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Expand or not?

What are your thoughts on business expansion?

I'll tell you my dilemma. I started my hard landscaping business a year ago, my first summer ticked over ok and winter was quiet so I started some property maintenance to see me through. I had one weeks work in January and considered packing it all in. Since then work has gone mental. I have taken a young lad on and am booked up solid for the next three months. The phone rings everyday for another quote. I'm not cheap but am not making a fortune either. How have others dealt with this? Did you expand further? Turn work down? Hike your prices?

I am a bit of a perfectionist and word of mouth is spreading fast. My main worries are getting a third party to do my work and lose that good reputation or even taking guys on and having to let them go if I have another slow winter. I know its not a bad position to be in but I either grow or start turning stuff away.

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Replies

  • Similar situation for me. The problem is staff and cash flow. Staff don't care as much as you do, and you need a lump of money behind you to run all the jobs.

  • i too am in the same situation.. I have a young lad with me (Apprentice), however i took the plunge and employed a "semi skilled labourer" to try and lighten the work load and take on more work.. this back fired and cost me a lot of money. IM now back to the too of us with a back log of work.

    i will employ someone again soon.. once I've righted the list of small wrongs that became of hiring someone based on his self proclaimed skill base!

    I was incredibly lucky with my apprentice, not so with my next employee! tread carefully and it could be the greatest move you have ever made!

  • I think a year is a bit early to be taking on extra staff and expanding. Edge your prices up(please don't 'hike')and you will find a level and gain experience of being 'a businessman'. Take a view next spring when you have an idea of profitability and what you can afford. We eventually edged up to 5 including me - that's plenty big enough for me!

    You will get lots of conflicting views here so you pays your money and takes your chance.

  • after my experience this year i agree with colin.

  • PRO
    Personally been there etc etc my advice ..... Wait, become stable then expand. Most business fail because they expand to fadt
  • I agree, take it easy, we have recently expanded and could still take on more staff but its amazing how stressful rapid expansion is, my plan is to work through this year and expand again next year rather then at one go

  • Thanks for your comments which I take on board but it is sickening to turn work away. I've lost two important contacts this year already due to my inability to get their work done. I think the way forward at the moment may be to get another cheap lad to do some of the laborious tasks and speed jobs up a bit. Then see how this winter goes.

  • It might not sit right however you are now a business man
    If you need someone short term hire them, telling them you are not guaranteeing work over the winter but you will keep them going if you can, even if its basic hours for basic wage in winter.
    If you are being overrun with offers of work now, queue them up if they want you they will wait, you can also offer people a slight discount if they will let you do the landscaping in winter time
    However you are proving to be good at what you do so whilst the word is spreading you might well find people will want your services all year round

  • I agree with Bespoke Lawncare, queue up your clients. In my experience a good customer will understand that you are busy and they will wait for you. I'm turning clients away at the moment to and it is frustrating, but trying to please everyone and spreading yourself thin will backfire. Growing a business takes time, patience and cash flow. Quality of workmanship and customer service are what matters the most to your client. Employing others is fine, but is their work really up to your standards? If not you can be assured that your client will tell you. You're business is as good as it's reputation, take your time, do things right and enjoy yourself whilst you're at it. The money will come in time.
  • grow slow - organically,

    i nearly set up a van/worker just before the recession hit - would have been the worst thing i have done, luckily i waited and kept in control.

    the weather will soon stop people spending when it rain / in winter.. 5 mths where work may be minimal.

    are you working 6 days a week? labourer is all you will ever get as an employee or they work for themselves & you pay there rate. increase prices and it could add up to more over a month.

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