How to build value in your landscape and lawn care business
description
Transcript of How to build value in your landscape and lawn care business
The Millionaires’
Club“How to Build Value”
Ken Thomas
Envisor Consulting
Growth
Start Up
Adolescence
Maturity
Succession& Decline
LIFE CYCLE OF A BUSINESS
Growth Adolescence MaturitySuccession & Decline
•Structure
•Management Style
•Culture
•Profit/Cash •Focus
•Challenges
•Risks
LIFE CYCLE OF A BUSINESS
Maturity- The company we dreamed of!
Where owners can step away for a period of time and the company will perform as well or better than if they were there!
Maturity
Clear Vision
and Strategy
Empowered
Teams
SOPs
Key Metrics
Growth
Maturity Succession & Decline
Start Up
Adolescence
LIFE CYCLE OF A BUSINESS
“ From Lucky To Smart”
Chester Cadieux
Building Value in Your Business
• Become a Different Kind of Leader
• Develop a Winning Team
• Develop A Standard Production
System
Right People/ Right Seat
Accountin
g
Admin
GOOD PEOPLE
Your Company’s Greatest Asset
TEAM
IF YOU THINK HIRING PROFESSIONALS IS EXPENSIVE, TRY HIRING AMATEURS
I HIRE PEOPLE BRIGHTER THAN ME AND GET OUT OF THEIR WAY Lee Iacocca
FIRING IS NOT SOMETHING YOU DO TO SOMEONE: FIRING IS SOMETHING YOU DO FOR SOMEONE
RIGHT PEOPLE- RIGHT SEAT
HIRE SKILLS AND CHARACTER FIRST
BACK GROUND CHECKS
SOP’S – ALLOW ORDINARY PEOPLE
PERFORM AT EXTRAORDIARY LEVELS
PENNY WISE AND POUND FOOLISH
PETER PRINCIPLE
HIRE SLOW FIRE QUICK
CELEBRATE SUCCESS
DEVELOP A WINNING TEAM
POWER OF PEOPLE
"Knowing others is intelligence; knowing
yourself is true wisdom. Mastering others is strength, mastering yourself is true
power." —Lao Tzu
POWER OF PROFILING
D i S C D i S C
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D i S C D i S C
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DRIVER STEADY
INFLUENCE COMPLIANT
PURPOSE
SYSTEMS/
Standard Operations Procedures
“ Allow Ordinary People to Perform at
Extraordinary Levels”
PEOPLE /
Your greatest Asset
SALES-LOADALLCLIENTDATAANDCOSTBASEDESTIMATEINTO
PROBUILDTEMPLATE.PRESENTTOCLIENT-REVISEANDFINALIZE
ESTIMATEBASEONFINALPROPOSAL
ADMINQBLOADJOBSETUPBUDGETSETUP
SOLDINPROPOSALLOGSETUPMPSS
SETUPEFILEONSERVER.NOTIFYPRODUCTION
PRODUCTIONSCHEDULE-PRECONSTRUCT
SETSCHEDULEPURCHASEMATERIAL
TRACKLABORMANAGESUBS
RUNWEEKLYOPSMEETING
SALESMANAGECLIENT.SETUPSUBS
AESTHETICCONTROLCHANGEORDERS
INVOICERECONCILIATION
ADMINTRACKJOBCOSTS
PAYSUBSISSUEPO'SRECONCILEANDPAY
DIRECTCOSTSINVOICECLIENT
RECORECO'SQBANDMPSS
PRODUCTIONNOTIFYSALESOFJOBCOMPLETION
JOBCLOSEOUTCHECKLISTREVIEWJOB
COSTSANDADJUSTFUTURE
SALESATTENDJOBWALKWITHOPS.
SETCLOSEOUTWITHCLIENTAPPROVE
JOBFORFINALINVOICEDELIVER
FINALINVOICE
ADMINFINALIZEALLPAYABLES
ANDINVOICINGCOLLECTFINALPAYMENT
RECONCILEJOBCOSTSDISTRIBUTE
FINALJOBCOSTS
TYPICALSALESCYCLE
ADMINLOADPROPOSALINPROPOSALLOG
PRODUCTIONREVIEW
SALES-SIGNEDCONTRACTANDDEPOSITTOADMIN
DESIREDOUTCOMESOFSYSTEM:
*EXTREMELYSATIFIEDCLIENTS*HAPPYEMPLOYEES*PROFITABLE
SoldESTIMATING SOLD WORKINPROGRESS JOBCLOSEOUTDESIGNLEAD
ADMIN-TAKELEAD.LOADINTOLEADTRACKINGDATABASE.NOTIFYSALES
DESIGN-DEVELOPCONCEPTPLAN.MAKEANY
REVISIONS
SALES-RECEIVELEAD,SCREENANDSHCEDULEAPPOINTMENT
CLOSEDESIGNANDORSETUPNEXTMEETING
SALES-PRESENTPLANTOCLIENT.DISCUSSREVISIONS.
SETUPFINALMEETING.
PRODUCT DELIVERY SYSTEM
DESIRED OUTCOMES OF SYSTEM:
• EXTREMELY SATIFIED CLIENTS
• HAPPY EMPLOYEES
• PROFITABLE JOBS
LEAD ESTIMATING SOLD WORKINPROCESS JOBCLOSEOUT
WHATDOYOUSELL?MENU
COSTBASEDESTIMATESSTANDARDESTIMATINGSYSTEMANDTOOLDOWNSTREAMDELIVERABLES
JOBSETUPSCHEDULES-
QUALITYCONTROLACCOUNTABILITY
CONTRACTSCOPETERMS-$JOBPACKET-"StartClean"
CLIENTCOMMUNICATIONACCOUNTINGCOMMUNICATIONJOBCLOSECHECKLISTCOLLECTREVIEWANDACT"FinishClean"
PRODUCTDELIVERYSYSTEM
LEAD ESTIMATING SOLD WORKINPROCESS JOBCLOSEOUT
WHATDOYOUSELL?MENU
COSTBASEDESTIMATESSTANDARDESTIMATINGSYSTEMANDTOOLDOWNSTREAMDELIVERABLES
JOBSETUPSCHEDULES-
QUALITYCONTROLACCOUNTABILITY
CONTRACTSCOPETERMS-$JOBPACKET-"StartClean"
CLIENTCOMMUNICATIONACCOUNTINGCOMMUNICATIONJOBCLOSECHECKLISTCOLLECTREVIEWANDACT"FinishClean"
PRODUCTDELIVERYSYSTEM
LEAD
WHATDOYOUSELL-Whatisyouroffering?MaintenancevsConstruc onCommercialvsResiden alLEADQUALIFICATION-QUALIFYALLLEADSBASEDON:
SalesStrategy CurrentBacklog ResourceCapacity
"Wedoanythingforanybodyisnotsustainable"
PRODUCTDELIVERYSYSTEM
SOLD
APPROVALS- StandardizedApprovalProcessClientExpecta onsContractReview-ProductScopeandPaymentTerms
ROUTING-"StartClean"StandardizedJobPackage"
Graphics ClientSummaryInforma onEs mate JobPlan
DepositTerms
SETUP-Pre-ConstructProcess
TYPICALSALESCYCLE
ESTIMATING
COST BASED-Cost X's Gross Margin MarkupMarkup reflects overhead budget recovery
STANDARDIZED ESTIMATING - Develop standardizedestimating process utilizing operational values and a standard automation method (TOOL)
DOWN STREAM DELIVERABLES- Document and produce standard deliverables for accounting and production. (Billing information and material and labor budgets)
PRODUCT DELIVERY SYSTEM
SOLD
CONTRACT SCOPE
TERMS - $
JOB PACKET- "Start Clean"Graphics Client Summary InformationEstimate Job PlanDeposit Terms
PRODUCT DELIVERY SYSTEM
MOST OF YOUR MONEY $ IS MADE BEFORE YOU EVER
GET TO THE JOB!
Work In Progress
JOB SET UP
SCHEDULES-Forecasting; Logistics- Job Plans
QUALITY CONTROL - ACCOUNTABILITIESClient
QualityCosts
PRODUCT DELIVERY SYSTEM
Job Close Out
CLIENT COMMUNICATION
ACCOUNTING COMMUNCATION
JOB CLOSE CHECK LIST
Pre Close - No Go Backs!
COLLECTION
REVIEW AND ACT Job Costs; Feedback for Estimiang, Sales and Produciton
SALES-LOADALLCLIENTDATAANDCOSTBASEDESTIMATEINTO
PROBUILDTEMPLATE.PRESENTTOCLIENT-REVISEANDFINALIZE
ESTIMATEBASEONFINALPROPOSAL
ADMINQBLOADJOBSETUPBUDGETSETUP
SOLDINPROPOSALLOGSETUPMPSS
SETUPEFILEONSERVER.NOTIFYPRODUCTION
PRODUCTIONSCHEDULE-PRECONSTRUCT
SETSCHEDULEPURCHASEMATERIAL
TRACKLABORMANAGESUBS
RUNWEEKLYOPSMEETING
SALESMANAGECLIENT.SETUPSUBS
AESTHETICCONTROLCHANGEORDERS
INVOICERECONCILIATION
ADMINTRACKJOBCOSTS
PAYSUBSISSUEPO'SRECONCILEANDPAY
DIRECTCOSTSINVOICECLIENT
RECORECO'SQBANDMPSS
PRODUCTIONNOTIFYSALESOFJOBCOMPLETION
JOBCLOSEOUTCHECKLISTREVIEWJOB
COSTSANDADJUSTFUTURE
SALESATTENDJOBWALKWITHOPS.
SETCLOSEOUTWITHCLIENTAPPROVE
JOBFORFINALINVOICEDELIVER
FINALINVOICE
ADMINFINALIZEALLPAYABLES
ANDINVOICINGCOLLECTFINALPAYMENT
RECONCILEJOBCOSTSDISTRIBUTE
FINALJOBCOSTS
TYPICALSALESCYCLE
ADMINLOADPROPOSALINPROPOSALLOG
PRODUCTIONREVIEW
SALES-SIGNEDCONTRACTANDDEPOSITTOADMIN
DESIREDOUTCOMESOFSYSTEM:
*EXTREMELYSATIFIEDCLIENTS*HAPPYEMPLOYEES*PROFITABLE
SoldESTIMATING SOLD WORKINPROGRESS JOBCLOSEOUTDESIGNLEAD
ADMIN-TAKELEAD.LOADINTOLEADTRACKINGDATABASE.NOTIFYSALES
DESIGN-DEVELOPCONCEPTPLAN.MAKEANY
REVISIONS
SALES-RECEIVELEAD,SCREENANDSHCEDULEAPPOINTMENT
CLOSEDESIGNANDORSETUPNEXTMEETING
SALES-PRESENTPLANTOCLIENT.DISCUSSREVISIONS.
SETUPFINALMEETING.
PRODUCT DELIVERY SYSTEM
DESIRED OUTCOMES OF SYSTEM:
• EXTREMELY SATIFIED CLIENTS
• HAPPY EMPLOYEES
• PROFITABLE JOBS
Building Value in Your Business
• Become a Different Kind of Leader
• Develop a Winning Team
• Develop A Standard Production
System
The Millionaires’
Club“How to Build Value”
Ken Thomas
Envisor Consulting