Landscape Contractors can learn from The Brickman Group’s success

Anyone who owns a business in the landscaping business should certainly be familiar with The Brickman Group. Based in Rockville, Maryland, the company has been on an aggressive growth tear since the mid 2000’s, consistently making them one of the nation’s five largest landscaping companies year after year. Actually, with 2013 revenues reaching almost $1 billion dollars according to Lawn & Landscape’s Top 100 report, Brickman landed the number 2 slot on the coveted list; second only to California-based ValleyCrest Landscape Companies. So what is The Brickman Group’s secret to continued growth and success in the super competitive landscape industry?

The answer is recurring revenue streams.

Landscape construction is project based and makes stabilizing cash flow hard. Landscape Contractors should look at their landscaping business plan.

When Scott Brickman took over as CEO in the late 1990’s, 85% of the company’s revenue was generated from design/build projects, with the remaining 15% being grounds and garden maintenance. The problem with the landscape construction world is that it often involves substantial human resource and overhead costs, all tied up into a one-project-at-a-time business model. This project based work often times leads to unsteady revenue streams and cash-flow difficulties.

Related Read: Learn other tips for stabilizing cash flow here

Enter the importance of recurring revenue through landscape maintenance contracts. Scott and his team worked to re-strategize their landscape business plan and they were successful. Today, The Brickman Group’s sales are comprised of 85% maintenance contracts and 15% design/build work.  Surely, the steady money from their landscape maintenance contracts has been a huge reason for their rapid growth.