Keeping Your Landscaping Business Financially Fit

In our latest episode of the Kid Contractor Podcast, my co-host (and wife) Brittany and I dove deep into some of the key financial lessons we've learned over the years. One of the biggest takeaways was the importance of having a solid handle on your overhead costs and labor hours. We use a system called "multiple overhead recovery" where we carefully budget out our annual overhead expenses and then ensure we're recovering that across the billable hours of our crew. It's so easy to underestimate how much it really costs to run the business, and if you're not vigilant about it, those overhead costs can quickly eat into your profits. We also discussed the risks of "floating" expensive equipment like excavators and dump trucks on the road. While it's great to have that capability for big jobs, the liability of having hundreds of thousands of dollars' worth of machinery out there is substantial. One fender bender with an uninsured driver could wipe out an entire project's profits. Keeping a close eye on utilization and maintenance of that equipment is critical. And of course, we talked about the importance of using the right financial management tools. Programs like LMN and working with a fractional CFO service like Cycle CPA have been game-changers for us. Having that level of insight into our numbers allows us to make smarter, more strategic decisions. At the end of the day, running a successful landscaping business is about so much more than just doing great work. The financial side of things has to be airtight. I hope the insights Brittany and I shared in this episode can help other contractors shore up their own operations and position themselves for long-term growth and profitability.

Listen to the full episode here!