Managing cash flow is a tricky beast, especially for landscaping businesses navigating seasonal fluctuations. In this episode, we dive deep into how growth can sometimes strangle your cash flow if you're not keeping a tight grip on your numbers. We chat with Joe and Carla from CycleCPA, who emphasize the importance of tracking fixed assets like mowers and trucks to ensure you’re getting your money’s worth. They lay out key performance indicators that every landscaping business should monitor as they scale up, including return on fixed assets and fixed asset turnover. If you’re looking to grow without falling into the cash crunch trap, we break down strategies to keep your operations running smoothly and your finances in check.

Chapters:

• 00:13 - Understanding Cash Flow Challenges
• 08:41 - Understanding the Financial Metrics for Landscaping Businesses
• 11:13 - Starting a Landscaping Business: Financial Fundamentals
• 24:26 - Navigating Cash Flow Challenges in Growing Businesses
• 29:28 - Navigating Cash Flow Challenges in Landscape Businesses

Takeaways:

• Cash flow management is crucial for seasonal businesses, as growth can complicate finances significantly.
• Utilizing machinery and equipment efficiently can directly affect profit margins in landscaping businesses.
• Tracking key performance indicators like gross margin helps landscape companies understand operational efficiency better.
• Staying consistent over time is key to long-term success in the landscaping industry, even amidst challenges.

Companies mentioned in this episode:

• Everbearing Services
• CycleCPA

Links referenced in this episode:

• cyclecpa.com
• landscapebusinessgrowthlab.com
• everbearingservices.com