5 Essential KPIs Every Landscaping Business Should Track

Accredited Supplier, Sones Accountancy Services encourages landscaping business owners to track specific key performance indicators to boost profitability and offers a free tracker to help!

Running a successful landscaping business involves more than just creating stunning gardens. To grow sustainably and stay profitable, you need to understand what is happening behind the scenes, which means tracking your key performance indicators (KPIs).

There are five essential KPIs every landscaping business owner should be monitoring:

1. Gross Profit Margin (%)

This tells you how much profit you make on your jobs after covering direct costs such as materials, subcontractors, and labour. It is calculated as:

(Sales – Direct Costs) ÷ Sales × 100

Aim for a margin of between 40% and 60%. A lower margin may mean you are underquoting or not managing project costs effectively. Monitoring this monthly helps you keep projects on budget and pricing competitive.

2. Labour Utilisation Rate (%)

This measures how efficiently your team is paid time is spent on chargeable work. It is calculated as:

(Billable Hours ÷ Total Paid Hours) × 100

If your team is being paid but spending too much time on admin, travel, or downtime, profits will suffer. Regular tracking helps ensure your workforce is being used productively, especially on larger projects.

3. Average Job Profitability (£)

Understanding how much profit each job brings in allows you to identify your most and least profitable services.  It is calculated as:

(Job Revenue – Direct Job Costs)

It is common to have profitable months with a few poor jobs dragging you down. This KPI helps you make better quoting decisions and refine your service offering.

4. Cash Flow Forecast (£)

Profit does not equal cash. Many businesses fail due to poor cash flow, not lack of profit. By forecasting cash in and out over 3 months, you can plan ahead, avoid shortfalls, and make informed decisions like hiring or equipment purchases.

5. Quote Conversion Rate (%)

This shows how many of your quotes convert into paying jobs.  It is calculated as:

(Accepted Quotes ÷ Total Quotes Sent) × 100

A low rate might suggest issues with pricing, follow-up, or your sales process. Improving it can increase turnover without needing more leads.

Free KPI Tracker – Know Your Numbers

We have created a free KPI tracker spreadsheet to help you stay on top of these five vital metrics. Each tab focuses on one KPI, with space to input your figures. Built-in formulas automatically calculate your performance, and visual charts help you see trends at a glance.

Use it monthly to identify problems early, make smarter decisions, and boost profitability.

Download your free KPI tracker now and start using your numbers to grow your business with confidence: https://mailchi.mp/b9743b958389/3t46rpfcsu