Gross Profit vs Net Profit

Gross Profit vs Net Profit

To achieve a good net profit, how much gross profit should you earn in each of your divisions? That depends… Your profitability is not always driven by your gross profit. Here is what I mean. Some companies can achieve high gross profit but still end up with a low net...

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5 Levels of Financial Management

5 Levels of Financial Management

There are five levels of financial management in the lawn and landscape industry. They range from: Terrible, Poor, Good, Better to Best. Where does your company operate financially? (Sidebar: Because so many issues that you face are tied back to proper financial...

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Will Inflation Keep Rising?

Will Inflation Keep Rising?

Will inflation keep rising next year, and beyond? This begs the question: How much should you budget next year for pay raises? My View on Inflation Inflation is based on supply and demand, and the cost of production. Supply In the next 18 months, material supplies...

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Right-Sizing Overhead as You Plan For Growth

Right-Sizing Overhead as You Plan For Growth

What’s the right amount of overhead you need as you plan for growth? To answer that, let's look at the 3 kinds of companies in the landscape industry: Skinny Company 1, whose overhead is too low: They are running too lean, burning out their leaders, and not taking...

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The Correct Labor Mark-Up

The Correct Labor Mark-Up

What is the right way to calculate the mark up on your labor cost, to recover the appropriate overhead? It’s not a question that gets deep enough attention.  I see many companies with low labor mark ups who are still wondering why their business model is not producing...

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Meet the 20% Woman

Meet the 20% Woman

This week Loriena Harrington (Beautiful Blooms Landscape, WI) was awarded the Women Entrepreneur of The Year award by the National Association of Landscape Professionals. I am super proud of her and was delighted to write a letter in support of her (see at bottom)....

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Who Really Won the Olympics?

Who Really Won the Olympics?

The greatest sports competition on earth just ended, with tears of wins, losses and upsets. So who actually won? The typical story line measures it by most medals (the USA by a long shot) and by the most Golds (the USA with China right behind). You can be sure the...

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Want to Serve Your Clients Well? Charge More

Want to Serve Your Clients Well? Charge More

Charge more - sound counterintuitive? Maybe so. But when you charge more, you can hire and retain better employees. And you can offer benefits to your employees to keep the great ones around. When you charge more...keeping up with or ahead of inflation... You can buy...

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Why Cross Selling Fails in Most Companies

Why Cross Selling Fails in Most Companies

Why does cross selling fail in most companies, and why should you care? The main reason to care is that your current clients are your best clients, meaning they will buy services at higher margins than a brand new client would. You may think you are too busy to care...

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