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.
At TrueWinds Consulting, we work daily with landscaping and green industry contractors to implement business systems that can transform their operations. What we find repeatedly is that contractors can benefit immensely from adopting structured processes and utilizing metrics, especially when it comes to financial health and growth potential.
The Need for Business Fundamentals
A critical question contractors face is this: are you a contractor who became a businessperson out of necessity, or are you a businessperson who chose contracting as a pathway to success? Both paths are valid, but the approach to running a business will vary greatly depending on your answer.
In an industry where people are often hands-on and results-oriented, there is a natural tendency to “wing it” and trust that things will work out. However, without formal structures and processes, many contractors miss out on strategic growth opportunities. Transitioning from a day-to-day mindset to a long-term vision can feel daunting but is essential for those who wish to grow their business sustainably.
Breaking Down the Fear of Numbers
A big barrier for many contractors is the fear of numbers. Budgeting, financial projections, and goal setting may seem intimidating, especially if you’re used to focusing on operations rather than accounting. But understanding the numbers that drive your business can provide stability and direction, ensuring your company’s resilience in fluctuating markets.
Contractors often need to examine their financial data without the emotional attachment that day-to-day challenges can bring. Numbers, after all, provide an objective measure of performance. By gathering and analyzing your business’s data—labor costs, material expenses, equipment depreciation, and overhead—you gain insights into where your profit margins stand and where improvements can be made.
Planning with Vision and Precision
The first step in becoming a numbers-driven business is setting a clear, achievable vision. Look back at the past few years, and use that history as a baseline for growth. What have been your revenue highs and lows? What resources helped your business succeed, and where did you struggle? Use this information to create realistic goals for the upcoming year and to shape the direction of your company. Too often, contractors set vague goals—like simply wanting to “do better than last year”—without a roadmap for how to achieve that improvement.
With a solid vision in place, it’s easier to set specific revenue targets and identify opportunities for growth. Is there a service line that’s in high demand that you’re not currently offering? Could efficiency gains allow you to serve more clients without increasing costs? Consider how best to position your business in the market, taking into account your strengths and the areas where you see the most demand.
Financial Planning for Long-Term Stability
Once you have a vision, the next step is to get a handle on the financial elements that drive your business’s profitability. This process involves more than tracking costs; it means understanding the total cost of ownership for each asset, from vehicles and equipment to facilities. Spread the cost of these assets over their lifecycle, allowing you to plan for replacements and reduce the risk of unexpected expenses.
Likewise, labor costs are often one of the most significant expenses for contractors. Factor in not only hourly wages but also benefits, training, and downtime. Set departmental budgets, whether it’s recurring maintenance services or one-time project expenses, to monitor the true cost of delivering services.
This planning allows you to “work the plan” effectively, by adjusting your efforts based on real-time performance. When revenue is down, it provides the motivation to boost marketing or seek out new clients. When times are good, it helps ensure that you save or reinvest profits wisely to support future growth.
Using Systems to Drive Results
Effective systems are essential to transforming your business. For example, building out a sales and marketing system allows you to drive predictable revenue, while an operations system helps maintain consistent quality and productivity on job sites. A data-driven business operates with both efficiency and consistency, reducing reliance on guesswork and gut feelings.
Consider these additional tips for building effective business systems:
→ Regularly Track Key Metrics: Monitoring performance metrics like gross margin, labor utilization, and client retention gives you a pulse on business health. Regular tracking can reveal small issues before they become large problems.
→ Analyze and Adjust Monthly: Use monthly financial reviews as a chance to see if you’re on track or if adjustments are needed. Set aside time each month to look at what’s working and where improvement is possible.
→ Involve Your Team in Goal Setting: When employees understand the company’s goals and metrics, they are more likely to contribute toward achieving them. Engage your team by explaining how daily tasks tie into the bigger picture.
→ Focus on Customer Relationships: Make client satisfaction a metric that you track as closely as any financial measure. Happy clients are more likely to return and refer others, providing a direct boost to revenue without the high cost of acquisition.
Building a Data-Driven Culture
A contractor who becomes data-driven makes decisions based on facts rather than intuition alone. When everyone in the organization understands the goals and metrics, there’s a shared vision that allows each person to contribute in meaningful ways. Building a data-driven culture may be challenging, but the results are worth the effort.
Be Well, Do Good Work, and Keep In Touch.
Fred Haskett
To Learn More Contact Fred at TrueWinds Consulting
Join Our Upcoming Event
Join me on Tuesday, November 19th at 1:00 PM Eastern for a focused webinar on Gross Margin and how it plays a pivotal role in your company’s financial health.
This session is tailored for owners and managers in landscaping, lawn care, and tree care who are ready to take control of their financial performance. Gross Margin is as crucial to your success as revenue, cash flow, and accounts receivable—don’t miss out on learning how to leverage it for long-term success.