01The short version
Landscaping Business is a sound business that is losing money in three places it cannot currently see.
What is working
- Revenue has grown each year, to $3,420,000 in the last twelve months. From your data
- Customers who stay, stay a long time. The median maintenance customer has been with you 4.2 years. From your data
- Enhancement work earns a 52% gross margin, the highest of your four lines of work. From your data
Where you are losing money
- People who try to hire you and never hear back. 96 calls from new numbers were missed and never returned, and 31 website inquiries were never answered. 112 estimates were sent and never marked won or lost. From your data
- Work that was done and not billed. 19 completed jobs worth $31,200 were never invoiced. 17 install jobs carried extra work with no change order. 9 maintenance contracts lose money at the hours your crews spend on them. From your data
- Hours paid that produce nothing. One field hour in four is not billable. Your office re-enters invoices and timesheets by hand for about 12 hours a week. From your data
The three things to fix, in order
- Answer every inquiry and follow up every estimate. What it is costing you: about $68,000 a year. Our estimate
- Bill everything you do, and reprice the contracts that have fallen behind. About $49,000 a year, plus $31,200 once. Our estimate
- Make LMN the one place your records are kept, so nothing is typed twice. About $45,000 a year. Our estimate
The one number to improve first: the share of estimates that reach a yes or a no. Today it is 77%.
These figures are what each problem is costing you. They are not a promise of what will be recovered.
