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View Full Version : When is enough, enough


promower
02-07-2006, 02:36 PM
For the seasoned veterans of LS. When does equipment purchasing slow down? Every year I need to drop a lot of money on more stuff and I cant wait to get to the point of just having everything I need to get through year. I know theres going to be some purchases every year, just a part of doing business. It seems like a vicious cycle, I feel like once I have everything I need I will have to start replacing the really old stuff for new. I dont see how you can build much equity in this type of business when everything depreciates so fast.

sgallaher
02-07-2006, 04:15 PM
I agree with you. The only way I can see that you can stop buying more stuff is when your company stops growing. What I do is maintain my equipment very good so that it lasts longer than normal. Another way to lessen the spending is to buy good used equipment.

nobagger
02-07-2006, 04:54 PM
Its such a vicious cycle isn't it! The bigger you try to grow the more "stuff" you have to buy. Then just when you think you have everything you need here comes an unforeseen breakdown or ins. is due etc. I think its best to stay a smaller company with only having to worry about 2 or 3 big mowers and only enough stuff for 1 or 2 crews to worry about.

rodfather
02-07-2006, 04:54 PM
For the seasoned veterans of LS. When does equipment purchasing slow down?

The answer is simple...it slows down proportionately to your business growth rate.

Rev. Crabgrass
02-07-2006, 05:32 PM
When you stop expanding there is a reason, no growth. Maybe just try and think of it as a good think you have to keep buying. sgallaher had a good point-- maintaining equipment like you are married to it is very important.


REV.

The Ranger
02-07-2006, 05:53 PM
Think about this; in the new budget proposed by Bush he wants to raise the section 179 IRS code by 100k. That means you can spend up to 200,000 on new equipment or fixed assets in one yr. and it is 100% deductable. WOW!!
Go for that new truck....

promower
02-07-2006, 06:42 PM
Looking back we grew between 90-100% each year for the last 3 years. I guess there will be a point in which you have so many accounts that the ones that drop off each year would even out with new customers you pick up. So there should be a breaking point I would say within the next 3-5 years when company growth will considerably slow down, hopefully? I love this business but besides living expenses I put back a huge % of my business income to get ready for next year. I'm not putting a lot of savings towards a retirement which worries me.

deereman
02-07-2006, 09:31 PM
What is it that you are replacing so often? What does your replacement schedules look like ? :confused:

qps
02-07-2006, 09:42 PM
Think about this; in the new budget proposed by Bush he wants to raise the section 179 IRS code by 100k. That means you can spend up to 200,000 on new equipment or fixed assets in one yr. and it is 100% deductable. WOW!!
Go for that new truck....

Big deal...when the state only allows 25,000.00 a year (Indiana)...its a wash...you don't pay federal but the state hoses you:realmad: