Here’s why it matters
If you own a landscaping company, you know that your people are your most important asset. That’s why growing talent should be one of your highest priorities. Ask yourself these questions:
- Who can I trust to take over while I take a two-week vacation?
- Who could run the office and administrative work if I needed to step down for a while?
- Who is ready to take on more responsibility in the company?
- Who is most likely to get recruited away by a competitor?
If the answer to any of these questions is “I don’t know,” you have a problem – and an opportunity.
Having trusted managers allows you to grow your business and helps stave off burnout.
If you’re the one in charge of every aspect of the business, you’re exhausted – there’s no way you can fix every problem, manage the office, and try to focus on growth at the same time. Training your best team members to take on some of your work will pay off immediately if nothing else than in family time and hours of sleep.
You could find someone on your team who is better at or takes more pleasure in some tasks than you do. They may not have shared some of their ideas or skills because, after all, you’re the boss. But you might be surprised at the results you get from giving someone an opportunity and letting them know you trust them to get the job done.
Creating opportunities to move up helps you retain your best workers.
Keeping your best workers on the job is a priority for an owner. Rewarding their work by promoting them and paying them what they’re worth is the best way to retain talent – and attract more of the right people to your company. When your staff knows that if they work hard and show initiative, they’ll have a chance to lead a crew, move up to management, or take on some leadership duties, it inspires them to do their best work. It also makes it harder for other companies to lure them away.
Buyers look for (and pay more) for companies that have management infrastructure.
Buyers are more inclined towards companies with a well-defined management structure. If they’re expanding their company through acquisition, they’ll seek assurance that the business will continue to operate seamlessly under new ownership. The clarity of who is responsible for which functions also instills a sense of security. The investment you make in establishing a clear structure, which might involve promoting some employees, will yield significant returns in the form of increased value when you’re ready to sell.
Investing in your team enhances your company’s value in various ways, such as increased growth opportunities and improved work quality. It also provides you with the freedom to take more time off and worry less. When the time comes to sell your company, you’ll see a significant return on your investment in the form of higher offers from qualified buyers.
If you’re thinking about selling in the next year or so, I can help you determine the value of your company in your market. Click here to learn more.
About the author: Jim Parker
Jim Parker is an experienced business broker specializing in lawn and landscape businesses. His company is based in Clermont, Florida. As an industry leader, he has served as the past president of the Business Brokers of Florida and currently sits on the International Business Brokers Association’s Board of Governors. Jim is a sought-after speaker, teaching others in his industry best practices in ethics, closing transactions, and finding qualified buyers. He has earned over 50 awards and recognitions in his career.
He is a Certified Business Intermediary (CBI), Certified Mergers and Acquisition Professional (CMAP), Masters Certified Business Intermediary (MCBI), and a Mergers & Acquisitions Master Intermediary (M&AMI. He is one of one of less than 20 business intermediaries in the world that have all four of these designations. To contact Jim, visit TheLawnBoss.com or call (407) 927-8999.