How, Why & When to Diversify Your Business

by Rachelle Kemp on January 2, 2019

It is budget time for The Grounds Guys, and while sales numbers get increased adding new services might come into play. This is not something to take lightly. When diversifying a business many factors should be considered including number of team members, type of equipment, available capital and targeted clientele to name a few. Understanding these critical points will help in the success of implementing new services for maximum profit while maintaining the bottom line.

Diversifying the services offered to current clientele is a good way to test the need and demand. Jeffery Scott, a contributing expert to Lawn and Landscape Magazine recommends specializing and diversifying at the same time. Specialize with impeccable service and offer a new way to do a routine visit that makes you desirable by prospective clients. The GreenSpace evaluation is something The Grounds Guys can offer that is above and beyond normal services by a landscape company. It is informative for you and the client while being very easy to use.

There are other available tools that can help separate a Grounds Guys owner from competitors. We have an available computer landscape program called GreenScape that can give a client an actual 2-D picture of the proposed design or even a new color on the front door. A few of our franchisees have utilized this program and have seen success after first use. It is user friendly and with the tutorial videos plus the support of their staff you are easily set for providing a diversifying service that very few landscape companies offer.

Another tool that will help your company is utilizing GGPro to its fullest. Before you stop reading because you have heard so much in 2018 about using the program, let me share my story with you! I entered my own business into GGPro during our training in 2017 and discovered very important details of my business that two, paid financial advisors and a CPA did not share with me. Once everything was entered properly for sales, equipment, manpower etc., I read the analysis about my own personal landscape company. Two things that stuck out the most was the equity in my company was dropping because I was keeping equipment too long, and I was overpaying my two main guys. We have a full-time mechanic and I thought it was in our favor that he could repair the equipment, so that we didn’t have to buy new every three years. As you guys know, good mowers are not cheap, so we refurbished motors and whatever else to save money. Well we did that for so long that the value of several pieces of our equipment were worthless in resale and dropped my company’s value. Equity is buying power! Less equity means less money we can borrow, and, in some instances, it could affect the interest percent. If you are consider selling your business this is even more important information to have in your hands.

Paying my two lead guys too much according to GGPro’s averages is okay with me. These guys have been employed with us for over 25 years, and they take care of everything in my and mine husband’s absences. Essentially if they do not work for us, I am not here for the franchisees! Discuss with your franchise consultant if you have a difference in the labor or any other discrepancy with the figures you entered and the averages on GGPro. They will guide you.

Diversifying a company does not always mean buying something or making big changes. Simply reinvesting in the systems purchased as a franchisee could easily begin in 2019. Use the HUDDLE and 5 Ss every day to start. They are free! Make it your New Year’s resolution to use the systems The Grounds Guys created for you, and those things alone will set you apart from the competitor. Customer service is more important now than ever with the new generation having the major buying power in 2020. They want easy access for answers, fast responses, and caring people helping them according Entrepreneur Magazine. You have the tools at your fingertips to provide services that others in the industry do not possess. Use them correctly and you can easily diversify your business without extra expense or a lot of extra work. Cheers to 2019 and being the Neighborly brand of the year!

Topics: Business planning


Rachelle Kemp

Technical Services Specialist

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