It’s safe to say now that no industry will be immune to the effects of the coronavirus pandemic that has very quickly spread to all U.S. states and territories. The landscaping industry, dominated by smaller businesses and solo entrepreneurs, is already experiencing its own industry-specific challenges. In this post we’ve compiled a set of best practices for owners of landscaping businesses like you, to help you get through these uncertain times hopefully unscathed. Continue reading if you’re concerned at all about maintaining your landscaping business in the age of coronavirus.
Recommendation #1: Trim the fat
Don’t wait to reduce your variable expenses as much as possible as it’s currently unclear how long this situation will last and how deeply government restrictions will affect your business. Several large states (California, Illinois, and New York, to name a few) have already restricted “non-essential” businesses. In some areas these restrictions may preclude landscapers from delivering any services at all.
You should immediately review your previous month’s cash flows and identify recurring monthly expenses that can be reduced or eliminated entirely. Next, practice your negotiation skills by calling each identified supplier/vendor to inquire if they could discount their cost, reduce their services in exchange for a reduced payment, or defer/delay payment altogether, etc. Everyone is in the same situation so most should be willing to at least do something to keep you and your business from cancelling their services altogether.
Again, don’t wait until things become worse or hit too close to home to do this. Reduce or eliminate all unnecessary expense today.
Recommendation #2: What goes around…
You customers are likely also struggling based on the number of stories we’ve heard about cancelled lawncare maintenance contracts. Just like you, they may need to cut back on their own cost— and lawncare maintenance may look a lot like an unnecessary expense to them right about now.
You should start thinking about what you can do to help your customers get through this time. Could you offer a one-time payment deferment? Could you offer a temporary discount? Could you reduce your service level in exchange for a discount in price?
Additionally, you may not want to wait to receive that call informing you of a cancelled contract. Reaching out first, letting your customers know that we’re all in this together, and offering them a temporary discount or deferred payment, might be all they need to decide NOT to cancel your services.
That said, being proactive might not always be advisable— you know your customers best, so use your best judgement. Either way be prepared for “the call” by having something to offer your customers in lieu of cancellation.
Recommendation #3: Reduce your labor cost
Labor is likely your largest fixed cost. If you have full or part-time employees, this is an especially difficult time. Do what you have to do, but our recommendation would be to take care of your employees as much as you possibly can. This could involve temporarily reducing wages (something is better than nothing), reducing hours, etc. If you can ride out these times and hold on to your employees for at least a month, the goodwill you will have developed by supporting them and their families will be directly accretive to your business in the long term. Guaranteed.
Recommendation #4: Do your taxes
Most landscaping business owners can cobble together enough expenses, tax deductions, business credits, etc., to make sure they receive an end-of-year, income tax refund from Uncle Sam. Regardless of the extended tax filing deadline (now July 15), if you expect a refund and you haven’t done your taxes, what are you waiting for? Your income tax refund is essentially an interest-free loan that you’ve given to the government. It’s time to collect.
We’d also be remiss in not mentioning (again) the availability of the federal fuel tax refund. 100% of landscaping businesses are entitled to this credit and less than half are taking advantage of it. If you haven’t received your refund on the federal tax you paid on off-road, business use of fuel (like fuel used in your lawnmowers and blowers), then you’re missing out on about $700 (on average) of free money from the federal government. For more information on how to claim your free money visit the FuelCred site.
Recommendation #5: Get into the gift certificate game
Many businesses are now offering discounted “gift certificates” to their current and potential customers. The goal is to generate revenue today, even if you can’t perform the services until later. There are many apps and on-line services that can help facilitate this type of service. Our advice is to go as deep as possible with the potential discount to entice as many customers as possible. Remember, we don’t know how long this situation will persist, and in times like these, CASH IS KING.
Recommendation #6: Can’t sell… try marketing
It may seem counterintuitive, but now is an excellent time to market yourself and your business. With many landscapers sidelined, lawns and shrubbery will soon become overgrown all across the country. People are looking for solutions to problems, and landscapers are problem solvers— especially as we move into Spring and the start of warm(er) weather.
One creative solution: if you have the time, manpower, and the permission of the owners, go mow the lawns of your local church or civic organization… for free. It needs to be done and since you’re not performing the services in exchange for a fee (you need not even have any contact with them besides a phone call) you’re not violating any “non-essential” business edicts. You won’t make any money today, but if all goes well, there’s an excellent chance you gain a customer in the future. Plus, everyone loves a “feel good” story. Play your cards right and you might find your business on the local news in the best possible light.
Recommendation #7: Hustle…
You built your landscaping business— so you know you can get through this. If you’ve been holding off from starting that side-hustle because you’ve been too busy… well now is the time. There are a ton of businesses that make money in times like these. Don’t be afraid to alter your business model to fit the current situation. What else could you do with your equipment, with your employees, with your know-how to generate revenue today?
In conclusion, do what you have to do as the country works its way through this unprecedented crisis. Just remember, like with all things, this too shall pass.
