Avoid the Top Reasons Business Fail
When you first start your new landscaping company, you are filled with optimism. But, the sad truth, according to the SBA: close to 66% of small businesses will survive their first 2 years. What that means is that only about one-third of total businesses will fail during the first 2 years. The SBA also tells you that about 50% of businesses fail during the first year in business.
The fact that such a huge percentage of businesses fail. Does not slow down the number of new businesses starting up. That is a good thing because our country was built on small businesses.
So you just started your new landscaping business, CONGRATULATIONS. You're confident and optimistic, that is great you have some good MoJo in your corner. But, it is a good thing to know why other companies have failed. That way you can nip it in the bud, before it sneaks up behind you and bites you on the butt.
One of the reason a new company will fail is because they just get stupid with the money. They get so caught up with being a business owner that they just start buying stupid shit. (I have to have a office. If clothes make the man then the office makes the business. Ah new furniture. Business phone. Business Internet. I can't ride around and see clients in this crappy old truck.)
You get the idea. Stay away from the vanity expenses the money you make has to go back into the business. Only reward yourself when your venture is actually successful.
This can also be a problem if you secure a small business loan and you have a block of funding from investors or a bank to use to start the business. The value of a detailed business plan is that any start up funds you borrow are allocated to things that are critical to the start of the business with nothing allocated for unnecessary spending.
I never got an office with my landscaping company. I worked out to the house, home phone, and I could water my entire yard. (You have to keep your bought plants somewhere.) I realized the the heart and soul of my company was in the dirt of the lawns and gardens of my customers.
All of the money at the start went for plants and material, tools and tools and don't forget tools. Labor, and more labor. All of the initial expenses should be for the equipment that you will need. You and your wife (or husband) can keep it going for while but, you will need workers. Hopefully sooner than you think.
Another reason for a new landscaping company to fail is not pay enough attention to customer relations, and customer service. Many new companies bit the big one for this reason.
When you first start your business getting and sustaining a cash flow is absolutely critical. Once you have a base of a few solid repeat customers, treat them like royalty. Talk to them. Be of value to them. Don't be afraid of doing something for free.
Show your customers that you respect them and value their time. If they are expecting you at two and you see by nine that you wont make it. Pick up your cell phone and call them. It's good PR and they really do appreciate it. Your attention to customer service will assure you keep the business you have.
One of the things that will take you down as quick as poor quality of work is the legal stuff. Accounting can be handle fairly easy with a software program like quick books. You will have to pay your taxes if your in it for the long haul.
You'll have to research all the legal BS that you will have to do now days. When I had my landscaping company all I had to do was get a business lience in every town or little city that I worked in.
That meant two hours at the court house and paying the ten dollars. But times are a changing. Do the research. You can't cheat till you know the rules.
The last thing you want is to suddenly realize that you have not been paying your bills or that you are in trouble with the government because you did not take care of filing proper approvals, paying your taxes
Take the time to understand every aspect of how to run a business. It might mean you hire an "office manager" to make sure all of those business details are attended to. In that way, you can focus on the thing you are the best at which is building the business and doing a great job for your customers.
If you do that and avoid the common pitfalls that take down so many new landscaping companies, you are in for many years or prosperity and success. Beside that it's a lot of fun making things beautiful.
The fact that such a huge percentage of businesses fail. Does not slow down the number of new businesses starting up. That is a good thing because our country was built on small businesses.
So you just started your new landscaping business, CONGRATULATIONS. You're confident and optimistic, that is great you have some good MoJo in your corner. But, it is a good thing to know why other companies have failed. That way you can nip it in the bud, before it sneaks up behind you and bites you on the butt.
Money
One of the reason a new company will fail is because they just get stupid with the money. They get so caught up with being a business owner that they just start buying stupid shit. (I have to have a office. If clothes make the man then the office makes the business. Ah new furniture. Business phone. Business Internet. I can't ride around and see clients in this crappy old truck.)
You get the idea. Stay away from the vanity expenses the money you make has to go back into the business. Only reward yourself when your venture is actually successful.
This can also be a problem if you secure a small business loan and you have a block of funding from investors or a bank to use to start the business. The value of a detailed business plan is that any start up funds you borrow are allocated to things that are critical to the start of the business with nothing allocated for unnecessary spending.
I never got an office with my landscaping company. I worked out to the house, home phone, and I could water my entire yard. (You have to keep your bought plants somewhere.) I realized the the heart and soul of my company was in the dirt of the lawns and gardens of my customers.
All of the money at the start went for plants and material, tools and tools and don't forget tools. Labor, and more labor. All of the initial expenses should be for the equipment that you will need. You and your wife (or husband) can keep it going for while but, you will need workers. Hopefully sooner than you think.
Customer Relations and Customer Service
Another reason for a new landscaping company to fail is not pay enough attention to customer relations, and customer service. Many new companies bit the big one for this reason.When you first start your business getting and sustaining a cash flow is absolutely critical. Once you have a base of a few solid repeat customers, treat them like royalty. Talk to them. Be of value to them. Don't be afraid of doing something for free.
Show your customers that you respect them and value their time. If they are expecting you at two and you see by nine that you wont make it. Pick up your cell phone and call them. It's good PR and they really do appreciate it. Your attention to customer service will assure you keep the business you have.
Legal Stuff
One of the things that will take you down as quick as poor quality of work is the legal stuff. Accounting can be handle fairly easy with a software program like quick books. You will have to pay your taxes if your in it for the long haul.You'll have to research all the legal BS that you will have to do now days. When I had my landscaping company all I had to do was get a business lience in every town or little city that I worked in.
That meant two hours at the court house and paying the ten dollars. But times are a changing. Do the research. You can't cheat till you know the rules.
The last thing you want is to suddenly realize that you have not been paying your bills or that you are in trouble with the government because you did not take care of filing proper approvals, paying your taxes
Take the time to understand every aspect of how to run a business. It might mean you hire an "office manager" to make sure all of those business details are attended to. In that way, you can focus on the thing you are the best at which is building the business and doing a great job for your customers.
If you do that and avoid the common pitfalls that take down so many new landscaping companies, you are in for many years or prosperity and success. Beside that it's a lot of fun making things beautiful.
Thanks for stopping by and reading my post "Why New Landscaping Companies Fail" I hope you enjoyed the video. I know it is about Canada, but business is business. Thanks again and don't forget Y'all come back now.
Keep Smiling
reuben
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