Have you ever had a customer ask if you could lower your price? And out of fear, you decided to lower it and end up losing money? It’s a common problem that many small to medium-sized landscaping businesses face, often coming from a lack of confidence in their business acumen.
Understanding Confidence vs. Competence:
While confidence might get you the job, competence is what allows you to execute it profitably. You might know someone who exudes confidence but falls short on delivery, demonstrating that confidence without skill is ineffective. In landscaping, this not only applies to the physical work you do but also to managing your business. You may excel in creating beautiful landscapes but struggle with the operational aspects of your business.
The Role of Competence in Business Operations:
Competence in business is critical. Many landscapers are confident in their skills but might not be as confident in running their businesses. This can remain hidden until it becomes a significant issue, impacting their bottom line and business growth.
Growing Beyond the Job Site:
Growing a landscaping business is more than just going to the job site, installing mulch, building a driveway, patio, creating a water feature, or deck, etc… Much of it happens in the back-end. In the Million Dollar Landscapers ProfitsUP Estimating program, we empower our members to gain confidence in these areas, emphasizing the importance of knowing your numbers.
The Power of Knowing Your Numbers:
Understanding your numbers is crucial. Landscapers often fear losing business, so they accept low offers, resulting in little to no profit. This is a rookie mistake that can be avoided by being well-informed about your costs and profit margins. Learning to stick to your numbers allows you to negotiate better and walk away when necessary, ensuring each project is profitable.
Becoming a Confident Negotiator:
How many times you’ve said yes to but ended up being not profitable? Knowing your numbers allows you to have wiggle room and become a better negotiator. This also helps you save time because you don’t have to drive for hours to the customer’s house and realize that they’re not a good fit. You can just tell them your bottom dollar via the phone and if they don’t agree, you can simply proceed to the next estimate.
Conclusion:
Are you confident in saying, “No”? Homeowners will pick up on your confidence. Being confident in your business makes you more professional. Don’t react out of fear or panic. React according to your profit margins.
Sometimes, it takes time for things to settle in. But if you really want to take your business to the next level, you should work on improving yourself. It’s not just about being confident with the numbers, but also about hiring employees, building your team, and handling business operations.
