Total Landscape Care Digital Magazine
Issue link: http://read.dmtmag.com/i/120635
landscaper of the year finalists it has averaged about 20 percent annual growth in the past 14 years, Cromley says. About 55 percent of the company's revenue stems from landscape installations (roughly 75 percent of it from high-end residential clientele and 25 percent from commercial work), and the average project budget is about $60,000, up from just $10,000 five years ago, reflecting the move toward high-end clients. About 45 percent of revenue comes from grounds maintenance (about 95 percent generated by commercial accounts). "We didn't really have a business model," says Cromley, who became friends with Seiler at Ohio State University, where they both majored in landscape horticulture and minored in construction management. "We were focused mostly on hard work. We knew equipment was important, so we bought things that would make our projects go faster — save us the most time and physical labor." "We basically didn't pay ourselves for the first three years," recalls Seiler. "We just kept investing what we earned in machines and equipment." Diversification is key Becoming a fully diversified business was critical to Hidden Creek's success. In Hidden Creek's case, installation leads to maintenance work, and vice 5 1 2 TIPS FOR HIDDEN CREEK'S SUCCESS Focus on high-end projects with better profit margins. Provide employees with on-going education/professional certifications; be transparent about company goals, finances, etc. Invest in new equipment that 3 boosts productivity and minimizes repair downtime. Emphasize proactive customer service that generates repeat business and referrals. Keep debt low; if using a revolving credit line, pay it off quickly. 4 5 versa, Seiler points out. And having a maintenance division that generates steady cash flow through one-, two- or three-year contracts can help offset the installation end of the business, which is more vulnerable to volatile economic fluctuations, Seiler says. Moreover, a one-stop shop is more attractive because customers deal with just one company and don't need to be a general contractor. In addition, the company benefits by taking in revenue that would otherwise go to sub-contractors. When a client in Columbus asked Hidden Creek to create a resort-style backyard escape, the result was this $125,000 project. Highlights include about 600 square feet of hardscaping that utilized brick, cobblestone and travertine tiles, an enlarged existing pond, fireplace and sunken spa with a heated floor. 3 6 To ta l L a n d s cap eC are.c om TLC0413_LOY.indd 36 A P R I L 2 013 3/25/13 4:17 PM