LO members have made significant progress toward accessing and distributing real-life financial information. LO first vice president Bob Tubby of Arbordale Landscaping and Moonstruck Landscape Lighting spearheaded the effort. Tubby drafted a survey, asking members to supply hard, real numbers from their books: income statements, balance sheets and wage information. This information could prove invaluable to those new in business looking for management direction, or established business owners seeking to improve financial performance.
To assure confidentiality, an independent accounting firm crunched the numbers and presented the results in aggregate form. On March 16, interested participants gathered for a Benchmarking Day to see and discuss the results.
The aggregate data showed healthy overall profit margins at 10%, better than those reported through U.S. surveys. Balance sheet results were of limited usefulness, and there were several ideas to improve the survey’s design, including customization for different business sizes and a training session for survey participants. Commitment was strong among those attending the meeting to continue the effort, with the clear objective of helping contractors, especially new ones, learn how to accurately know their costs and improve their margins.
