Regardless of the industry you are involved in, it is easy to make mistakes. Not every business owner is an expert at managing finances as well as priorities. Sometimes, the problem you are most worried about should be the least of your concerns, and vice versa. A seemingly minor oversight or bout of bad luck can have major implications. Landscapers know this concept all too well. Young and mid-level landscape companies tend to run into trouble as they attempt to grow, and it’s usually for the same reasons. Growing a landscaping business is radically different than lifting one off the ground.
That isn’t to say these mistakes are unavoidable. You just have to understand what is required of you and which resources will get you there. If your business is insure about either, exploring landscaping business loans from United Capital Source is probably a good start.
No More Waiting Until The Last Minute
Arguably the hardest part about owning a landscape company is preparing for each project. Time and time again, companies make assumptions they believe to be accurate only to find out the project at hand is much more expensive and complex than previously thought. This can cause a company to absorb unnecessary losses by spending much more money that it was eventually paid. But by the time the error is realized, it is too late in the project to request any changes in compensation. How do you avoid this misfortune? One potential solution is simply devoting more time to the preparation process, and leaving nothing until the last minute.
With the right business loan, landscaping companies can hire more workers or buy equipment well ahead of a new job and then give their full attention to critical, compensation-related details. United Capital Source offers numerous working capital loans that can be approved in a matter of days, even if your cash flow isn’t exactly perfect. And unlike a traditional bank loan, you won’t necessarily have to make fixed, monthly payments almost immediately after funding is distributed. Your largest payments would instead be postponed until revenue is flowing in. Now that the stress of acquiring the bare essentials is over with, you have more time to look into other expenses or contractual details that might have otherwise compromised your work.
Employees Cannot Be Undervalued
Building a loyal team is difficult for landscape companies. The industry is subject to extreme seasonality, so a particularly rough slow season could lead to decreases in staff. And tumultuous cash flow prevents business owners from offering perks like formidable health insurances and periodic bonuses. This is why it’s common for workers to jump ship in search of benefits or higher wages. The few landscaping companies that don’t have to deal with these problems have steady cash flow all throughout the year. They can pay their employees on a set schedule while staying current on bills. There is no threat of being unable to find or afford new projects because they always have the funds to finance them, one after the other.
Many UCS clients with elongated business cycles use accounts receivable factoring to smooth out their cash flow when they would otherwise go weeks or months without pay. With this type of working capital loan, the business lender buys your unpaid receivables for a discount price. Instead of being paid very little or nothing until the work is done, the business lender pays you in just a few business days. You can do this right after signing a contract to pay for the required resources. If the project is lengthy, accounts receivable factoring can help you pay your workers on time and your suppliers ahead of the due date, making you eligible for discounts. Keep in mind that the money doesn’t have to be a single lump sum. We are happy to distribute the funds in accordance with the different phases of the project, or when your expenses are due each month.
If You’re Growing It Will Show
A landscape business’s capacity to grow can often be judged by its overall image. Standards are rising, so less and less people are hiring companies with disheveled trucks, raggedly-dressed workers, and blatantly outdated equipment. A company’s digital image is becoming increasingly important as well, even in a blue collar field like landscaping. Potential customers often explore a company’s website to see photos of previous projects and read testimonials before signing a contract. These are the things that must be taken into account if you want to grow your business and take on larger projects.
Upgrading your equipment and website is not cheap, especially considering the tumultuous cash flow of the landscaping industry. But when you have amassed a solid track record and are looking to work with wealthier clients, the right business loan can help you gain their trust and cement a formidable reputation. At United Capital Source, we can approve and distribute funds immediately after you secure a contract and ensure your repayment system doesn’t prevent you from paying your workers and other regular expenses later on.
The Biggest Change Is In Your Cash Flow
It’s only natural for established landscape businesses to be intimidated by the industry’s new standards and level of competition. But the business lending industry has kept tabs on these changes. Companies like United Capital Source are here to show hard-working business owners that correct cash flow management and extra business funding at the right time can keep them at the top of their game. You could even say that the first thing a landscape business must do differently in order to grow these days is ask for help.