Hello all, and firstly thanks for taking the time to read this!
So a few years back i quit my IT sales job id been in for 20 years, sold everything and started up a gardening business, i had a small qualification in woodland and estate maintenance from around 20 years ago which i think now is null and void ( BTEC 1st diploma? )
Anyway, i watched a lot of guides on Youtube ( mainly on how to start a gardening / landscaping business ), bought a few books, built my own website, did all my own local marketing etc and to be honest ive been busy ever since.
Ive now got to the point where i get so many enquiries and my diary is already full for the next 2-3 months that im turning work away almost on a daily basis.
Im a one man band, now in my 3rd year, i dont work weekends ( which is probably a bit daft ) and i was just wondering, what was the point when people decided they needed to take on another employee and expand the business? Taking on seasonal help would be a way to go although they would have to work with me as obvioulsy my name and reputation are on the line as a business.
Are there any triggers that set alarm bells ringing to say your business needs to expand and how to go about it?
Im happy with links to threads on this as im sure its been asked before, i also worry that maybe i dont charge enough as i seem to win a fair amount of business, probably 85-90% of the quotes i do, i always said to myself in my IT job that if i could be in the same room as the person im trying to sell too id be able to make more sales and to be honest, being face to face with people doing quotes has kind of proven me right.
I know its a good problem to have and maybe now is not the time to make the jump but i just had a feeling this would happen sooner rather than later, i look at the local competition and other than maybe 2-3 who already have employees, no one else seems to have a seperate website, sign written van, uniform, google business page and decent visable feedback.
If you were in my position where would you go from here? and dont get me wrong about pricing, ive read a lot on here, i live in a fairly affluent area in the countryside with lots of villages and i know my worth, if you dont value yourself no one else will at the end of the day eh!?
Thanks in advance, James
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Replies
Out of interest do you actually want to expand? If you are happy as you are, then just be honest with people and tell them you won't be able to start for xxxx many months. If they want you they'll wait.
Employing someone can earn you a bit extra money, but I'm not convinced it makes life any easier.
My wife and I work together, we have had apprentices in the past, but for now we have decided we are happy ticking over as we are and concentrating on the kids. We are maintenance though, so a bit different, but we don't advertise as we didn't want to get a reputation for constantly turning away work, and any new work is word of mouth.
Anyway, I don't think I'm as business minded as some on here but that's my tuppence worth.
What I do is to get in help when I need it and this year I have sub-contracted out some work. I am mainly on maintenance though, so the same clients over many years, with some evolving over time with new work coming along.
What I do is try to take on new work if it is easier/ better / more profitable and lose work I don’t like doing. Sometimes contracts end or a client passes away, so a trickle of new work is desirable. As stated I have a friend who does strimming for me in several churchyards. So he is casual labour. Then the sub-contractors do the large scale playing fields for me at about half what I charge [they have the large gang mowers so can be very competitive on price]. So it is possible to expand but without the commitment of hiring someone. Something I would never do.
Knowing others or a friend you trust who could be called in to help on a casual ‘as and when’ basis would be a good first move.
Do you need the extra money? If you get the extra money, will the missus just fritter it away like mine does so you're no better off lol? Do you want the considerable extra hassle of employing someone? Personally, I said "no" and turn away loads of work like yourself.
Personally i would have sleepless nights if i employed others , I reckon i could find the right people but i would be worried about letting them down in some way , Having to lay them off over Winter etc .
I have a good system of introducing colleagues with complimenrary skills to new clients offering worthwhile projects and if all the dots connect it happens .
If we end up working on the same site at the same time then this is an added bonus The rapport and company is priceless .
I sense the dynamics might be different if you are responsible for employees , their welfare, their safety , their conduct around your clients etc .
Before taking anyone else on, make sure your pricing will include the extra cost of someone, pension, holidays, more tools,another vehicle, unit etc. I employ 4 guys and I didn't get it sorted as the employing just evolved and I had to play catch up to try to make it work. With the current situation we all all travelling seperately so I've had to buy another van too. It is hassle and it's hard to find the right people but I'm 53 and don't want to work 6 days a week for the rest of my life (I have a spendy wife too) so I need to get the business to run without me being on the tools al the time.
The only reason to employ someone is to make a profit from their endeavours. So you have to cover all the costs of employing them, as mentioned above, in addition to just their wages.
What I have been able to do is to maximise my income from myself alone without the need to employ someone. Yes, I do have a casual helper and a sub-contractor, but these are very different to full employment of someone and all the problems that brings with it.
So this week I have so far only spent 13 hours actually on site, at work. So there is also some driving around time, but not very much. It has rained heavily here all yesterday and now today, so I will have to cut one churchyard tomorrow. I will be on site for two hours. The job is one mile away. So this week I will have been on site working for 15 hours and will have personally turned over £966. This does not include the helper or sub-contractor. Factoring this in brings it up to £1276 turnover for the week. So it is possible to not to be out working all hours and still make good money by yourself. I am also in my fifties [54] and do not want to be out at work all the hours God sends.
The key is to have the right work, the good profitable kind. Mine is mostly larger commercial and so the dynamics are somewhat different to having lots and lots of small domestic work. Although the two small domestic ones I have are still £1 per minute, so it can be done.
Having this space in the schedule means that when some new work comes along, be it one offs or regular work, I can easily take it on.
So in my opinion it is better to maximise your own income, working alone, to a point where you are making the same money as having two of you on site. You still get the extra income of an employee without the employee.
It’s about the right charges/prices and using the right equipment and being very efficient but with the attitude that you want to produce a top notch finish.
Some interesting responses already. I would step back and ask yourself the goal of expanding. For example, Is it to earn more (often a falacy), to manage more, or to have something more saleable when you want to retire etc.
From where you are I can see 3 immediate options.
1. Do nothing, remain stress free, not a bad option!
2. Be selective about new work, especially re profitability, and use the ladder technique to replace your lower ranking customers. This could significantly improve your income and/or time efficiency.
3. Expand...this is not easy, going from 1 to 2 people full time. Finding a good person is hard, keeping them just as hard. Your stuffed when they're sick etc etc. what about paying them full time whilst building up to full capacity...every constraint you place on them being flexible as you grow will lessen your recruitment pool. .Expanding does not always give you more income as costs increase significantly. For lawn care I estimate the sweet spot of expansion is 3 to 4 vans, so it's a hard slog ofr a few years to get there, then it's OK.
So unless you've clear reasons for expanding and continue to do so over the next few years to get to multi van, then I'd pursue option 2 - the ladder (look in BOG).
Exactly option 2 can mean less is more .
You are then not having to work every minute of every day or having to chase every new opportunity .
It can be difficult to nickel and dime your way to prosperity I learned early on that just because i was filling every hour with work it did not equate to earning a living , Employing others to meet demand would have made matters worse .
But great respect to those who take the plunge and get it right or even try , without such enterprising people there would be millions unemployed .
If possible,try to gain clarity now on what it is that you want your business to do for you. It's so easy to end up just "going with the flow" and then drowning out at sea! Plenty of good advice above,having your own business provides us with the chance to mould ourselves a life that we want to live,if we don't take full advantage of that then what's the point?
There's an old saying TURNOVER IS VANITY AND PROFIT IS SANITY
if you exspand as we did you need more equipment probably another van and a lot more paper work
you are probably not charging enough and if you exspand which is great but you may have register for vat and that adds 20% to your bills
all in all you may not make any more than you are doing or very little anyway
I started on my own 10 yrs ago I now employ my Son in law and one other full time and two partimers
having said all that it is great to be doing business
have fun
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