The enterprise value specialists at Ceibass know that In the early stages of  running a lawn and landscape company every new client feels like a victory. But as the business grows, it becomes clear that not all clients contribute equally to success.

“To maximize your company’s enterprise value and position yourself for growth, it’s crucial to assess your client portfolio and focus your energy on the accounts that truly matter,” said Tom Fochtman, Ceibass CEO. “By strategically managing your client portfolio, you can unlock new opportunities for growth, strengthen your business’s foundation, and position yourself as a leader in the industry.”

Below are some thoughts from the Ceibass team on how to do that:

Identifying High-Value Clients

Your top-tier clients are the lifeblood of your business. These are the clients who value your expertise, generate strong revenue, and are easy to work with. They align with your company’s goals and appreciate the quality of your service. These A-level clients should be the cornerstone of your business strategy.

The Cost of Low-Value Clients

On the other hand, some clients drain resources and deliver minimal profit. They’re often high-maintenance, late with payments, or overly focused on price rather than value. These accounts consume a disproportionate amount of time and energy, frustrating your team and distracting you from growth opportunities.

The Benefits of Refining Your Client Base

By phasing out low-margin, problematic clients, you free up resources to better serve your high-value accounts. This not only boosts profitability but also creates space for upselling opportunities and builds your reputation as a premium service provider. Additionally, your team will experience less burnout, improving morale and efficiency.

Making the Transition

Start by evaluating your clients based on profitability and resource demands. Segment them into tiers and identify which accounts are consistently challenging. For lower-value clients, consider implementing minimum service thresholds or directing them to other providers who may better suit their needs.

“Reducing your client load might sound counterintuitive, but focusing on quality over quantity is a proven strategy,” added Tom. “Some landscape companies have implemented minimum contract values, reducing their client list while simultaneously increasing revenue. Remember, as you refine your client base, redirect your focus to building stronger relationships with high-value accounts. This will improve your company’s overall profitability and make it more attractive to potential buyers when you choose to sell.”