Realigning Business Imperatives for a Slow Economy

Landscaper Genevieve Schmidt says she saw “the writing on the wall” before the recent economic downturn and realized she’d have to adjust her business plan.

“Before the housing market came to a halt and new landscaping projects dramatically declined, I shifted my business focus,” says Schmidt, owner of North Coast Gardening, based in Arcata, Calif. “Instead of relying on new installations, I concentrated on upscale landscape maintenance…. The contracts are ongoing, so the market can expand and contract without any impact on our work. When you pay $40,000 for a landscape, another $250 a month for a skilled specialist isn’t a big leap.”

Like many in the landscaping industry, Schmidt has had to make a major realignment within her company to keep it afloat. Some realignments—layoffs, furloughs, benefit reductions—can be very painful. Some, like a new business strategy, require risk. But how do you know you’re making the right moves, for both the short-term and the long haul?

Think first
Ask yourself this before any cut or purchase: “How is this adding value to my business?”

When realigning, every single resource must be maximized and quantified for bottom-line results. You must evaluate new purchases based upon the revenue they will generate or costs they will save.

“Similarly, you need to apportion all resources wisely,” says John Caslione, Lake Forest, Ill.-based business development expert and co-author of Chaotics: The Business of Managing and Marketing in the Age of Turbulence. “That means eliminating meetings that have no value. For those that do, like sales meetings, make sure there is a clearly defined profit purpose that everyone in the room is driving at.”

Get employees involved
When a landscaping boss makes all the decisions about cuts and re-direction, it tends to create a sense of uncertainty among employees. But when those employees have a say, there’s a sense of ownership and that everyone is working together to make the best of a bad situation.

“It doesn’t just make them more invested in the company’s success,” Caslione says. “It gives the boss a better sense from the ground floor as to what’s working and what’s not.” Also, if the realignment involves payroll reduction, your employees are likely to be more forgiving if they have a say in whether those reductions involve a pay decrease, job cuts, furloughs or the elimination of bonuses.

Don’t cannibalize your business
Remember: You’re in business to be in business. While staffing adjustments or expense-cutting moves may be needed, you don’t want to dramatically impact your ability to deliver for customers.

“Sure, you could take down your sign and sell your mower and rakes,” says Tom Egelhoff, a Bozeman, Mont.-based small business consultant and author of How to Market, Advertise and Promote Your Business or Service in Your Own Backyard. “That will save you plenty. Then you’ll lose your employees and your customers because your competitors will notice and they won’t be doing these things. Then, when things improve, you won’t have the resources to bounce back.”

Redirect your marketing
Thanks to social networking online—plus networking via community groups and industry associations—there are inexpensive ways to get the word out about your business. And don’t forget that your crews can serve as an asset here as well. If your employees are on Facebook, Twitter, LinkedIn or other social networking sites, give them a reason to promote your landscaping operation. If they belong to a softball league, make it in their best interest to post company literature in high-traffic areas by the playing fields.

“Your employees know at least 250 people each,” Egelhoff says. “So turn them into a sales force. Give them business cards with incentives to turn those friends and associates into customers. For every one they bring in, give them points that can be used for paid days off, for example.”

Smart promotional techniques
With realignment, you may not be able to afford to hire contractual marketing talent at an agency anymore. Since you may emerge as your own marketing “team,” make the most of already in-place “visibility opportunities.”

Egelhoff suggests that landscaping business owners map out not only a layout of the properties in which they’re working, but also the properties on all four sides of the one that hired them.

“You get a handle on the kinds of trees, shrubs and grass that are there,” he says. “When you do the job for the customer that hired you, make sure the neighbors know what you’re doing and what you can do for them. Establish yourself as the go-to landscaper for the neighborhood, because you really know the community. When you park your trucks overnight, consider parking them in high-profile places in those neighborhoods.”