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Turnaround Update, From Panic to Plan: 90-Day Profit Reset

⏱️ 50:01 🎀 Mike Andes, Zach, Matt
AUDIO EPISODE
Turnaround Update, From Panic to Plan: 90-Day Profit Reset
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Chapters

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  • 0:00
    Post-Turnaround Business Update
    Mike introduces a follow-up call with Matt from Courtney Lawn and Landscape, six to seven months after their initial 'Turnaround Show' during winter.
  • 2:03
    Initial Changes & Successes
    Matt details immediate changes, including subcontracting all mowing, selling equipment, and even letting go of his biggest customer, which surprisingly led to record revenue.
  • 5:08
    Summer Slump & Profit Drop
    Matt describes hitting a wall in July and August, with net profit margins plummeting despite high revenue, attributing it to dried-up leads and operational bottlenecks.
  • 8:45
    Off-Season Strategies
    Matt discusses exploring new winter services, Christmas lights, and Christmas tree sales to combat seasonal slumps, all while managing increased personal and professional responsibilities.
  • 14:04
    Team Size & Sales Confidence
    Matt shares updates on his team growth and expresses confidence that sales will pick up after a typical late summer lull, despite current frustrations with finances and work-life balance.
  • 19:07
    Delegation Challenges & Solutions
    Zach and Matt discuss the difficulty of delegating, especially admin tasks, and Zach offers resources like a time audit sheet and examples of how other contractors successfully delegated.
  • 30:23
    Admin & Payment Processing Fears
    Matt expresses his hesitation to delegate admin due to past experiences with theft and concerns about payment processing fees, which are causing cash flow issues with Stripe.
  • 41:40
    Financial Planning & Future Outlook
    Matt reviews his financial situation, including high rental equipment costs and the current lack of a cash buffer for winter, contrasting it with previous periods of financial stability.
  • 50:51
    Winter Services & Customer Education
    Matt details his strategy for introducing new winter services in a market where they're uncommon, aiming to educate customers on the long-term benefits and cost savings.
  • 1:00:17
    Price Increases & Advance Payments
    Zach suggests a strategy of offering current customers their existing rate if they pay in full for the next year, which would help with cash flow during slow seasons and increase prices effectively.
  • 1:05:53
    Tool Management & Accountability
    Matt shares how he implemented a system to manage tools and hold employees accountable through pay for performance, significantly reducing tool loss.
  • 1:15:14
    Addressing Toxic Employees
    Matt discusses the challenges of dealing with underperforming and toxic employees, highlighting how the pay-for-performance system helped identify and address these issues.
  • 1:20:39
    The Impact of P4P & Online Criticism
    Matt praises the success of his new pay-for-performance system in boosting employee morale and retention, and reflects on dealing with negative online comments and competitors after his initial 'Turnaround Show' video.

Speakers

M
Mike Andes
Host
Z
Zach
Host β€” Head of Operations, Media Team
M
Matt
Owner, Courtney Lawn and Landscape

Key Takeaways

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Prioritize delegating administrative tasks first, as they are often the lowest value of the owner's time and can be outsourced effectively.

✦

Conduct a time audit to understand where your time is actually spent, identifying areas for delegation and improving efficiency.

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Incorporate credit card processing fees into your pricing rather than listing them separately to avoid customer pushback.

✦

Implement advance payment strategies, such as offering discounts for full upfront payment or requiring a higher percentage down for large projects, to improve cash flow during slow seasons.

✦

Establish clear accountability systems for tools and equipment, linking their care to employee performance or bonuses to reduce loss and damage.

✦

Utilize targeted video communication (e.g., Loom videos) to educate customers on new services like winter maintenance, showcasing personalized savings and benefits.

✦

Regularly audit and adjust pricing, including annual increases, and consider offering incentives for early or full payment to stabilize revenue and manage operational costs.

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