Every new company experiences growing pains - especially during that first year, when systems are unsettled, resources are tight and sales are key to keep business rolling in. Mike Schmitt, owner, Shamrock Irrigation & Landscape, Simi Valley, Calif., is no stranger to these first-year aches and pains - he is also no stranger to success. Armed with a business plan, the former Environmental Industries employee capped his first year with $1.5 million in revenue.
Here, our January cover profile contractor offers tips on making it through that first year.
Create a business plan. "A business plan isn't something you lay out once to get a loan," Schmitt reminded. "It really needs to be a living, breathing document that you're taking out monthly, adjusting your actuals to your goals, and trying to figure out what you need to do to hit your goals."
Focus on building a loyal customer base. "You have to do that through good customer service, and you nee to work on multiple methods or avenues of referrals," he suggested. "One of the differences between us now that we are 13 months into the business from when we started is that I'm getting phone calls from seven or eight different sources. There are several avenues where customers are finding my business, and I don't think you can sink too much money into any one avenue because if you get set into only one or two ways to generate business, you're stuck. If that ever dries up you have to build another one. If you have seven or eight sources and one or two drop off, there are still opportunities coming in."
Build scalable systems. "You want to build systems that work today and will work five to six years from now," he stressed. "Consider systems in case you want to expand your organization or start branch operations."
Implement systems to pass on to employees. "Sometimes in our industry, people see themselves as entrepreneurs and they build a system that works for them without thought to what supervisors coming up behind them might need," Schmitt noted. "The key element is to build systems that will evolve and grow with you. That involves thinking ahead."
Delegate - allow for mistakes. "You have to allow people to make mistakes and learn from those mistakes so they can learn and grow their capacity to manage and do work," Schmitt said. "Then, help them build the skills so those mistakes don't happen again."
The author is Associate Editor of Lawn & Landscape magazine. Learn more about Shamrock Irrigation & Landscape and its owner, Mike Schmitt, in Lawn & Landscape's January issue.
