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Should I Take That Big Job?Tip: No matter how big or small their companies are, a job comes along that has the potential to take landscape contractors out of their comfort zones. Should they take the job and put their businesses and their reputations on the line, or should they let the opportunity pass to their competitors? “Should I take that big job?” is a question landscape contractors often ask themselves in the course of their careers. No matter how big or small their companies are, a job comes along that has the potential to take them out of their comfort zones. The job may be bigger than normal, or it may be located in a nearby city or state where they don’t have a presence. It may ask the company to provide a service it doesn’t already offer. Taking that job either can pay big dividends or it can upset the proverbial “apple cart.” Should they take the job and put their businesses and their reputations on the line, or should they let the opportunity pass to their competitors? These are just a few of the questions John Allin, CLP, president of Allin Companies in Erie, Pennsylvania, asked himself before he bid on and won the contract to be the snowplow contractor for the Winter Olympic Games in Salt Lake City. The following are a few of tips he offers landscape contractors who are looking to stretch their businesses out of their comfort zones: - Local conditions. Take a close look at the local market, Allin advises. Know ahead of time what labor rates and equipment charges will be. Know what the availability of material is, too. Attitude adjustment. Understand regional sentiments regarding the environment and other key issues. Just as an example, Allin points out that snow contractors can use sand for snow and ice removal in some parts of the country, whereas, in others, it may be viewed as an environmental hazard. The same holds true for the use of salt. In Vermont, he notes, a broken hydraulic hose can result in a hefty fine, unless the contractor is using vegetable oil instead of the traditional hydraulic fluid.
- Retain local help. If you’re looking to expand into an unfamiliar city or state, make sure to hire local employees for your project. For starters, they will “know their way around” and be able to enlighten project managers about local ordinances and other area-specific regulations.
- Manage your debt wisely. Oftentimes, tackling a big job can mean purchasing or leasing a large amount of equipment. Purchase and/or lease wisely, Allin emphasizes, and be prepared to perform a balancing act between your debt/equity ratio and cash flow.
- Don’t forget about your core business. No matter how lucrative a job can be, make sure systems are in place that will allow you to focus on the new venture without losing a step or two at home. Allin says this is good advice for any company, no matter what the situation is. Having a formalized system in place and documentation that details key job functions (in other words, having a template) will allow other managers to effectively fill in during any occurrence — opportunity, crisis, or otherwise.
- Look at the balance sheet. Taking on a “big” job has its rewards, not the least of which are expanding your company’s reputation and giving employees invaluable experience. Weigh the pluses against the minuses, Allin suggests, and do your homework. Stretching your company has its advantages, as long as risks are acceptable and employees are comfortable with the additional responsibility they are bound to assume. By John Allin, CLP
Allin Companies
Erie, Pennsylvania
john@allinco.com"
(as told to Rod Dickens, ALCA Contributing Writer)
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