The weather's warming up, the equipment's rolling out, and our teams are back to doing our bread-and-butter work (or close to it if you're far North!).

As you start your busy season, I wanted to take a moment to talk equipment. Equipment should be treated as a tool for your business and smart equipment decisions start long before the season does. But as we go through the busy season, it's important we watch for a couple of common issues that equipment can cause so we can adjust if needed. 

Think of your equipment like a taxi - when it's running it's generating revenue and should be paying for itself. Every billable hour that a machine runs is an hour where a customer is effectively making your payments for you. If a machine is working more than it's sitting idle, it should be making you money if you've set your rates well. 

Once you have that mastered, there are two pitfalls which tend to pop up during the season, but also two solutions to those issues:

1. The machine is breaking down frequently. Even if the machine is paid off, if breakdowns are frequent it's causing other issues: delayed jobs, rental fees for a loaner machine, or increased hours on a job that you suddenly had to get done without the help of a mini-skid. These issues have costs associated with them too so it may be time to say goodbye.

The solution: look at replacing a machine that's broken more than it's running, even if it's mid-season when the issues become obvious.

2. The machine isn't used as often as you thought. Maybe you bought new equipment but are realizing it's parked for most of the year. If you could rent it for the few times of year you need it instead, run a quick price comparison. Ideally we do this before we purchase something, but there's no shame in selling off a piece of equipment that you don't use as often as you thought you would. 

In both cases, the warning sign will be that the machine is parked more often than it's used. It's a pretty simple metric to watch and then use to evaluate if a piece is actually worth keeping on your books, or if that money could be better put to work for you elsewhere. 

As the season gets into full swing, pay attention to the equipment being used. You may be able to improve your cash flow by simplifying or reduce operational headaches by reinvesting. And if you want to look at options for replacing equipment, we did a Webinar last month with John Deere where we talked about financing options and how to evaluate the best fit for your business. 

We'll talk to you next Sunday! 

Vince Torchia
Vice President & Director of Strategy
The Grow Group & Grunder Landscaping Co.