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11-09-2008, 06:21 PM
Business Survival Strategies
30 Steps You Can Take Now To Survive A Slowing Economy
By Phil Nilsson, Lawn & Landscape Industry Consultantwww.nilssonbooks.com (http://www.nilssonbooks.com)
Business costs are rising, competition for the work is intense, demand for goods and services has slowed, new housing starts have dropped. It's said that the big rise in fuel costs is the "match" that lit this latest round of inflation. Even during "normal times" when most landscapers are busy and loaded up with work, over 70% fail at the landscape business. They were not prepared to manage a business. They didn't realize how hard it would be, what you had to know, and that even during the "good times" only the most resourceful, knowledgeable lawn care and landscape professionals survive. During "these times" when competition for the work is likely to get more intense ... learning the "hard way" by trial and error ... is not an option if you want to make it.
There's a lot to learn ...
Pricing is a key issue, job cost needs to be be tightly controlled, bidding your jobs correctly, tight control and supervision of employees and labor hours and costs to avoid losing money on jobs and wasting payroll money, how to increase cash flow, how to cut costs, how to boost sales, how to get to bid on more jobs, are all keys to success, how to keep your valuable employees busy making money. When you increase your knowledge about what you can do to survive a slowing economy, you automatically reduce your risk of business failure.
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
Nilsson Associates
Green Industry Consultants
374 Hart Street
Southington, CT 06489
Toll Free 866-280-2252
www.nilssonbooks.com (http://nilssonbooks.com/)
email nilsson.assoc@snet.net
It happened in 1975, 1981 and 1991, and from the looks of it, the year 2008 is already seeing signs that the good times may be coming to an end. To what extent, nobody can predict, but retail sales are down, auto sales are way off, consumer confidence is slipping and plant closings and layoffs have already started in some industries.
Whether or not the lawn & landscape industry feels the impact of a real recession or just a mild downturn is anybody’s guess, but there's nothing quite like being prepared in advance. Therefore, here are 30 strategies to consider for coping with a down economy. Some of these steps are radical, while others are a more mild form of defense. Implement them according to the conditions you experience in your market area.
1. Conserve your cash.
2. Don't spend a dime on anything that isn't absolutely necessary to your operation.
3. Refinance anything and everything you can. Stretch out the payments because getting cash later on will be difficult as more people will apply for loans and banks will become very picky.
4. Work out a worst-case scenario cash flow projection that projects your company having a decrease in sales. As part of this, determine what expenses will be unavoidable.
5. Know your job costs well because poorly priced sales can put you out of business faster.
6. Look through your cash disbursements. Preplan a less expensive alternative to any expense category that you can.
7. Stretch out the work, retain key people and ask everyone to take a pay cut or at least a cut in hours worked.
8. Talk to your creditors early in the game. Many of them will work with you if they can afford to carry you on their books for the long haul.
9. Be more aggressive in getting jobs. Plan on having to increase bidding activity to end up with the same or a less amount of work.
10. Beef up your advertising to try to attract more opportunities to bid jobs.
11. Slowdowns mean layoffs. Therefore, new hires become available and are sometimes available at a lower rate of pay than your current rate. Take advantage of that fact.
12. If you find yourself in grave financial trouble, take an inventory of assets that are secured by collateral because these can be repossessed at any time and you will be without the ability to operate. Make payments on secured loans first.
13. If part of your fleet is going to be idle for some time, try to store it and get a reduced rate of insurance due to non-use.
14. Consider hiring a salesperson on a commission basis to help find more work in an otherwise shrinking market.
15. If a decrease in business is eminent, plan early to find part-time work. If you wait too long, the job market will have dried up as unemployment figures rise.
16. Approach your customers in advance of them seeking job bids from others. You may be able to negotiate a contract at a lower price that fits their reduced budget. This is especially true of commercial customers who have been asked by department heads to reduce company costs.
17. Selling off assets during a recession is difficult. Nevertheless, selling off unused equipment reduces insurance and registration costs and property taxes.
18. Look into the unemployment laws in your state. You may be able to qualify for a temporary layoff status whereby your employees can draw unemployment because you have reduced their working hours.
19. Convert anything you don't need into cash well ahead of any signals that your area will be hard hit. Tag sales and yard sales are often measures taken too late, which means you get next to nothing.
20. Try bartering your services to providers to conserve cash.
21. Apply for credit long before you need it. You may have to "borrow" your future, and banks will raise interest rates on high-risk loans as conditions worsen.
22. Begin doing business with a greater number of suppliers for the same products and materials you use. Suppliers may limit your credit line, but if you spread the risk around, you'll keep your sources longer.
23. Landscape installation contractors will "rush" towards maintenance markets if housing starts decrease. These are the best prospects to sell your equipment to if need be.
24. Assume that pricing pressures caused by a recession will last about two years after a recession is over. Extend your bidding activity to rid yourself of low price work quickly when times get better.
25. Look deeper in your own markets. Can you offer your current customer base a more diversified line of services?
26. Examine the cash value of your insurance policies, as you may need the money.
27. Review your business insurance to make sure your premiums have been adjusted for the depreciated value of your vehicles and equipment.
28. Examine every personal expense you have to find alternatives to any spending patterns.
29. Take a look at your estimated tax payments made to the IRS. Decreased earnings call for decreased estimated tax payments.
30. Economic downturns can be considered a time vs. money scenario during which whoever has the most cash or credit lasts the longest. Apply for and get every credit card that's available to you.
Cash is "king" during economic slowdowns no matter how mild or severe. Expect your customers to also feel the effects, which means they will pay you at a much slower rate than during the good times. That's precisely the reason that you'll need additional working capital to finance your receivables if nothing else. Run a cash flow working capital projection using 60 days, 90 days, 120 days and even up to six months to be paid from some of your customers. How much cash do you need to survive? Find the answer to that question. Prepare and save for that eventuality and you'll be ready for a downturn.
Resources:
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
Labor Time Data Handbook (http://nilssonbooks.com/job_bidding_pricing.htm#)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
Nilsson's Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm) has everything you need to evaluate job site specifications & work required, figure costs, how to price ~ lawns, grounds maintenance, landscape installs. You'll get step - by - step instructions, bid proposal outlines & customer contracts, labor hours job times. You'll get job price guides to compare your prices with the going rates, overhead costs, materials, profit ratios. You'll set realistic prices, and job labor hours goals based on field tested, proven, time studied labor hours for every job you bid. You'll know how to evaluate every job for total work hours required, the price to charge for the job, the profit you'll make, best crew size, job costs. You'll also get add-on service check lists to help you maximize sales by upselling customers on additional property improvements. Nilsson's Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm) includes a model bid example that takes you through the entire bid process step by step from work site information gathering, cost and profit calculations based on site conditions and specifications, outlines price proposal details, and customer contract writeup along with a cover letter outlining the work. Use the bid model as your permanent estimating guide and improve the accuracy of all your bids.
Copyright Nilsson Associates 2004, 2005, 2007
About Nilsson Associates
Nationally recognized "Best Selling Author", Business Consultant and Seminar Presenter with over 30 years experience in the Green Industry. Nilsson's articles are published by Grounds Maintenance Magazine, Lawn & Landscape, PRO, The Arborist, Landscaper Publications of New York, PGMS, PLCAA. Nilsson owned and operated a successful Landscape Design-Build-Maintain firm for 15 years, and for many years was retained as Business Coach and Management Advisor to the national membership of the Professional Lawn Care Association of America.
Nilsson's books are endorsed by National Trade Associations, The California Landscape Contractors Association, The Professional Grounds Management Society, The Horticultural Departments of Ohio State University, The University of Tennessee, and The University of Georgia. Nilsson's books are in use by over 25,000 Landscape Contractors, Lawn Care Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Save money on package deals!
Click here: for Special Book Discounts
(http://nilssonbooks.com/discounts_and_deals.htm)
If you're new to www.nilssonbooks.com (http://www.nilssonbooks.com/) take a look at the FIVE Discounted Book Package Deals and save money on our most popular selections. Save even more money when you purchase the Complete Operations Management System of our 24 Volume Set Library.
Nilsson Associates Green Industry Consultants has the information you need to operate your business and make it a success. We offer one of the Largest Resources available in the Green Industry on the internet. Everything from how to sharpen a mower blade to how to manage a small or large, simple or complex business doing millions in sales! You can keep your buisness small or grow it each year. It's up to you how far you go. Some are just interested in mowing lawns as a service, then add on pruning, planting, trimming, shrubs, trees, plowing snow, and getting into bidding and estimating grounds maintenance, landscape installations, hardscapes, patios, retaining walls and waterscapes.
No mattter what services you want to offer, we have the technical and managment information you need that will save you time and money getting started. Take a look at our extensive line of books, audios, videos and employee training materials in English and Spanish. Start at the Nilsson Associatres home page www.nilssonbooks.com (http://www.nilssonbooks.com/) and scroll down the left side of the home page to locate the business problem you want a solution to. The index includes all these categories dealing with just about all lawn care, the best mowers, how to maximize profits in mowing, job bidding & pricing, what equipment to buy, lawns, grass, chemicals, fertilizers, pesticides, herbicides, landscape company operations, irrigation, snow plowing, planting, pavement services and many others. The instruction you will receive is affordable, and highly focused training that really works! And ... The ongoing personal support from our Industry Experts is the Best Professional Management & Ownership Training Program in the Industry. With us assisting you every step of the way, your business will be up and running fast, making money, organized to win, separate itself from the competition, and on the "Path To A Rewarding Future."
NEED HELP?
Please call toll free 1-866-280-2252 anytime for more information, to order by phone or if you need help selecting the books that will best solve your business problems.
What others say ...
"Nilsson Associates provides an important source of information, a highly respected PLCAA Consultant, and Best Selling author with our membership."
Professional Lawn Care Association of America
"Nilsson has some of the best ideas for the green industry ... their books have comprehensive in-depth coverage, knowledgeable step-by-step approach for business improvement"
PRO Magazine
"Our members have found your books extremely helpful. Thanks for your insight and creativity"
Professional Grounds Management Society
"Nilsson's books are must reads, and have helped our readers tremendously. Thanks for your continued support."
Landscaper Publications
"Your way of explaining the subject shows you know what we need to do to make money in this business, thanks."
H.L., Madison, Wisconsin
"Nilsson's series of books filled a void in our program ... Our students needed more insight into management, costs, profits, and how to successfully operate a business.
University of Tennessee, Horticulture Dept.
What about customer service and Guarantees ?
You get FREE help with your business questions with the purchase of any of the Nilsson Associates products or services.
Our books are 100% Guaranteed or your money back, so there is no risk.
Our book customers can call us and get FREE additional help with their business problems. We don't just sell you a book, we're here to answer your questions and we're noted for this unique benefit of doing business with us. And,when you call, you'll be talking to an industry expert.
Ordering is easy, safe and fast!
You can buy our products online at our 100% secure website at www.nilssonbooks.com (http://www.nilssonbooks.com/) or if you'd rather order by phone or postal mail call us Toll FREE at 1-866-280-2252.
For more information ... Call us toll free at 1-866-280-2252 if you need help selecting the books that will best solve your business problems.
Labor Time Data Handbook (http://nilssonbooks.com/job_bidding_pricing.htm#)
FREE JOB PRICING GUIDELINES (http://nilssonbooks.com/free_job_guidelines.htm)
Click here: for Special Book Discounts
(http://nilssonbooks.com/discounts_and_deals.htm)
http://hispaniclawnforum.com/banners/jobestpakbanpn.gif (http://nilssonbooks.com/job_estimating_package.htm)
http://hispaniclawnforum.com/banners/itvbanner1.gif (http://nilssonbooks.com/video_tapes.htm)
http://hispaniclawnforum.com/banners/coms_banner_d.gif (http://nilssonbooks.com/coms_package.htm)
30 Steps You Can Take Now To Survive A Slowing Economy
By Phil Nilsson, Lawn & Landscape Industry Consultantwww.nilssonbooks.com (http://www.nilssonbooks.com)
Business costs are rising, competition for the work is intense, demand for goods and services has slowed, new housing starts have dropped. It's said that the big rise in fuel costs is the "match" that lit this latest round of inflation. Even during "normal times" when most landscapers are busy and loaded up with work, over 70% fail at the landscape business. They were not prepared to manage a business. They didn't realize how hard it would be, what you had to know, and that even during the "good times" only the most resourceful, knowledgeable lawn care and landscape professionals survive. During "these times" when competition for the work is likely to get more intense ... learning the "hard way" by trial and error ... is not an option if you want to make it.
There's a lot to learn ...
Pricing is a key issue, job cost needs to be be tightly controlled, bidding your jobs correctly, tight control and supervision of employees and labor hours and costs to avoid losing money on jobs and wasting payroll money, how to increase cash flow, how to cut costs, how to boost sales, how to get to bid on more jobs, are all keys to success, how to keep your valuable employees busy making money. When you increase your knowledge about what you can do to survive a slowing economy, you automatically reduce your risk of business failure.
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
Nilsson Associates
Green Industry Consultants
374 Hart Street
Southington, CT 06489
Toll Free 866-280-2252
www.nilssonbooks.com (http://nilssonbooks.com/)
email nilsson.assoc@snet.net
It happened in 1975, 1981 and 1991, and from the looks of it, the year 2008 is already seeing signs that the good times may be coming to an end. To what extent, nobody can predict, but retail sales are down, auto sales are way off, consumer confidence is slipping and plant closings and layoffs have already started in some industries.
Whether or not the lawn & landscape industry feels the impact of a real recession or just a mild downturn is anybody’s guess, but there's nothing quite like being prepared in advance. Therefore, here are 30 strategies to consider for coping with a down economy. Some of these steps are radical, while others are a more mild form of defense. Implement them according to the conditions you experience in your market area.
1. Conserve your cash.
2. Don't spend a dime on anything that isn't absolutely necessary to your operation.
3. Refinance anything and everything you can. Stretch out the payments because getting cash later on will be difficult as more people will apply for loans and banks will become very picky.
4. Work out a worst-case scenario cash flow projection that projects your company having a decrease in sales. As part of this, determine what expenses will be unavoidable.
5. Know your job costs well because poorly priced sales can put you out of business faster.
6. Look through your cash disbursements. Preplan a less expensive alternative to any expense category that you can.
7. Stretch out the work, retain key people and ask everyone to take a pay cut or at least a cut in hours worked.
8. Talk to your creditors early in the game. Many of them will work with you if they can afford to carry you on their books for the long haul.
9. Be more aggressive in getting jobs. Plan on having to increase bidding activity to end up with the same or a less amount of work.
10. Beef up your advertising to try to attract more opportunities to bid jobs.
11. Slowdowns mean layoffs. Therefore, new hires become available and are sometimes available at a lower rate of pay than your current rate. Take advantage of that fact.
12. If you find yourself in grave financial trouble, take an inventory of assets that are secured by collateral because these can be repossessed at any time and you will be without the ability to operate. Make payments on secured loans first.
13. If part of your fleet is going to be idle for some time, try to store it and get a reduced rate of insurance due to non-use.
14. Consider hiring a salesperson on a commission basis to help find more work in an otherwise shrinking market.
15. If a decrease in business is eminent, plan early to find part-time work. If you wait too long, the job market will have dried up as unemployment figures rise.
16. Approach your customers in advance of them seeking job bids from others. You may be able to negotiate a contract at a lower price that fits their reduced budget. This is especially true of commercial customers who have been asked by department heads to reduce company costs.
17. Selling off assets during a recession is difficult. Nevertheless, selling off unused equipment reduces insurance and registration costs and property taxes.
18. Look into the unemployment laws in your state. You may be able to qualify for a temporary layoff status whereby your employees can draw unemployment because you have reduced their working hours.
19. Convert anything you don't need into cash well ahead of any signals that your area will be hard hit. Tag sales and yard sales are often measures taken too late, which means you get next to nothing.
20. Try bartering your services to providers to conserve cash.
21. Apply for credit long before you need it. You may have to "borrow" your future, and banks will raise interest rates on high-risk loans as conditions worsen.
22. Begin doing business with a greater number of suppliers for the same products and materials you use. Suppliers may limit your credit line, but if you spread the risk around, you'll keep your sources longer.
23. Landscape installation contractors will "rush" towards maintenance markets if housing starts decrease. These are the best prospects to sell your equipment to if need be.
24. Assume that pricing pressures caused by a recession will last about two years after a recession is over. Extend your bidding activity to rid yourself of low price work quickly when times get better.
25. Look deeper in your own markets. Can you offer your current customer base a more diversified line of services?
26. Examine the cash value of your insurance policies, as you may need the money.
27. Review your business insurance to make sure your premiums have been adjusted for the depreciated value of your vehicles and equipment.
28. Examine every personal expense you have to find alternatives to any spending patterns.
29. Take a look at your estimated tax payments made to the IRS. Decreased earnings call for decreased estimated tax payments.
30. Economic downturns can be considered a time vs. money scenario during which whoever has the most cash or credit lasts the longest. Apply for and get every credit card that's available to you.
Cash is "king" during economic slowdowns no matter how mild or severe. Expect your customers to also feel the effects, which means they will pay you at a much slower rate than during the good times. That's precisely the reason that you'll need additional working capital to finance your receivables if nothing else. Run a cash flow working capital projection using 60 days, 90 days, 120 days and even up to six months to be paid from some of your customers. How much cash do you need to survive? Find the answer to that question. Prepare and save for that eventuality and you'll be ready for a downturn.
Resources:
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
Labor Time Data Handbook (http://nilssonbooks.com/job_bidding_pricing.htm#)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
Nilsson's Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm) has everything you need to evaluate job site specifications & work required, figure costs, how to price ~ lawns, grounds maintenance, landscape installs. You'll get step - by - step instructions, bid proposal outlines & customer contracts, labor hours job times. You'll get job price guides to compare your prices with the going rates, overhead costs, materials, profit ratios. You'll set realistic prices, and job labor hours goals based on field tested, proven, time studied labor hours for every job you bid. You'll know how to evaluate every job for total work hours required, the price to charge for the job, the profit you'll make, best crew size, job costs. You'll also get add-on service check lists to help you maximize sales by upselling customers on additional property improvements. Nilsson's Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm) includes a model bid example that takes you through the entire bid process step by step from work site information gathering, cost and profit calculations based on site conditions and specifications, outlines price proposal details, and customer contract writeup along with a cover letter outlining the work. Use the bid model as your permanent estimating guide and improve the accuracy of all your bids.
Copyright Nilsson Associates 2004, 2005, 2007
About Nilsson Associates
Nationally recognized "Best Selling Author", Business Consultant and Seminar Presenter with over 30 years experience in the Green Industry. Nilsson's articles are published by Grounds Maintenance Magazine, Lawn & Landscape, PRO, The Arborist, Landscaper Publications of New York, PGMS, PLCAA. Nilsson owned and operated a successful Landscape Design-Build-Maintain firm for 15 years, and for many years was retained as Business Coach and Management Advisor to the national membership of the Professional Lawn Care Association of America.
Nilsson's books are endorsed by National Trade Associations, The California Landscape Contractors Association, The Professional Grounds Management Society, The Horticultural Departments of Ohio State University, The University of Tennessee, and The University of Georgia. Nilsson's books are in use by over 25,000 Landscape Contractors, Lawn Care Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Save money on package deals!
Click here: for Special Book Discounts
(http://nilssonbooks.com/discounts_and_deals.htm)
If you're new to www.nilssonbooks.com (http://www.nilssonbooks.com/) take a look at the FIVE Discounted Book Package Deals and save money on our most popular selections. Save even more money when you purchase the Complete Operations Management System of our 24 Volume Set Library.
Nilsson Associates Green Industry Consultants has the information you need to operate your business and make it a success. We offer one of the Largest Resources available in the Green Industry on the internet. Everything from how to sharpen a mower blade to how to manage a small or large, simple or complex business doing millions in sales! You can keep your buisness small or grow it each year. It's up to you how far you go. Some are just interested in mowing lawns as a service, then add on pruning, planting, trimming, shrubs, trees, plowing snow, and getting into bidding and estimating grounds maintenance, landscape installations, hardscapes, patios, retaining walls and waterscapes.
No mattter what services you want to offer, we have the technical and managment information you need that will save you time and money getting started. Take a look at our extensive line of books, audios, videos and employee training materials in English and Spanish. Start at the Nilsson Associatres home page www.nilssonbooks.com (http://www.nilssonbooks.com/) and scroll down the left side of the home page to locate the business problem you want a solution to. The index includes all these categories dealing with just about all lawn care, the best mowers, how to maximize profits in mowing, job bidding & pricing, what equipment to buy, lawns, grass, chemicals, fertilizers, pesticides, herbicides, landscape company operations, irrigation, snow plowing, planting, pavement services and many others. The instruction you will receive is affordable, and highly focused training that really works! And ... The ongoing personal support from our Industry Experts is the Best Professional Management & Ownership Training Program in the Industry. With us assisting you every step of the way, your business will be up and running fast, making money, organized to win, separate itself from the competition, and on the "Path To A Rewarding Future."
NEED HELP?
Please call toll free 1-866-280-2252 anytime for more information, to order by phone or if you need help selecting the books that will best solve your business problems.
What others say ...
"Nilsson Associates provides an important source of information, a highly respected PLCAA Consultant, and Best Selling author with our membership."
Professional Lawn Care Association of America
"Nilsson has some of the best ideas for the green industry ... their books have comprehensive in-depth coverage, knowledgeable step-by-step approach for business improvement"
PRO Magazine
"Our members have found your books extremely helpful. Thanks for your insight and creativity"
Professional Grounds Management Society
"Nilsson's books are must reads, and have helped our readers tremendously. Thanks for your continued support."
Landscaper Publications
"Your way of explaining the subject shows you know what we need to do to make money in this business, thanks."
H.L., Madison, Wisconsin
"Nilsson's series of books filled a void in our program ... Our students needed more insight into management, costs, profits, and how to successfully operate a business.
University of Tennessee, Horticulture Dept.
What about customer service and Guarantees ?
You get FREE help with your business questions with the purchase of any of the Nilsson Associates products or services.
Our books are 100% Guaranteed or your money back, so there is no risk.
Our book customers can call us and get FREE additional help with their business problems. We don't just sell you a book, we're here to answer your questions and we're noted for this unique benefit of doing business with us. And,when you call, you'll be talking to an industry expert.
Ordering is easy, safe and fast!
You can buy our products online at our 100% secure website at www.nilssonbooks.com (http://www.nilssonbooks.com/) or if you'd rather order by phone or postal mail call us Toll FREE at 1-866-280-2252.
For more information ... Call us toll free at 1-866-280-2252 if you need help selecting the books that will best solve your business problems.
Labor Time Data Handbook (http://nilssonbooks.com/job_bidding_pricing.htm#)
FREE JOB PRICING GUIDELINES (http://nilssonbooks.com/free_job_guidelines.htm)
Click here: for Special Book Discounts
(http://nilssonbooks.com/discounts_and_deals.htm)
http://hispaniclawnforum.com/banners/jobestpakbanpn.gif (http://nilssonbooks.com/job_estimating_package.htm)
http://hispaniclawnforum.com/banners/itvbanner1.gif (http://nilssonbooks.com/video_tapes.htm)
http://hispaniclawnforum.com/banners/coms_banner_d.gif (http://nilssonbooks.com/coms_package.htm)