Fifteen years ago, I was excited to finally find a piece of land to build my landscape company headquarters. I opted for a three acre parcel just down the road from other high visibility pieces of land that were double the price. Land running along a major highway that connected the 2 main cities that my landscape company services were going for $100,000, but I found a piece of land just 4 miles down the road for half the price. I was thrilled with the deal that I found at a fraction of the cost.
See as landscape business owners, we look at price when making purchases such as equipment, hiring a new team member and even locations to rent or to build our dream company headquarters. What we forget, is that we need to REALLY analyze what the “cheaper costing option” is going to cost us in the long-term.
Chart of Expenses (for those 4 miles):
As you can see, I could of built my landscape company headquarters at a much better location for only $50,000 more. When analyzing the numbers, you’ll see that I could of paid that difference in a little over a year. I have now been at my current location for going on 15 years…you do the math.
What might look good initially, ending up costing me thousands of dollars per year…..