Your company’s value is partially determined by how well you make it stand out compared to your competition. In the landscape industry, there are major variations in valuation. Here are 10 things that can make your company more valuable than your competitors.
1. Recurring Revenue
The more revenue you have from repeat or contract customers, the more valuable your business will be to potential buyers. Having one or more forms of recurring revenue can make your company much more valuable than that of your competitors. Our blog article, Increase Your Landscape Business’ Value by Turning Repeat Customers into Subscribers, spells out the difference between reoccurring and recurring revenue, and how to convince customers to subscribe to your services.
2. Something Different
Buyers are willing to pay for what they cannot easily replicate on their own, which means that companies that offer a unique service that is difficult for a competitor to copy is more valuable than a company that offers the same service as everyone else in the industry. Check out How to Create a Recurring Revenue Model That Appeals to Your Customers for more information.
3. Growth
Potential buyers looking to add to their top line revenue growth through acquisition will pay the top value for your business if it is growing faster than the average business in the landscape industry overall.
4. Prestige
Companies often try to increase their customer appeal by acquiring growing, cutting-edge companies. If you are that innovative, cutting-edge landscape business, you can expect to get a premium acquisition offer.
5. Location
If your service area is in or near a growing area, you are likely to have more potential buyers who understand the market and who are interested in your location as well as your business.6. Diversity
Landscaping business owners can command higher prices for their businesses by strategically safeguarding against the potential impact of losing a customer. By maintaining a diverse customer base where no single client contributes more than 10% to your total revenue, your landscaping business can position itself as more valuable compared to competitors who rely heavily on just a few major clients. This approach increases the resilience and attractiveness of your business within the industry.
7. Predictability
If you've figured out how to attract customers and you have a clear plan for turning potential clients into actual ones, your special way of getting customers will make your landscaping business more valuable. This makes your business stand out compared to a competitor who doesn't know how to consistently get new customers. Having a reliable strategy for getting customers boosts the worth of your landscaping business for potential buyers.
8. Clean Books
If your landscaping business wants to be seen as more trustworthy and valuable to potential buyers, it's a good idea to get professional help to review your financial statements. This means having experts check your books every year or even getting an official audit. In the green industry, this isn't very common, but making sure your financial records are in good shape will make your landscape company stand out from the rest.
9. A Second-in-Command
Companies that have a second-in-command who has agreed to stay on after you sell are considered more valuable than businesses where all of the power and knowledge are in the hands of the owner. In addition, having that person in your company also will make day-to-day operations easier for you. Check out our blog article, 3 Creative Ways to Ensure Your Business Can Run Without You, for more information.
10. Great Reviews from Customers
If you can show potential buyers that your customers are happy and plan to buy from you again, your landscaping business becomes more valuable than those that don’t keep track of customer satisfaction. In the landscaping industry, businesses are usually valued within a certain range. Whether you end up at the lower or higher end of that range often depends on how you run your business, not just what services you provide. It’s like a rising tide that affects all businesses, but your specific approach sets you apart.
Lean on Us for More Helpful Ideas
If you need help growing your business, Ewing is here to help.
If you’re a member of our ProAdvantage loyalty rewards program, log in to your account any time to take advantage of the many services and solutions Ewing offers to help our customers succeed.
If you’re not a member, visit our ProAdvantage page to learn more and sign up today.
You also can find a wealth of business ideas and solutions in our blog and YouTube video libraries, Ewing Education course offerings, and newsletters.
If you prefer a face-to-face discussion, drop by the Blue Counter at one of our 250-plus local Ewing locations nationwide to speak with a friendly, knowledgeable professional.
