As Tom Fochtman prepares to retire and close down Ceibass at the end of the month, he has taken time to reflect on some of the things he’s learned over the decades in the lawn and landscape industry.
“Thank you for the trust you’ve placed in me and in Ceibass. It has been an honor to work with you,” said Tom. “If I could share a few pieces of hard-earned advice with my fellow lawn and landscape colleagues it would be these.”
- Start with the End in Mind
Envision your exit strategy early. A clear goal guides better decisions throughout your business journey. Always be building your business to increase EBITDA. Have your business ‘ready to sell’ every day. You never know when the phone might ring. - Know Your Numbers
Financial clarity isn’t just for accountants; it’s essential for understanding your business’s health and value. Know your numbers! Make it your life passion as an owner to understand your financials. - Build a Business, Not a Job
Create systems and delegate effectively so your company thrives independently of you. #1 fear with Buyers is the company won’t thrive when the owner(s) depart the business. - Invest in Your Team
A skilled, motivated team enhances your company’s value and ensures smooth operations. A strong middle management team is key. Having a younger #2, or GM is vital when exiting. - Embrace Continuous Learning
Stay updated with industry trends and innovations to keep your business competitive. Stay current with tech, especially for Baby Boomer owners. It’s easy to ignore tech and AI. You must stay current with tech. - Focus on Customer Relationships
Loyal clients are invaluable. Prioritize service quality and communication to build lasting relationships. - Maintain Operational Efficiency
Streamline processes to reduce waste and increase profitability, making your business more attractive to buyers. Great example: You can take the wet dish towel and always ring it out another time or two. That is profit. Focus on efficiencies. Look for 1% everywhere. It will add up. Raise your prices 3% annually. Your customers won’t notice, they won’t care, and it falls to the bottom line. - Understand Market Dynamics
Stay informed about market conditions and buyer expectations to position your business effectively. - Plan for Succession
Develop leadership within your team to ensure continuity and ease transitions. - Protect Your Reputation
Uphold integrity in all dealings; a strong reputation can significantly enhance business value. Give to your community. Donate landscape gardens or whatever. - Be Prepared for Due Diligence
Maintain organized records and transparent practices to facilitate smoother transactions. My most lucrative transactions for my clients are those that sailed thru DD because their records were in order. - Seek Expert Guidance
Don’t navigate complex transitions alone; consult with professionals to maximize outcomes. Sellers cannot sell without a team of consultants. I always tell my clients the Ceibass fee is free because we will get them more money than they would if they did not engage us. You must have an investment banker running the process, legal and accounting on your team. This is not optional. - Be an Active Member of Your Industry
Join associations like the National Association of Landscape Professionals. Being part of your industry’s professional community opens doors, builds credibility, and keeps you connected to the latest trends. - Stay Humble, Curious, and Grateful
Never stop learning. The most successful owners are those who stay humble, remain curious, express gratitude for the people and opportunities that come their way. Be kind. And be a constant learner. Stay curious and informed.
