Imagine living on a tropical island that is only 21 sq. miles. Now imagine that you're operating a landscaping company on this island full of resorts and high-end residential areas with warm weather all year round. Making a profit would be a piece of cake right? Not so fast. Now imagine that you have 60 competitors within that same radius - how would you distinguish yourself from the rest?
That is the challenge that Jeff Sousa, president, Sousa's Landscaping, Bermuda, deals with on a day-to-day basis. "I've always had a commitment to professionalism," explained Sousa. "Those other companies are typically three- to six-man operations. They mean well and they're hardworking, but they're what you in the U.S. call 'cowboys.'"
With 25 year-round employees and its own landscape architect and horticulturist on staff, Sousa's Landscaping provides design/build/maintenance services to both high-end commercial and residential sites.
"We have professionals on staff and we're recognized by the government as the best," Sousa related. "Our affiliation with associations like the Associated Landscape Contractors of America (ALCA) and the Professional Grounds Management Society (PGMS) have helped us build this reputation. Those other companies are O.K. if you want a quick lick and a promise."
Sousa used to establish new business through advertising, but has recently chosen to go a different route. He's canceling all of his print advertising and is instead hoping that his properly uniformed men, trucks and signage will be enough to sign new clients. He has also created a company Web site, which he calls his "24/7 brochure."
"You're really only as good as your last job and word-of-mouth advertising is the best," he advised. "One opportunity creates another opportunity - and you get so much more with honey than vinegar."
TROUBLE IN PARADISE. Besides fending off the many competitors in his area, Sousa faces other challenges. Labor, weather mishaps and finding plant materials are all issues that Sousa must contend with on a daily basis in his pursuit for making profits and providing professionalism.
While many companies in the United States use the H2B program to hire employees, Sousa finds most of his in Portugal. Sousa related that he likes to hire Portuguese workers because they too are island people. He also likes to hire employees from different countries around the world because of all the different experiences they all can bring to his company. Right now, nine different countries are represented on Sousa's staff, including Canada, New Zealand, the Philippines, Pakistan, Jamaica, India and the United States.
Some of the obvious perks to working in Bermuda include the weather and the fact that there are no income taxes, Sousa explained. But, he also said he has to offer perks because relocating to Bermuda can be expensive and finding housing is not easy.
"We pay the $540 fee for our employees to go through immigration and we try to find them temporary housing before they arrive," he stressed. "We also assist in the relocation costs to entice them to come here."
Besides trying to jump the labor hurdle, Sousa must also contend with another formidable foe: mother nature. High winds and rains can often damage landscapes or wipe them completely out, which can mean extra work for Sousa and his staff to rebuild or refurbish what mother nature destroyed.
"It's an act of God and these things happen," he said. To see these beautiful trees down and have everything come down in a matter of hours is horrible. Cleaning up after a storm is not glory work. We do it because we're in the business of enhancing people's property, but we don't need that work."
While these types of problems can't be avoided, Sousa is trying to combat them by including provisions in his contracts that address damage created by high winds. "This shows our clients that we have a hurricane action plan."
When it comes time to bring in plant materials for his high-end residential and commercial clients, Sousa can run into another roadblock: tariffs. "The number one revenue for the country is custom tariffs and we have to import everything," he related.
Because Sousa works for very wealthy people, they often demand to have certain materials installed on their property. "They're used to getting what they want," he explained. "That drives up the cost and you have no choice but to pass it on to the customer."
Exotic materials aren't the only costly items in these landscapes, Sousa stressed. Even the simplest material such as peat moss can drive costs up.
"I pay a 22 percent tariff on peat moss," he said. "It's cheap to buy, but getting it here is expensive."
To save money, Sousa has tried to be as resourceful as possible, using material to its fullest extent. "We'll take debris and chip it and utilize it for shredded mulch. I encourage that to build up the soil."
The amount and sizes of material that can be brought onto the island is also restricted. "We have a load of natural rocks on the dock right now, but because we're restricted to a 20-ft. container, we can only bring in a limited amount at a time."
When it comes to plant material, Sousa tries to reuse as much material as possible before deciding to import.
"The maximum size plant we can bring in from overseas is a 1 ½ inch post because of concern of pest and disease problems," he stressed. "We'd hate to bring something here and have it be dangerous to the environment."
Therefore, when high-end commercial sites go out of business, Sousa seizes that opportunity to transplant large palms from those sites for use on another project.
NO END IN SIGHT. Despite its small size, Sousa has no doubt that Bermuda will continue to be a source of revenue for his business. The island is experiencing a construction boom right now that Sousa plans to profit from.
"By expanding into design/build, you're controlling your own destiny because you're designing your own project," he enthused. "Once you're known to do quality work, people will come to you instead of you having to go to them. Today, we choose who we work for. That's a fortunate position."
With three new employees on staff, major projects in the pipeline and clientele who can afford lavish projects, Sousa is optimistic about his company's future.
"The ingredients to being successful are the same no matter where you are in the world," he stressed. "Each market is unique but doing good business means taking care of the customer, taking care of your employees and watching your cash flow. If you do that, you can't go wrong."