Jim Huston Certified Professional Landscape Estimator, J.R. Huston Enterprises, Inc.

Using the Winter to Plan Your Business Wisely

The Marines have a saying: “The more you sweat in peacetime, the less you bleed in war.” Most of us like to “wing it” and fly by the seat of our pants. That’s because effective planning is hard work. It’s also a learned skill. But the payoff can be great. Good planning should not only improve your bottomline; it should make your company run smoother year after year.

For many contractors, winter is the perfect time to reflect on your previous season and prepare for the one ahead. However, most contractors don’t know how to do this effectively. With a realistic strategy and some very simple tools, you can put together a comprehensive plan for the upcoming season.

The key is to start with the “big picture,” while delegating the details to your staff. If you fail to plan effectively, you may not fail entirely. But you certainly won’t take full advantage of your potential, and that means lost opportunity and income.

So light the hearth, settle into your favorite easy chair, and do the following:

• Evaluate your weaknesses. Every weakness you honestly identify, confront, and do something about will add to your bottom line. It’s money in your pocket.
• Evaluate your strengths. Just as important is knowing what you and your company do well. Leverage those skills.
• Build on small successes. Break goals into bite-sized pieces. In fact, focus on just two key things for the upcoming year and devote your energies there. But make sure those goals are measurable in both achievement and timeframes.
• Prepare your budget. If you don’t know how to budget—the Wall Street Journal reports that only 14% of small businesses prepare a fiscal plan—make doing so one of your goals. It’s easier than you think.
• Review your pricing. Good budgeting includes effective pricing for your services and products. Review your pricing strategies and adjust accordingly. Be sure to include adjustments for fuel price fluctuations.
• Implement some simple tracking tools. Once you identify your budget numbers for the year, ensure you have a way to meet those goals on time.
• Get a second or third opinion. The purpose of strategic planning is to get a fresh look at what you are doing. It’s always wise to seek input from outside sources, so run your business plan by your CPA, banker, or financial planner, even another experienced owner or manager. Have them review it and provide feedback. Doing this will set you apart from just about every contractor in your area and pay big dividends.

Jim Huston is president of J.R. Huston Enterprises, Inc. and has helped numerous contractors achieve sustained profitability through proven business practices. To learn more about planning a successful season, pick up a copy of his book, “How to Price Landscape and Irrigation Projects” or his new interactive CD, “Strategic Planning for Landscape and Irrigation Contractors.”