Maximizing Your Business Potential
During these chilly days when the snow isn't falling, but spring isn't quite here, you might find yourself eager to work on your business but uncertain about where to begin. If you can't be out plowing snow or hanging Christmas lights, or starting spring cleanups what could you work on to further your business? Enter the often-dreaded office work. I get it; spending time behind a computer, buried in paperwork, isn't the most enjoyable, especially for those of us who'd rather be on a mower. However, let's face it – the backend of our business is just as crucial, if not more so, than everything happening on the front end.
As lawn care professionals, we take pride in the quality of our work, maintain professionalism during customer interactions, and strive to increase our revenue. We cover all the tasks vital to the success of our businesses. But here's the question – do we give the same attention to our backend? Are our invoices timely? Do we have organized systems for planning routes and storing customer information? Is our bookkeeping in order? Do we truly have a handle on the numbers of our business? That last question is perhaps the most important one.
Do you know your numbers?
If this sounds unfamiliar, that's okay! Your first question might be, "Brian, what numbers are you talking about?"
Well, here are the eight questions every business owner should be able to answer about their business:
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!)
I understand this may have your head spinning, but don't panic! This is all part of entrepreneurship. You'll encounter situations and skill sets you've never faced before, and it's about improving and learning to develop the skills to face problems head-on.
So, if you don't know your numbers, that's okay. But please, do yourself a favor and take the first step toward learning the numbers for your business. If you're unsure where to start answering those eight questions, check out our "Know Your Numbers" Profitability & Cash Flow Calculator at Lawntrepreneur Academy. Investing time in your backend operations is just as crucial as the work you do in the field. Knowing your numbers is the key to making informed decisions and driving the success of your lawn care business. Take that first step today!
