TOP 100: Growth Under Control (ISS Grounds Control)

When Dale Micetic first began his business in 1974, he never thought it would make more than $1 million in revenue.
 
Fast-forward to today and Micetic is president of $50-million ISS Grounds Control, to which he sold his $15-million Terrain Systems in 2002. 

“Early on, I started attending local association meetings and interacting with other contractors and listening to the owners of larger companies talk about the challenges of running their businesses, and from that I learned how to run my business,” he says. “Any landscape contractor can learn from other businesses of various sizes if they are willing to listen.”
 
The reason this growth strategy works is because “if a contractor keeps doing the same old things, he will get the same old results,” Micetic says. “You have to be willing to change or you might be setting yourself up for failure.”
 
For instance, take the current economic times into account, Micetic says. A contractor who only does work for home builders might be losing business today. That’s why Micetic and his ISS Grounds Control team diversify service options so when a slowdown affects one sector, the company can rely on another to carry it forward. While the home builder market is weak right now, the general contracting commercial market is still very strong, Micetic points out.  

Today, ISS Grounds Control’s service mix is 55 percent maintenance and 45 percent construction for 100 percent commercial clients – a slight switch from last year’s 49 percent maintenance and 51 percent construction mix, which Micetic says is a move that strengthens the company when construction work is harder to come by. “Though commercial maintenance has lower margins and is more competitive, it is a lot more stable than construction, so many businesses today will grow maintenance for recurring revenue and to carry the company through tougher times.” 

Another key to the company’s solid, stable growth is something Micetic calls “repeat relationships.”
 
“If you provide commodity-type services, adequate maintenance and nothing exceptional, and you have no relationships in the community, than you are more of a vendor to your commercial customers,” Micetic explains. “The core of building repeat relationships is to become a value-added team player for your customers. One of the simplest ways to do this is to make yourself available to them when they have to discuss their outdoor needs so they look to you as a key partner and don’t have to fight through a string of people who don’t care to get answers to their questions. If you take good care of their property and are proactive in recognizing problems, then they look good to their boss and will fight for you when it’s time for contract renewal. It’s much harder for a customer to fire a friend than it is for them to fire a vendor.”