In the landscaping and green industry, success has often come from hard work, dedication, and a steady demand for services. Historically, this industry has enjoyed steady growth rates, outpacing many other sectors. While this growth has made the industry resilient, it has also led to an often-overlooked challenge: many contractors have built successful businesses without formalizing their practices or leaning into structured, data-driven systems. This approach works well enough in good times but can expose vulnerabilities when competition or costs rise.

In the landscaping, tree care, and lawn care industries, keeping an eye on your expenses can make or break your success. But what exactly does it mean to “know your costs”—commonly referred to as “KYC”? While KYC typically stands for “Know Your Customer” in banking and finance, for service contractors, it’s shorthand for something just as important: “Know Your Costs.” Understanding KYC means having a firm grip on the true costs of labor, materials, overhead, and the services you provide, so you can price accurately, manage effectively, and protect your profits.

Gross margin—or gross profit—goes beyond simply being a line item on a financial statement. For landscaping, tree care, and lawn care businesses, it is a powerful metric that reveals how well a company is converting its resources into profitable outcomes.

When it comes to landing new clients in the landscaping, lawn care, and tree care industries, many salespeople focus heavily on perfecting their pitch, highlighting their services, and emphasizing pricing. While these are important components of any sales process, they often miss the real key to closing the deal—understanding the client’s true needs and fostering a relationship of trust.

It’s surprising how many businesses in the landscaping, tree care, and lawn care industries operate without a business plan. For some, it might seem like an unnecessary task. After all, you know your services, your clients, and how to deliver quality work. But, navigating your business without a plan is like setting out on a voyage with no map, no destination, and no idea of what obstacles you’ll face along the way. Sooner or later, you’ll hit rough waters or worse—you’ll end up on the rocks.

As business owners in the landscaping, tree care, and lawn care industries, it’s essential to have a comprehensive understanding of your company’s financial health. The Profit and Loss (P&L) statement and the Balance Sheet are two key financial documents that offer vital insights. However, to gain a full picture of your business’s performance, it’s crucial to understand how these two reports are interconnected.