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Then there's the question of inventory management. A "just- in-time" approach to inventory is best, said Fernandez. Get what you need just when you need it, and only buy what you need. "When you have more capital, it may make sense to buy large quantities of trees, bricks, mulch etc. at a lower unit price. But if you're short on cash flow, it makes more sense to use just-in-time inventory management." ABOVE CAYUGA'S WATERS: PEOPLE Many of the crew leaders have been with Cayuga Landscape for a long time — 15 to 30 years. "Having a lot of continuity like that, and such excellent staff who have the institutional memory for how to do things, makes things go so much more smoothly in a business," said Fernandez. Try to hang onto those people. Another consideration when growing is how to integrate new people effectively and safely. "Even if a new hire comes in having said they already know how to do everything, we have them work with one of our experienced crew leaders, and we make sure they can't jump on a machine until they've been trained and checked out by a senior person," said Fernandez. Fernandez advises that when considering growth, you keep a sensible ratio between the different parts of your staff. You can't just increase sales staff and be successful in landing more jobs if you don't also increase trucks and equipment, build crews, and have more office staff to send bills out promptly. "The ratio of support to field staff has to be right," he said. Also, in terms of deciding what jobs to take, Fernandez said it's important to be selective. Are the jobs more likely to be riskier than normal in financial terms? Are they at a great distance away and not close to any other clients, so the travel will decrease efficiencies? "We try to focus on a core market area geographically and on the things we do the best and most easily," said Fernandez. "It is critical for your reputation to be able to provide your client with high-quality and timely work, so we are cautious about taking on too many technically challenging jobs in the same season." Are these bids for big jobs that will take place at the same time as other large contracts you already have? "If we already have a big job for fall of 2016, for instance," Fernandez said, "I'll bid any other potential jobs high to make sure we would meet the extra startup costs for extra staff, etc. If we don't get the bid, that's fine, we have enough work. Be careful with what work you take on; take work that's closer, easier, and well-timed/spaced out." Fernandez acknowledged that sometimes he can't control the variables as precisely as he would like. He said that one of the most aggravating things is when you think your business is expanding in the springtime, but then you hit a slow time in the summer and you're trying to figure out what to do with the staff. He said, "You have to make sure your expansion is not just to serve a short spring busy period, or else it'll kill you in terms of labor costs in summer if there's not enough income coming in." Fernandez cautions that it's especially dangerous when the opportunity to expand into a second location presents itself. Let's say a fellow landscaper hangs it up — it's tempting to take on their site. "If you're a small business it's tough to run two locations," said Fernandez. "That needs to be undertaken very carefully because you can end up not doing anything well because your time is divided. Also it takes a lot of capital to take on a second location, and people often underestimate the management time required for it." Cayuga Landscape grows at a moderate pace, not more than a few percent per year, like tree rings. "For our core staff and our facilities, this is the right amount of business for us," said Fernandez. Michelle Sutton (michellejudysutton. com) is a horticulturist, editor, and freelance writer living in New Paltz, New York. A heralded book came out in 2014 about this subject, Tree-Ring Management: Take the Long View and Grow Your Business Slowly, by Kiroshi Tsukakoshi (author) and Hart Larrabee (translator). BUSINESS MANAGEMENT www.landscapeirrigation.com Landscape and Irrigation November/December 2015 17 LI David Fernandez has been running Cayuga Landscape in Ithaca, New York since 1978. PHOTO BY MICHELLE SUTTON