[jwholden]

Maybe this question can help people who are new to the ground trades. If you were starting your business again what would you do differently. We have all made (and will make) plenty of mistakes that we have learned from. Why not pass on the experience.

I'll start by saying that I would stop trying to win every job. I have come to realize that due to budgetary constriants or personality differences every lead can not lead to a job. I have often bent over backwords trying to please people because 'I don't want my company to have a bad name' only to get stabbed in the back by these idiots or talk myself out of any profit because I was so eager to win a job.

I will never buy a gas rack body truck again after getting a k3500 that couldn't get out of its own way when hauling soil, mulch, process, or the bobcat. Spend the extra money and get the diesel instead of getting a new truck after three years because you outgrew it.

Finally, if you hire a bad apple drop them like a ton of bricks. People don't change and what you see will only continue and get worse. I always have a hard time with that one because with only one or two employees it's tough to let someone go knowing all the work I have lined up. But do it and find a replacement, it's better in the long run.

What have you learned?

[Stonehenge]

Seriously?

I'm pretty sure that I won't be able to recall all the lessons I've learned, even if I sat down and wrote for a week. And the best part is, I know I'm not going to get bored, because there is still a ton to learn.

If I were to start over knwoing what I know now, I would:

1) Take more risks.

2) Have a better screening process for employees.

3) Have a better screening process for clients.

4) Charge more money.

5) Value my own time more.

6) Trust my instincts more.

7) Trust my employees more.

8) Build relationships with people of influence much earlier.

9) Step away from the work part of the work sooner.

There's a million more, but those are some general biggies for me.

[Rex Mann]

I would hire immigrant labor because of a strong work ethic.
I would not pay "glass time", except to the driver.
I would not buy a skidloader
I would market more and smarter
I would be more careful of who I hire
I would make foreman keep very accurate records
I would bid jobs to my standards, NOT A PRICE

I would not believe GC's when they say "if you do these for me at a low price, the models, you will get all our business at your regular price"

I would not do jobs for a "feather-in-my-cap" or to win awards.

I would not do jobs for friends of friends for nothing

BTW: I have recently re-started up my company here in Phoenix from Ohio. I had worked for a larger company selling pavers. Now I am starting up from scratch. And, I will use the 7 statements above now.

Peace,

Rex

[jwholden]

The screening clients one took me probably four of five years to figure out and the screening gets more thurough year by year. I notice that this is something that comes up quite often in discussions and honestly I'm amazed at how many people don't do it.

The not paying for glass time idea has been running through my head this year. I could easily save 45 minutes to an hour per day per man with that one, and I load the truck myself.

I also need to find a way to get out of working for family and friends. I think I should just treat them like a regular job. A friend of mine wants me to work up 'a few' designs for his 1 acre property that is completely bare (after living there for two years, not even grass). I explained that the going rate for design is 75 an hour but I'd do it for 50 because he's a friend. Funny how my skills are less neccesary when I charge for them.

I often ignore that little voice (remember Magnum PI) and darn near every time it comes back to bite me.

Excellent posts, keep them coming.

[jwholden]

Rex,

Do you not like skid steers because of the incredible amount of turf damage or do you have something better?

[Stonehenge]

I forgot the not working for family, freinds and neighbors thing. The way to get out of it - just don't do it. I tell them that it has nothing to do with them, but when we contract for work, that person becomes a customer, no matter what they were before (friends, neighbor, etc), and that changes how I approach my interaction with you. I value our relationship as it is right now, and don't want that to change. So what I'm going to do is write down the names of 3 companies that, if I were looking for a really good company, these are the people I would hire.

You'll find that most often they don't hire those ones anyway, and end up going with Cheapo Landscaping. They were just looking to you to do all the work for next to nothing. (Refer to #5 from my first post ).

[Pelican]

I was curious about the skid steer comment too. Mine is probably the best purchase I've made since starting up.

Probably the biggest thing I've learned is to not try to cover all the bases.

[Rex Mann]

We do higher end residential work. We usually come in after the landscaping has been completed. Skidloader equals turf damage, which is okay on a large job. However, employees want to use it on every job. When I'd say no Gehl on this job they would get po'd. In 4 years I had under 1000 hours on it. Most of those were idling and in the yard moving pallets of pavers around.


I have read that allot of guys say they could do the JW job with one step in one day. I think it was around 150 sf. Is that using a machine? We, me and 2 guys, just did 200 sf in one day all by hand.

If I need a machine I rent one.

Companies with only crew want to buy another machine. How does that make business sense? I'd rather invest capital into tools which would be used. Allot of times we construction guys can get caught up in the "fun toys". We talk ourselves into "needing" another truck, loader, tractor or what ever. Going from being DINKS to a family of 4 with a single income would change allot of peoples out looks and business decision's.

Peace,

Rex

[ROMACK]

#1 hiring long time friends
#2 not relying on others to check up on projects
#3 over order on custom mixed block
#4 right tools for the job

[diginahole]

Some excellent points so far.

Active membership in the trade association can provide huge returns to your business by way of educational and networking opportunities.

At under $ 6K per year I consider my skid steer to be the most cost effective, reliable, and hardest working labourer available to me. I WOULD NOT consider being in this biz without one. I agree that they will destroy turf in short order so you need to know when it is worth using it for excavation and material delivery.

[jwholden]

Romack,

I hear ya on not over ordering the darn block/pavers. I'm still caught by that disease atleast once a year.

[BJR]

1. Never under estimate your worth.

2. If you don't know something, ask the right person. I have always done this. It is the best way to learn.

3. Always check your quotes 3 times.

4. Don't be too hard on your staff. I thought that because I worked a 80 hour week, my staff should do similar. I always expected too much and moral was low. Maturity has mellowed me.

5. Specialise in one aspect of landscaping that you do best. Do it dam good and charge a premium for it.

When I first started out my wife and I both worked. I only had 1 tipper and tools. Even when I was doing the larger projects in the 100K range I still only had 1 tipper, 1 ute and 12 staff.
Now I have 3 kids under 6 and my wife doesn't work. I now have 2 tippers, 1 ute, an RC30 track loader, 1.5 tonne excavator 2 mini dumpers and only 3 staff. Since investing in the machines my bottom line is up by app 45%. A labourer costs me app $600 per week to have. A machine costs app $300 per week (HP repayments included). I could not do without my machines now.

I am now specialising in retaining walls on difficult access sites. That is why I have gone for the smaller machines. I try to only quote jobs that machines can be used on. And I am in the fortunate position where I have app 4 months work ahead, get app 20 calls per week for quotes and can be picky with the jobs I quote.

I gave Landscaping away app 10 years ago and bought a Garden Centre in a new area, which I sold. I started up landscaping again only 5 years ago in this area, and it has only taken me this 5 years to get established and have one of the better landscaping businesses in the area. I could only have done this because of my age and experience.

LIFE DOES START AT 40!

[jwholden]

BJR,

I'm always looking for ways to reduce my learning curve. I'm more than willing to pull up a chair and listen to the advice of 'old timers' like you.

[AZTLANLC]

Maybe a little late but here are some of my opinions
Listen and then talk
Return calls
Keep your word
Give customers a quote or ball park figure on the spot, I hate spending time on proposals just to realize customers couldn't afford it.
Follow your instintics
Don't price all jobs the same
Buy equipment thinking ahead, not just the I can live without the enclosed and heated cab, that'll save me $$$, then regreating yourself for not having spend the extra.
Train employees

[Dale Wiley]

Another awesome thread from some experience and skill... I have to agree with the life at 40 thing...I have had more fun and success after 40 than ever before..

Know your costs - direct labor per man hour - overhead per hour and net profit per hour. Every one should be able to recite their own cost immedieatly and from memory.....

Know what every financial decision will impact your hourly rates and net profits.....

Have a 5 year plan...do not let your vendors jerk you off..learn how to say NO to a job if it does not FEEL right.. because it's not...

Have company policys - handbooks disicpline policys - job descripitions and classifications and learn to earn pay scale qualifications...

Pay your taxes on time.. pay your vendors and bank on time and demand the same from your customers..use debt leverages very carefully... do not let your employees tell you how to run the company.. create a company of journey man landscapers..

Do not fall into the " I have to have this jacked up 4 wheel drive crew cab 500 hp diesel truck with 38 inch tires because I have a small unit" trap...

Buy iron instead of hiring more employees..we will do $400K with 3 employees next year and that includes me..

Jeff don't have enough bandwidth for me to list all the stupid s--- I did in the last 26 years..