Building A Future: First Look

While 85 percent of Southwest’s revenue comes from commercial maintenance work, landscape design and installation work generates all of Land Creations’ revenue, most of which is done for residential customers. But the companies’ different focuses, combined with the family connection and the need to overcome similar challenges, keeps the Raks helping each other.

FIGURING IT OUT. Steve Sr. started landscaping in the mid-1980s, but the self-described "technician" wasn’t interested in growing the company until Steve II brought his business management interests to Southwest Landscape. "I was totally disorganized administratively, and Steve came along and put the company together with a business plan, flow charts and things I never dreamed of," Steve Sr. explained.

Meanwhile, Jeff decided after a couple of years working for other landscape firms to launch his own design/build company. Ten years later, each company generates about $350,000 in annual revenue, and they find themselves grappling with the same issues as they try to break through to the next level.

"The key in getting to where we are now was when we started offering benefits to the employees," Steve II recalled. "But we also got more involved with them and got them to buy into the company more."

Creating a corporate culture centers on the idea of getting more involved with employees, he explained. "For example, last year we had a golf outing, and the guys loved that," Steve II pointed out.

"This has just started happening for us in the last few years, though," his father admitted. "Now we realize that when employees feel a part of the company and they see growth and that we have a mission, they can see that they have a future. That keeps them around. If they don’t feel part of the company, they’ll head down the road to the next guy."

Jeff echoed his brother’s emphasis on the people side of the business, saying his three year-round and four to five seasonal employees are the best he has ever had. "Attracting the right people has taken me a long time, but I had to find them because the business is getting to the point where I can’t do it all myself anymore."

His emphasis on developing a professional image to accompany the quality staff, however, started on day one. "I always wanted to act like a big company with logos on the trucks, job descriptions and policy manuals," he noted.

BUILDING A FUTURE. The companies have spent the past few years sharing a barn for equipment storage, but the nature of the facility has required all three Raks to maintain home offices. That will change later this summer when the companies complete work on a new facility that they will share.

"I was really frustrated with our current location because I’m meeting with customers and presenting designs anywhere but our office," related Jeff, who spearheaded the project. "I’ve been running the office part of my business out of my house."

Buying land and managing the building’s construction has been a learning experience. "A commercial real estate agent is very important," observed Steve II. "The companies also share an accountant and an attorney, and we had them look at all of the papers. You have to spend the time and money on those things because there’s so much at work here that we don’t know about."

The Raks wanted a location that included at least 3 acres and put the companies on a high-traffic road for visibility. However, they had to work around various cities’ zoning restrictions.

"The restrictions are an important part of the process," commented Steve II. "You really have to do your homework on what you can do and where you can do it. Every time we found land that we thought would work, there was something wrong with it."

Now that the land has been bought and ground breaking is scheduled, the Raks are excited about the benefits of a new facility. "The new building will give us a sense of permanence or stability, and the employees will be able to really see they have a future," predicted Steve Sr., adding that moving their offices out of their respective houses should help the three Raks stop bringing work home with them at the end of each day.

"Right now, our barn turns people off to the idea of working for us," admitted Steve II. "I’ve been trying to sell them on the company with our trucks, equipment and jobs, while I hoped they wouldn’t look at our facility. Now, we’ll be able to use the facility as a positive."

"And I’ll be able to landscape the area around the building so I can bring clients out and they can see what landscape lighting or waterfalls add to a property," added Jeff.

WHERE TO TURN? For now, the Raks continue to concentrate on building organizations with long-term viability, although they struggle to find business models.

"But successful companies are successful companies," related Steve II. "We can learn from GE or Amazon. They’re still running a company, and we can learn by studying what they do. When you look at companies like that you see common themes of thinking outside the box and developing people and a culture."

Today, Jeff’s primary challenge is a common one for small businesses – handing more responsibility to employees. "I’m doing everything in terms of designing and sales while also working in the field," he recognized. "I have to let someone else do some of this. My wife works in the office handling payroll, billing and human resources. But we’ll have three crews out at times this summer, so I have to set up more systems."

"I couldn’t grow the company from behind a mower, but Steve had to make me realize that," admitted Steve Sr., whose responsibilities now include sales, renewals and managing the equipment.

"I set up the routes for the next day each night, plus I write our manuals and systems," commented Steve II. "I track everything and account for all of our hours, and my mother takes care of payroll and deals with the accountant.

"I’m out in the field sometimes, but I think I’m more valuable to the company in other ways," he continued. "When I’m in the field I worry about how the employees do their job. Jeff keeps telling me not to worry about how they get the job done as long as it’s done right and on time."

Instead of producing the work, the Raks keep their eyes on the bigger picture. "I want us to be a company people want to work for," Steve II shared. "If you have that, you have everything you need."