Larry Ryan just wanted to do it right.

His company, Ryan Lawn & Tree, which ranks No. 45 on Lawn & Landscape’s 2020 Top 100 list, started the transition into an employee stock ownership plan (ESOP) in 1998. After 20 years of gradually working itself into becoming fully employee owned, Ryan says his company now recruits with an excellent sales pitch: Employees can become fully vested in the company after six years.

“We could’ve done it faster but if we would’ve sold out at a certain price when we were small, the payments were smaller in relationship to the total revenue,” Ryan says. “We could’ve asked for a higher interest rate. We’re just old farmers and making money is not what we’re here for. We get more satisfaction seeing really good people work together rather than getting rich.”

There’s a lot a business needs to do before becoming an ESOP company. From managing the specific costs of making this leap to ensuring your company is even ready, Ryan has a few recommendations for anyone interested in following his lead.

First thing’s first.

Ryan didn’t start the transition into an ESOP until his company had been in business for 11 years. He wanted to make sure his company was both large enough for an ESOP and had been building the right culture to embrace the plan.

“You really have to be a growing company to make it work,” Ryan says. For reference, Ryan says a company would probably need to be around $5 million in annual sales to make this work. He also says employees generally take around three years to fully buy in to a company’s culture, though it only takes one year before an employee becomes eligible to get into an ESOP.

Ryan says that some employees may always be hazy on the details, even years down the road of working for the company, so they might not get involved. But generally, he estimates most of his employees sign up after two years of working for the company.

“Because we’ve integrated everything together and we’re truly committed to our people, even when we were less than 100%, they bought in,” Ryan says. “If you have a bunch of bad people who do not feel good about the company, it is not a good situation. If you do it well, it will certainly pay off.”

Finding the right people.

Of course, Ryan says recruiting is a key element to this. He says they have 315 employees from 69 different universities, and not all of them are horticulture grads. Ryan says companies need to figure out how to find employees in places they might not ordinarily recruit. Ryan himself spent time in the restaurant business, for example.

“Early on, we brought in some gifted and very sharp people,” Ryan says. “We almost don’t care about what the degree is in. We care about where their heart is.”

When the company started 33 years ago, Ryan was his one – and only – employee. Two years later, he hired his first full-time worker, who is still with the company all these years later. Ryan says that companies must be willing to show employees that they’re invested in them by offering wages that are higher than most neighboring companies. To do this, Ryan says they charge roughly double per lawn than his largest competitors in the area. Given that 35% of the company’s work is tree care, he also feels that his employees should be fairly compensated for the additional safety precautions they must take.

“You know there are people who won’t pay it,” he says, “But, it hasn’t hurt our growth at all. We need to be charging the value of our product because there’s a lot of risk in what we do.”

Ryan says that recruiting now is easier than before they can talk about the established culture, which for Ryan Lawn & Tree does include a faith-based element. He says this has helped them also recruit high quality people. Plus, he shares that many employees who stick around have well over $100,000 in their ESOP accounts.

“That makes their eyes pop open,” he says.

The next step.

“You get employee buy-in if people truly feel like they’re an owner,” Ryan says. “I own 10 shares of IBM, but the president doesn’t come to me to ask for advice. You try to listen to your employees as much as you can.”

For Ryan, he says that the process should be gradual and deliberate when setting up the ESOP. From 1998 to 2004, they gave 20% of the company to the employees. After that, they sold in two 40% increments over the next several years.

Ryan says they followed the Great Game of Business model, which includes hiring consultants to help set up the ESOP and educate the employees on all the different steps of financial management for the company.

He also readily admits the process isn’t pain-free, and it requires an open mind from the company owner before they launch into an ESOP. They’re expensive and time-consuming to set up, and company leaders need to be ready to do annual payout for people who leave. Ryan says each employee also needs to be looked at as a partner, and if company leadership isn’t willing to do that, things could get ugly.

“(Owners) may not know their place in their own company. You’re going to lose some control,” Ryan says. “If there’s a selfishness in management, they’ll see it. If there’s an arrogance in management, people will see right through it.”

Larry Ryan says anybody is welcome to reach out to him for guidance at larryryan@ryanlawn.com.

306 CR Mini Excavator

The pitch: The new Cat 306 CR Mini Excavator marks Caterpillar’s entry in the six-ton class offering.

• Delivers performance of up to 7,839 lbs. at a 9.8-feet radius. Enhanced uphill swing torque and increased cycle times provide greater productivity and efficiency.
• With its long stick option, the 306 CR delivers a maximum dig depth of 162 inches and 15,821-pound maximum operating weight when equipped with the sealed and pressurized cab.
• With the touch of a button, the operator can switch from conventional lever/foot-pedal steering controls to the standard, CAT-exclusive Stick Steer system.

For more info: Cat.com

Vermeer CTX160 Mini Skid-Steer

The pitch: Vermeer is expanding its line of mini skid-steers with the addition of the powerful and compact Vermeer CTX160 mini skid-steer.

• Features a rated operating capacity of 1,600 pounds, 16.7 gallons per minute of auxiliary hydraulic flow and a width of 42 inches.
• The CTX160 provides high lifting capabilities while remaining compact and nimble to operate. This mini skid-steer can handle jobs such as moving heavy material, working ground-engaging attachments and efficiently maneuvering in congested operating conditions.
• The Vermeer CTX160 is sized for challenging landscaping, hardscaping, rental, utility and general construction work.

For more info: Vermeer.com

ECHO’s CSG-7410 Cut-Off Saw

The pitch: ECHO’s cut-off saw offers high cutting torque, giving contractors more power and durability for tough hardscape jobs.

• Powered by a 73.5 cc 2-stroke professional-grade engine, the CSG-7410 provides more torque at the wheel due to a 2.6:1 drive ratio.
• Contains a reversible cutting arm with a standard position for normal cutting and a reversed position to cut close to buildings or ground obstacles.
• Easy to start due to the spring-assist starter, decompression valve, choke with automatic fast idle and purge bulb.

For more info: Echo-usa.com

Toro Dingo TX 1000

The pitch: Toro has taken another step in innovation, performance and versatility with the Dingo TX 1000.

• Designed with vertical lift loader arms, its 1,000-pound rated operating capacity delivers quality performance.
• The Dingo TX 1000 also offers increased reach at full height for maximum jobsite productivity.
• This lightweight, maneuverable machine packs strength and reach in a compact package.

For more info: Toro.com

Kubota SCL100 stand-on track loader

The pitch: The new SCL1000 features a 9.8-inch track that comes standard on the 36-inch machine.

• The SCL1000 has a 24.8 horsepower Kubota diesel engine and a travel speed of 5.1 miles per hour.
• The loader arms have a hinge pin height of 84.7 inches and a reach of 25.9 inches at a 45-degree dump angle.
• It will be available at select authorized Kubota dealers in the second half of 2020.

For more info: KubotaUSA.com

Steiner Slip Scoop Attachment

The pitch: Powered by the versatile, all-season Steiner 450 tractor, the Steiner slip scoop tractor attachment does the heavy lifting for you, making small excavation projects, landscaping and yard or farm projects effortless.

• The hydraulic operation makes lifting loose material and yard debris easy.
• The optional scarifier wear edge breaks up hard material in preparation for removal or grading.
• It comes in two available widths, 48-inch and 52-inch, so you can get the right tool for the job.

For more info: Steinerturf.com

Takeuchi TL6R Compact Track Loader

The pitch: The smallest track loader in the Takeuchi lineup, the TL6R is perfect for the landscaping space with its ability to get into tight areas.

• The Takeuchi TL6R Compact Track Loader (CTL) is an agile, compact machine that is easy to transport. The TL6R is ideal for customers in the agricultural, general contracting, landscaping and rental industries.
• Powered by a Kubota 2.4-liter, 65.2 horsepower engine, the TL6R features a radial lift loader design with a maximum lift height of 9 feet, 6.4 inches, and a rated operating capacity of 1,841 pounds. Additionally, the TL6 has a width of 5 feet and a height of 6 feet, 5.8 inches.
• The TL6 features a newly designed cabin with an overhead 5.7-inch color multi-information display and backlit rocker switches that control a variety of machine functions.
• Takeuchi Fleet Management telematics system is standard and provides a variety of data points including machine health and condition, run time and machine location.

For more info: Takeuchi-us.com

Whether it’s a new company starting out or a well-established one looking to streamline operations, mower attachments can help with efficiency.

Companies don’t have to buy the biggest, most expensive attachments to improve that efficiency, according to Pete McNamara, general manager of Dependable Lawn Care in Blue Island, Illinois, and Ryan Panarese, landscape & snow manager with Constantine Property Management, in Loudonville, New York.

Variety is the spice of life.

McNamara says his inventory includes mulching kits and some other useful tools, including a tow-behind aerator, power rake, catchers, fertilizer spreaders and a tow-behind spraying attachment for pesticide control.

“Most of the implementations we have are attachments for a walk-behind machine where a person could stand on it,” he says. “A lot of the other attachments are for mulching – things you would put on the deck itself to mulch the grass in the summertime.”

Constantine Property Management also utilizes mulching kits quite a bit.

“All of my machines have mulching kits and striping kits on them,” Panarese says. “On our bigger machines, we have a dethatching rake and blower buggy.”

When it comes to choosing an attachment, McNamara says adaptability is key.

“It all depends on how inventive you want to get,” he says. “The more versatile you can be with one piece of equipment, is the way you want to go.”

Getting work done faster is an added benefit of having the attachments on hand.

“It saves us from having to get additional pieces, but it also saves hours,” Panarese says, adding he has a blower attachment to save time on a job. “I don’t have to have a guy out there pushing a push blower.”

“The more versatile you can be with one piece of equipment, is the way you want to go.” Pete McNamara, GM, Dependable Lawn Care

Seasonal supplies.

Panarese says his rake attachments comes in handy for spring cleanups.

“It gets all the organic material that settles in the grass from the winter,” he says. “It gives the lawn a nice, clean appearance.”

McNamara says a catcher and attachments for towing can also be good seasonal tools.

“Obviously, your catcher is another main attachment,” he says. “Basically, it’s what we mostly implement in the springtime. We’re in a suburb of Chicago, so obviously the grass growth changes. In the springtime, the grass has a lot of growth versus the summer when growth is a little more dormant. There’s no way to mulch anything when the grass is wet. It’s just not practical.”

Dependable Lawn Care uses wheel attachments as well.

“We’ve experimented with different types of wheels too,” he says. “They’re making all different kinds to lessen the impact on the turf.”

Eyeing future buys.

Panarese says he’s looking to add more attachments to his fleet.

“We are certainly looking into buying an aerator,” he says. “I’ve got to rent it now. Some of the lawns we have now are pretty big in square footage and using one of those little walk-behind ones is like bringing a spoon to the beach.”

McNamara says that as a landscape maintenance company, he doesn’t need too many attachments.

“What we use here is just to improve upon what the machine is meant to do – mow,” he says. “Up here, you don’t have too much more time to do anything other than mow.”

Do your due diligence.

Panarese and McNamara suggest companies just starting out consider how attachments could help them better provide services.

“The ability to identify what you want to do as far as services will dictate what attachments you could use,” McNamara says. “For a smaller crew, you’re all about volume.”

Panarese says for the companies with smaller crews, the attachments will be a major time saver.

“If it can go on the machine and it costs less than $1,000, by all means, certainly get it. It’ll pay for itself fairly quickly. It’s also not another motorized piece of equipment that you have to store and service,” he says. “Especially for these smaller businesses where it’s just a one-person operation, they don’t need to walk for 14 hours a day. They need to be as efficient as possible.”

Another piece of advice both men have is to do your research before purchasing anything.

“Do your homework and research the piece of equipment,” he says. “Different manufacturers have different things. You might buy a $400 attachment that isn’t feasible for the piece of equipment you have.”

“I look at a couple of things,” Panarese says. “I might think this will be a great piece of equipment to have right this second for a particular job. But once it’s over, did it pay for itself already? Or do I have to sell more to justify having it? Should I just rent it? If it costs me $500 a month to rent and $5,000 to buy, and I need to rent it three to four times a year, then I need to purchase it.”