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View Full Version : Ongoing daily/monthly expenses? HELP!


sheppard
06-19-2001, 10:00 PM
Am going to the bank Thursday to present my projected first year expenses for a lawn company I am buying. Think I have most of them. (Been working the accounts for 6 weeks now). Thought you guys would post a few things that you have that creep up on you periodically.

Thanks,
Sheppard

Premo Services
06-20-2001, 11:56 AM
Here are a few I thought of, I am sure there are a lot more.
Licences for trailers
Parts for equiptment that break
new equiptment to replace old worn out stuff that you get with the company
Fuel
Maintenance of your vehicle, fluid changes, tires, etc.

awm
06-20-2001, 07:29 PM
GAS ,OIL, INSURANCE,GAS, TAXES, EATS DURING DAY,GAS
PLENTY OTHERS EQUIPMENT REPAIR PARTS,IS ONE

jaclawn
06-21-2001, 10:08 PM
Some A/P items:

Advertising
- Yellow PAges
- Business Cards
- Flyers
- Newspaper ads
- Vehicle lettering
- Shirts/hats

Equiment repair
Equipment Rental
Equipment Purchase

Shop Supplies:
Rags
Grease
Oil
hand tools
parts inventory
cleaning products
large shop tools (welder, compressor...)
paint
hardware items

Office supplies
Paper
envelopes
printer cartriges
Toner
Fax machine cartriges
paper clips
stamps
checks
deposit slips
pens
pencils
business cards
computer software


utilities
telephone
fax line
cell phone
gas
electric
water
sewage
wast disposal
property taxes
property insurance

bank service fees
accounting fees
legal fees
licenses and permits
vehicle registrations
vehicle inspections
vehicle repair
vehicle purchase
vehicle cleaning

Insurance:
LIability
Workers COmpensation
Vehicle
Umbrella policy
Property
Bonds

Cost of job materials
Cost of inventory
Payroll liabilities
INtrest
Savings
New PC purchase every 3 years
On the job food and beverage
customer gifts
Kickbacks (awe, just kiding)... Maybe not...
Employee training
Coutniuing eduication
AAA membership
Waste disposal fees
POsting signs
custom stationary
film
film developing
safety equipment
association dues

I am sure that there are many more, theswe are just the ones that I can think of off the top of my head.

And people wonder why we have to charge so much!

GreenQuest Lawn
06-22-2001, 02:40 AM
:D well I think that prety much covers it :D

awm
06-22-2001, 03:58 PM
think ill get out of the buisiness,ran out of money half way down your list:) later now

HOMER
06-22-2001, 04:20 PM
I clean my own vehicle. Am I a better businessman?

sheppard
06-22-2001, 04:27 PM
Good night ! Boy did you guys come through! Thanks very much. By the way- my bank appointment went very well. I'm approved to either buy the existing business or start my own. So from a negotiation perspective I could not be in a better position.

Thanks,
Sheppard

MATTHEW
06-22-2001, 04:52 PM
I think my business is pretty streamlined. You know
I paid off most of my equip.I just really owe my
sprayer unit and my lease for the truck.And I only
do light advertising. My building I rent is dirt
cheap. $100.00/mo. But when I get to the end of the
month, the account is weak. I don't even buy things
for myself! I really want a new dirtbike, but It's
just not gonna happen. When I look at my books and
see just how much is going out each month-it is just
staggering!:angry:

ScottH
06-23-2001, 11:38 AM
Here's something to think about. Did you ask for a line of credit in conjunction with your bank loan. rarely will your revenue come in fast enough to pay your expenses and bills on a timely basis. bank's may provide a line of credit that you can use, much like a credit card, to enable you to keep your vendor credit good. Just remember that when cash does roll in to keep paying down on the line of credit to minimize the interest cost and to have it available again when you need it. one additional caution- don't use a line of credit to buy equipment!

ScottH
06-23-2001, 11:51 AM
Matthew, you didn't mention how busy you are. Or, how quickly your accounts are paying you. If they are paying reasonably timely and you are busy you might try to increase your prices. The other thing to think about is that the amount of cash - in your pocket or in a bank account- is not necessarily an indicator of profitability, particularly if your business is growing rapidly. For example, if you buy 2 new mowers for $8k a piece and $2,500 worth of misc small equipment this year and pay for it all in cash, you just removed $18.5k in cash from your business which makes the cash side tight. A general recommendation, especially when you're using the eqpt to make money, is to prudently finance equipment. There is nothing wrong with financing the mowers over 2 - 3 years instead of paying cash when they will be making you money for 3 to 5 years or more if they are reasonably maintained. The small stuff would probably be best just to pay for it though.

One thing you should keep an eye on though. Just because in the above example you would now have $16k additional in cash doesnt mean you have to go out and buy that dirtbike. make sure you establish a reserve savings to help you through tight times and unexpected problems or opportunities.