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If you're reading this, you might be putting on the rally cap and deciding that you want to look deeper into, and even make an investment in landscape business management software. Why? The primary reason for investing is strategic: scaling revenues and improving profits. Why else would you make the investment?
And if you make the investment, you might wonder what you should expect in terms of strategic benefits.
The Strategic Benefits Of Landscape Management Software
In the last blog, I wrote about ERP software as an investment in landscape business management not just in landscape business operations. This distinction is the key that enables you to unlock tremendous strategic benefits from the software.
Strategic benefits affect landscape business KPI’s – (Key Performance Indicators). There are two I like to focus on:
- GROSS MARGIN (Gross Profit dollars divided by Revenue). It's the key to improving the profits of your landscape company.
- PEOPLE LEVERAGE (Overhead Staffing Payroll divided by Revenue). It's the key to scaling (revenues) your landscape company.
How Landscape Management Software Improves Gross Margins
Landscape management software gives you tighter control on estimates (using templates to control pricing and quantities) and labor (using real time information supplied by integrated scheduling – mobile time apps) driving margin improvement. Inconsistent estimating causes more profit loss every year than even mis-managed labor on jobs.
Key Strategic Benefit: With better control, comes better margins.
How Landscape Management Software Improves People Leverage
Landscape management software increased staff productivity because everything they need is in one place to do the job. Employees waste less time in administrative paperwork, hunting down information, and performing basic functions like estimating, scheduling and billing scattered among multiple spreadsheets and different types of software.
Key Strategic Benefit: When people are more productive, overhead grows slower than revenues without sacrificing SERVICE.
How To Use These KPI's To Estimate The Payback Your Company Could Get From A Landscape Management Software Investment
We created an Excel spreadsheet that connects KPI performance to gross margins. It lets you calculate the impact landscape management software can have on your business.
Let’s look at an example using a $5,000,000 company. As you can see, incremental gains made in these two strategic KPI’s, translates into big dollars and better management.
The ROI with landscape management software can be significant year to year making the difference between good and great.
Want A Copy Of The Landscape Management Software ROI Spreadsheet Template?
We can send you a copy of the spreadsheet so you can perform your own calculations. (Disclaimer: You need to know how to use Excel and enter your data).
Just email me (kevin.kehoe@youraspire.com) with subject line: "ROI Estimation Sheet" In the body, include your name, company and a brief comment on what you want. I'll reply with a copy of the Excel spreadsheet.