Life is NOT all about making money; but, the almighty dollar sure can buy a lot of options.
In real estate, as in landscaping, there are more than a few ways to make money!
In real estate, there’s money to be made as a property manager or landlord from the monthly income in taking care of the place. Similarly, in landscaping, there is money to be made in the lawncare maintenance side of the business.
In real estate, you can make money as a “builder” putting up new houses, just as you can make nice profits in landscaping with new installations.
In real estate, you can run an AirBnb or manage a cleaning service. Similarly, in landscaping we can provide a recurring service through a crew.
But, in all these things, when you’re doing that work personally or as a solopreneur, you are, by definition, working “IN” the business.
That is more than fine - it provides a nice income. And the personal reward of a “job well-done” is super gratifying. No doubt about it! But…personal time-freedom is constrained. And, if you get sick or hurt – well, you’re stuck!
In real estate, some owners get freedom and distance from business by collecting rents from tenants, at rates above what they pay in carrying costs. In the landscaping business, we get distance from the business by delivering the service through employees.
However, in both these businesses, there’s a barrier to overcome.
One or a few rental properties does not buy financial freedom. A landscaping business needs enough scale/clients, such that the business still pays the owner after all other costs are covered. Simple in concept, but getting another crew (or two) takes a shift from working “IN” the business to working “ON” the business. And, that shift is more than just a mental shift – it’s a lot of hard work/investment! Daunting stuff and the thought of it all stops most people.
In real estate, besides collecting rent, a property builds the owner’s asset portfolio as it is improved and appreciates. Similarly, in landscaping, the larger the business becomes, the more efficiencies it gains, the more professionally it is managed, and… the more it’s worth! And the easier it is to run, which makes it more appealing in the market: to sell, finance, or run as a continuing operation.
In real estate, assets can be used to acquire more assets; and, through the process, owners compound wealth. In landscaping, we can do the same!
Owners who, through implementation of processes, procedures, and systems shift their focus to working “ON” their business grow the value. It takes effort. But, in so doing, owners not only gain time freedom, they also improve the value of their asset as they generate free cash flow. That’s the end game, right? Improve value and generate cashflow, meanwhile gaining time-freedom.
Ah, but there is one more level: a move to working “ABOVE” the business. ABOVE the business…?
Getting ABOVE is where owners move to the role of “investor.” And that is where an owner multiplies the value of their entity by 3-4x times what it is otherwise worth. In so doing, that shift takes their business which is, for example, worth $500K to have it blossom to a $2,000,000 value.
Doing that, making the shift from IN, to ON to ABOVE an owner changes a family’s life for decades, if not generations!