge comes power, and you will be able to grow and improve your business for the better!
