In this episode, Jeffrey Scott addresses the critical relationship between budgeting and business strategy for landscape company CEOs planning for 2026. He identifies a fundamental problem: too many companies treat budgeting as a checkbox exercise rather than a confirmation of their strategic direction. Drawing from his consulting experience with landscape businesses, he walks through ten common disconnects between budgets and operational reality—from unclear owner objectives to poor equipment management and weak cash flow planning. His core message is that effective budgeting requires intentional decision-making about what kind of company you’re building, whether that’s a lifestyle business, a growth company, or a sellable asset, and every financial decision should reinforce that goal.
Takeaways:
Strategy-Budget Alignment: Budgets should confirm your business strategy, not exist as separate exercises disconnected from how you actually run the company
Revenue as Capacity-Driven: Revenue planning must be based on actual labor capacity and billable hours, not aspirational goals or ego-driven milestones
Detailed Gross Profit Analysis: Break down gross profit margins by division and service type rather than using global averages to uncover hidden opportunities and blind spots
Subcontractor Markup Strategy: Different subcontractors require different markups based on management intensity and how integrated their work is into your final product
Owner Compensation Planning: Treat owner compensation as a planned business cost with market-based pay plus return on capital, not as whatever’s leftover
Cash Flow as Separate Strategy: Develop a dedicated cash management strategy including better contract terms, collections processes, and vendor negotiations to ensure the business can sustain itself
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