Chapter 1: Characteristics of a Successful Business
The following six factors are essential to the long-term success of any business, outdoor or otherwise:
• Passion is the prime ingredient. A successful business is “more than a business” to its owner.
• A solid business foundation is built on a well-considered strategic plan.
• Excellent customer relations are the hallmark of success.
• Quality, reliability, and service are emphasized.
• Procedures, products, pricing, and all the strategic necessities of the business are regularly evaluated and monitored by the owner.
• A flexible business remains successful as it adapts readily to changes in the industry, technology, and market.
Let us examine each one of these critical factors more closely. Take the first factor: passion. Think about what spurred you to purchase this book. Was it merely idle curiosity? Probably not. More likely, you feel driven from the inside out to forge your own path and create an enterprise that serves your needs for secure income and a sense of purpose. That is the meaning of passion.
Successful business owners feel passionately about the products and services they provide. The profits matter, of course, but there is more to a business than profitability. The business has meaning for the owner. It is part of his or her identity. It can be all-consuming, even a preoccupation — and sometimes, this can be too much of a good thing. But the energy and the passion that underlie a successful business are channeled into all the other factors that set it apart from a mediocre business.
Realistically, running an outdoor service business takes a lot of hard, often physical work. Take landscaping: wrestling trees into the ground, maneuvering heavy equipment, and carting heavy bags of mulch are tasks for those who do not mind getting dirty or ending their days physically exhausted. Operating a nursery with the objective of raising flowers, shrubs, trees, or all three can be a worrisome battle with weather, plant diseases, pests, and customer indifference. Lawn care and yard maintenance have their downsides too, like sweat, equipment breakdowns, and stiff competition keeping you awake at night.
But if you find meaning and a sense of purpose in creating a beautiful setting through nurturing flowers and trees, landscaping, or spending time in the fresh air while you manicure yards and commercial properties, then you will have the drive to find the labor invigorating, the repetitive work a form of meditation, and the challenging work a source of personal growth.
The second factor, a solid business foundation, is obvious. But what does this really mean?
A solid business is one that is funded sufficiently and has access to competent professionals for consultation or ongoing work in legal, accounting, tax, and banking arenas. It has sufficient insurance coverage and operates appropriately within the local, state, and national legal requirements. Its office maintains accurate records that are easy to find when needed. If it has employees, they are well trained, perform quality work, and respect customers. The equipment is kept in good-working order. Its customers are pleased with its service, and are glad to recommend this business to family and friends.
A solid business is operated using a strategic plan developed by the owner and management team. It specifies short, mid-range, and long-term goals for the company, and proposes a method or multiple methods to achieve these goals. The strategic plan is not a one-time effort. It is a living document that is modified as new situations develop and demand change.
The third and fourth characteristics are joint-profitability components defined by excellent customer relations and quality, reliability, and service orientation. Most customers today are looking for value. They want friendly people working on their yards and green spaces. They want return guarantees on nursery plants that die shortly after planting. They hate sloppy work, poor clean up, or missed appointments. Today’s customers demand top-quality service, and appreciate companies that give a little extra attention to detail.
Factor five in the list of critical factors for a successful business is the owner’s ongoing commitment to evaluating, monitoring, and improving business performance. An ability to pinch pennies without sacrificing quality, reliability, and service is something all successful business owners demonstrate. It may be second nature, or it may be acquired through trial and error, but it needs to be present. A wise business owner schedules system-wide evaluations of the business’ functions. At minimum, there will be an annual price comparison with local and national competitors in the field. There will be customer surveys to solicit feedback. Cost and condition of all materials, equipment, and employee services will be examined at least once a year.
In large corporations, top executives often stress “management by walking around.” In small but successful companies, the owners constantly stay aware of what is going on within their business and its relationship to customers, vendors, repair people, competitors, partners, and relevant government regulators. By connecting with the touchstones of their business from the very beginning, they are able to make appropriate decisions with less strain.
The last factor, flexibility, is a result of a business-owner picking up on changes in the marketplace. Changes in technology, government regulation, and customer preference have been frequent and dramatic over the last few decades. We have seen the end of cheap gasoline, the rise of green power and green consciousness, and the birth and incredible growth of the Internet. This is an era of organic awareness and economy, and big lawns may soon include self-grown vegetable gardens (another possible profit center for enterprising outdoor service companies). Every month seems to bring out new software products for business management, new equipment choices, fertilizers, and pesticides — and the regulation of these products require smart decision-making on the part of business owners. Making necessary corrections to your business model is like a dance, and you do not want to trip. Not every adjustment will be an improvement, but by keeping close tabs on changes, the smart business owner makes rapid corrections to a situation before it does serious damage to his company’s profits or community reputation.