DOWN TO BUSINESS
ENTREPRENEURS: IT IS TIME TO BE BOLD!
BY JEFFREY SCOTT, NALP CONSULTANT MEMBER S
ometimes shrinking is the quickest way to grow. A client of mine decided not to get upset when close to $750,000 (20+%) of his business walked out the door. Instead of chasing growth, we opted to shrink the company (temporarily), giving it a good prune like an overgrown tree. The result? Profits swung from a small loss to a large profit gain, a total swing of $440,000. This allowed him to pay nice bonuses and announce a new benefits package. It gets better: This year he is on track to add another $150,000 in additional profit to his bottom line. Now that is bold!
What do successful contractors have in common? They make bold moves in both bad times and in good; and they consistently outpace the market. Conversely, larger and older firms tend to get too
comfortable––like old age setting in––and they often under perform the market. They need to think and act bold, even more than younger smaller firms.
I raised this imperative at one of my recent Leader’s Edge peer group meetings, and it inspired the members to take their own bold moves. Here are six examples straight out of my notes:
1. Efficiency gains: After we measured each other’s efficiency using Jeffrey’s Efficiency Calculator, one contractor decided to hone his 2016 focus on increasing efficiency from 75% upwards to 95%. Even if he only gets to 85%, he will add a huge amount of value to clients, employees and the company. How much waste are you tolerating?
2. Client spin off: A company with a commercial and residential split focus decided boldly to eliminate one of the two, and shift the company towards a single focus. When his employees heard the news they were ecstatic. He decided that less is more, and he is having his best year ever!
3. Family performance: A family run business is transformed when the CEO starts asking the other family members to raise their productivity to meet market levels (or else...). Boldness starts with the leader. Are people too comfortable in your company?
30 THE LANDSCAPE PROFESSIONAL > JULY/AUGUST 2016
4. Raise profit expectations: Another contractor has built a very successful low-debt company over the decades; he has everything he needs, but was making just average profits. He asked his leadership team to focus on hitting 15% profit, by enacting more detailed budgeting, consistent accountability and ruthless tracking of inefficiencies and job costs. Are your expectations too low as the leader?
5. Double your output: A mid-west company owner asked his long- standing salesperson (and good
friend) to focus his job performance and double his sales output. The new goals are in line with high profit company benchmarks. How would your company perform if each salesperson performed at or near the highest expectations?
6. Difficult conversation: A fast growing, profitable firm gave one of its three leaders an ultimatum: get in line with our values in order stay on the bus. This person was key, but this bold conversation was needed to reap big rewards. Is there a difficult conversation you need to have?
Breakthrough Idea: To perform like a leader you must make bold moves in good times and bad. As my rock climbing instructor would say: Go Big or Go Home—and he was right, we stretched for more, and we achieved more.
TAKE ACTION:
1. Streamline your myriad company goals and focus on fewer but bolder moves. Ideally choose one bold company goal for each year (and never more than three). 2. Ask every division to have at one bold goal. 3. Even if you are pausing your sales growth this year, you can still set bold learning goals; your company’s future success depends on it. As a leader, how much will you grow this year? 7
Jeffrey Scott is a NALP consultant member, and leading landscape industry speaker, consultant, facilitator and training expert.
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