Why Diversify?

By: Jennifer Lemcke, Chief Operating Officer – Weed Man USA 

Chief Operating Officer of Weed Man USAMany business owners contemplate diversification to keep up with their competitors, enhance customer satisfaction and retention, and grow their businesses at a faster rate. Weed Man’s franchise network includes owners of landscaping companies, Christmas décor operations, and pest control businesses (to name a few!), many of whom made the decision to invest in lawn care as a way to expand their service offerings and, as a result, increase profitability.

Diversification of a business, if done properly, can increase revenue and profits.  It can make a business stronger and allow key employees continued growth within the organization.

Diversification of a business, if done poorly, can create chaos and confusion within the core business and ultimately decrease revenue and profits.

Are you considering diversifying your current business? Diversification may be right for you if…

  • Growth has stagnated.
  • You do not see a long term growth strategy for your core business.
  • You find yourself working in the business, not on the business (lack of volume).
  • You struggle to compete against local, regional and national companies.
  • Profit margins are too low.
  • Your core business does not create equity (resale value).
  • Revenue that is currently subcontracted has greater profit potential.
  • Efficiencies can be created or adopted from the new service offering (i.e. density or cross marketing).
  • Your existing customer base utilizes a service or product from other vendors (possibly even from competitors).
  • You want to expand for future generations or to recruit /retain talent in the company.

What are some reasons businesses do not diversify?

  • They are comfortable with existing business and growth.
  • They do not know how to diversify or what service offering(s) to diversify into.
  • They lack systems to support successful diversification.
  • They lack the energy and resources to fuel new growth.
  • They lack the support needed to implement the additional service or product offering.

Are You Ready for Lawn Care?

Pros

Cons

Positive consumer perception (everyone wants a green, weed-free lawn).

It is a different business and it needs separate systems to support the business operations.

Maximized productivity and easy scheduling, as services are outside and residents do not need to be home.

Lack of business planning and a solid sales plan can lead to a large investment with low yield.

The industry is growing at an average of 20% each year.

It can be a highly competitive marketplace without the right program to differentiate your company from others.

Tremendous cross marketing opportunities.

 

Repeat contractual business increases the overall worth and value of your business.

 

If you are considering making the jump, be sure that you understand the pros and cons and have a firm grasp on your current business situation. Be honest with yourself. You will need to fully commit to building the new business and developing your people. 

Diversifying may be a natural next step for you. Sometimes all it takes is the right opportunity. 

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Weed Man Business Insights Podcast: Diversifying with Lawn Care

Dave and Eric Thurston

Dave & Eric Thurston, an award-winning father-son team from Lansing, Michigan, made the decision to grow their existing landscaping company by investing in a Weed Man franchise. In their first year of business, the Thurstons were presented with the coveted “Rookie of the Year” award at Weed Man’s annual conference for their business excellence. The following year, this dynamic duo was able to grow by 150%, and are expected to grow by another 40-50% in 2014.


Are you looking to grow your business, diversify, or even change your career path? Learn more about the Weed Man franchise opportunity at www.weedmanfranchise.com or by calling 1-888-321-9333. 

Is Franchising Right for You?

Are you striving to take that next crucial step and diversify your existing business? Or perhaps you are looking to leave your corporate job and fulfill your entrepreneurial spirit. For both situations, franchising could be the answer.

Let’s review how and why franchising could be the route for you:

1) Proof is in the Numbers. All winning franchise concepts have developed a blueprint for success. But, don’t be fooled; it takes time to put together a formula that works. With over 40 years of experience, Weed Man has been able to do just that. In everything we do, there are systems that have been conceived, tested, refined and proven to increase efficiency and profitability. Our systems are based upon measurable results that can be compared across the network to create benchmarks for your success.

As you look into expansion opportunities or new career options, our team will provide you with a great deal of information, including the required franchise disclosures. You will also be able to verify these results with existing franchisees prior to making your final decision. At the end of the process, you will have a true and clear picture of just how our franchisees are doing. Now isn’t that the best way to make a decision?

2) Training Programs and Ongoing Support. Having a successful blueprint is a great start, but knowing how to implement it is even more important. The best brands have a detailed training program to get you started and a support network to help keep you on track. At Weed Man, all new franchisees participate in an initial 10-day training program highlighted by formulating a comprehensive business plan – the heart of your business. You can also look forward to an ongoing support system that includes site visits, a one-on-one sales analysis program, and detailed agronomic and marketing support. Every Weed Man franchisee is supported by an experienced personal consultant and mentor who will work with you to ensure your complete and long term success. This is a unique benefit you are unlikely to find elsewhere.

3) Marketing Assistance. Most franchise concepts typically provide proven marketing tools and strategies for attracting and retaining customers. Weed Man, however, takes marketing one step further. With over 44 years of proven success, Weed Man knows who its customers and prospective customers are and knows how to market to them. Exact details are put into place with respect to each marketing campaign (i.e. start date, finish date, how many people are required, how many leads will be generated daily / weekly / monthly, how many sales daily / weekly / monthly, etc.). Beginning with the initial training, a Weed Man franchisee will be taught how to implement these marketing programs and then be supported throughout the process.

You will also enjoy the benefits of not only receiving a personalized regional website, but also continuous, behind-the-scenes activity to keep your internet and social media presence up to date. Additionally, franchisees receive local media support with a leading national PR firm, local radio advertising, and a vast library of print advertisements and promotional materials that can be customized to meet your needs. Your marketing support team will be there for you, every step of the way.

4) Purchasing Power. A successful franchise brand will be able to capitalize on the buying power awarded to the entire system. It should be able to negotiate prices for everything you need at significantly lower costs than what you would receive as an independent operator. Imagine being part of a $130M Weed Man franchise and how that would benefit your business. Weed Man franchisees enjoy extremely favorable, volume pricing and payment terms negotiated with suppliers based on anticipated system-wide purchases. You’ll be able to control your expenses while enhancing your profit margins.

5) The Equity Play. Though most franchise systems can provide you with a blueprint for building a profitable business, not all of them can lead you down the path toward building equity. As a Weed Man franchisee, you’ll have the peace of mind of knowing that you can count on the vast majority of your customers automatically renewing each year. This brings in recurring revenues and allows you to focus marketing efforts on net growth rather than repeat sales. You’ll always be building on a growing database of renewing customers, creating equity and amassing wealth in the process. You’ll be able to enjoy income on a yearly basis while building a business with equity to sell down the road.

To receive further details on the Weed Man franchise concept, call us at 1-888-321-9333 or visit our website at www.weedmanfranchise.com.