Last week the enterprise value specialists at Ceibass shared their thoughts about getting through the worst of the pandemic, celebrating 2020, re-energizing and looking ahead for lawn and landscape business owners. Response to the blog was so intense we continue with more thoughts on the topics.
“The reality is that for many if not most landscape contractors, 2020 was their best year ever. Landscape was deemed ‘essential’ almost from day #1 of the pandemic related shutdown,” said Tom Fochtman, Ceibass CEO. “On top of having a very good year, they got PPP money. Record revenues, probably great profits, and PPP money. What a windfall!”
The team at Ceibass went on to say that a lot of owners will take the PPP money out of the company as a distribution. And that the smart ones are investing in their companies in a variety of ways:
- Share it with the team as a reward for hanging in there in an extraordinarily stressful year.
- Pay down debt.
- Upgrade fleet & equipment.
- Invest in technology.
- Invest in people. Make that key hire that you have been thinking about.
- Buy your facility if you rent.
“One other thing that I’d watch out for as an owner is some of my people moving on,” added Tom Fochtman. “They stood pat for the last year, not knowing what this whole pandemic environment would bring. Now that the year is over and they have gotten their bonus, some of them may be thinking about making a move. Everyone will be vaccinated sooner than later and our economy will be getting back to normal. Fed is keeping rates goofy low and jobs are returning. As an owner, I’d for sure be checking in with my middle management team and key executives to see what’s up.”