Being Productive in Ohio

Owners of successful lawn and landscape maintenance companies have at least one common bond. They will tell you there is no shortcut to the top. Tom Emmett, owner of Tom Emmett Landscape Company, Richfield, Ohio, will tell you he's tried some shortcuts during his brief, yet successful career. In each and every instance, the shortcut served to ultimately slow his growth rather than accelerate it. In his own words, "You have to hit every rung of the ladder. To miss one is to start all over again." Tom received a degree in horticulture 12 years ago. After spending a couple of months working as an intern for an area contractor, he launched his own business using the family farm as headquarters. He took advantage of the farm's equipment and his own education and experience to do design-build work and to mow.

It seemed so natural, Tom remembers. A lot of hard work and time paid off and within seven or eight years, his business was approaching the $1 million mark in sales. He had two big design-build crews, several maintenance crews and his company was serving a broad base of customers, from small residences to large commercial establishments.

"But we grew too fast," Tom recalls. "And we had grown in far too many directions." In the process, he notes, he began to lose sight of profitability and the fact that in the landscaping/lawn maintenance business, profitability is directly proportional to the number of man-hours billed. "Don't let anyone tell you different," he relates. "In a service business you're selling labor. If a firm has too many employees and isn't focused on getting the jobs done as efficiently as possible, then productivity and billing will go the wrong way."

It went the wrong way for Tom five years ago. Cash flow wasn't making ends meet, so he decided to go back and catch some of the rungs he previously missed. He pared back on employee rolls, took a tighter focus on his business - concentrated on developing his commercial maintenance customers - looked hard at nonessential expenses like operating new trucks when used ones would do, and he worked to make employees as productive as possible. As a member of the Ohio Landscape Contractors Association, Tom had lots of experience upon which to draw. He was a good listener, and it didn't take long for his new direction to start paying off.

Making Lemonade

Tom caught an unlikely break in the spring of 1989 when one of his large maintenance trailers was involved in a "hit and run" accident. Two intermediate walk mowers and a large ZTR on the trailer were ruined. Needing some equipment immediately, Tom rented a couple of Walker mowers from a rental store in Archbold, Ohio. He doesn't remember exactly what the units cost him per day, but the $50 figure sticks in his mind.

"I wasn't particularly happy with my intermediates and larger ZTR mowers," he tells. "We were tracking our production costs closely at the time, and l was looking forward to trying out a different piece of equipment. It didn't take long to find out that on small properties we were cutting our man-hours by a third with the new riders. "

In the fall of '89, Tom purchased two 16-hp Walker mowers. He eliminated using his intermediates totally. That winter he purchased three more Walkers and put the rest of his mowing equipment up for sale. He ultimately replaced 10 mowers with five Walkers.

The decision to go with the Walker line was based almost totally on productivity. Although the new mowers cost considerably more than the intermediates, their productivity far outweighed their costs. As he points out, "I didn't look at the sticker price, I looked instead at what I would be paying per month, maybe $116/month plus financing, which was 100 percent deductible. The life expectancy of a Walker was a full five years, compared to three for the intermediates I was using, and the new riders were nearly doubling productivity. I was able to take on more mowing accounts and perform more extra billable services by switching to the Walker mowers."

Tom noted there were some additional side benefits, too. Employee morale increased, employees stayed with him longer, and the quality of his mowing job improved.

Moving Up

Today, Tom is moving up the ladder steadily and carefully. He has four mowing crews, two shrub and bed crews and one installation crew. His pickup trucks aren't new, but they are clean. And he owns 10 Walkers; nine go out with crews, one stays back for backup. He has specially equipped one of the nine Walkers as a sprayer and fertilizer applicator. The attachment, which includes a Herd spreader and Cagle sprayer, has been so successful Tom currently sells the setup to area contractors. And, he's looking to expand that part of his business.

Not to say he's losing focus. His landscaping/maintenance customer base is still comprised of commercial, industrial and condominium properties. And he's still caring for the first property he contracted in 1980. Maintenance accounts receive anywhere from 27 to 32 mowings per year. Employees stay busy in the winter going out an average of 20 times to remove snow.

Once again, Tom is approaching the $1 million mark. But he's confident this time he will be able to sustain it. He's working just as hard, but a little smarter, too. As an example, last year he instituted a weekend crew, comprised of employees who want to work only on the weekends. The move kept his equipment busy, kept his overtime down and allowed him to bill more hours.

He has also installed a time clock. If employees punch in on time every day of the week, they receive an $8 bonus for the day - which translates into $40 per week for punctual workers. "I can't stress it enough," Tom points out. "Profitability is directly related to productivity. There is no productivity if employees aren't working."

Tom is also setting up a bond line to make his firm eligible for larger government contracts, and he's hired a consultant to help him keep costs down, e. g., finding ways to lower his workers' comp charges. Tom also employs a full-time mechanic who is well worth his money just by virtue of keeping downtime to a minimum.

"Take the ladder one step at a time," Tom reemphasizes. "That's the best piece of advice I should have taken, and it's the best piece I can give to people starting out in this business." With one footnote, he adds. "Remember, this is a service business and you don't make money when employees and equipment are not being used to the best of their ability." Miss that rung, and the rest will be out of reach, as well.