In the first quarter of 2017, the Federal Reserve raised its benchmark interest rate twice, a sign in the Reserve’s faith that the United States economy is finally beginning to perform again after a long downturn.
The base interest rate is now between .75 and 1 percent (as of March 2017), which has inspired further confidence in the economy. What does this mean for you? Well, among other things, it means that now could be a perfect time to make an investment in the future of your business by diversifying.
Time Is Money
Big banks have indicated that their prime lending rate will rise to about 4 percent in the near future. That means an increase to the tune of a 24.1 percent loan approval rates at big banks, and 48.8 percent approval rates at regional and community institutions.
Financial experts predict interest rates will only continue to rise, if slowly. The longer you wait to apply for a loan that will help you grow your business, the more you’ll pay in interest, according to Forbes online. Time is money!
Diversification Is A Smart Move
It’s a big decision whether to make the leap to diversify your green industry business — even if it makes perfect financial sense in today’s economic climate.
But it’s sound business advice not to put all your eggs in one basket, and you don’t have to take our word for it — Spring-Green Lawn Care’s Franchise Owners have offered the following benefits of diversifying with their Spring-Green lawn care operation:
• Simplicity of diversification — thanks to over 40 years of experience
• Reliable recurring income vs. project revenue
• Ability to cross sell
• Building of future assets
• Ease of marketing
Spring-Green Franchise Owner Wade Herndon, of Evergreen Landscaping in Myrtle Beach, S.C., opted to diversify at the lowest point in the economic downturn. With demand for both residential and commercial landscaping services at an all-time low, he sought out a safer bet: “People don’t necessarily need landscaping services done all the time, but there are always people who need their lawn mown or weeds serviced,” he said.
Make a Safe Bet
Entrepreneur recommends closely evaluating your core business when considering diversification — and focusing your efforts around that core. (A landscaping company diversifying with a lawn care business is a prime example of this!) “Every one of your diverse capabilities [should] tie together to create value to your company,” according to the article, and you should be able to lean on your existing business experience to be successful as you diversify.
With interest rates and the probability of loan approvals climbing every month, all signs point to a perfect climate for diversification as a smart move for your green industry business. If you’re considering adding lawn care to your portfolio of green industry services, Spring-Green can help you grow and diversify.
We have 40 years of experience and proven expertise in marketing and technology. Learn more about how Spring-Green can expand your lawn care services. Call 1-800-777-8608, or visit www.growmygreenindustrybusiness.com.