Kyle Eaton, of money.co.uk business bank, also offers some tips on how to avoid making such revenue risking errors.
In the last month alone in the UK, searches for landscaping and gardening services have surged by 55%, with more homeowners seeking to beautify their outdoor spaces.
Due to the seasonal nature of these businesses, it’s essential for SMEs and workers in the sector to maximise profits during this time, as well as minimising any financial losses, to help cover the less profitable months of the year.
So here are some of the most common mistakes for this industry in its peak season and some tips on how to avoid them, according to money.co.uk.
Inaccurate cost estimation
Miscalculating costs can lead to significant financial losses and mean you effectively work for free or even lose money on jobs - this is particularly detrimental to seasonal businesses, where each payment is even more important.
Make sure you accurately estimate the job's duration and factor in all relevant costs, including manpower, equipment, and fuel use, as well as the removal of soil, branches, or anything else required.
It’s wise to review previous jobs to help with these estimations and keep a close on your company finances with a dedicated business bank account, including budgeting for any necessary materials and equipment.
Skipping property assessments
Skipping property assessments is a significant oversight that can result in inaccurate cost estimates, a shortage of resources, missed deadlines, and potential client and revenue losses.
By having an in-depth knowledge of the property, you can understand the logistics involved with completing a job and get a clearer idea of client expectations. This will give you a better chance of satisfying and retaining the client, as well as securing more business through positive reviews.
Neglecting equipment maintenance
Due to the nature of their role, landscapers and gardeners often rely on equipment like excavators and chainsaws on a daily basis. Not maintaining these vital pieces of equipment properly can result in booking losses and, therefore, revenue.
Monitor equipment closely and complete regular maintenance to minimise the risk of tools breaking, needing to be replaced, causing injury, or disrupting your schedule of work.
Ignoring safety protocols
Workers in this sector often wield equipment that can cause serious harm, so adhering to strict safety protocols is vital to ensuring the safety of both themselves and those around them.
Failing to do so can lead to injuries and time off work, resulting in lost jobs and revenue and perhaps even a costly legal proceeding for any liability claims related to injuries.
Ensure that all staff have adequate safety training and equipment, including helmets, gloves, and boots, and that passersby are protected with barriers and warning signs to avoid potential accidents.
Underestimating the weather
While the weather forecast is never 100% accurate, actively tracking it enables you to effectively plan your workload to avoid any periods when extreme weather will make getting the job done impossible.
It’s also wise to allow slightly more time than needed for each job in case the weather delays completion. This will avoid having a knock-on effect on other jobs and causing disgruntled customers or lost sales.
Navigating a busy period as a business owner can be overwhelming at times. To capitalise on these busy spells and avoid missing out on revenue or damaging customer relations, you must proactively plan to meet the increased demand. A busier work schedule, alongside more invoices and expenses, can be hard to keep track of and opens up the risk of making a critical error which could impact your profits.
Accurate money management and budgeting are key, to afford the additional expenses associated with a peak season for your respective industry, such as higher stock and staffing costs. You can do this by regularly reviewing your business bank account ahead of and throughout these busier months, including your cash reserves and expenses.
By taking these tips into consideration and being proactive on the financial side of things, you can propel your business forward through this lucrative period. Even if mistakes are made, by being proactive, you can handle them effectively and learn from them to be even more successful going forward - a key part of scaling a small business.