Creating a Business Plan

[rattler96]

Hello all,

This is my second year in the business on my own, part time. I worked as a helper for about six years. Last year I used my 22” Poulan Pro mower. I would pick it up and put it in the back of my Amigo along with my edger, weed eater, blower and hedge trimmer. I kept it small, around 5 clients, bi-weekly cuts, because I could only do so much with what I had. I feel that last season, I truly paid my dues.

The season, I’ve put a hitch on my Amigo and bought a 5X8 trailer along with a 36”Exmark Turf Tracer HP walk behind/w sulky, and I am really trying to put myself out there. BTW, I absolutely love the hydro!!! It is wonderful!! After last season, I can really appreciate it. So far, I have about 8 clients and I’m sure I’ll get a more. I want about 16. I’ve put flyers out, and I’ve gotten 2 clients that way. One of those clients was so happy with me that he is recruiting others in his subdivision.

I’ve seen people suggest that a business plan is needed to really take it where you want it to go. I am in for the long haul, however I won’t be quitting my day job and going full time anytime soon. When I retire from my day job in about 15 to 20 years, I don’t plan to go and work for anyone else. I’d like to have a well established business that I can focus on at that time. I have about 10 years in now, and I do enjoy what I do during the day and in the evenings and on weekends. I love pulling up to someone’s property and treating their yard as if it were my own. I feel really good when I’m done and I enjoy the work so much. (I probably enjoy my new mower more that anything). Anyway, could anyone give me some advice on creating a business plan? I’m not sure where to start. I want to become licensed and insured at some point. I’m just still taking baby steps. I want to make sure that I do it right!!!

Thanks

[MGO]

You should get INSURED immediately!!! For your own good. (I pay only $330 for $1 million in liability....you can;t beat that!)

And....Licensed......however, some States (like Maryland) do not require licensing if you are only doing Lawn Maintenance....BUT, all States require Licensing for Pesticides/Herbicides.....do yourself a big favor and look into these issues.

As far as business plan, send me a private message with your email address and I will send you my original business plan whicvh will give you a starting point.

[Phil Nilsson]

Business Planning in 3 Easy Steps

By Phil Nilsson, Green Industry Consultant

What if we had all listened to our grandmothers years ago when she told us to save 10 percent of every paycheck we ever earned? What if back then we had invested that money in growth stocks? What if at an early age we had given serious thought to exactly, precisely who we were, where we were going, and how we would get there? What if after having understood and analyzed those things we could see clearly as to how to position ourselves in the world (For example, choosing a career field or business that was right for us and focusing our energies and time on an exact target because we knew what it was we were after.)? Well, I'm sorry to say that I didn't do all those things - but then again I guess it's never too late to start. There is always tomorrow - at least until we run out of them.

Business planning, or better yet personal planning (because you are the business), is a good idea. Anyone who has lived long enough to make some bad choices in life will testify to that fact. So if you're not dead yet - and I'm assuming you're not because you're reading this article - it's never too late to plan the remaining portions of your life, like reinventing yourself. Hindsight is 20-20, and as we all go along in time, planning gets easier because of the mistakes we have already made. Now we can avoid making those mistakes again ... hopefully.

THREE STEPS IN PLANNING...
Business happens in three steps.

You get the work by selling it.

You do the work by producing it.

You manage inputs and outcomes all along the way.

The more of an expert you become in selling, producing and managing, the better the expected outcomes. The better you plan and manage, the better your chances of hitting profit and growth levels above average. Why is that? When you plan, you improve your odds. I don't know of any "average person" who gave it an "average try" and achieved extraordinary results. The grade of "A" is reserved only for those who do their homework. In fact, in the landscape industry, about 70 percent fail at it. Those people came into the industry, took a casual look around, took a lot for granted, didn't do their homework and became history. The other 30 percent learned, applied and survived.

WHAT DO YOU NEED TO DO?
Lots of people are under the impression that business planning is about accounting spreadsheets, budgets and all kinds of number-related issues. That's part of it, but it’s merely the end result of having done a lot of soul searching in looking ahead. The real benefit of planning is to uncover those aspects of business that you need to learn more about, filling in the blanks to see the whole picture. What is it you should know but don't? What do you need to do to become an expert and enhance your chances of developing your business so it provides you with a meaningful source of income?

Think of the entire process as a series of college courses with "X" amount of credits needed to graduate. Planning involves a lot more than just knowing the numbers. Look at your business and each part of it as course content. To help you see the many subjects that need to be addressed, study the diagram below. These are the many things that make up your business. It's broken down into the three sections of getting the work, doing the work and managing the business.

Get The Work ... Do The Work ... Manage The Business

Get the work
Service Offering
Competition
Selling Technique
Advertising Methods
Pricing Strategy
Contract Proposals
Customer Service

Do the work
Plant and Facility
Equipment
Personnel
Operating Methods
Quality Control

Manage the business
Work Measurement
Costing Methods
Business Direction
Financial Outcomes
Accounting
Taxes
Evaluation
Regulations
Contingency Plans

MASTER BUSINESS PLAN.
The master business plan above is like an outline of college courses on how to succeed in business. It’s a lineup of individual areas of study. Your business will eventually test you on each item on the list. You could know how to sell but not be good at doing the work. You could know how to do the work but have a deficiency in costing and pricing the work. You could be good at pricing, but when it comes to managing people, you may not be so good.

Business planning is to fill in the blanks of knowledge and expertise so that you form a complete picture. The plan asks you to be honest with yourself. Do you have a handle on each of the areas required? That's the real purpose of planning: finding out what you don't know and then taking the initiatives to learn. It's not easy. Unlike big business where each area of expertise is departmentalized into such departments as sales, marketing and management, small business people must wear all of those hats. That's the problem - you need to become an expert at so many disciplines. Business planning helps you recognize what the requirements are. The rest is up to you.

All rights reserved copyright 2003 2004 by Nilsson Associates

[Team Gopher]

Hi rattler96,

Here is another post with a company's business plan. Maybe it will help you.

http://www.lawnserviceforum.com/showthread.php?t=11495

[rattler96]

Business Plan

Thanks everyone for all of your help!!!!!