FEATURE ARTI CLE “The organizations that keep (employees) are the ones that give them responsibility and provide them training to make it a career versus a job,” Stephens says. “One of the things that profitable, well-run organizations do really well is invest in education. Certainly, the good organizations cross-train so they’re not stuck with one individual who can drive the lawnmower.” NUMBER FIVE
PUSHING EQUIPMENT TO THE LIMIT Contractors who understand costs understand the cost of downtime, realizing that rundown equipment can cost much more than routine maintenance or monthly payments. “A lot of the successful contractors replace their equipment every two to three years,” says Barden Winstead, president of Land & Coates, an outdoor power equipment dealership with six locations around Hampton Roads, Va. “They run them while they’re under warranty, and then replace them before they get to 1,200-1,500 hours where they can start failing and costing money.”
continued from page 33 NUMBER FOUR
UNDERVALUE YOUR EMPLOYEES Finding quality employees is hard enough, let alone retaining them for seasonal work. Given the high cost of turnover, smart contractors are honing their hiring practices to secure reliable talent. “Labor’s always going to be an issue, so have you asked the right questions and hired the right people to reflect your brand?” asks Phil Stephens, director of sales for Horizon Distributors, a full-service distributor of irrigation and landscape supplies based in Phoenix. “One individual can have a bad attitude one day, and wreck a year’s worth of revenue at that property.” Some contractors are improving their health coverage, 401(k) options and other benefits to attract and retain high-caliber people. Many use job fairs to recruit young employees, or government programs like H-2B to employ temporary immigrant workers. But the difference between job-seeking applicants and career-minded professionals can be gamechanging.
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Top contractors explore payment and rental options, then care for equipment with regular maintenance to maximize investments. NUMBER SIX
GROW AS FAST AS YOU CAN One of the biggest mistakes a landscape company can make is overextending itself to grow too big too fast. Despite the appeal of large projects, smart contractors don’t hesitate to turn down work if they can’t do it well or turn a profit. “Bigger is not always better,” Stephens says. “I see some folks pursuing projects and properties that are beyond their ability to do profitably.” Cantu says taking out huge loans to build big fleets is a mistake. Start small with a dependable mower and work your way up, acquiring employees and equipment when you can afford them. “If you’re a one-man crew, you need to treat it like that,” he says. If you don’t have it in the budget, charging it on a credit card is one of the biggest mistakes in this industry.”