Category Archives: Income

Sales Commissions Can Fail in Three Ways

Man on a boat in the middle of the ocean surrounded by sharks.

Sales commissions can fail in three big ways––two are somewhat obvious, and one is hidden and does damage if unnoticed.  Before you even consider setting up a commission plan, you have to be ready for the culture change it brings. Commissions can be very “I” centric and encourage the individualistic nature of salespeople. As long …

Stop Working Below Your Pay Grade

Hand Of Man Reaching For Red Ladder Leading To A Blue Sky. Development motivation Career Growth Concept

As a successful landscape business entrepreneur, you need to stop working below your pay grade. In order to grow, focus on the $200/hr and the $2,000/hr work, and start delegating the $20/hr and $50/hr work.  There are four levels of work you need to familiarize yourself with. The first two levels are where business owners …

Why Run Your Company With “Profit Centers”?

Businessmen and businesswomen joining hands in group meeting at multicultural office room showing teamwork, support and unity in business. Diversity workplace and corporate people working concept.

There is a debate going on in our industry — some say you should have a separate sales department and a separate production department. Others say you should set up your company as a collection of profit centers, where one person oversees both sales and production. (Some companies will have a mix of both, but …

Using Gross Profit Vs Net Profit — Which Is Better To Monitor?

profit margin graph

Imagine if you enjoyed a 65% gross margin but still had trouble achieving double-digit net profit margins. A contracting friend of mine is in this predicament due to his overhead structure and mix of services. He does an excellent job of attracting clients and making sales; he has not scaled his operations to the point …

Why Isn’t My Landscape Company Making 20 Percent?

scaling your landscape business

Or for some of you, the question may be “Why am I not making 10%?” I hear this query from owners who know they can do better than the industry average of 5%. They know that hard work and smarter approaches can deliver higher returns, but they are not sure what’s possible. Many of my …

Leading In Lean Times


Some winters are flush with cash and some winters are lean. When winter revenue is low, you may feel like you are in lean times, like Moses wandering through the desert. While this can be a bad feeling, focusing directly on a ‘lack of money’ will make matters worse. I received an email from a …

Growing From $5 To $10 Million And Beyond


During the GIE Landscape show in Louisville this fall, I led a table discussion with 9 companies at the $5 million level. We discussed the obstacles holding them back from growing to $10 million and beyond. Only one out of the nine leaders suggested that pricing was an issue. The rest of the group focused …

Raising Owner’s Income: How Much Is in Your Wallet?


Owners of contracting firms earn on average 8 percent Net to Owner; but above average entrepreneurs earn 16 percent Net to Owner and the top 10% of our industry earn considerably more. How much is in your wallet? Many owners focus on building their revenues as a way to build their wealth. While there can …