Margin Drivers Resource Center | EquiScape

Margin Drivers Resource Center by EquiScape · Free

Learn it. Try it. Prove it.

The money side of a landscape company, made practical. Each part of the Margin Drivers Resource Center leads to the next, and you can jump in anywhere.

3Prove

Margin Drivers Academy

The 22 guides as a course for your whole team, with a quiz after each module.

Margin Drivers Academy sealA certificate with the Margin Drivers Academy seal when they finish.
  • 6 modules, in guide order
  • A short quiz after each module
  • Progress saved as you go

The guides · 3 stages, 22 guides

Read the numbers, control them, then build value

Pick a stage, open a guide and play with its calculator. Go in order or jump to the question you have today.

Stage 1 · Read the numbers

Foundations

“What do my numbers say?”

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  1. 1Profit & Loss At a GlanceThe scorecard every other guide uses.Calculator: your P&L, one dollar at a time
  2. 2Balance Sheet At a GlanceWhat you own, what you owe, what's yours.Calculator: your cushion and debt load
  3. 3Profit Isn't CashWhy a profitable month can drain the bank.Calculator: where did the cash go?
  4. 4Markup vs. MarginThe pricing mix-up that quietly costs thousands.Calculator: markup or margin?
  5. 5True Cost of LaborA $25 wage really costs $30 an hour.Calculator: loaded labor cost · + Windshield time
  6. 6The Break-Even PointThe one monthly sales number you must hit.Calculator: your monthly break-even

You're ready whenyou can read your own P&L and Balance Sheet and know your break-even.

Stage 2 · Price, track & collect

Control

“How do I make every job pay?”

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  1. 7Equipment Cost per HourPrice every machine hour, and buy or rent smart.Calculator: cost per machine hour, buy or rent
  2. 8Building a Billing RateLabor + equipment + overhead + profit.Calculator: build your billing rate · + Price increase lab
  3. 9Job Estimator At a GlanceCheck margin and realized rate before the bid goes out.Calculator: check a bid · + Job Pricing Calculator
  4. 10Job Costing At a GlanceEstimate vs. actual, one job at a time.Calculator: estimate vs. actual · + Profit leak finder
  5. 11Receivables & CollectionsA sale isn't done until the money is in the bank.Calculator: days to collect and cash freed
  6. 12Cash Flow & Weekly Cash MeetingPay in priority order, every week.Calculator: this week’s cash, in priority order
  7. 13Budgeting 101Set the plan, then compare every month.Worked example: budget vs. actual
  8. 14Monthly KPI ScorecardTen numbers, once a month.Scorecard: ten numbers, saved monthly · + Health check

You're ready whenyour bids hit your margin goal and you run a monthly scorecard.

Stage 3 · Grow & build value

Strategy

“Where is this business going?”

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  1. 15Surviving the Off-SeasonEarn it in eight months, spend it in twelve.Calculator: your winter reserve
  2. 16Division ProfitabilitySales mix isn't profit mix.Calculator: revenue mix vs. profit mix · + Customer lifetime value
  3. 17Landscape Revenue RankingsSee where you stand in the industry.Calculator: find your revenue band
  4. 18Who Owns WhatGive every number one owner: sales or production.Chart: who owns each number
  5. 19Building Your TeamWho to hire, and when. Includes 8 role sheets.Calculator: can you afford the hire? · + Add-a-crew planner
  6. 20Finance Team At a GlanceWho reports the score, and who helps change it.Chart: who covers what
  7. 21What's My Business Worth?Adjusted EBITDA × a multiple.Calculator: net profit to value · + EBITDA Valuation Calculator
  8. 22Getting Buyer-Ready24 checks a buyer will look for.Checklist: the 24 checks buyers make

You're ready whenyou plan a year ahead, have the right team in place and know what your business is worth.

Try it now · The two tools owners use most

Price a job. See what your company is worth.

Both start on an example company. Drag a slider or type a number and watch the result change, then open the full tool for your own job or your own books.

Price a job

Example hardscape install · goal 60% gross margin

Example
Bid price $1,565.20
2.8 pts below goal

Dashed line = 60% gross margin goal

Labor cost 8 hrs × $27.00 + 20% burden · price $745.20$259.20
Material cost Hard material · price $820.00$410.00
= Total job cost$669.20
Gross profit$896.00
Gross margin57.2%
Realized rate (price − material) ÷ crew hours$144.40/hr

Change the job

8 hrs
3.45×
2.00×
Closing the gap: raise the labor markup to about 3.95× on wage, or trim crew hours, to reach a 60% margin.

Sample valuation

Example landscaping company · $4.85M sales · last 12 months

Example

Example only. Not a valuation of any business or financial advice. Disclaimer

Likely sale value $3.71M Range $3.12M – $4.30M
Net profit (bottom line)$514K
+ Interest, taxes & depreciation$249K
+ Owner perks & one-time costs $78K
= Real earnings (adjusted EBITDA)$841K
− People a buyer must hire to replace you −$58K
= Earnings a buyer pays for$783K
× What buyers pay per $1 of earnings4.74× (3.99–5.49×)

Change the example to see what moves the price

68%

10% or less

How much the business depends on the owner
Takeaway: getting recurring maintenance to 70% or more of sales raises the multiple 0.5× and adds about $420K to this company’s value.

Free download

Take the whole library with you

Every guide in the Margin Drivers Resource Center as one printable PDF: for the truck, the office binder or your next management meeting.

  • All 22 guides in order, with a table of contents
  • The 8 “when to hire” role sheets
  • Finance Terms At a Glance: 95 terms and 41 acronyms

Free. We just ask for your name and email.

Each resource in this library is designed to deliver real value, but no single tool can solve a business challenge on its own. Lasting results come from connecting these tools and concepts into a comprehensive, cohesive strategy. EquiScape partners with you to build that strategy around your company’s specific goals, challenges, and stage of growth.

Margin Drivers Academy seal by EquiScape

Margin Drivers Academy · Free course

Send your whole team through the course

Six modules built from the 22 guides, with the example company, progress tracking, a short quiz after each and a certificate with the Margin Drivers Academy seal. Free, about two hours, made for crew leaders, estimators and the office.