This August, The Herring Group had the opportunity to speak on two live webinars about profit in collaboration with the excellent team here at Aspire Software. If you are not already using their software in your business, you can request a demo by clicking here.
The most surprising thing we learned during the webinar series was that over 1/3 of the attendees may be missing out on half a million dollars or more in profit every year.
If you missed these valuable webinars, you can still view the full replays at the links below:
You can also read through the rest of this post to get a rough idea of the main highlights.
Afterward, make sure to pick up your free copy of all 32 Golden Opportunities for profit in your landscaping business. I discuss some of these opportunities on the webinars, but the full list will be a great benefit to you and your business.
The $500k Takeaway for Landscaping Owners
This takeaway came to my attention during a discussion in response to one slide near the end of the second webinar. We were discussing the annual cash flow opportunity for landscaping business owners who have not yet brought their company’s profit margin to 10%. For context: the industry average is only 4.6% profit, and my suggestion is for owners to set a goal of 12% profit and settle for at least 10%.
When I polled the attendees, 52% reported an opportunity of between $100k - $300k annually, and 34% reported an opportunity of $500k or more. This is such an outstanding statistic that I feel it merits repeating:
"Over 1/3 of the webinar attendees realized they had the opportunity to make $500,000 or more in annual profit by taking the steps I outlined to improve their profitability."
The Real Meaning of Half A Million Dollars
If you have ever felt like your business is not making as much profit as it could be, you are not alone. The opportunity is there for many owners, and it is huge.
The phrase “half a million dollars” is enough to get most people’s attention but consider what that means in practice. An additional profit buffer of that size could mean the ability to absorb the inevitable shocks that will come your way during a recession. It could mean more opportunities for expanding your most popular services and creating a truly standout experience for your clients. It could mean generous bonuses for valued employees, and peace of mind for you as the owner.
Profit is an essential part of what makes your landscaping business great. It allows you to reward your team for their good work, and it allows your company to thrive.
When you hear “half a million dollars in profit opportunity,” think of the lives you will impact when you take advantage of that opportunity.
One of my clients was able to get his half a million dollars in additional profit, even after implementing the following benefits for his employees:
- 401k Plans, with Company Matching
- Generous Holiday Bonuses
- Performance Incentives
- Profit Sharing Plans
After working with me on the Path to 12% Profit, this client went from worrying about cash to being able to award a $50k bonus to his top manager.
The impact on the company is obvious, but the impact that bonus had on this manager’s family cannot be overstated either. When you increase your profitability in your landscaping business, you cause a ripple effect in your community.
Don’t forget to download your copy of the 32 Golden Opportunities to improve profitability. No matter what stage your landscaping business is in right now, there are opportunities to increase profit. You can build in a healthy profit margin for growth in both your landscaping business and your life.
My goal is to help as many landscaping business owners as possible to create businesses with healthy margins, so that I can help them impact their communities and the lives of their employees. I am so thankful to have the opportunity to partner with Aspire Software to reach more people to help achieve that goal.
Greg Herring has served as a CFO of both public and private companies. Herring is the CEO of The Herring Group, an operational and strategic finance consultancy. He has significant experience in the landscape industry, where he serves business owners challenged by growth by installing financial dashboards and systems that provide more margin for their businesses and their lives.
Contact Greg by clicking here