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View Full Version : Make money and spend money


guven
10-26-2006, 10:18 PM
I have been in lawn care business almost two years and I make some money but I have to spend money to keep going, always I need something , new trimmer, hedge trimmer, blower , mower, ztr and now I need big truck, I was wondering how long does it go like that, sometimes I was thinking I am working for lawn care equipments manufactures not for me , I pay my bills and rest of the money goes the equipment and business expensive.
Thank you very much

SamTheLawnMan
10-26-2006, 10:24 PM
Welcome to the world we live in...... But seriously I think it will always be like that as long as you want to keep up with the times and have good equipment.

KS_Grasscutter
10-26-2006, 10:29 PM
I have half of it right... but i spend SOO much money, it cancles out all my money I make. Oh well, like all my friends tell me, I eventually will get tired of buying mowers, and at that point i will begin to make money.

Birdhunter1
10-26-2006, 10:43 PM
A good buddy of mine and kind of business mentor told me "Ya gotta spend money to make money." This guy is a very successful farmer who farms about 2500 acers in the Mississippi River bottom in So. IL (some of the most fertile ground in the world). While alot of people have a midset of saving money he has a mindset of making money. Granted farming is different from being an LCO but the same principle applies, it takes money to make money.

Your equipment is an ivestment into your business, don't invest in something that has no return. The first three years of my business I didn't profit all that much but I had a good business going and good equipment paid for. The last three years have been much better profitwise and less equipment expense. You have to have equipment and you have to buy it, but you can't conquer the world and get big all at once and if you think you can then you'll fail. Build up from what ya got to what you want.

WJW Lawn
10-27-2006, 07:58 AM
I agree with Birdhunter....I remember when I was a kid...my dad worked hard, but we were by no means rich...maybe lower middle class at best. Im 29 now...and he has built one of the most successful construction companies in his area, and added three branches to his company. He still works hard, but he bought himself a big ole boat...goes to the keys and cancoon ALOT lol He always tells me "Ya gotta spend money to make money" ....and as he says...take your business DAMN serious. I just keep on plugging doing the best I can, but never hesitate to buy what I need. In other words...these things take years...and money lol

rodfather
10-27-2006, 08:08 AM
Investing in your business is never ending to say the least

Sandgropher
10-27-2006, 08:14 AM
Birdhunter has hit the nail right on the head IMO , the first 3 years are a big struggle then you start making money.

Guven the most succesful person that i know on lawn site made a lot less than $10,000 in his first year,do not quote me but i think it was $2500 from memory, keep plugging away and you will make it :) :usflag:

YardPro
10-27-2006, 08:23 AM
these are the "costs of doing business".

these costs are why the more successful here allways drill into others "know your costs".

you have to charge accordingly. you will never get ahead if you do not charge enough that THE BUSINESS buys this stuff and still pays you a salary. You should not have to buy these things out of your pocket.

noseha
10-27-2006, 08:26 AM
Welcome to the world we live in...... But seriously I think it will always be like that as long as you want to keep up with the times and have good equipment.

o so ture ............

Ron's Lawncare
10-27-2006, 08:27 AM
my business plan is to work solo for 2 more years. to work solo you need the equipment to help you out. i've invested heavily into equipment the last two years. i've also taken on part time jobs in the winter to make ends meet.

i'm excited for next year. i now have all the large equipment i need for this stage of my business. i can grow 15-20% next year and stay solo. i really want to build more reserve capital before hiring employees.

MarcSmith
10-27-2006, 08:31 AM
The hardest part with any business if capital expense (IE equipment)

you really need to put a good plan in place once you buy the equipment to maintain and longegvity expectations. IE we know a weedy used daily willl run realiable for 3 years, and maybe 4-5 for of a mower. Beyond that you now have backup equipment or equipment for growth...

You need to accrue money each month, to set aside for future equipment purchases for the purposes of replacement.

Now if you plan on gorwing, you need to accrue money separate from this to purchase new equipment. It an accounting nightmare, but its a mistake that alot of newcomers make. They buy their equipment go into debt, and just when theycome out debt, they need to buy new equipment again, and they go back into debt...

Mowing trimming and blowing are the easiest part of a owning a lawn cutting business. Money management is the hardest....

CRM Lawncare
10-27-2006, 04:45 PM
I think the main thing to look at is do I NEED this piece of new equipment and that big new truck or do I just WANT that new equipment and big truck. Big difference in the two! :)

bullethead
10-27-2006, 04:53 PM
Just make sure you are pricing your work to cover the cost of those assets (as you see, they eventually wear out). It honestly takes time and reinvestment of your earnings back into the business in order to grow it to a point where it is no longer just a job, but a business that is able to pay you a salary and generate a net profit. I pulled a whopping $12k out of my business for salary, the first year. It took me about five years to get to a point where I felt it was really turning into a business.

ozd12005
10-27-2006, 09:23 PM
Like the old saying " it takes money to make money"

DBL
10-27-2006, 09:24 PM
well atleast im not the only one spending money around here

meets1
10-27-2006, 09:32 PM
So when you expand - say build a shop, improve your methods of your services - and for example - you have $100K borrowed. Say that is for shop - your biz pays you rent - if your corp. biz - you in return use that as your payment and 18 yrs later you have a building paid for by the biz. Now do you stick to the payment plan or say you have an extra $5K to use - do you use to pay down alittle more of shop, or you personally have $5k around - apply that to shop and have biz pay you back or take the option and have biz pay you ...say....4% interest on that money.

When do you pay donw more of the debt? Yet be able to have the options to increase a truck, trailer, another Z or skid to be able to do the work more effeciently? Then if you have a crew - you as owner - what is your role? R U working 16 hrs days, first in - last out, tolling on mowing/landscaping/etc or are you delegating work well enough to capable people to where you spend your energy focusing on new growth potential - maybe expanding into another related field as to not have all eggs in one basket or work more with the thinking that your illmating one "payable employee", and being hands on the job?