Running your business during the "Housing Crisis"

As a service business, landscaping is an industry that is affected by fluctuations in the financial markets.  This includes the stock and real estate markets. How has the landscaping business been affected by the current instability of the American economy? Bail out or not; this is going to impact housing and the landscaping industry. Just like other businesses, landscaping as a whole has had to adjust to a new and harsher economic climate.

As with most service businesses, landscaping business today has been negatively impacted by the housing market crisis. Homeowners feeling the squeeze of ever-rising interest rates are less likely to purchase landscaping services. Home construction companies that may once have used professional landscaping services to complete new developments are closing rapidly for lack of business, which means less of the larger jobs that can be a substantial source of income for landscapers.

The financial crisis on Wall Street has also impacted landscaping business. Today, landscapers may find it difficult to qualify for loans for new equipment and expansions, even with a good credit record. This can have a devastating impact on a business's ability to remain viable in a competitive industry. The financial situation also affects customers' ability to pay for landscaping services. Although landscaping is an essential component of home maintenance, many homeowners will cut landscaping from their budgets before other services.

There are also benefits to a reactive economy. First, landscaping businesses are having less trouble finding quality labor as the unemployment rate rises steadily. Because finding and keeping trained personnel is a major expense for most landscaping businesses, this can be a boon for time and money strapped landscaping business owners. Another benefit is that as the housing market becomes saturated with homes for sale, homeowners and real estate agents are highly likely to consider professional landscaping services as a way of making their home more marketable.

Landscaping professionals must focus on the following during these difficult times:

• Provide excellent customer service and follow-up.  Repeat business and word of mouth referrals are more important than ever.

• Be creative – look for other services to offer your existing clients

• Be on the lookout – in a market where there are a lot of “For Sale” signs, it might be a great target market for those homeowners who are looking to attract buyers to their home