Why Benchmarking Your Business Matters
If you’re running a landscaping, hardscaping, or irrigation company, chances are you’re moving fast—lining up jobs, managing crews, and keeping clients happy. But one thing many business owners overlook is how important it is to step back and ask: How are we actually doing compared to others in our industry?
That’s where benchmarking comes in. And it can be a game changer.
What Is Benchmarking?
Benchmarking is simply comparing key parts of your business—like profit margins, labor costs, or revenue per job—with similar companies in your industry.
For example, let’s say you’re grossing $900,000 a year and feel like business is solid. But when you compare your net profit margin to others in your space, you find you’re running at 5%, while companies of a similar size are averaging closer to 12%. That insight doesn’t just highlight a gap—it gives you a target to work toward.
Why It’s Worth Paying Attention To
When you’re deep in the day-to-day, it’s easy to judge your business by feel. You’re busy, jobs are coming in, the phone’s ringing. But without some outside comparison, it’s hard to know if you’re operating efficiently or just staying afloat.
Benchmarking helps you:
Spot areas where you’re overspending
Price your services more confidently
Set more realistic (and profitable) goals
Make decisions based on data, not guesswork
It turns “I think we’re doing okay” into “I know exactly where we stand.
Why Industry-Specific Benchmarks Matter
Here’s the thing—benchmarking only works if you're comparing apples to apples. A general bookkeeper might compare your business to a general contractor or a retail operation, and that’s not helpful.
Green industry businesses are unique. You deal with seasonal swings, project-based work, crew management, equipment maintenance, and often, unpredictable weather. That’s why it's important to use benchmarks built from businesses just like yours.
Real-World Example
One of our clients came to us thinking they needed to grow revenue to fix their cash flow problems. But after benchmarking their numbers against similar companies, we found their labor costs were eating into margins more than average. Instead of chasing more work, we helped them tighten up crew scheduling and job costing. Within six months, they saw a real improvement in profitability—without needing to hire or sell more.
Final Thoughts
Benchmarking isn’t just about numbers—it’s about running a smarter, more focused business. When you know how your company stacks up, you can make decisions with confidence and clarity.
At Set In Stone Bookkeeping, we work exclusively with green industry businesses. That means we don’t just hand you reports—we give you real insight based on years of experience in your world.
Want to see how your numbers compare? Let’s have a conversation.
