The Importance of Finding Your Forte...And Knowing When to Branch Out

Roger Cook regularly appears on "This Old House" and "Ask This Old House" television programs. He owns K&R Tree and Landscape Co., Burlington, Mass.

I was at a conference recently, and a landscaper asked me if we do our own irrigation work. We do not. It's pretty simple: We're just not very good at it. We don't enjoy that type of work, and most importantly, we don't make money doing it.

I don't see this as a negative. I feel pretty good about knowing who we are and what we do well, and sticking to it. That's part of what has made us successful. We do try to branch out occasionally, and with attachment carriers on the market today, it's easier than ever to explore offshoots (more on that later).

It's not the first time someone has asked me about this-whether we move snow in the winter, do our own tree work, or do maintenance and lawncare. If it has anything to do with landscaping, we've probably either tried doing it or considered it. But we always end up playing around with the numbers. Along with my accountant, I analyze what it's going to cost me in new tools and equipment. Maybe I'll need to get more insurance or a different type of policy. Then I might need to hire additional guys. Often, we'll end up deciding that's it's not worth what it would cost us, but it was worth looking into.

I've spent a lot of time over the years figuring out what we're good at. If we're not good at it, we're probably not going to make money. I know other companies must be good at the things we're not. They must be making money or they wouldn't stick with it. Maybe it doesn't work for us, and that's okay. Believe me, there's still plenty of work to be done.

There are many other things we thought about, but never took the plunge. We've considered stamping concrete and hydroseeding. I've learned that it always comes back to where you want your business to grow and how much. You can make a certain amount of money adding a branch. That's how some companies grow-by trying new things and developing new capabilities. But if you're spending all the money on things you need to support a completely new facet of your business, and it's too slow coming back in, you may be growing the wrong way. Or maybe you don't need to grow at all-maybe you just need to do more of what you do well. Sometimes you can lose your focus on what you're making money on, and your original profit changes from a river to a stream. We all go in with hopes of making money, but don't kill the goose that laid the golden egg.

Like with many other things in life, it's more complex than dollars and cents. You could be turning a profit and still decide it's not something you should stick with. For example, are you having fun? I enjoy the construction end of the business. I love that people trust us to come in and totally destroy their yard and then put it back together again. That's the type of work that is really fun for me.

Then there's over-extending your people. When you pull them off of one type of work to have them focus on another, what's that do to the quality that made you successful in the first place? Ask any business owner: There's more to buying a franchise than just money. It stretches your most important resources-your people and your equipment.

Many times, natural growth is the best route to go. For example, you may be cutting lawns and then stumble into planting small trees and shrubs. It may work well for you. You then need to analyze numbers and competition, and if it looks promising, go for it.

Obviously, if you're unsure of what the future holds for you, you won't want to invest a lot in big equipment and tools. That's the benefit of owning multi-purpose attachment carriers. If you're exploring something different, you just get a new attachment and it's almost like having a new or second machine. Boom, you're in business.

Rent it, try it

Your dealer can help you with this. You may even want to rent the attachment, use it, and then decide, "Yep, I'm going to make money at this." Then you can buy it. Maybe it's a vibratory plow (pipe puller) or a trencher. It lets you get started without getting into a multi-thousand dollar cost. If you end up needing a new machine long-term, you already know you can make money with it. I've been talking with my dealer about getting a planer attachment so I can take out asphalt driveways. It pains me to keep paying someone else to rip them up and haul the asphalt away. I'd rather recycle the asphalt myself. I know it's not that risky of a move because all I need is the attachment. All of a sudden I could be in the asphalt removal business.

So we stick to what we're good at, but will I try new things? You bet. That's where the compact equipment comes in so handy. Believe me, I may be conservative, but when I see an opportunity, I want to explore it. I can't say for sure that we'll end up going that route, but that's one of the great things about this business. My scenery changes every day. Anything I can do to help change the scenery but still have fun-and still make money doing it-is good for me.

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