Many types of businesses are extremely expensive to run, but a select few have to deal with the additional problem of not being paid on a regular schedule. Such businesses include construction, pharmacy, and commercial landscaping. The latter industry is a special case because the business owner must procure a massive amount of new equipment along with a team of skilled workers before every single project.
Both tasks are incredibly difficult to accomplish considering dependable, quality workers aren’t easy to come by and the more outdated your equipment is, the more workers you will have to hire.
This is why it is vital for commercial landscaping companies to seek capital from alternative sources of business funding if they wish to only have to hire the right amount of workers and never turn down the opportunity to gain a new customer.
TOOLS OF THE TRADE
Companies like United Capital Source specialize in funding the acquisition of essential equipment, which is especially intimidating for landscapers because the cost of new machinery typically comes on top of the cost of soil, mulch, rock, shrubbery, etc. No landscaper would risk having a lawnmower or edger out or commission for more than a day, both for the sake of completing projects on time and the image of the business. The most up-to-date landscaping equipment actually has the power to get twice as much work done as older versions, allowing you to hire one or two less workers.
Writing on LandscapeOnline.com, Mark Bradley, president of TBG Landscape, said leasing newer versions of equipment resulted in a 10% increase in net profits and a revenue increase of 82%, despite not having to hire a single additional worker. In fact, Bradley was able to do more work in less time with even fewer workers than before, decreasing labor costs from 36% of gross sales to 22% of gross sales in just over a year.
SAILING ABOVE THE COMPETITION
If your landscaping business has earned the reputation to take on more complex projects but lacks the necessary tools, contact an alternative business financing company because this problem could make or break your future. Having quality equipment on hand at all times gives you the ability to quickly bounce from project to project and guarantee a steady paycheck for your workers while your competitors are forced to continuously find temporary help. You could also afford to take on more hires for larger projects now that your other biggest expense is accounted for.
GOOD HELP IS HARD TO FIND
According to GreenIndustryPros.com, 75% of landscape contractors don’t have more than a handful of employees. This is primarily because employees of commercial landscaping companies are paid up-front, and keeping up with rising equipment costs is financially-burdensome enough. Contractors prefer to only have to spend money on experienced workers when approached for larger jobs, and employee recruitment efforts are notoriously tedious in this particular industry due to the high-volume of unqualified candidates.
Contractors reportedly discover workers with tremendous potential all the time but fail to retain them because such workers are looking for positions that offer long-term support in addition to company culture that does not treat productive and unproductive employees equally.
INVEST AND THEY WILL COME
Among the most widespread uses of small business loans is devoting more time and money towards recruiting or retaining employees without having to worry about covering regular expenses. You could launch an advertising campaign to find the best candidates in a specific region or simply start looking for candidates long before you would usually have the money to pay for their recruitment. Perhaps the employee you have so far yet to find possesses mechanical skills and could eliminate the high costs of fixing broken equipment.
If retention is your main issue, consider the impact of always having up-to-date equipment, being in the company of experienced colleagues, and a busy season with few gaps in between jobs. Seeing your business evolve and take on increasingly bigger projects will show employees that staying with you is a wise decision.
SHOWING CUSTOMERS WHAT THEY ARE PAYING FOR
In addition to saving time and money, better employees and better equipment give you quality work, and this is a surprisingly important tool in the commercial landscaping industry. Reputable landscape contractors are currently dealing with an influx amateurs charging close to nothing for sizable jobs. Customers will drop their usual landscapers in exchange for a better price unless they realize the difference in quality between the two competitors. By putting together a remarkable record, you show customers what they are truly getting for their money.
United Capital Source has helped several commercial landscaping businesses avoid having to dig into operational or personal funding to purchase equipment or take on new hires. These companies currently rely on small business loans to fund extensive projects and are now able to accept any project at any time. Your chance to expand to their level lies in simply visiting the UCS website or calling 855.933.863. UCS business funding experts know your industry better than anyone else and will find the right program for you!