How to Keep Your Lawn, Landscape, and Outdoor Living Business Growing When a Recession Looms Ahead
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The Content Team,
HALSTEAD.
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With an uncertain economic future and a threatening recession ahead, consumer spending habits change, and many lawn, landscape, and outdoor living businesses hunker down and make massive budget cuts in an attempt to survive the financial storm. Except, this effort of preservation becomes more harmful than beneficial. At times like these, making business decisions based on fear and gut feelings won’t serve you well. The choices you make during times of financial uncertainty are critical, and the worst thing you can do is choose to do nothing.
Creating a strategy implementing your tried-and-true techniques while adding new technology that allows you to work smarter and not harder is key to withstanding periods of uncertainty and trying times. While it’s not easy to run a company, whether a recession is forecasted or not, having a plan for these situations will increase resiliency and help you stay focused on the long game.
It may be the most challenging time you go through with your business, but it’s possible to come out stronger on the other side. Now is the time to mentally and strategically prepare for what may be ahead—hoping for no recession but preparing for it nonetheless.
Why Mindset Matters for Landscape Industry Professionals During Economic Uncertainty
Turn on the news, and your anxiety will go through the roof, but remember that the economy will eventually recover, and what you do (or don’t do) during this time is critical. Maintaining a growth mindset during difficult periods is a challenge, but rather than focusing only on the risk, consider the reward. Many businesses have launched or grown during recessions because they developed a strategy, remained flexible, and never gave up.
Economic downturns can be an opportunity for your business. For example, in his story shared with Lawn & Landscape, Robert Clinkenbeard describes launching his landscape company in 2001—the year of 9/11 and at the beginning of the decade of the Great Recession. In that decade alone, 1.8 million small businesses went under, but not Clinkenbeard’s. In fact, his business went on to a successful acquisition just 15 years later, largely due to resiliency.
Some famous brands launched during recessions, including Airbnb and Uber in 2008, both immensely successful companies today. One of the reasons such startups succeed during recessions is the difference between hunkering down versus noticing opportunity. Those startups were active when other companies weren’t investing in innovation or positioning themselves for growth. As a result, companies like Airbnb and Uber took a risk at this pivotal moment and came out on top—relishing in their choice of considering the reward over the risk.
These are not the results the average business owner might expect during a recession, but they are certainly not unheard of. Businesses that launch when other companies are cutting back have a higher long-term survival rate because there is less competition.
Leading companies are those that maintain a growth mindset despite a fluctuating economy. One Google study showed that 70% of executives from digitally leading companies embrace an experimentation mindset, compared to 47% from digitally emerging companies. If your landscape business can survive when times are tough, you’ll be rocking it when the economy is back to normal again, and it will be back to normal eventually.
How Outdoor Living Businesses Can Benefit by Adopting a “Tried-and-New” Approach
While panicking during economic downturns is tempting, consider what works for your landscape business and focus on those tried-and-true initiatives. Pair these reliable methods with new technologies for a hybrid “tried-and-new” approach, as Google refers to it.
Leaders in the green industry focus on what will benefit their businesses the most. They invest in technology and tools that will make their business more competitive—that help them operate more efficiently. Don’t be afraid to make quick decisions to try new things that can potentially benefit your business. While some of these new approaches may fail, the important thing is that you remain agile and find the solutions that do set your business ahead.
Recurring Revenue
Diversifying your services to include commercial services or residential maintenance services can help create recurring revenue, so you don’t have to rely on project-based work. Successful firms have found that offering annual packages to reseal paver driveways, walkways, or patios they’ve built is an excellent way to ensure ongoing cash flow. Other companies offer weekly services to maintain plantings or add snow and ice management to their list of services to maintain cash flow during the winter season. In difficult times, it’s beneficial to have recurring revenue you can count on, knowing it will also help drive long-term growth.
Automation and Technology
There is ample opportunity to implement automation in processes throughout your business, helping you save time and money and increase your ROI. Scaling back on your spending means prioritizing expenditures that help streamline your operations, improve your services, or help drive sales. For example, when your existing mowers operate perfectly, there may be better times to purchase the $25,000 latest model zero-turn mowers. This type of spending won’t bring immediate benefits during a period of uncertainty, but implementing new marketing tools would result in tangible efficiencies as you interact with prospects.
Investing in a professional website design that allows prospects to pre-qualify themselves and schedule a consultation online, or enables customers to make payments directly from your website, will simplify your processes. A CRM tool will help you automatically make critical digital touchpoints with your prospects and customers and keep track of all leads and interactions in one place.
Professional Videography
Digital video has proven to be a worthy investment with positive results, helping businesses reach people using content they prefer to consume. People expect to see video content from brands during their research, and 91% of businesses already use it as a marketing tool. 96% of marketers agree that videos have helped increase customer understanding of their product or service, and we see this with the lawn, landscape, and outdoor living businesses we work with here at HALSTEAD.
There’s no better way to showcase your beautiful outdoor kitchen or poolscape project than a professional video shot with a drone, getting up close and personal with the outdoor space. Such videos help prospects envision the possibilities and create an emotional connection. If you haven’t yet, investing in digital video production and ads is a great place to start when adding something new to your marketing strategy.
Marketing Is Not a Luxury, It’s Essential for Green Industry Businesses
Top landscape business owners know that growth is fundamentally linked to marketing. While you may need to make budget cuts, remember that marketing is necessary, not a luxury. Make sure you’re cutting the right costs and investing in the right places. At a minimum, maintain your marketing budget, reframing how you think about marketing—it’s an investment, not an expense.
Researchers found that when midsize companies increased their investments during times of recession, they experienced improved performance during recovery. The study shows that the companies that increased investments experienced an average 57% increase in sales, while companies that decreased investments experienced an average 1% decrease in sales during recovery.
However, the way you invest in marketing may change over time. While conversion may be your primary focus during a stable economy, you may find a shifting balance between performance marketing and brand marketing, focusing on the full funnel rather than conversion alone. Content marketing is one of the most effective ways to reach consumers at every phase of the customer journey.
Consider that 60% of consumers report needing to research to feel confident about making large purchase decisions, and this research is done online using search engines such as Google. Top lawn, landscape, and outdoor living businesses invest in content creation to educate and search engine optimization (SEO) to ensure these consumers find their business during their online research. By investing in an optimized website design, they ensure that prospects have a positive experience when visiting their website.
Staying Relevant and Meeting Consumer Demand as an Outdoor Living Business Owner During a Recession
Marketing messages that focus on the benefits of your services will resonate with prospects, especially during high-stress periods when gas prices are high, energy prices are skyrocketing, and there’s so much uncertainty.
Focusing on the Benefits
After being confronted with messaging in the media about the dire state of the economy, a social media post sharing the stress-reducing benefits of being outdoors will be a welcome change of tone. Pair this educational information with a professional video or photography of a beautiful outdoor space you’ve built, and your prospect will be longing to achieve the feeling you’ve invoked. It’s an effective way to create an emotional connection and offer your services to meet consumer demand.
Environmentally Friendly Solutions
Leading lawn, landscape, and outdoor living businesses stay relevant by incorporating emerging technologies into their operations. For example, some contractors have created an entire operation run solely on battery-powered equipment, including a Ford Lighting truck, mowers, trimmers, edgers, and blowers. This eco-friendly, forward-thinking initiative appeals to a growing audience that prioritizes reducing the carbon footprint but is also in response to climate regulations.
Many lawn care companies offer package options for their customers, providing the power of choice and meeting customers where they are. Some lawn care plans incorporate organic materials for fertilization, others use fewer plastics in their operations, and some have moved away from pesticides completely. Depending on your market, this may be an opportunity to be flexible, expand your reach, and meet consumer demand.
Landscape Business Owners Need to Be Flexible During Economic Downturns
If your green industry business survived the Great Recession of 2008 and became stronger after the pandemic, you know the importance of remaining agile in these situations. When you have access to analytics and factual data about how your marketing initiatives are performing, you can make data-based decisions to pivot quickly to drive business growth.
This ability is another reason why implementing new technology is so beneficial when there is a balance between planning for the future and staying mindful of key insights and opportunities to make changes at the drop of a dime. Studies have shown a common denominator amongst companies that successfully navigated a difficult economy—they all had leaders who were willing to change course at a moment’s notice.
The Benefits of Being More Customer-Centric in the Landscape Building Industry
An economy on a downward slide is the perfect time to outperform your competitor by providing an exceptional experience and going the extra mile to stand out. You’ll improve the customer experience and stand out.
Follow-Ups and Check-Ins
Remember that your customers are going through the same recession that you are, and communicating your concern for them and showing empathy is important. Being transparent while remaining professional will be well-received as people value honest and well-intentioned businesses.
These difficult periods are a great time to follow up with past customers to check in and see how their outdoor living space is holding up and if they need additional services. Perhaps their paver patio needs to be resealed, or their koi pond could use maintenance; even if they don’t need your services immediately, you’ll be the first one they think of when they do.
Financing
When times are uncertain, people tend to spend money differently. They may be more price sensitive, be more intentional with spending, and consider more options before making a purchase.
Offering financing options gives your customers the flexibility to invest in a large outdoor living project without immediately using their savings. Studies show that offering financing options helps close more sales, and homeowners spend approximately 44% more on their home improvement projects.
Targeting the Affluent
If we enter a painful recession, many affluent consumers are unlikely to be as affected as the general population. Wealthy people tend to be expecting prices to increase during economic downturns, and they’re ready for it. Outdoor living businesses targeting a high-end market could see more opportunities for prospects who see room for improvement in their estates.
The target customer in this category may be retired, have multiple vacation homes and businesses, and their purchasing decisions aren’t determined by who provides the lowest estimate. Instead, they’re more influenced by your reputation, branding, quality, and the experience you provide. They’re more likely to share their experience with your company as they talk to their affluent neighbors and friends, helping you get referrals.
Building Your Reputation as a Great Landscape Industry Employer
Maintaining relationships with the people in your life is crucial, especially during uncertain times. Whether you’re communicating to stay top-of-mind with customers or checking in with contractors you’ve partnered with, your efforts will likely help you get referrals, too. It’s also essential to maintain a positive relationship with your employees.
Millions of employees quit jobs for higher-paying ones during the Great Resignation, and with talk of a recession, almost 60% of those people are worried about job security. Their fears aren’t unfounded, considering 15 million U.S. workers were unemployed by the end of the Great Recession of 2008, which lasted 18 months.
Your employees will appreciate you being candid about the state of your business. Be upfront so they trust you to give them a heads-up when layoffs may be coming. Lead with empathy and put your positive company culture on full display during these times.
Prioritizing professional development and helping your employees build skills will pay off. A Deloitte study found that companies with a strong learning culture are 92% more likely to be innovative, including with processes. They’re also 52% more productive and up to 50% more engaged than companies that don’t provide professional development opportunities.
Invest in top performers to build a strong team and increase your retention rate, allowing your employees to build a career and not feel like they’re just filling a job opening. When the recession is over, and the job market improves again, your reputation as a great employer will help you attract top talent, especially when recruiting is approached with a marketing mindset.
