Learning CenterStage 3 · StrategyGuide 15 of 22
Profit & Cash 101
Surviving the Off-Season
Earn it in eight months, spend it in twelve.
Most landscape companies earn their cash from spring to fall and spend it all year. This guide shows how the season's surplus has to carry the business through the winter gap, and how much to set aside each month so it does.
Monthly cash flow across a landscape season
Example: $1.32M company, $55K/mo overheadNet cash flow in $ thousands. Revenue swings from $40K in January to $160K in May, but overhead stays near $55K every month.
Eight months to earn it, four to spend it
Season Surplus
Eight strong months generate all the cash.
March through October
+$217K
Winter Gap
Overhead keeps coming when revenue slows down.
November through February
−$85K
Cash Reserve Target
Save from the peak so winter pays for itself.
$85K ÷ 8 months = set aside $10,625 each month, March to October
$85K by Nov 1
Size your own winter reserve
Starts with the example company's numbersYour winter gap and monthly set-aside
Enter how much cash each slow month comes up short, and how many strong months you have to save in.
Two ways to make winter easier
Shrink the gap
Add winter work such as snow and ice, pruning and tree work. Bill maintenance contracts in 12 equal monthly payments. Offer an early-pay discount on next season's contracts.
Line of credit: set it up early
Apply in late summer or fall, while your numbers look their best. Use it as a bridge for the winter gap, and pay it down each spring.
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