The Financial Discipline Landscapers and Hardscapers Need Heading Into 2026 w/ Financial Expert, Greg Crabtree

Prioritize gross margin over total revenue; understand your revenue minus cost of goods sold before labor, aiming for at least 15% profit of gross margin.

The current economic climate favors best-in-class operators, offering an opportunity to gain market share as less efficient competitors may exit.

Be prepared for increased project delays and longer cycle times, which can impact profitability and cash flow; actively manage projects to mitigate these effects.

Leverage technology, especially AI tools, to keep administrative costs lean and boost productivity, recognizing that 'democratization of technology' means less reliance on specialized programmers.

Do not 'fall in love with your backlog'; aggressively complete projects to maintain availability and a clear focus on new opportunities, even if it means accelerating work.

Focus on the 'three Ps' for profitability: effective pricing, efficient processes and tools for your team, and ensuring you have high-performing people, addressing underperformers proactively.

Track your 'earned labor ratio' (ELR): aim for at least $2 of gross margin for every $1 of committed labor, especially during slower seasons, to ensure sustainable profitability.