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why do companies fail?


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 06-18-2003, 03:50 PM
1manCrew
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Why do landscape companies fail? Anyone have any answers to that?
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  #2  
Old 06-18-2003, 06:08 PM
BSDeality
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Lawn care business tipsLawn Care Business Book
too much overhead (big shiny equipment), too much competition driving down profit margins.
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  #3  
Old 06-18-2003, 10:39 PM
Lawn Magic
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A long time ago there was an extensive study by Dun and Bradstreet about: Why Businesses Fail. I used to have a copy, but no more. I will see if I can find it somewhere and let you know. It's not about landscaping co. specifically, but you could safely apply the general rules. I know the info would benefit the Gopher Team as well. One of the items addressed was inadequate controls which can be more fully addressed in our software.
I previously structured a very successful business partially using the insight from this article. I appreciate that you refreshed my memory about it.
Another question is why business succeed**much harder to pinpoint. The most useful resource I studied and applied from this angle was a tape course Managing by Objectives. Lee Iacocca (one of my heroes), and other successful entrepreneurs were profiled throughout. (The principles here are also valuable for the Gopher Team because our respective future successess are linked)
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Old 06-19-2003, 01:29 PM
Gopher Tech
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Great Insight!
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  #5  
Old 06-19-2003, 08:54 PM
Enviro-Lawns
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I did some research on this and found these reasons from Nilsson Associates, an industry consultant.

Main reasons for business failure in order of importance are:

1. Not having a business plan

2. Inadequate working capital

3. Not knowing the "numbers"

4. Taking customers for granted

5. Taking employees for granted

6. Losing perspective for priorities

7. Ego - not seeking outside help when needed
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  #6  
Old 06-20-2003, 09:06 PM
Quick Cutz
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I can agree with that but the thing that I wonder is, how many guys that get into this business really start with a business plan? I don't think many do. They just start cause it's easy to start.
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  #7  
Old 06-22-2003, 11:50 PM
All Green
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I think the biggest problem is lack of cash flow and not keeping expenses down. You don't need a brand new truck, it should look nice and you should always be presentable but when you spend the money I see some people spend on new equipment and trucks and trailers, you just can't keep up sometimes.
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  #8  
Old 06-25-2003, 07:41 PM
Enviro-Lawns
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Here is more Information I found on this topic.

Six mistakes:
1) Spending too much time with the wrong people
2) Not giving enough information to your current clients and prospects
3) Not charging enough for work
4) Mainly going after the low-profit stuff
5) Writing estimates out on blank sheets
6) Complacency not seeking to improve all that you do



Full Article
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  #9  
Old 06-25-2003, 09:13 PM
Lawn Magic
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This is becoming a fairly comprehensive list. Thank you!
I will post a custom list for the Lawn Care/Landscaping business I am preparing, when I have completed it. It is from my own observations and from talking to others formerly in the business. Nobody chooses to fail in advance, so keep on adding to the list. This is helpful for everyone.
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  #10  
Old 06-25-2003, 09:53 PM
1manCrew
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I guess this kinda goes along with that old saying 'if you fail to plan, you plan to fail.' All of this does make me think!
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