Jul 2014 Are you utilising your time so your business can really benefit?
As the most important person in your landscaping business, are you utilising your time so your business can benefit?
Below is your approximate hourly rate based on an annual income you may pay yourself for an average 50 hr week.
If you pay yourself $50K a year = $19.37 per hr
If you pay yourself $75K a year = $29.06 per hr
If you pay yourself $100K a year = $38.76 per hr
If you pay yourself $125K a year = $48.44 per hr
So think about this. If you are currently doing all your quoting, sales, overseeing jobs and bookkeeping, it is keeping you from speaking with clients regularly, doing the marketing for your business, setting up alliances with other companies, researching new materials and having important meetings with site managers about which jobs were most profitable and why and which were not and why?
Wouldn’t it be better for your business to give an employee a part-time estimating role so it frees up some of your time to work on important areas of your business that will help you increase profits, lower wastage and build better relationships with clients, alliances and team members.
I know some of you may be thinking, sounds good in theory but how do I find a part time estimator and pay them a reasonable rate and secondly; estimating is a very important role, it must be done correctly and quickly so we are competitive and have the best chance of winning a job, so I am better off doing it myself.
I don’t agree, you are probably rushing your quotes just to get them out so mistakes will happen, also it is a job that can be delegated just like working on the tools is.
Some of you will have senior tradesman that want to get off the tools and are interested in estimating and sales. There are some guys in the market place that have estimating experience and are looking for part time work. Here is an example; one of my Queensland landscape clients shares an estimator with a mates construction company for half the week. He opted for this arrangement until he could grow his business and afford a full time estimator.
Since this client has handed over the estimating role it has freed up his time to analyse jobs, oversee sites and engage clients and potential clients more thoroughly. He now checks the quotes before they go out and that never happened before. He said that has saved him considerably in mistakes that he used to make by rushing quotes.
What about getting a bookkeeper to enter you financial data?
If you pay yourself $75K a year or $29 an hr you are not only be the cheapest bookkeeper and estimator around but by doing those jobs you prohibit your business from progressing.
I know not all of you are in a position to delegate some of your tasks, but if you want to increase your profits, be more consistent in every aspect of your business (office, sales, estimating, construction, team management) you need to start delegating some of your tasks or at least make it a short term goal.