Airtight financial systems are critical to your lawn maintenance business success—and keeping your operation in good standing.
Hey Clippers! Dave Tucker here with one more chat about business systems.
Today’s topic is an important one: Financial systems. Whether or not you’ve got a head for numbers, you can’t just ignore the money issue and hope for the best. But if you’ve got the right systems in place, the dollars will make a lot more sense.
The three financial systems every lawn maintenance business needs
You should tailor your systems to meet the unique needs of your business. Just like everyone’s budget is different, every business’s expenses are different. Don’t be afraid to make adjustments that suit your situation. But if you’re in the early stages of setting up your systems, these three pillars should get you started.
Cash flow and budgeting
A solid accounting system is vital to your lawn maintenance business success as the business grows. There is simply no excuse for letting this slide.
Quickbooks and Peachtree are great options. Some folks do fine with Microsoft Excel. Just find a system that works for you—and keep using it. If you hate your program, switch to one you’ll actually use.
Keep current and comprehensive records of all expenses and revenues. You absolutely must know where your money is coming from and where it’s going. This is how you’ll achieve maintain profit margin—and yes, you need to write down that goal too.
You should always have a goal and a plan for getting there. Sure, there’s a little luck involved in growing a business, but long-term success is never an accident. It’s the result of planning, strategy, and work. As they say, luck favors the prepared.
If your business has any investments, they should be recorded, so you can track their growth.
I’m not a fan of debt, but I know loans are necessary at times. If you owe any money, keep very clear records, including a strong plan and schedule for paying off your debt. Be sure to include payment amounts and deadlines. Your loan payments should be built into your monthly budget.
“I’ve got all my lawn maintenance business success systems in place. Now what?”
Now nothing. You’re done. You have your systems in place.
I’m exaggerating, of course. It’s not quite that simple. You do need to spend a little time testing out your systems to make sure they’re effective. Work out the kinks and add any details you may have missed.
But there’s real pride to be had in this moment.
Your systems are in place. Enjoy it.
Now comes the really tricky part:
Can you challenge yourself to actually step away from your lawn maintenance business?
That’s the point, isn’t it? Go to the beach for a week. Book a cabin for the long weekend. Heck, take the afternoon off to play golf.
Try leaving your phone in the car. See what happens. The odds of a catastrophe are pretty low.
And if a catastrophe does occur, you can count on your team to call you. A true catastrophe is the only thing that’s not covered in your systems. It’s the only time they’ll truly need you.
Don’t worry: there will still be times your business needs you. You built it, after all. The point here is to cut down on those instances, so you can enjoy the fruits of your labor.
Enjoy this stage.
Admire your beautiful new systems and take a moment to celebrate. These systems will lead to growth and ensure your lawn maintenance business success. That means freedom and minimal stress for you.
Next week, we’ll get back to business, but for now, take the afternoon off and enjoy!