The Real Cost of Saving Money in Your Landscaping Business

As the owner or general manager of a busy landscaping business, you're juggling a range of leadership, administrative, and operational duties. Whether you're directing or consulting on sales strategies, projects, operations, or clerical functions, you only have so much time in your day. Gaining visibility into every facet of your business is vital to maintaining the organized processes and dynamic guidance your team and your clients depend on daily.

What's more, without order, fighting spontaneous fires on top of other responsibilities can leave you confused, frustrated, and exhausted. Even worse, a lack of information or understanding can lead to lost productivity, disengaged employees, unhappy customers, and weak profit margins. At the end of the day, there’s no denying the facts. Your company's future depends on your ability to lead and make the right decisions based on real-time, accurate information.

That said, have you ever stopped to wonder how much your budget-conscious business management solutions might actually cost you? For example, do your outdated tools contribute to lost productivity? Are excessive time and attention spent tracking down information from others within the company? Or maybe, how much more efficiently could your office run with the proper means to effectively manage projects, crews, materials, and equipment and communicate with customers?

While it's tempting to minimize overhead where you can, it's critical to understand that over time these issues can evolve into complicated and expensive problems. In fact, you might be surprised to learn how much some cost-saving efforts might actually detract from your bottom line.

To illustrate this point, let's take a look at some key business areas and budget-friendly solutions.

Project management

Overestimating or underbudgeting the time, personnel, and equipment needed for a project can wreak havoc on your schedule and negatively impact profits. Without a way to manage job costing in real time, it’s nearly impossible to maintain a consistent—and profitable—pricing strategy. Likewise, material shortages and last-minute change requests can cause further issues if these events are not properly documented, tracked, and managed.

While spreadsheets and other static project management solutions may be simple, cost-effective tools, these documents can be difficult to keep current and offer limited opportunity for collaboration. As a result, critical information can be easily overlooked, especially when multiple people are working on the same record.

Another drawback to spreadsheets is that they provide zero intuitive guidance. This means that for every project you'll have to sift through mountains of data to gain any insight into common challenges or chokepoints—which, again, creates a missed opportunity for your project managers or other employees to benefit from lessons learned.

Employee and equipment management

Resource management is another area where landscaping business owners and managers can leverage data to improve profits and control costs. But again, static records only provide a small piece of the puzzle. In this respect, these documents cannot tell you when—or where—an employee or work crew is struggling or excelling. And they certainly can't produce the data you'll need to make decisions based on evolutionary employment trends like payroll expenses and benefits packages, both of which can affect your operating costs, production capacity, and profitability over time.

Similarly, using manual options to track equipment maintenance and repair costs can be equally costly. Without historical data to use for forecasting, it may be tough to tell which tools need servicing most often or whether to replace specific equipment rather than repairing it. In turn, you may be spending more than necessary. However, without the means to effectively track and analyze expenses, it's difficult to know for sure. Although these costs may seem necessary, excessive equipment expenditures will eventually impact your bottom line.

Customer relationship management

Lastly, customer relationship management is the lifeblood of any landscaping business. Yet in many companies, customer satisfaction and retention efforts often take a backseat to attracting and acquiring new business, leading to missed opportunities to increase profits through cross-sells and up-sells.

At the end of the day, it's essential to make customer outreach a priority. If your current relationship management practice doesn’t allow you to continually position your business front and center, have no doubt your competitors will take notice. Even worse, they'll likely use your company's shortcomings as bait to lure away customers, while increasing their own profit margins.

Key takeaway

When you stop to calculate the time and money lost to inefficient operations and ineffective processes, the answer often equates to quite a shock. Between missed opportunities, lost productivity, inaction, and duplicated efforts, you could be losing an excessive amount of market share and profit due to the gaping (yet preventable) holes in your business practices.

So the question remains, are these cost-saving measures truly worth it?

If you have any doubts, you owe it to your business and yourself to run the numbers and consider other options. The landscaping industry is a competitive environment driven by innovation, professionalism, and reputation. In order to maintain your current position and ensure future growth, it's imperative to stay on top of the internal and external factors that influence your decisions and impact your operations. When you think about it this way, investing in a comprehensive, intuitive technology solution that compiles, organizes, and manages the data you need to make proactive decisions, resolve issues, and stay ahead of your competitors isn't a luxury—it's a lifeline.

Before you spend another busy season stressing over the numbers and calculating losses versus gains, it's time to abandon “good enough” and commit to the long game. Looking ahead to tomorrow and the next ten years, a total business management solution may just be the smartest executive decision you'll ever make.



To learn how Aspire software can help you increase insight, manage internal processes, and elevate growth in your landscaping business, click here to contact us.

If you enjoyed this blog post, you might also want to read, 3 Key Reasons to Implement Integrated Technology in Your Landscaping Business.

 

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