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View Full Version : Cash Flow or lack there of!


DixieFerris
06-04-2010, 04:29 PM
Time to get on the phone all weekend! $9,000 in the bank, $132,000 outstanding, stressful!

Phil G
06-04-2010, 04:33 PM
Time to get on the phone all weekend! $9,000 in the bank, $132,000 outstanding, stressful!

Woo, that's no good. How many customers and for how long the debt.

There's only one place for that 132k and that's in your bank account.

Why did it get out of hand? Credit control

Good luck, Phil

Cboy7
06-04-2010, 05:09 PM
please preach to the young uns and the one who havnt yet fallen into the big american lie. YOU CANT HAVE IT ALL !!!! until later.. Save first, pay later.

I call it a 10 yr plan. you do with less and live little for 10 years and you will have enough to live without money worries the rest of your life.

cmon guys, 10 yrs ago was not that long... trust me , time flies

bradsd
06-04-2010, 06:35 PM
Good advice CBoy, do this or you will be a slave to interest payments your entire life!

biggziff
06-04-2010, 07:02 PM
please preach to the young uns and the one who havnt yet fallen into the big american lie. YOU CANT HAVE IT ALL !!!! until later.. Save first, pay later.

I call it a 10 yr plan. you do with less and live little for 10 years and you will have enough to live without money worries the rest of your life.

cmon guys, 10 yrs ago was not that long... trust me , time flies

Truth spoken here!

thomask
06-04-2010, 08:14 PM
Anyone with debt payments needs to listen to Dave Ramsey. That is all I listen to when I mow. I carry 14-18 accounts yearly in addition to my full time teaching job. I started out with 2 21" mowers for the first 6 years I did this gig until my back started hurting. Then I saved up for a whole summer and bought off craigslist used 52" everride scorpion and a Quick 36 and a 5x10 trailer. Not the top of the line mowers I know, but hell, it gets the job done, a lot quicker I might add! Then with some leftover money I saved I bought the 34" everride scorpion. All my stuff is paid for and I wouldn't ever consider getting a loan for equipment. Again, if you have any debt that's strapping you down, get in a Financial Peace University class locally or read the Total Money Makeover.

topsites
06-04-2010, 09:30 PM
I don't have 9g in the bank...

Did you know?
Life is more expensive for those who can least afford it?
Insurance companies tend to hike rates based on credit, also if you pay your
insurance by making payments it costs more.
Telephone, Electric, and Cable companies tend to want more in ways of
"refundable" deposits also based on credit, this "refundable" deposit they keep
however long, it is money you can't use.
The list goes on...

I learned the hard way, it eventually sunk in, like...
10 years ago :laugh:

There is nothing you can do except NOT get that way, and if you're in like that, gtfo!
Ain't nobody going to help you but you.
Just for example, I don't like servicing accounts where I know there exists a money problem.
I don't charge extra, but I SHOULD!
Instead, I leave and let them fend it out amongst themselves, so to speak.
Cold, hard words.

But it is a process, you make up your mind ONE time and stick to it, thick and thin, hell or high water.
And it hurts a lot, but I find it hurts worse to be in debt.

Now all my stuff's paid for.

A budget helps.
But ultimately you just have to make up your mind, one time and done.

flatlander42
06-04-2010, 09:32 PM
Good advice CBoy, do this or you will be a slave to interest payments your entire life!

I think he is OWED that large ammount of money.....He is not talking about having that much out for loans.....:waving:

mbrew
06-04-2010, 09:38 PM
That ratio is not good!

topsites
06-04-2010, 09:41 PM
I think he is OWED that large ammount of money.....He is not talking about having that much out for loans.....:waving:

That's just as bad in my book, what's the difference, red is red.

Flatop
06-04-2010, 10:01 PM
Anyone with debt payments needs to listen to Dave Ramsey. That is all I listen to when I mow. I carry 14-18 accounts yearly in addition to my full time teaching job. I started out with 2 21" mowers for the first 6 years I did this gig until my back started hurting. Then I saved up for a whole summer and bought off craigslist used 52" everride scorpion and a Quick 36 and a 5x10 trailer. Not the top of the line mowers I know, but hell, it gets the job done, a lot quicker I might add! Then with some leftover money I saved I bought the 34" everride scorpion. All my stuff is paid for and I wouldn't ever consider getting a loan for equipment. Again, if you have any debt that's strapping you down, get in a Financial Peace University class locally or read the Total Money Makeover.


I second the Dave Ramsey show. Started my business to get out of debt. Everything I purchase for the lawn business is done with cash. As soon as I collect from my clients it goes to bills. I will have to post my original set up prior to upgrading my trailer and equipment

theheisk
06-04-2010, 10:38 PM
I 3rd the Dave Ramsey!
Posted via Mobile Device

flatlander42
06-04-2010, 10:59 PM
That's just as bad in my book, what's the difference, red is red.

you don't have to make payments on money that is owed to you.

meets1
06-04-2010, 11:09 PM
So where is the atage of borrow money to make money? Wise or not to use X company 0% for 4 years or pay cash - if you have the cash but maybe you leverage against something else and use X compnay money for 0% for 4 yrs.

Bbut being owed that much is frightfull. I wouldn't work another day until I collect 90% by banging on doors. I have outstanding as well but things are now 60-120 days out for large companies that I service but yes the money does come.

Raymond S.
06-05-2010, 12:19 AM
Doesn't sound like this thread is really about borrowing and making payments. Sounds like the guy has $132k of outstanding invoices out there. He's carried himself all winter and spring with last season's revenue and did a hell of alot of work this spring to start the year off good and a whole hell of alot of people are stretching him out. Scary part for me would be that in order to do $132k worth of revenue already you must have a decent payroll of which that $9k won't go too far. Sounds like you got the right idea only you may end up skipping the phone call and knock on some doors. Good luck, I hope you get paid.

Coastal Lawn Maintenance
06-05-2010, 10:13 AM
It was asked before but how can you go that long with that much money out and not have already started making calls.

biggziff
06-05-2010, 10:54 AM
It was asked before but how can you go that long with that much money out and not have already started making calls.

20 jobs at $2K each/month X 3 months is $120K...doesn't sound hard to get that far out of equity.

topsites
06-05-2010, 11:12 AM
you don't have to make payments on money that is owed to you.

What's the difference, there is the cost of having done the job and you might not get paid.

flatlander42
06-05-2010, 11:18 AM
What's the difference, there is the cost of having done the job and you might not get paid.

There is a bunch of variables...that could be one.

Coastal Lawn Maintenance
06-05-2010, 11:40 PM
20 jobs at $2K each/month X 3 months is $120K...doesn't sound hard to get that far out of equity.

Yes i see that but after i dont receive payment in a month something is wrong services are stopped and the property owner has been contacted several times. i would not wait 3 months before i got worried about the lack of a Cash flow.

Drew Gemma
06-06-2010, 12:56 AM
It is called being a legitimate business your are basically a bank. You perform work for company A you get paid then you pay everyone else if your lucky you get to keep a few bucks. The ones you pay don't care if company A didn't pay you. Cash flow, operating expense. I feel your pain but I would definitely set up a different billing schedule. We have 6 larger accounts that require tons of inputs labor and materials. These 6 have a regular contract payment for maint. then 2 to 3 different other invoices open for various projects at their facilities. We can get 35k in the hole in about 5 weeks during the busy spring. It is tough because were are small and thankfully winter was great it is tough. Just remember during the off periods of the contract to save those payments that come in so when it gets thin you can cover. Usually by August 1st we know where we stand financially from the busy spring. At that time we take any profit and purchase salt and prepare for winter fall work. also if anything is left I take a chunk and pay off a loan or upgrade equip. Basically they need to pay you need to invoice on time and be in their face set up a financial calender for your business it makes it stupid simple.

topsites
06-06-2010, 01:09 AM
Well, yeh...

First things first thou, you still have to get out of the hole and into the black,
you have got to get the bills ALL paid and start saving, without money in the bank
everything else is a waste of time, you can't survive a month if you ain't got the cash.

One thing I have learned over the years, as was just pointed out is to hoard
both money and supplies so that one can survive the dry spells...

So for instance when I have some money, it's time to buy parts but not necessarily what I have to have this instant.
I buy what I absolutely must have to stay operational, yes, and that is the point where you are
and most likely have to stay until you're out of that hole.

For anything else to work you HAVE to be able to save your money!
So you can survive not just the dry spells but to stave off inflation.

But you HAVE to be out of debt!
Don't do it if you're in the ditch, you can't afford it.

So do what you must for the time being but as soon as you can get out of that rut, do it and stay out.

You'll be better off, it only hurts from now until then but once you're out and in the clear, watch ...