April 2016 Landscape Trades

April 2016

VOL. 38, NO. 3

landscapetrades.com

Solid strategies for valuing a small business Mentor Eckhardt is not afraid to charge Reford Gardens pairs respect with reinvention

Sell the Value STORY

Landscaping boosts home prices — Make sure your clients understand

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Contents

APRIL 2016 VOL. 38, NO. 3

EDITOR AND PUBLISHER Lee Ann Knudsen CLM | lak@landscapeontario.com

ASSISTANT EDITOR Scott Barber | sbarber@landscapeontario.com ART DIRECTOR Kim Burton | kburton@landscapeontario.com LANDSCAPE ONTARIO MAGAZINE EDITOR Robert Ellidge | rob@landscapeontario.com GRAPHIC DESIGNER Mike Wasilewski | mikew@landscapeontario.com ACCOUNTANT Joe Sabatino | joesabatino@landscapeontario.com

Les Jardins de Métis leads the way in eco-friendly garden trends Page 18

SALES MANAGER, PUBLICATIONS Steve Moyer | stevemoyer@landscapeontario.com INTEGRATED SOLUTIONS REPRESENTATIVE Greg Sumsion | gsumsion@landscapeontario.com COMMUNICATIONS COORDINATOR Angela Lindsay | alindsay@landscapeontario.com ADVISORY COMMITTEE Gerald Boot CLM, Paul Brydges, Laura Catalano, Mark Fisher, Hank Gelderman CHT, Marty Lamers, Jan Laurin, Bob Tubby CLM, Nick Winkelmolen Landscape Trades is published by Landscape Ontario Horticultural Trades Association 7856 Fifth Line South, Milton, ON L9T 2X8 Phone: (905)875-1805 Email: comments@landscapetrades.com Fax: (905)875-0183 Web site: www.landscapetrades.com LANDSCAPE ONTARIO STAFF Erin Agro, Darryl Bond, Myscha Burton, Rachel Cerelli, Tony DiGiovanni CHT, Denis Flanagan CLD, Sally Harvey CLT CLM, Jane Leworthy, Heather MacRae, Kristen McIntyre CHT, Kathy McLean, Linda Nodello, Kathleen Pugliese, Ian Service, Tom Somerville, Martha Walsh, Cassandra Wiesner

Landscape Trades is published nine times a year: January, March, April, May, June, August, September, October and November.

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Subscribe at www.landscapetrades.com Copyright 2016. All rights are reserved. Material may not be reproduced in any form without written permission from the publisher. Landscape Trades assumes no responsibility for, and does not endorse the contents of, any advertisements herein. All representations or warranties made are those of the advertiser and not the publication. Views expressed do not necessarily reflect the views and opinions of the association or its members, but are those of the writer concerned.

FEATURES

6 Landscaping and property value

Research shows landscape investments enhance home values.

Smart contractors guide their customers accordingly.

BY SCOTT BARBER

12 What is it worth?

Real world guidance to help value a business, when it is time for a change.

BY SHIRLEY BYERS

18 Green jewel on the Gaspé

An interview with Alexander Reford of Les Jardins de Métis.

BY SEAN JAMES

COLUMNS

22 MANAGEMENT SOLUTIONS

Plans for profitability, from five-year to daily.

BY MARK BRADLEY 26

ROAD TO SUCCESS Seasoned pro helps the next generation avoid entrepreneurial potholes.

BY ROD McDONALD

30 LEGAL MATTERS

Clear contracts prevent losses — even when you win the lawsuit.

BY ROBERT KENNALEY 46 MENTOR MOMENT

John Eckhardt urges contractors to understand their numbers.

DEPARTMENTS

ISSN 0225-6398 PUBLICATIONS MAIL SALES AGREEMENT 40013519 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: CIRCULATION DEPARTMENT LANDSCAPE TRADES MAGAZINE 7856 FIFTH LINE SOUTH, MILTON, ON L9T 2X8 CANADA

GREEN PENCIL 4 INDUSTRY NEWS 32 CNLA NEWS 37 PROVINCIAL UPDATE 40 COMING EVENTS 44 CLASSIFIEDS 44 WHERE TO FIND IT 45

ON THE FRONT COVER:

Peter Hughes Landscape, Calgary, Alta.

APRIL 2016 | LANDSCAPE TRADES |

3

greenpencil What could be more important than engaging employees?

Make time for results W

hether you are B2B or B2C,

we are all expected to deliver faster experiences at the highest level. How does a business owner do it? Industry leaders suggest hiring five GREAT people, paying them like eight, and getting the productivity of 10.

We see government, sporting teams and Fortune 500 companies constantly strategizing and trading players, with hopes to achieve a higher level of play. Leaders of our generation tell us: seldom are the ones that get you there, the ones that keep you there.

As a business evolves, comes closer to its vision and adapts to changing times, the rules of the game often change. Rather

By Brent Ayles than attempting to find new employees, perhaps your current people just need to be engaged.

Over the past 20 years we have heard buzzwords that entice the imagination: team work, leadership, mentoring, strategic, good to great, measurable and emotional intelligence.

Today the term we all must embrace is employee engagement.

Engagement changes the way a business measures success. To use a sports analogy, there is a clear scoreboard that tells a few key numbers: goals, penalties and time. The largest cost for most companies is our personnel, so we must measure and report what matters and control it. Reward specific behaviours to get more of what you want. Recognize

4 | APRIL 2016 | LANDSCAPE TRADES

the employees that perform and that not every player is equal. Some are designated hitters while others lead in scoring goals; all are important positions.

The key to winning is engaging your team. Show them clear rules. Show them how to win as a team.

Reward, celebrate and engage your team into their strengths. When employees are engaged, scoreboard results will improve.

If you would like a good exercise that builds teamwork and engages employees, try identifying the strengths of each individual on your team. Divide your team in groups of five to seven, and ask each group to list the strengths and weaknesses of each member. The exercise makes employees vulnerable, just as it recognizes them for their strengths. Learn to engage your employees as a team, in order to help them WIN as a team.

As leaders of organizations, we get caught up every day in managing email, attending meetings, and a lot of non-essential tasks. Our teams need leaders that care and will coach players one-on-one. Sit down across a table and personally coach employees with material that is relevant to growth in their position and in life. It shows that you care for them, value them, and it builds their self worth.

Taking time to invest in your employees is the best way to engage them with your organization. This means to captivate, attract, and involve them.

Keep score! Be the coach!

LT

Brent Ayles operates Ayles Natural Landscaping in Riverview, N.B.

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Selling land The investment angle Make sure your customers understand how professional landscaping enhances property values

BY SCOTT BARBER hether it’s a beautiful backyard oasis or an inviting front garden and entranceway, there is no doubt amongst realtors that creatively designed and well maintained landscaping adds significantly to the value of a home.

Within the landscape industry too, it’s common sense that the services contractors provide both contribute to the immediate needs and desires of their clients as well as their long-term financial goals.

However, determining exactly how much property owners can expect to get back on their investments can be tricky to nail down, and that can make broaching the topic with clients difficult, when it should be a major selling tool.

Set along the edge of Hamilton’s escarpment, the entrance way of this Ravenscliffe Ave. home maintained by Shades of Summer Landscaping and Maintenance is softened with ample greenery and features dry stack retaining walls and flagstone accents.

6 | APRIL 2016 | LANDSCAPE TRADES

Ottawa-based landscape designer Welwyn Wong makes a point of discussing the return on investment aspect of her projects with clients, and believes it goes a long way towards building trusting, long-lasting business relationships.

“As the daughter of a long-time real estate agent, it’s always something that I am thinking about. So when a client is starting to say that they want this, this and this, and they go on and on and on with a huge list, I’m automatically counting it all up in my head and falling back to how much the client thinks their house is worth, and what percentage of that value do they want to spend on the landscaping? That’s something that I take on

dscape: as part of my responsibility of being a conscientious designer.”

Citing a Laval University study from 2001, Wong uses the rule of thumb that clients should avoid spending more than 25 per cent of the overall value of their home on landscaping.

“I tend to stay on the conservative side, only because we do see dips in the (housing) market, so if you do stay within the 1525 per cent range, I think you’ll be able to reclaim that money regardless of what the market is doing.”

Like Wong, Brad Paton, president of Shades of Summer Landscaping and Maintenance in Hamilton, Ont., says that while clients don’t often come to his company with the notion of improving their property value at the top of their minds, he makes sure to incorporate basic real estate principles into his projects and design work.

“It’s kind of surprising to me that it’s not always on my client’s minds. Rather, clients seem to be looking towards projects that fit their personal wants or needs as well as their particular lifestyle. It’s often about what they want right now, and I don’t really know why they don’t usually look more into the future.”

The goal of every project should be to balance the two concerns, Paton says: provide what the client wants for their family in the short term, while ensuring the work will be a Brad Paton, Shades of long-term benefit to property value.

Summer Landscaping Indeed, talking with clients about the longand Maintenance term benefits of landscaping can be an effective marketing strategy, Paton adds. To illustrate the point, Paton talks about a home his company maintains in Burlington, Ont.

awards and when you look out in the backyard now, you can’t even see the hydro towers because of the great big spruce trees planted all across the perimeter. There’s also beautiful stone landscaping and planting that has matured wonderfully and has been sheared and manicured consistently over the years. When I look at it today, I think if someone was to come in and recreate it today, it would cost at least $250,000. They invested $40,000 25 years ago, and now it has grown into something that would cost more than six times that amount. If someone was to do that to a kitchen, where they spent $40,000 25 years ago, they’d be ripping it out today. So it’s an interesting thing that when people think about property values and investments, some things really seem to hold their value where as others really do not.”

When it comes to landscaping that is going to stand the test of time, Paton advises clients to consider spending a bit more to use high quality materials like natural stone products that are durable and tend to stay in style for generations.

There is a “timelessness” to expertly designed and crafted landscaping that simply can’t be matched by any other facet of home improvement, Paton argues.

Sabbir Chawala, a Markham, Ont.-based realtor with Century 21, agrees that landscaping, done right, can play a big role when selling a property. Especially when you consider how buyers go about searching for homes in 2016.

“Nowadays, the curb appeal of a home is more important than ever because the vast majority of buyers are looking at pictures of

“I remember 25 years ago when we first started working on the property. It was a new build in a court with no trees and the hydro towers felt like they were right there in the backyard. The clients spent about $40,000 on the landscaping, and back then I thought that was a lot for them to spend on the property. But over the years since, that property has won Landscape Ontario Natural stone landscaping is both beautiful and durable and has remained in style for generations. This rear garden utilizes natural stone steps, armor stone retaining walls and a sophisticated planting arrangement that will appreciate in value as it reaches maturity.

APRIL 2016 | LANDSCAPE TRADES |

7

For years, realtors warned that pools didn’t hold their value on the resale market. Now, veteran realtor Lenard Lind says that a professionally designed and maintained backyard pool and spa landscape can appeal to home buyers who prioritize outdoor living, but don’t have the time to get away to a cottage or campsite during the summer months.

The key to maximizing the return on a pool, Lind says, is to get the property on the market in the spring, rather than during the fall or winter.

a property online before they decide if they want to go see the home.

So having great curb appeal that really comes across on that first picture can really drive a lot of traffic to a property.”

Curb appeal alone can make a 10 per cent difference on the overall value of a home, Chawala says.

Lenard Lind, an Aurora, Ont.-based realtor with Remax concurred, adding that landscaping signals a strong message to buyers about pride of ownership.

“There is nothing more important than the front of the house,” when it comes time to sell, he said. “When I’m staging a house, I spend as much time outside on that first impression area to make sure sellers understand that buyers are going to think that is how you maintain the furnace, and that’s how you maintain everything about the house. So when they are waiting at the front door for the agent to open the lock box, they are noticing all sorts of things, from the paint on the doors and windows to whether or not the tumble stones are lifting. Those are all things the seller needs to take advantage of.”

While the landscaping at the front of a home is invaluable based on the first impression principle, the backyard is often just as important for buyers, Lind says.

“It can be your oasis and it could stop you from having to buy a cottage, so I often see people spending way more money in the backyard then they do at the front because it’s their paradise and they don’t have to share it with the neighbours, so to speak.”

Robert Bourne of Nutri-Lawn in Vancouver has thought a lot about the topic. “We are visual people,” he wrote on his company blog. “We judge a book by its cover, and when it comes to real estate, the cover is the exterior of your home. Everything from the colour of your front door, to the state of the roof, and the tidiness of the landscaping come together to build up, or tear down, expectations for what lies beyond the front door. Landscaping allows you to set the bar high for prospective homebuyers. Some realtors call this the halo efRobert Bourne, Nutri-Lawn fect, which is where one characteristic influences a person’s opinion on other details related to the matter at hand.

For example, if your property is flanked by professionally trimmed 8 | APRIL 2016 | LANDSCAPE TRADES

hedges, colourful flower beds and a well-manicured lawn, home buyers are more likely to think that the same image of tranquility and cleanliness awaits inside.”

Ed Hansen, owner of Hansen Lawn and Gardens in Ottawa, Ont., also takes an active approach to educating clients about the investment component of landscaping by hosting seminars and regularly consulting with realtors in his area to keep up with the latest trends.

“While clients don’t necessarily come out and ask about it, they all expect us to be professionals. So at some point in the estimation process, you have to have a very frank conversation with the client about return on investment and how much money they plan on getting out of the landscape project they are looking at.”

When beginning a new project, Hansen makes sure his clients are thinking about how much their home is worth, and to use that as a guide when they are determining a budget. Like Wong, Hansen uses a rule of thumb number to prevent clients from going overboard.

Using a comprehensive study out of Virginia Tech University from the late 1990s, Hansen says well-designed and maintained landscaping can add upwards of 30 per cent to the value of a property. As such, he advises clients to keep their budget at or below that figure.

However, it should be noted the Virginia Tech research actually showed that some landscaping features and elements — design sophistication and plant size or maturity in particular — actually added up to 42 per cent more to the price of the homes studied, making Hansen’s 30 per cent figure, and Wong’s 25 per cent, quite prudent.

The only caveat, real estate agent Lenard Lind says, is that regardless of how much a homeowner spends on an initial landscaping project, he or she needs to be prepared to either do the gardening and pruning themselves, or hire a professional maintenance company, and that must be factored into budgets from the start.

The bottom line, according to the academic research as well as opinions from the landscapers and realtors interviewed, is that homeowners should balance the short and long-term benefits of any landscaping they are looking at doing, to ensure they get the most enjoyment out of their property while also maximizing the long run LT return they will get on their investment.

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BY SHIRLEY BYERS

Strategies to help set a meaningful price for your business, when it’s time to move on

It’s been a great career but John and Nancy are ready to sell their landscaping business and retire. They started out shortly after they were married, with a couple of lawn mowers, a few gardening tools and a pick up truck. Their business office was in the basement of their home and they stored tools in their garage. Today, 40 years later, the truck is newer, they’ve acquired a chipper, state-of-the-art pruning saws and a few other tools — all of which still fit nicely in a mid-sized shed in their backyard. As far as equity goes, they don’t have a lot. And the shed stays. But their landscaping business has put four kids through university, it’s taken them on some pretty nice vacations and it’s provided three jobs in their community. It has a strong customer list, a solid reputation and a robust cash flow.

How, they want to know, do you put a value on that?

John and Nancy aren’t real. They were invented for the purpose of this feature but they represent landscape business owners across the country, who are asking that same question. What is my business worth? What would be a fair and attainable selling price? What John and Nancy need, what you may need, is a thoughtful valuation.

The valuation of a business is the process of determining the current worth of that business, and most business advisors maintain you should not try to do it yourself. In the same way that a mother can’t be objective about her child’s talents, they maintain, a business owner can’t put together an objective valuation of their own business.

Michael Murray is in the process of turning a horticulture business in Portugal Cove, N.L., over to his grown sons. While not exactly the same as publicly selling a business, this process also requires a valuation of the business.

Murray hired a consultant who deals with marketing development and research. The consultant did a survey, polling customers and non-customers to get a sense of how the business was viewed in the community.

It’s important to get that third party involvement, he says. “You can believe your own baloney, but you’ve got to have an unbiased evaluation of where you stand — independent sources who can cut through the baloney and get a sense of who you are. Believing your own BS only takes you so far.”

Getting started Valuation assesses the market value of a company’s physical assets and also provides an analysis of its management, its future earnings prospects and the capital structure (mix of types of debt and equity) of the business.

Start early, says Adam Carter, a valuations expert with KPMG. He has a decade of experience in the field and has done valuations for agriculture, automotive and manufacturing businesses. “A lot of people don’t realize that selling a landscape business may take a while,” he says. “It’s not the same as

12 | APRIL 2016 | LANDSCAPE TRADES

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selling a house. Start early, say three plus years in advance if possible.”

A landscape business carries much of its value in intangibles such as reputation and good will; therefore, potential purchasers will want to see complete financial records, including sales receipts, customer contracts, profit and loss statements, tax returns, asset lists and balance sheets. The owner who is selling the company should also be prepared to discuss employment agreements and marketing strategy.

Getting to the numbers There are several methods used by valuators to reach a price for a landscape business.

Fair Market Value is a valuation which assumes that there is a willing buyer and a willing seller, both having the facts about the business operating in an open market. The business will be listed at a value that reflects comparable sales.

Adam Carter is cautious. In order to compare you must have that information and many/most landscape businesses would be private sales. “You could look at public companies which disclose all of their information, but these are large, large companies.”

Liquidation Valuation Method is based on the assumption that the sale must take place as quickly as possible. This could be due to several reasons including bankruptcy or illness of the owner or owner’s spouse. It’s the price that can be realized for a business that will soon be going out of business; it’s bad news for a landscaping business because the intangibles have become valueless. No cus-

tomer base means no goodwill. The value of the tangible assets is also reduced because the business must be sold quickly.

Although this is clearly not an ideal situation in which to find oneself, a liquidation valuation may be included in a business valuation report simply to show the lowest possible valuation of the business.

Multiples of Earnings valuation method reaches a valuation by multiplying yearly earnings times a number. For example, a buyer might pay three or four times earnings if a business has market leadership and strong management. On the other hand, if these and other factors aren’t as favourable, the multiple, also known as the capitalization factor, will be decreased.

How then do John and Nancy arrive at that multiplier number?

“That’s the million-dollar question,” says Catherine Tremblay, partner and National Leader of Valuations at MNP, with a chuckle. “It depends on the business. Every single situation is different. There is no black or white answer.”

“We evaluate the business from all its different angles, whether it’s operation, finance, human resources. We look at all the different aspects of the business, evaluate their risk and how they’re doing. Are they dependent on certain customers or people in the business?”

Tremblay also looks at external forces: competition, regulatory issues, economy: how dependent is the business on economic cycles? Is it affected by ups and downs in the economy?

To determine what the multiplier num-

ber would be, Tremblay describes a process called the Buildup Method.

The Buildup Method is based on the truth that the investor, instead of buying a business, could simply invest his money in a very low risk option such as Government of Canada bonds. Assuming that return to be say, four per cent, risk factors are assigned percentage numbers and are added to that base of four per cent.

There are industry risk premiums and company-specific risk premiums. “Some of these are based on certain databases we have access to,” says Tremblay. “Others are based on the valuator’s judgement, an assessment of all those different value drivers and risk factors.”

If, after John and Nancy built-up their rate to represent the percentage of returns that an investor would want, the number is 20 per cent, the valuator would then change that number into a multiple by converting it to its inverse, that is dividing that number, 20, into the number one. This would give a multiple of 5. In other words, yearly returns multiplied by five would be the value of the business.

Where does that leave the couple? With plenty of questions still, no doubt, as they contemplate selling their life’s work to an employee or an outside buyer. But at least they have a number to work with that repLT resents value.

Shirley Byers is a Saskatchewan-based freelance writer.

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Beautiful blue poppies, similar to these, are admired by visitors to Reford Gardens

Green Jewel Gaspé on the

An interview with Alexander Reford

BY SEAN JAMES

If you ever get to visit Les Jardins de Métis, also known as Reford Gardens, in the Gaspé Peninsula of Quebec, don’t pass it up under any circumstances. It is a stunningly beautiful garden. Established in 1926, the garden is famous for its blue poppies and it has become very well-known for leading the trends towards eco-friendly gardening and re-establishing our connection between gardens and art. It is now the home of an annual international design competition. This

18 | APRIL 2016 | LANDSCAPE TRADES

is the 16th season of the festival and this year organizers had to select the 20 gardens from a record 309 submissions from all over the world. Blue poppies or art — either of those two pictures are worth the visit.

Most recently the garden has focused on sustainable gardening practices, including an eco-friendly display house and landscape, that goes all-out in terms of beauty, practicality and sustainability. I sat down with the director of the gardens, Alexander Reford, to chat about his views on sustainable Alexander Reford, great-grandson of Canadian horticultural pioneer Elsie Reford, combines respect for history with a flair gardens, their interactions with the for the avant garde. PHOTO: SEBASTIEN RABOUIN public and what made him move in that direction.

I asked him why the focus on ‘ecofriendly?’ Do you lead or follow? When and ble Garden, also known as the Potager, for why? Alexander Reford says, “It’s a matter instance, was a response to trends — defiof reading the tea leaves — being sensitive nitely following the public. The public was to media and public interest.” The Vegeta- showing great interest in edible landscaping, so it made sense to create a demonstration garden to give the public more information on how to grow their own food. Staff creWonderful wild species such as this yellow lady’s ated a lovely feature, showing that edibles slipper show visitors how beautiful natives can be.

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Instead of every inch being manicured, fields have been naturalized to create homes for butterflies and birds.

Creating the Potager was an example of following public eco-trends.

Les Jardins de Métis has popularized mixing avant garde art with gardens, and now hosts an international competition.

20 | APRIL 2016 | LANDSCAPE TRADES

can do more than just fill our bellies! They even use wild plants in the amazing on-site restaurant.

Being a seaside property makes the folks managing the garden extra aware of climate change. This leads to the next level of upcoming issues, such as invasive species and biodiversity. Alexander says he and the staff must be trend-spotters, following cuttingedge sources such as articles by members of the Garden Writers Association.

Sometimes it is a “chicken and egg” question, such as the decision to incorporate more sculpture into the garden. Were they creating a new trend or reinforcing an existing one? Like eco-friendly gardening, it took a while to catch on. Visitors to the garden often had visceral reactions to the art: love or hate. It’s similar with environmental initiatives. Like much of society, the gardens are moving towards low maintenance and native plantings for practical reasons — less work, less money, less water use — but also for ethical reasons. Being a public garden, staff are creating educational tools to go along with these initiatives. There’s an obligation for public gardens to lead, educate and advocate.

A beautiful bird-friendly garden shows how to work with nature. Feeding off the media reports we’ve all seen about pollina-

tor decline, Reford Gardens now has beehives on-site. Both are getting good reactions from visitors.

Interestingly, the garden is now using sheep to mow lawn areas in the parking lot, instead of machines. This is not a ‘first,’ but it’s certainly ahead of the pack. How is that working? Reford said, with a chuckle, “They don’t behave exactly as planned,” but it is working and it has made garden leadership think more about other agricultural exotics and how to use them. It’s also great for visitors to the garden to see new (or REALLY old, revived) ideas like this. If nothing else, it makes people reconsider how they do things and wonder if there’s a better way.

Reford says Les Jardins de Métis worries about the same issues the rest of us do.

What’s next? The garden is currently trying to acquire land for conservation — another wonderful opportunity to learn and teach.

Beyond the chance to see trend-leading gardens, landscapers, horticulturists and garden lovers should visit to enjoy the elegant and diverse beauty that is Les Jardins de Métis. LT

Sean James owns an Ontario-based environmentally-conscious landscape company, and is an eco-consultant and popular speaker.

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Five plans for success

BY MARK BRADLEY

As a landscape contractor, you’ve probably been raised with some great virtues, and maybe none more so than ‘hard working.’ But hard work is like a nice steak — it tastes great, but it doesn’t make a great meal all by itself. It needs to be paired with other elements to create a truly great dinner. A good company needs more than hard work, too. Like a great dinner, your hard work will resonate better when it is paired with the right ingredients.

To get the most out of your hard work, you need a plan to succeed. Here are the five simple plans I use throughout the course of the year to help ensure success for me and my employees at our landscape company.

1: YOUR FIVE-YEAR STRATEGIC PLAN Like a good wine, your strategic plan should be aged at least five years. It’s your vision for the company. Other plans are relatively useless without this one. It sets the vision for where you want to take your company.

Your other plans are built to serve the goals of the strategic plan. It should answer questions like: l Are you trying to grow your sales?

By how much? How many people will you need? l Are you trying to build an exit strategy? l What’s the single metric you’d like to improve most in your company? What is it today and what would it be? l Which obstacles are you going to have to overcome to reach your five-year plan?

The strategic plan should be revisited at least once a year, but it doesn’t necessarily need to be more often. A good strategic plan should be straightforward and actionable, and shouldn’t bog you down in details.

22 | APRIL 2016 | LANDSCAPE TRADES

2: OPERATING BUDGET (YOUR ONE-YEAR PLAN) Your operating budget is where the rubber starts to hit the road. It sets concrete, objective, numbers-based goals that serve your strategic plan. To put it simply, your operating budget is like your Profit and Loss statement, but in reverse. Your P&L tells you how much money you made at the end of the year. Your operating budget is a plan you make at the beginning of the year to tell you how to make a specific profit. It includes: l Sales goals l Field (crew) labour hours and payroll budget l Equipment expense budget l Material expense budget l Subcontractor expense budget l Other expense budget l Overhead expense budget l Target net profit Your operating budget guides you throughout the year to help you stay on target to hit your sales goals, without overspending on time or materials. Even better, your operating budget will kick out a pricing system that will ensure your estimates are also serving your plans. Using basic numbers from your operating budget, you can ensure that all your estimates cover their costs, your company’s overhead, and the profit you’re hoping to make.

Each year, your operating budget should be the vehicle that drives you closer and closer to your five-year strategic plan.

3: YOUR WORK SCHEDULE We all need schedules to help us manage our work, upcoming tasks, and the sales pipeline.

However, it’s your one- or two-week schedule that’s going to see the most action. It’s hard

to schedule accurately beyond that window, as our work faces many external variables such as weather, equipment availability, other trades, material availability and more.

Use a one- or two-week plan to help improve efficiency in the following areas: l Crew and labour planning: How much labour you need and how jobs are assigned. l Equipment allocation: What equipment is needed, where and when? l Material planning: Identifies key ordering and drop/delivery dates for materials l Subcontractor planning: Subcontractor start and end dates on jobs. l Cash flow management: Planned start, completion, and milestone dates will help you better manage cash flow and vendor payments.

Everyone in the company should also understand that plans can (and will) change, sometimes daily. I found that crews get frustrated with constant change, so it’s important to have an open discussion with them on all the different variables that go into the plan and why it can (and will) change.

Changing your schedule shouldn’t be viewed as a negative, unless you’re constantly going over budget. If your company can react quickly to changing events, you own a strong competitive advantage in an everchanging industry.

4: YOUR ESTIMATE (THE JOB PLAN) A good estimate is so much more than a price. The estimate is the plan for success on a job. So many contractors rush the estimating/pricing phase, just to get a price out the door. But at the end of the day, you will inevitably need to plan and manage all the

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managementsolutions labour, equipment, materials and subs required to complete a job. So why not plan those before the job, to ensure you’ve got the right price, the right timelines and a tool that will help delegate and make people accountable for managing its successful completion?

Estimate plans can hide the costs and prices, but should clearly communicate the essentials of the job to the crews and office staff performing and managing the work.

Estimates should include: l Estimated labour hours for all major phases and tasks l Estimated equipment (this will have a significant impact on the labour hours!) l Material quantities, sizes, colours and other details l Subcontractor information Another step that will greatly help Step 5 (the daily plan) is communicating end-ofday goals to the crew via estimate notes. A quick and easy summary of how the job was estimated might include: l End of Day 1: All equipment mobilized and access ways complete. All excavation and rough-grading complete. l End of Day 2: All conduit and base installed and compacted. 50 per cent of hardscape surfaces installed. l End of Day 3: 100 per cent of hardscape surfaces installed. All garden beds prepped and filled with soil.

l End of Day 4: All plantings and mulching

completed. Final cleanup on hardscapes and jobsite complete.

It’s a simple step that can be communicated in 10-30 minutes per job, but it will more than likely save hours of estimating mistakes and poor job management.

5: THE 4 O’CLOCK 4 (YOUR DAILY PLAN) Daily planning is essential to staying the course. Not only should your business be planning, but your people should too. Jobs should be planned and re-planned each and every day to ensure: l Daily goals are being set and communicated to the crew l Obstacles and needs are being considered and surfaced daily l Office and field staff have a consistent flow of information

The 4 o’clock 4 is meant to ensure daily planning is happening — but it also ensures the office knows what’s happening in the field, and vice versa. It surfaces common obstacles and creates accountability through four simple daily questions: l What are your top three goals for tomorrow? l What got completed today? l What obstacles are slowing you down? l What do you need from me? l Information? l Materials? l Equipment? l Labour?

The app then sends an email with all the answers back to the office, so that progress, goals, obstacles and needs can be dealt with swiftly. Give it a try this year … I can just about guarantee greater success and a more LT transparent, accountable company.

Each and every day, foremen should plan and communicate end-of-day goals to their crews. Not only will it improve the on-time performance of jobs, it feels better to work in an environment where you’re hitting goals, not just spinning your wheels every day.

To that end, try downloading our free daily planning app. Search the Google Play and iTunes stores for LMN and look for the 4 o’clock 4 app. It’s free.

Mark Bradley is president of TBG Landscape and LMN, based in Ontario.

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Potholes and pitfalls

BY ROD McDONALD

If you spend 10, 20, perhaps 50 years in this trade of ours, when you look in the rear view mirror, you can see pitfalls and potholes in the road. There are so many that the question begs to be asked: How did any of us do so well? And yet we have. This column is about navigating those road hazards.

None of us has been smart or fortunate enough to have avoided each and every pitfall. If only. Most, of a certain age, are battlescarred. We have had the best of plans blow up in front of us, even though we went to great lengths to avoid that oddball euphemism, collateral damage. In the world of music, it is often called paying your dues.

Regardless of the name for those awful situations, we always agree it would be best to not repeat the behaviour.

One of the first early career pitfalls to avoid is borrowing money from family and friends. It is often easy to do — too easy — and often those around us are more than willing to either loan the money or to accept it. I fully understand the situation. I have seen this situation turn ugly, quite quickly, and I have seen it often.

In 1977, I had a very old rototiller that would not always start. My mother watched as I struggled to get it running to till her garden. I swore at the machine. My mother asked how much a new machine would cost, and I told her $500. She offered to give me the money to purchase a new machine, right then and there. I was flat broke. It was tempting.

I said, “No, I will save my money until I can purchase it myself.” It was a good move on my part, perhaps even a defining moment.

WHO CALLS THE SHOTS? A friend of mine went a different direction and the money was more costly than she could have imagined. She owned a successful bistro. She wanted to carry out a few improvements to take her business to the next level. She didn’t want to go to the bank. She asked her 12 best customers to a meeting, 26 | APRIL 2016 | LANDSCAPE TRADES

requesting them to loan her $1,000 each, with interest, repayable within the year. All 12 supported her and each wrote a cheque.

What could go wrong?

Within a week or two, one of her supporters starts showing up behind the counter, directing staff, telling people that he is now a part owner. When he sits down to order his meal, it is always off menu, something he sees as a privilege, now that he is involved financially with the restaurant, albeit for only a G note.

My friend had a hell of a time with this fellow. She paid him off immediately and had to be quite forceful regarding what he could and could not do in the bistro. His side was, of course, that she was not showing her gratitude.

ONE LAST STORY: A close friend of mine was a wonderful man, a good husband and father. He loaned his son money to start a business. I noticed that he was arguing with his son more often. I asked my friend, “Why do you always tell your son what to do? Is he not a competent adult?” My friend turns, snaps at me, and responds: “When I loan him money, I get to tell him what to do.”

Easy money was traded for the loss of independence, a trade not worth making for either party.

CHARACTER MATTERS The next pitfall to avoid is getting involved with the wrong people. All of us have done that. I listened to at least a half-dozen business people I should never have when I was starting.

I willingly took bad advice from those ‘burners’ and they set me behind by a few years. I was the proverbial sheep led to slaughter.

A friend owned a nursery for many years; he has since passed away. He told me the story of being burnt in his first year. A sales rep from a major nursery called; the rep told him he needed lilacs. My friend asked, “Well, how many do you think I need?” This story

almost sounds like Red Riding Hood and the Big Bad Wolf, doesn’t it? The rep said, “I’ll start you out with 700.” Seeing as my friend was brand new to the trade and had few customers, it took him seven years to sell those 700. As he told the story 20 years later, “You can’t roast a lilac for Christmas dinner.”

Coyotes are a group of customers, at both the retail and wholesale level, who cannot wait to prey upon the new kid. One of my first adages was, “Life sucks when you don’t get paid.” It really does. Coyotes will insist, “Give me a good deal and I will bring you lots of business,” or place large orders with you, and either never pay or never pick up.

Either way, you are left on the short end of that mythical stick.

FIND THE PRO SALES REPS When starting out, I was approached by many sales reps from media outlets, seeking my advertising dollars, promising instant results. I believed them and bought. When no results were forthcoming, they had many excuses. “You have to spend more as your budget wasn’t big enough; the marketplace was slow that week,” and so on. After a few years, I grew tired of promises made and not kept. I told sales reps that, when I completed a landscape job, my customers insisted upon at least a one-year warranty for labour and materials. I asked the media people if they were willing to provide any guarantee if their ad campaign did not meet targets? They were suddenly quiet.

I am not opposed to spending money on advertising. I had a budget of four per cent set aside for advertising but, and it is definitely a caveat, I had to choose my advertising carefully. I needed research, not glib promises from sales reps. I found a few advertising reps who really knew the business, understood mine and were true advisors on how best to spend my money. A truly good sales rep will make you nothing but money in the long run.

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roadtosuccess THE VALUE OF YOUR NAME As your business grows and your reputation develops, you will have more people approach you with requests. Success attracts others. Some will want you to buy their products and services, others will want you to partner with them, charities will make requests, and others will seek your endorsement or blessing. Some will have merit and others will not. Every bit as important as merit is to ask how will this proposal, request, and product or service fit into my long-term business plan?

If you are offered the chance to make some extra money, quickly, hesitate. Does this opportunity work into anything longterm, or is this a one-off, an in-and-out deal?

If it is a one-off and you go for it, your foolishness is showing.

Several years ago, I had an older couple from Oregon visit me in August. They were retiring and selling off their inventory of Christmas trees for half the usual price. The product looked good and the prices were

compelling. I asked, “What happens next year?” They told me that once this year was finished, so were they. “There is no next year.”

I passed. I had a regular supply chain set up and I had made money off my Christmas tree program for many years. How could I return to my suppliers, after a year’s absence, and expect preferential treatment? Now, I realize some readers think I missed the boat, that I should have leapt at the half price offer. A neighbour also had a Christmas tree program; he also had the habit of jumping at one-time offers. If it was half price, count him in. He went bankrupt owing much money. So where was all this money he made by bandwagon jumping? It was a lesson I took seriously, and one I stand by until this day. Bargains and deals are not always what we think they are. Tread carefully!

Tied into proposals are those who request your endorsement, blessing or partnership.

I do believe in supporting each other within the trade, no argument from me there.

However, before you loan your name or of-

fer your endorsement, all of the years and energy you have put into building up your personal brand goes along with whatever it is that you provide. What they do, for better or for worse, takes your name along for the ride. For that simple reason, I was most reluctant to allow outsiders inside my operation, or to join them. It was a lot riding on a low return.

These are only a handful of pitfalls that each of us must face, but face them we must LT to stay on the road to success.

Rod McDonald owned and operated Lakeview Gardens, a successful garden centre/ landscape firm in Regina, Sask., for 28 years. He now works fulltime in the world of fine arts, writing, acting and producing in film, television and stage.

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A case study: Underlying work and contractual clarity

In 2007, a contractor was retained to, among other things, repair the street in front of the Moncton Hospital, providing a three per cent slope in the roadway. The contractor solicited a bid from a paving trade who quoted to provide ‘fine grading only.’ The contractor responded with a letter confirming that “the supply and placement of underside gravels is by others,” and then issued a formal subcontract for signature.

The paving trade, however, did not sign the subcontract back.

The paving trade smoothed out and compacted the base material which had been installed by others, and then installed the asphalt. A negative slope and pooling resulted and when the owner/contractor complained that the paving would have to be ‘padded’ to provide the required slope, the paving subtrade refused to do so unless it was paid for the work as a change. The dispute ended up in a court room.

Not surprisingly, the paver took the position that ‘fine grading’ did not include for establishing or setting grades. It argued that ‘fine grading’ meant smoothing out

30 | APRIL 2016 | LANDSCAPE TRADES

BY ROBERT KENNALEY

the granular materials to eliminate mounds and depressions, and that it was entitled to presume that the excavation and earthworks trade had set the grades properly.

The contractor, of course, disagreed. It also argued that the subtrade (having reviewed the drawings) should have, at a minimum, advised that the grades were not sufficient prior to placing its asphalt.

TO COURT — TWICE The trial judge held that the paving trade was obligated to advise if the grades were inadequate, and to request corrective action, instead of simply placing the asphalt.

The paving trade’s claim for $70,000 owing on the subcontract was dismissed and the contractor’s claim for $40,000, to provide the padding, was allowed. The paving trade appealed.

Although the New Brunswick Court of Appeal acknowledged the paving trade was required to do “fine grading only,” it was troubled by the fact the paving trade had led little or no evidence as to what this means.

The Court stated:

“Neither party called an expert witness to outline, for example, general industry practices or expectations regarding the responsibilities of those contractors engaged in the building and paving of roadways.

For example, no one testified as to whether the term “fine grading only” is considered a term of art and, therefore, its meaning is well understood in the road building and paving industries. Moreover, there is no evidence to explain the role of surveyors in the placing of grading stakes or whether it is customary for paving contractors to retain their own surveyor, so as to ensure compliance with the slope requirement. … And, finally, assuming it is the road builder who is responsible for achieving the slope requirement, is it the responsibility of the paving contractor to ensure the road builder performs its tasks in accordance with the plans and specifications attached to the underlying contract?”

The Court of Appeal refused to hold that “one subcontractor is responsible for ensuring that another subcontractor fulfills its contractual obligations.” Indeed, the Court found this to be a “dubious” proposition. It

could find, however, no ‘palpable or overriding error’ in the trial judge’s decision that the paving trade was required to ensure the slope requirement was met prior to the laying of the asphalt. It held that “a common sense interpretation” of ‘fine grading only,’ however, is that it doesn’t include ‘rough grading.’ In upholding the trial judge’s decision, it also relied on the fact that the paving trades’ trucks included “slope meters.”

FOUR LESSONS TO LEARN There are a number of lessons that we can take from this story. First, contractors and subcontractors should avoid the ‘battle of the contract documents.’ Here, the parties proceeded with the trade’s quote and the contractor’s letter back, with no signed agreement on terms. This circumstance should be avoided. All too often, the two sides are well into the work before they realize they are not on the same page. This can lead to disputes and legal fees.

Second, it is extremely important to set out the scope of work as clearly as possible in the contract documents. Here, both sides

agreed that the paving trade was responsible for fine grading, but neither side confirmed who it was that was responsible to set the grades. This simple clarification would have avoided a lot of time, aggravation and expense. Both sides could have done this.

Third, we should take no comfort from the fact that the New Brunswick Court of Appeal would not hold that a subcontractor is responsible to satisfy itself as to the sufficiency of the underlying work. Others would argue that trades are, in fact, required to do this as an implied condition of their subcontracts. In addition, many contracts will make this an expressed contractual requirement. Finally, of course, a trial judge may take a ‘common sense’ approach to imposing such an obligation, even if the contract is silent on the issue — as occurred in this circumstance. Accordingly, if (for example) drainage depends on the work of someone who came before you, you should at a minimum confirm that you have not verified the grades before installing your work, so as to avoid confusion and disputes down the line.

Lastly, parties prepared for and went

to trial for three days. This, after incurring the time and expense of (most likely) a couple of days of discovery, the exchange of productions and pre-trial procedures.

They then prepared for and argued an appeal. After five years of litigation, the contractor ‘won’ and recovered $40,000 plus $6,625 in costs. In the end, he will have been lucky to have paid his legal fees out of what he recovered. Sometimes, who is right doesn’t matter: cooler heads have to prevail LT to get out of litigation Robert Kennaley has a background in construction and now practices construction law in Toronto and Simcoe, Ont. He speaks and writes regularly on construction law issues and can be reached for comment at 416-368-2522 (Toronto) or 519-426-2577 (Simcoe) or at kennaley@mclauchlin. ca. This material is for information purposes and is not intended to provide legal advice in relation to any particular fact situation. Readers who have concerns about any particular circumstance are encouraged to seek independent legal advice in that regard.

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industrynews G&L earns management award G&L Group was named one of Canada’s “Best Managed Companies” in 2015 for excellence in business performance. The Concord, Ont.based company is comprised of Toronto RediMix, Brock Aggregates, Earthco Soil Mixtures, Draglam Salt and Draglam Waste & Recycling.

The Best Managed Companies program was launched in 1993 to recognize superior management skills and practices among Canadianowned and -managed companies with revenues over $10 million.

“Best Managed Companies embrace innovation, seize opportunities and inspire talent,” says the program’s co-leader, Peter Brown. “They really set the bar high.”

G&L Group has served the construction, contracting and landscape industries of Southern Ontario for over 40 years and currently employs more than 250 people.

“G&L Group is especially grateful to its employees for this achievement,” Pat Lamanna, G&L’s senior vice president said. “We’re in a good market in Canada and it allows us to grow,

Grow16, hosted by the Manitoba Landscape Association, brought the landscape industry together.

so long as you have the right people. We’re so thrilled to be recognized as a winner of this prestigious award. We could not have done what we’ve done without our people.”

MNLA hosts Grow16 For many years, the Manitoba Green Show was an annual meeting place for green professionals in Manitoba. Aware that the way the industry conducts business and connects with one another has dramatically changed over the years,

the Manitoba Nursery Landscape Association reformatted the event for 2016 to better serve industry members.

Now called Grow16, the one-day event was held Feb. 25, at Canad Inns Polo Park in Winnipeg, Man. The new venue provided an atmosphere better suited for bringing the industry together. Four breakout rooms with 24 speakers allowed attendees to focus on specific interests. With the breakout rooms situated around a common area, the focus was on connecting and socializing between sessions.

Session topics included: cultivar evaluation; garden centre trends; growing your company’s online presence; permeable paver systems; and alternative strategies and products to grow with neonicotinoids.

Awards of Excellence were presented during the awards luncheon in the TYC Centre along with the Assiniboine Conservancy’s presentation on Canada’s Diversity Garden project. The live auction, often paired with the Awards of Excellence, was replaced with a silent auction.

Items were displayed in the common area during the day with winners presented during the Grow Social.

JCB celebrates 70th anniversary The first batch of colourful limited-edition machines to mark JCB’s 70th anniversary is currently in production. The initial wave of “Platinum Edition” 3CX backhoe loaders has rolled off the production lines at JCB’s world headquarters at Rocester, U.K., in a colour combination last seen more than 40 years ago on the JCB 3C III model.

JCB will manufacture a total of 70 of the distinctive limited edition machines; one for every year that the company has been in business.

The machines come complete with red buck32 | APRIL 2016 | LANDSCAPE TRADES

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Check your Local Retailers for the Latest Additions to the DEWALT Outdoor line up

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Learn more by visiting, www.DEWALT.com/outdoor Copyright ©2016 D EWALT. The following are examples of trademarks for one or more D EWALT power tools and accessories: the yellow and black color scheme; the “D”-shaped air intake grill; the array of pyramids on the handgrip; the kit box configuration; and the array of lozenge-shaped humps on the surface of the tool. *Maximum initial battery voltage (measured without a workload) is 40 volts. Nominal voltage is 36.

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JCB equipment celebrates its 70th anniversary with limited edition backhoes.

ets, full white cab and red wheels instead of JCB’s customary black and yellow finish. The limited edition 3CX backhoes — which have a top speed of approximately 25 miles per hour — are fitted with air-conditioned cabs, heated seats and six-speed auto shift transmissions.

And, the unique machines will also be equipped with in-cab coffee makers.

Since manufacturing its first backhoe loader in 1953, JCB has produced more than 600,000 backhoes and now sells them in 120 countries.

SIMA heads to Rhode Island The Snow and Ice Management Association’s (SIMA) 19th annual symposium and trade show

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returns June 22-24 in Providence, R.I. Featuring 25 educational sessions, over 120 exhibitors, workshops and peer-to-peer networking opportunities, the Snow and Ice Symposium is the largest conference in the industry.

“Uniquely focused on snow and ice, this event brings innovative manufacturers and suppliers together with contractors for two days of trade show and three days of education, networking, and fun,” the organization says. “The Snow & Ice Symposium is the only event at which attendees can explore the equipment, materials, and services their businesses need, but also the latest in thinking and experience sharing with peers and experts in a range of contexts. From casual evening meet-ups, to conference and small group sessions, the opportunities to find answers are unlimited.”

Educational sessions aimed at business growth, employee development and risk management include: winter worker injury preven-

tion with Mary Abbott from Mow Beta! Mowing and Snow Plowing; winning in the workplace led by Leslie Boomer of Pro-Motion Consulting; and leave your competition in the drift hosted by Mark Bradley, president of the Landscape Management Network.

Speakers and topics for 2016 include: Alex Riley, CSP, ASM, employee recruiting and retention case studies; Diana Clonch, salt purchasing and inventory management; Mike Rorie, five components of a rock solid training program; Dan Foley, CSP, lessons learned in 30 years; Andrew Dargatz, prepping and maintaining your equipment; and Randy Dean, finding an extra hour every day.”

Founded in 1996, SIMA is a North American trade association for members of the snow and ice industry, including snow plowing and residential and commercial snow removal. Its mission is “empowering snow and ice management for success” and its vision is to fight “for the industry to be one of the most valued professions in the world, ensuring that snow and ice management services are never taken for granted.”

To register or find more information, visit: sima.org/show.

John Deere launches video game Fans and customers can test their operator skills with the Small Machine vs. Big Jobs Challenge. The interactive game from John Deere features the new G-Series skid steers and compact track loader. Players choose from one of the four skid steer models or the compact track loader to then compete in three applications: construction, landscaping and livestock. Each level involves players swiping the machine into a target. Based on the speed of the swipe, a score will register in mph. Players can advance through 10 levels and follow along with the real-time leaderboard online and then share their scores via Facebook and Twitter.

Players can access the Small Machine vs.

Big Jobs Challenge from a personal computer or mobile device at http://fearthedeere.com.

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industrynews “Pondemonium is the perfect opportunity to learn best practices for building, selling, and retailing water features,” says Greg Wittstock, founder and CEO of Aquascape. “In addition to hands-on construction and classroom training sessions, plenty of networking events are available each day.”

To learn more, visit www.pondemonium.com.

All-America Selections takes conference to Wisconsin All-America Selections and the National Garden Bureau are teaming up to host the 2016 AAS Summer Summit August 24-26 in Madison, Wis. The annual event brings together judges, breeders, growers, brokers, retailers, writers and consumers to get a peak at the many AllAmerica Selections display gardens and trial plants. Tour stops will include the Rotary Botanical Gardens, A. Whaley Seed, Epic Systems and the University of Wisconsin West Madison Research Station.

For more information, visit: http://all-americaselections.org/meetings/.

Turkey to host 2016 International Horticultural Expo Tickets are now on sale for the 2016 International Horticultural Expo held April 23 through Oct. 30 in Antalya, Turkey.

With the support of the International Association of Horticultural Producers (AIPH) and the Bureau of International Expositions (BIE), Expo 2016 Antalya is the first A1 category international horticultural exhibition to be held in Turkey.

Tim Briercliffe, AIPH Secretary General, says, “This will be a wonderful opportunity for both the horticultural industry and the people to come together to witness and celebrate the benefits of horticulture and its very real impact on the future.

It is anticipated that eight million local and foreign visits will be made to Expo 2016 Antalya’s 112-hectare exhibition site over its six-month duration. We are very proud to approve this expo.”

Expo 2016 will include conferences, exhibitions, symposiums, as well as national and international congresses with the goal of becoming a nexus for cultural, educational and artistic interaction.

Participant countries will introduce their garden cultures, while national and international exhibitors will display best practices and smart solutions in agricultural techniques, organic farming, biotechnology, sustainability and responses to environmental problems. A series of events are also planned throughout the expo to enable children to develop awareness and responsibility for the natural environment.

For more information, visit www.expo 2016antalya.org.tr.

Takeuchi announces new managers Compact equipment manufacturer Takeuchi-US recently announced two new hires: Mark Barndollar, northeast regional business manager and Dean Hoffman, southeast product manager.

Hoffman will be “responsible for all development and activity for dealer sales staff, assisting with equipment demonstrations, interaction with end users, and supporting efforts in retailing, training and growing the Takeuchi business in his territory.

LT

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cnlanews National Landscape Standard is here!

The Canadian Landscape Standard was launched at the Canadian Landscape Summit in March. This document shows your clients that your work meets a nationally recognized standard. Industry will be able to refer to the standard during the bid process. It is intended to be user-friendly, and available in both hard copy and digital formats. The Canadian Landscape Standard will be a living document that will continually be reviewed and updated to remain current. A subscription will keep users updated as new sections are available and revisions are made.

Our vision is to have the Canadian Landscape Standard sit on the desk of every industry professional. It would include regional variations as

supplementary sections, and maintain the high level of detail, authenticity and accuracy already established with the B.C. Landscape Standard.

Contact the CNLA office to receive your copy.

How many national events promote landscape gardening?

If you answered one, you are correct! The only annual national competition is Skills Canada.

Its mission statement is simple: “to encourage and support a coordinated Canadian approach to promoting skilled trades and technologies to youth.” In the words of Mike Holmes, “I don’t think anyone knows how important Skills Canada is…to me it is the beginning…to get kids into the trades.”

To volunteer or get involved, contact your local provincial association. Learn more at www.skillscanada.com

Are you Red Seal Certified?

CNLA and the provinces are looking to create a national registry of all members that are Landscape Horticulture Journeymen with Red Seal

designations. Due to privacy policies, provincial apprenticeship offices cannot provide us with your names; the only one who can do that is you! If you have a Red Seal designation, please send your name, contact information and details about your designation to Colin Vince at colin@ cnla-acpp.ca, or call 1-888-446-3499.

Congratulations to Dutchmaster Congratulations to Dutchmaster Nurseries on taking home bronze in the finished plants and trees category at the 2016 AIPH International Grower of the Year awards ceremony. The award was accepted by Matthew Tillaart and Marlin Tillaart at the gala event held in conjunction with the IPM Essen trade show in Essen, Germany on Thursday, Jan. 28. This is the fifth time Canada has been invited to compete as a finalist in the International Grower of the Year awards.

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cnlanews New program: St. John Ambulance CNLA has partnered with St. John Ambulance to bring our members even more savings! The association has negotiated preferential pricing for your First Aid with CPR certification. St. John Ambulance is Canada’s largest and most trusted provider of regularly scheduled lifesaving courses. Revenue generated from CPR/First Aid training programs supports St. John Ambulance’s charitable work in Canada and around the world. Members receive an eight percent discount on first aid training and a ten percent discount on first aid kits.

New benchmarking program for garden retailers Thanks to funding from Agriculture and AgriFood Canada’s Canadian Agricultural Adaptation Program, Garden Centres Canada (GCC) has developed a tool that you can use to better understand your business. GCC worked with

Linda Ryan, at left, participates in filming for NTV at a Pink Days in Bloom event held at Hickey’s Garden Centre.

a software developer to create online benchmarking software that is simple to use, and more importantly, takes up as little administrative time as possible!

The program is free to all members for the first year. Contact Julia Ricottone at CNLA, julia@cnla-acpp.ca, for more information.

Pink Days in Bloom Pink Days in Bloom is a fun, upbeat way to get customers through your doors and a very fulfilling way to support the breast cancer community (family members, friends, neighbours, coworkers, and customers). Pink Days

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in Bloom creator Linda Ryan, a breast cancer survivor from Newfoundland and Labrador, encourages all CNLA members to get involved in this unique fundraiser for the Canadian Breast Cancer Foundation. Events vary from association-to-association challenges and ball games, to tea-themed parties, art or how-to sessions and garden-themed contests and competitions.

Contributions can be a percentage of sales during your event, or contributions can come strictly from monies raised through special fundraising activities or pledges. Visit the Pink Days in Bloom Facebook page to learn more about this meaningful initiative.

Ask the Wellness Expert is an online feature for employees to ask questions around nutrition, fitness, as well as other health and wellness inquiries. Learn more at www.peoplecorporation. com/wellness. LT

The Canadian Nursery Landscape Association is the federation of Canada’s provincial horticultural trade associations.

Visit cnla-accp.ca for more information.

New Faces at CNLA If you have called the CNLA office lately, it is likely that you have spoken to one of our new staff.

Teagan Giddings is part of the Member Services Team and helps administer all of the Member Savings programs. She is also the front line for all incoming calls to the office. Jason Young joined the Jason Young Professional Development department and provides valuable assistance to the Certification and Human Resource teams. Both Teagan and Jason joined the association this winter and have taken on quickly to the fast-paced, energetic office. Please join us in welcoming our newest team members! To reach Teagan: 1-888- Teagan Giddings 446-3499, ext. 8645, teagan@cnla-acpp.ca To reach Jason: 1-888446-3499, ext. 8620, jason@cnla-acpp.ca AUTHORIZED DEALER

Ask the Wellness Expert The Investment Guild is happy to announce that businesses and their employees now have access to Ask the Wellness Expert, under the HortProtect Health and Life insurance program.

905.939.8491 allstonequarry.com /allstone.quarry APRIL 2016 | LANDSCAPE TRADES |

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newbrunswickandpei Landscape Trades devotes space in each issue to provincial association news. This issue features an update from Jim Landry of Landscape New Brunswick and Landscape P.E.I.

Ever wonder what goes on inside the offices of smaller associations like ours? It can be quite obvious when you think of the big dogs like Landscape Ontario. There are bulletins and programs and all kinds of materials coming at you from all angles. The brand is out there; ready to take a bite out of you. The small dogs pretty much play the same game, at least they have the same agenda, but it is sometimes less visible perhaps, so sit back and I’ll lay it out for you.

The LNB/PEI office is small. I just counted the tiles on the floor and there are 14 rows of eight-inch Mexican pavers, so including the grout that makes for a touch over 50 sq. ft. I’ve got a four-drawer filing cabinet, that doubles as a brace for my firewood.

We also have a second office, but it is a mere 36 sq. ft of useable space and that includes the trunk.

So I’ve defined the structure and now I’ll expand on its capacity. A great deal of the activity that takes place in these tiny offices does not always filter down to the masses, be they

members, suppliers or associates. So I am going to enlighten you, the sceptical reader. The fact of the matter is, there is a tremendous amount happening in this little office — an almost overwhelming amount at times.

Picture me, the hero of this story, being tossed about in high seas, rising to the top of a cresting wave for a few moments (this would be a coffee break), only to be pummelled to the bottom, gasping for a breath and trying to make sense of it all. (This would be a two-hour conference call.)

It’s all good though, because big waves can carry a small dog for a great distance, provided he doesn’t drown.

New Brunswick and PEI are proud of our 2016 Red Seal Block Training class.

In January our Red Seal block training program began its sixth year.

We run 18 weeks in three overlapping blocks, ending on March 31. This year we have 28 apprentices. Within our demographic of 100 member companies, 35 are participating. That’s a big litter for such a small dog.

This year P.E.I. has sent us three young pups, and that is fantastic. Our association plays a strong and varied role in the program, from recruiting to administration. Our volunteers attend every career fair. We always have representation at the Program Advisory level as well, both provincially and federally. We run our own school, or more accurately, private occupational career college. We have qualified, dedicated industry people instructing.

Maybe I’m being a tad bit self absorbed, but I truly believe that if we were not running our own school in support of our own trade, it would trip and fall right out of the gate.

I’m not sure if you’ve gotten the memo yet, but this June, Skills Canada is hosting its National Competition in our yard — Moncton. Not only are we on the organizing committee, but we are pulling together a provincial competition of our own, so that N.B. and potentially P.E.I. can have representation at the event; this is a big deal for us.

Perhaps the biggest piece of our human resource pie goes to fostering relations with stakeholders. Recreation NB is an association of parks and recreation heads from all over the province. They need training; we like to train. There is a natural relationship there. We have always had close ties to various provincial government departments. We access funding though Environment, and we often get called upon to help seek solutions to issues like topsoil conservation and integrated pest management.

Lately we have turned a lot of our attention to education, and in N.B., that involves two departments, Education, and Post Secondary Education. The 40 | APRIL 2016 | LANDSCAPE TRADES

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Education met inspiration at February’s All Commodity Education Session in Sussex, N.B.

latter deals with apprenticeship, so we are tied together at the hip. We meet regularly with the director and I believe he sees us as not only a partner, but as a good model for other trades. It’s probably because we have taken on a great deal of their duties at a time when they are cutting staff.

Now that we have six years of Red Seal training under our belts, we are turning our attention to raising awareness of our trade at the high school level; or more importantly, at the middle and elementary school levels.

How often do you see a presenter who is speaking for the first time to a group of unknowns, and he gets a standing ovation? Add to that the fact that along the way he brought us to tears, and you know that you have experienced a special presentation. Just yesterday that happened at our ACES (All Commodity Education Sessions) program held in Sussex, N.B. Claude Vautour teaches at a small middle school in Rogersville, N.B., École Secondaire Assomption. He channels his lifelong passion for the environment, nature and horticulture to provide his students with options.

It is amazing that he is creating a vibration in our province, with Rogersville as the epicentre. Trust me on this: if you are reading this through the eyes of a landscape horticulturist, you will come to hear his story with your ears sooner or later. It’s not necessarily a unique story, but it is driven and it is inspirational.

As busy and overwhelming as it has occasionally been lately, it is becoming increasingly satisfying. Claude made this analogy for me: it is like we are putting our resources into a giant slot machine: lots and lots of tokens, like a crazed gambler. Instead of lemons, bells, watermelons and cherries, the icons represent education, environment, and agriculture.

They are finally lining up, bells are going off and we can reap the jackpot. LT

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newproducts Battery powered outdoor equipment The new Husqvarna 500 series handheld, battery-powered outdoor power tools includes the 562 XP chainsaw, 525 HF3S fixed-pole hedge trimmer, 580 BTS backpack blower and the 555 FX clearing saw. Powered by the fuel efficient, low-emission XTorq engine, each product in the 500 series utilizes an interchangeable 40V lithium-ion high performance battery.

Husqvarna www.husqvarna.com

Compact excavator Takeuchi’s new TB210R compact excavator features a minimal swing tail design, retractable undercarriage and a backfill blade that can adjust from 40.2-in. down to 29.5-in. wide. Improvements include pilot operated joystick controls and an ISO/SAE control pattern change valve. Powered by a Kubota three-cylinder engine, the TB210R boasts nearly 22 per cent more horse power over its predecessor.

Takeuchi-US www.takeuchi-us.com

Flood light kit GlacialLight recently announced a new flood light knock down kit for 60 to 80 watt LEDs. The kit features a thermally efficient heatsink with thermal resistance of 0.59°C/W, a housing for the light, and a mounting bracket with 129 degree adjustability. A protective glass lens is offered for chip-on-board LEDs and a waterproof cover is available for outdoor applications. The kit comes in single, double or triple unit configurations.

GlacialLight www.glaciallight.com

Skid steers The new G-Series line of skid steers by John Deere feature improved horsepower-to-weight ratios, an optimized boom design that enables lift heights over 10 feet and a 20 per cent increase in breakout forces on the radial-lift models. The four new skid steers (312Gr, 314G, 316Gr, 318G) offer the option of either vertical or radial lifts and are designed to provide more comfort, space and visibility over the predecessor E-Series lineup.

John Deere www.johndeere.com CORRECTION: The Kubota WG14-26, WH15-48 and WHF19-52 walk-behind mowers featured in the March issue of Landscape Trades are not currently available in Canada.

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Zero turn mowers Kubota introduces the new ZD Series zero turn mower lineup with the ZD1000 and ZD1200 models. The ZD Series features the innovative Aerodynamic Cutting System (ACS), which provides better fuel efficiency and faster cutting performance, according to Kubota. Driven by diesel engines with outputs ranging from 19 to 25 horsepower, the zero turn mowers have hydrostatic transmissions and pivoting front axles. The ZD Series are available in deck widths of 48, 54, 60 and 72 inches.

Kubota Canada www.kubota.ca

Plate compactor Weber MT recently added the CF 2i to its lineup of forward compactor plates. Powered by a Honda GX 160 engine, the CF 2i offers 3,375 lbs. of centrifugal force with an 18-in base plate width. The forward plate is designed for compacting sand, gravel, asphalt and pavements. Accessories include a polyurethane pad for use on pavements, a water sprinkler system and an integrated wheel kit.

Weber MT www.weber.de/US/eng/

Skid steer loader The new Bobcat S595 skid steer loader boasts the highest rated operating capacity (ROC) in the 500-series lineup at 2,200-lbs. Powered by a 74 hp diesel engine, the S595 has two-speed functionality and a top speed of 11 mph and its vertical lift path makes it easier to clear high-sided truck boxes and hoppers.

Bobcat www.bobcat.com

Zero turn mower The new M-ZT61 EFI zero turn mower from Husqvarna utilizes a 27 hp fuel injection system, an intuitive operator interface, a rugged heavy-duty steel frame and a commercial rated hydraulic system. The M-ZT61 also features a fabricated steel deck that is mulch and collection capable.

Track loader The new TL12V2 vertical lift track loader from Takeuchi is the first of its kind from the equipment manufacturer. The TL12V2 delivers 45 per cent greater operating capacity over the current TL12 radial and the vertical lift arm design provides increased lift height and remarkable stability, according to Takeuchi. Additionally, the TL12V2’s innovative tread pattern produces greater flotation, minimizing ground disturbance, while its quiet track design with a new contact pad between its roller and the track, reduces noise and vibration.

Takeuchi www.takeuchi-us.com

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www.propowercanada.ca APRIL 2016 | LANDSCAPE TRADES |

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comingevents April 9-14, California Spring Trials, www.springtrials.com April 29-May 8, Arbor Week June 1-4, Grey to Green Conference, Ryerson University, Toronto, Ont. www.greytogreenconference.org June 16, Seventh Annual Canadian Water Summit, Toronto, Ont. www.watersummit.ca June 17-19, Garden Days. www.gardendays.ca June 19-22, Garden Centres of America Summer Tours, Portland, Ore. www.gardencentresofamerica.org June 21-24, 19th Annual Snow and Ice Symposium, Rhode Island Convention Center, Providence, RI. www.sima.org

June 23-25, Canadian Society of Landscape Architects 2016 Congress, Fort Garry Hotel, Spa and Conference Centre, Winnipeg, Man. www.csla-aapc.ca/events/2014-congress July 9-12, Cultivate ‘16, Greater Columbus Convention Center, Columbus, Ohio. www.cultivate16.org August 2-4, The Eastern Show for IGCs, Greater Philadelphia Expo Center, Philadelphia, Penn. www.igcshow.com

August 15-18, Canadian Fertilizer Institute 71st Annual Conference, Fairmont Tremblant, Quebec, Que. www.cfi.ca August 16-18, Independent Garden Center Show, Navy Pier, Chicago, Ill. www.igcshow.com August 24-27, Plantarium, International Trade Centre, Boskoop, Holland. www.plantarium.nl August 25-27, Farwest Show, Oregon Convention Center, Portland, Ore. www.farwestshow.com

August 7-10, Toronto Fall Gift Fair, International Centre and Congress Centre, Toronto, Ont. www.cangift.org

September 12-14, GLEE, Birmingham, U.K. www.gleebirmingham.com

August 8-12, ISA Annual Conference and Trade Show, Houston, Texas. www.isa-arbor.com

September 21-24, IPPS Eastern Region Meeting, Hartford, Conn. www.ippseastern.org

August 14-17, Alberta Fall Gift Fair, Northlands, Edmonton EXPO Centre, Edmonton, Alta. www.cangift.org

September 26-29, 12th Annual Canadian Urban Forest Conference, Laval, Que. www.treecanada.ca LT

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404 Stone Limited A.M.A. Plastics Ltd Allstone Quarry Products Inc. Bailey Nurseries Beaver Valley Stone Ltd Best Way Stone Limited Bobcat Company DEWALT Canada Fibertop Gro-Bark (Ontario) Ltd Hustler Turf Equipment John Deere Kubota Canada Ltd Landscape Management Network Makita Canada Inc Miller Compost - The Miller Group Ltd Miska Trailers National Leasing Oaks Concrete Products by Brampton Brick Permacon Group Inc PJ Trailers PRO Landscape by Drafix Software Pro-Power Canada Inc Proven Winners ColorChoice Rinox Inc Stihl Limited Thames Valley Brick & Building Products The Toro Company Turf Tech Inc Unilock Limited Wajax Equipment Winkelmolen Nursery Ltd Zander Sod Co Ltd

37 905-877-3404 sales@404stone.com 30 800-338-1136 ama@amaplas.com 39 905-939-8491 info@allstonequarry.com 23 800-829-8898 24 416-222-2424 info@beavervalleystone.com 19 800-BESTWAY info@bestwaystone.com 9 infocenter@bobcat.com 33 800-4DEWALT 14 905-203-0816 sales@fibertop.ca 28 888-GRO-BARK keith@gro-bark.com 32 800-395-4757 sales@hustlerturf.com 15 800-465-9825 21 905-294-7477 info@kubota.ca 16, 17 888-347-9864 info@golmn.com 31 b.collens@makita.ca 38 866-887-6457 compost@millergroup.ca 47 800-306-2111 sales@miskatrailers.com 36 866-586-5501 sales@nationalleasing.com 2 800-709-OAKS info@oakspavers.com 48 800-463-9278 42 905-658-9905 briansauto@hotmail.ca 35 800-231-8574 sales@prolandscape.com 43 800-361-0907 info@propowercanada.ca 13 800-633-8859 sales@springmeadownursery.com 27 888-855-9999 info@rinox.ca 5 519-681-3000 info.canada@stihl.ca 40 905-637-6997 info@thamesvalleybrick.com 34, 35 800-348-2424 LCEproducts@toro.com 25 905-636-0731 info@turftech.ca 10, 11 800-UNILOCK georgetown@unilock.com 29 780-851-9490 34 519-647-3912 sales@winkelmolen.com 41 877-727-2100 info@zandersod.com

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www.404stone.com www.amaplas.com www.allstonequarry.com www.baileynurseries.com www.beavervalleystone.com www.bestwaystone.com www.bobcat.com www.dewalt.com www.fibertop.ca www.gro-bark.com www.hustlerturf.com www.johndeere.ca www.kubota.ca www.golmn.com www.makita.ca www.millergroup.ca www.miskatrailers.com www.nationalleasing.com www.oakspavers.com www.permacon.ca www.pjtrailers.com www.prolandscape.com www.propowercanada.ca www.provenwinners-shrubs.com www.rinox.ca www.stihl.ca www.thamesvalleybrick.com www.toro.ca www.wrightmfg.com www.unilock.com www.wajaxequipment.com www.winkelmolen.com www.zandersod.com

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APRIL 2016 | LANDSCAPE TRADES |

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mentormoment

Trust your instincts, go all in This month’s mentor is John Eckhardt, owner of LawnPro Landscapes in Chilliwack, B.C. Launched in 1997, LawnPro originally focused on lawn maintenance; the company now offers the full array of services including design, installation and snow removal.

What drew you to the green profession?

I didn’t grow up wanting to be a landscaper, but there was a point where I knew I wanted my own business. I wanted to have more control over my life; that’s what really pushed me to take that step. It was a tough choice, but I wanted to do my own thing.

I saw a local grass cutting company that seemed to be doing well, and thought it would be interesting. After starting the business, I quickly realized how much I enjoyed the work and the rewarding feeling from completing each job.

What are your keys to success?

The clients are number one. It’s all about meeting and exceeding their expectations. Work ethic is another key. You have to be willing to put in the hours and to work hard, especially with a small company where you have to wear so many different hats.

My goal has always been to keep learning. Initially, it was John Eckhardt, LawnPro Landscapes more related to landscaping and the actual physical part of it, and lately it has been more on the business side. But it’s important to have a willingness to learn and pick up and share new ideas.

What are the biggest challenges you have faced?

We were always strong on customer service, but the biggest challenge over the years has been on the financial side of running the business, because I had no experience with it. We had got to a point where there was too much overhead and we weren’t charging enough, so for me that was probably the biggest turning point. It forced us to really look at our costs, our overhead and how we were charging; I learned that you can’t be afraid to raise your prices.

At that time as well, I bought estimating software that really helped me understand my costs and charge properly, and since then things have been going much better.

We were running about $1.25 million, and I thought I needed someone to do our landscape design and another for sales, so I start46 | APRIL 2016 | LANDSCAPE TRADES

ed putting managers in place before I was really ready. That was the biggest lesson, in understanding how that affects those overall costs.

So if you bring someone in at $50,000, how much extra work do you have to generate to be able to pay? My crews were going out in the field and they were good crews, doing the work, doing everything they needed to do, but it was more that I wasn’t charging enough, plus we had too many managers for our size.

What sets your business apart?

We try to establish relationships with our clients so we’re working with them rather than for them. For example, we don’t sell someone more than they need, and people really appreciate that.

We also make an effort to have our crew leaders and employees develop relationships with the clients. It starts with the little things, like when a crew is driving through a townhouse complex, we want our staff to wave to people and smile. We have heard feedback it makes a big difference for our customers; they don’t feel intimidated by our crews working in their backyards and they feel comfortable coming out and talking to them.

How do you avoid problem clients?

You develop a gut instinct and I have had to learn to follow it. Another key is to ask specific questions during the screening process.

Things like, “when do you want the job done?” and “how much money are you looking to spend?” Those will help you get an idea if they are realistic. It’s important to walk away from jobs you feel are not going to be worth the trouble.

What advice would you give new green professionals?

I wish I had understood the cost of running a business from the start.

It’s really hard to build a business by offering the cheapest service.

You can never build and grow a good solid business by doing that.

You need to understand your overhead and what is involved with running a business. When you’re starting out, you should have an end goal in mind; figure out what you really want out of the business, because if you just want to cut grass, or if you just want a job, you would probably be better off working for somebody. You really have to aspire to have a business that will support you and your family. It’s a lot of work, and looking at the statistics, the percentage of businesses that fail are pretty high — so understanding what you’re LT getting into and making sure you have a passion is critical.

If you have a question to suggest, or a mentor to recommend, please email editor@landscapetrades.com.

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