In most instances, landscape companies in the half-million to million-dollar range have a tough time. They have 5-10 employees (if not more, some of whom are not producing revenue), a good amount of equipment, a good amount of clients, more overhead than they’re comfortable with—and plenty of opportunities for things to go wrong.
Thus, contractors in this size range are often chasing problems and putting out fires. Conversely, they are not spending enough time refining processes, training employees, and overall working to grow their businesses.
Contractors in this size range need to recognize where they are, and work a plan to navigate this no-man’s land in order to maintain quality, customer satisfaction levels, new lead generation and, of course, profits.
It’s been this way for a long time
These days, with rising fuel, insurance and other overhead expenditures, no-man’s-land contractors have especially felt the pinch. But it’s always been this way, even during boom times.
From 1988-1995, when the landscaping industry grew like gangbusters, mid-level contractors lagged behind. The median sales volume for companies with annual sales below $250,000 grew 127% during this period. Million-dollar companies grew 160%. But companies in the half-million to million-dollar range only grew 81%. (Based on 1997 research study conducted on behalf of PRO magazine.)