It’s always exciting to see positive results when working with a new company. I started working with John in January of 2018. He owns a tree service and lawn care business in western Iowa. He has been operating the business for ten years. As we started to talk about his business and his struggles the first thing I noticed was the cash flow challenges he was facing on a regular basis. Cash flow is one of the number one challenges facing small to medium size service businesses.
He had a strong business with a good reputation and plenty of work but was struggling to pay himself a regular pay check and there just never seemed to be enough money in the bank. As I looked at his business which was grossing $400,000 a year I noticed that his gross margin was hovering around the mid 30’s. I knew that was the main issue. His expense load was in line but it simply came down to no charging enough for his services. I thought is would be fairly easy to increase his margin by 10% or more and put another $40,000 back in the business by just changing his pricing method. I offered up a new way to bid his work and increase his margins. We studied his financials and worked through the science behind his business.
When spring came it was time to get down to business. John started implementing his new pricing system. We touched base regularly. It didn’t take long to see the changes in his business and his outlook on the future. Half way through the year he had increased his margins and was calling to tell me his CPA was having to do some tax planning due to the profit the business was going to show in 2018. By increasing his gross margin by 10% he has been able to increase the profit from his business by $40,000 in one year.

Increasing his margins and getting his financials in line had had a positive affect on his business and personal life. Less stress and the ability to expand the business are just a couple of things John has experienced.
If you feel like John reach out to us today! I will be more than happy to sit down with you to review your business and see if we are a good fit to work together.
