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Angelo585
05-06-2011, 08:17 PM
Hey guys I was posed this question by a colleague, "If you had $100,000.00 to spend on your business (either new or existing) how would you spend it?" the one catch to the question was that you had to keep $40k as a back up....

Just curious to see what others think....

If I was just starting out, I would spend $30k on new equipment and bank the rest for unexpected or operating expenses.

As an existing company, I would replace old equipment and add to my current inventory using about $35k -$40k and bank the rest for unforeseen expenses.

This is purely hypothetical and just to see others ideas not to create an argument or debate....

JB1
05-06-2011, 10:02 PM
personally with $100 k, I wouldn't be investing in lawn equipment it would be in some better investments.

Angelo585
05-06-2011, 10:12 PM
personally with $100 k, I wouldn't be investing in lawn equipment it would be in some better investments.

I get that, but that is not the question.... we are all here because this is the business we are in and what we have chosen to be in; so again the question would be if you had 100k to invest in your business, how would you invest it? keeping at least 40k for reserve.

THEGOLDPRO
05-06-2011, 10:16 PM
I personally have through out the years allready spent close to 100k on my business for equipment and vehicles, and so on. so id say i would spend it the same exact way i allready have.

WorldsStrongestLandscaper
05-06-2011, 10:17 PM
Sell old equip and upgrade! BIG STEVE B CT STRENGTH WSL
Posted via Mobile Device

cpllawncare
05-06-2011, 10:21 PM
I would upgrade all my equiptment probably 20K or so advertising 20K or so and bank the rest.

Angelo585
05-06-2011, 10:26 PM
a group of friends and I had this discussion over drinks and I found it interesting to hear the variety of responses, especially that the group consisted of 3 in the landscape business, 1 paint contractor and 2 construction contractors (1 roadway and 1 home improvement). One of the 3 landscapers was a new guy just starting out in the business, but the variety of responses was interesting and sparked some interesting discussion.

cpllawncare
05-06-2011, 10:30 PM
a group of friends and I had this discussion over drinks and I found it interesting to hear the variety of responses, especially that the group consisted of 3 in the landscape business, 1 paint contractor and 2 construction contractors (1 roadway and 1 home improvement). One of the 3 landscapers was a new guy just starting out in the business, but the variety of responses was interesting and sparked some interesting discussion.

Ah one of those "If I won the lottery questions" Feels good until you come back to reality LOL

grass-scapes
05-06-2011, 10:33 PM
an around the world vacation.

Angelo585
05-06-2011, 10:40 PM
Ah one of those "If I won the lottery questions" Feels good until you come back to reality LOL

Well, kind of, what sparked the conversation is the new guy is getting an inheritance of close to that amount and was talking about his plans for the money, the 40k reserve was a restriction his wife put on the money.

His current equipment is all used and barely functioning most of the time and he is gung-ho to go buy all new stuff. He currently services about 25 accounts and we were discussing if it was wise to blow the money on equipment he will hopefully grow into one day or buy for what his size is now....

rain man
05-06-2011, 11:44 PM
I would put it all in the bank.

Or maybe buy a double-wide trailer and live like a poet-fisherman on a small isolated island.

Or become self sufficient and sell vegetables and fish beside the road.

Or buy some goats.

Start a worm farm like Ernest Hemmingway.

Or travel the country hopping trains.

Or sail the seas on a tramp steamer.

Maybe I would visit Graceland. Elvis is the King.

I might even buy some land outside area 51 and sell souveniers.

topsites
05-06-2011, 11:48 PM
I'm sorry but I don't waste much time wondering what I would do with something I ain't got,
it might be a different story if I had say 90 thousand but the simple fact is I don't got 5 g's so
why on earth would I spend my time thinking about what I would do with an amount of money
that I'll be lucky to see by the time I retire.

h2oskier
05-06-2011, 11:49 PM
I would put it all in the bank.

Or maybe buy a double-wide trailer and live like a poet-fisherman on a small isolated island.

Or become self sufficient and sell vegetables and fish beside the road.

Or buy some goats.

Start a worm farm like Ernest Hemmingway.

Or travel the country hopping trains.

Or sail the seas on a tramp steamer.

Maybe I would visit Graceland. Elvis is the King.

I might even buy some land outside area 51 and sell souveniers.

LMFAO my thoughts exactly:laugh::laugh::laugh:

BadRancher
05-07-2011, 12:05 AM
2 WB mowers and handhelds $13,500, A good used trailor ($800-1200) and pay off the Titan ($19000) or maybe upgrade to a diesel ($????). That would leave and estimated 26K-ish if no new truck. Definitely drop $1000-1500 into marketing next year. and maybe 500-1000 into marketing for the remainder of the season. That still leaves $23,500 to bank along with the other $40,000. Probably give a decent sum to charity and the church too.

Fleur De Lawn
05-07-2011, 09:35 AM
advertising. the rest will come with the extra income.

MOturkey
05-07-2011, 09:51 AM
I'd bank the money, get rid of about 2/3 of my mowing accounts, and do more hunting and fishing. :)

Angelo585
05-07-2011, 10:01 AM
I'd bank the money, get rid of about 2/3 of my mowing accounts, and do more hunting and fishing. :)

LOL... only problem is the bank interest rates are so low that you would not make any money on your money and would probably blow through it in no time, then you would have to replace all those accounts you got rid of.

When you think about it, 100k seems like alot of money but it really is not, It may allow the average person to live 2 years or so without work and be flat broke at the end or be a nice catalyst to expand/start a business or just be play money for the guy that is big enough and does not need to grow.... so many possibilities....

Its interesting to see that alot of guys are talking advertising and marketing uses for the money. I believe that is where it is best spent and the biggest return on investment seen for the established or beginning guy.....

Woody82986
05-07-2011, 10:51 AM
I'd bank $75k, spend $5k on advertizing, $7k on another good used work truck, $2k on a couple push mowers, $5k on a good used 60" Z, $2k on another trailer, $3k on newer handheld equipment and $1k on misc. blades, filters, line, and other parts and replaceable things. That's if the $100k would have to go for business use only. I'd probably never touch the other $75k until I wanted to add another crew.

Glenn Lawn Care
05-07-2011, 12:46 PM
I'd buy a new truck!

Patriot Services
05-07-2011, 03:25 PM
Sell old equip and upgrade! BIG STEVE B CT STRENGTH WSL
Posted via Mobile Device

Are you the guy who rolled up a frying pan on Americas Got Talent?
Posted via Mobile Device

willretire@40
05-07-2011, 03:57 PM
I think it is funny how most will spend more on equipment then marketing. I think this question separates business men from small time operators. Just look at the answers giving.

I would spend $20k to outfit other rig including truck. And then another $40k on advertising over the course of one year.
Posted via Mobile Device

mdlwn1
05-07-2011, 04:05 PM
advertising. the rest will come with the extra income.

Ya beat me too it. Spend as much as you could on effective marketing/advertising (assuming you know the rest of the business), finance the equipment and cashflow needs letting the revenue pay for EVERYTHING. The average LCO doesn't realize that ANY mower can cut well and ANY truck will get you there. We always get a chuckle out of the brand new 40k pick up trucks with leather seats pulling mowers that cut grass for 30 bucks.

Patriot Services
05-07-2011, 05:22 PM
Ya beat me too it. Spend as much as you could on effective marketing/advertising (assuming you know the rest of the business), finance the equipment and cashflow needs letting the revenue pay for EVERYTHING. The average LCO doesn't realize that ANY mower can cut well and ANY truck will get you there. We always get a chuckle out of the brand new 40k pick up trucks with leather seats pulling mowers that cut grass for 30 bucks.

All wrong. Big shiny dually with a 20' enclosed with matching rims. The biggest, fastest, highest hp equipment. People will feel privledged just to have you park in front of their house. You can be the hero at the gas station every morning.
Posted via Mobile Device

Angelo585
05-07-2011, 05:34 PM
I think this question separates business men from small time operators. Just look at the answers giving.
Posted via Mobile Device

and there my friends you have it.... the whole point of the question was to separate the serious businessmen from the small time operator. Willretire, you win the prize... lol!

Marketing will help grow the business to the point that the investment will return with the growth, Good equipment is important but the right equipment is most important. The guys buying the new $50k super duty's new trailer and new mowers then spending a few grand on marketing will look good but will soon be having a fire sale to get rid of all that nice new stuff, where as the guy that may upgrade some equipment, maybe buy a newer used truck and market the crap out of his business will grow and increase revenue as a result and eventually get a return on the investment.... Good discussion guys! Keep it going!

capetrees
05-07-2011, 09:24 PM
I'm sorry but I don't waste much time wondering what I would do with something I ain't got,
it might be a different story if I had say 90 thousand but the simple fact is I don't got 5 g's so
why on earth would I spend my time thinking about what I would do with an amount of money
that I'll be lucky to see by the time I retire.

You probably would have a lot more than 5Gs if you stop wasting your time posting in here 20,000 times in 6 years.

mdlwn1
05-08-2011, 08:12 AM
All wrong. Big shiny dually with a 20' enclosed with matching rims. The biggest, fastest, highest hp equipment. People will feel privledged just to have you park in front of their house. You can be the hero at the gas station every morning.
Posted via Mobile Device

Lmao at this.....GITERDUN you gas station hero!

MOturkey
05-08-2011, 10:21 AM
LOL... only problem is the bank interest rates are so low that you would not make any money on your money and would probably blow through it in no time, then you would have to replace all those accounts you got rid of.

When you think about it, 100k seems like alot of money but it really is not, It may allow the average person to live 2 years or so without work and be flat broke at the end or be a nice catalyst to expand/start a business or just be play money for the guy that is big enough and does not need to grow.... so many possibilities....

Its interesting to see that alot of guys are talking advertising and marketing uses for the money. I believe that is where it is best spent and the biggest return on investment seen for the established or beginning guy.....

You are right. The only difference is, I'm drawing a pension, and am two years away from drawing Social Security, so $100,000 would last me a lot longer than a couple of years. :)

Kelly's Landscaping
05-08-2011, 10:42 AM
Ok so 40k is in the bank then id have the borrow some from that bank add it with the 60k and finally break ground and build my news shop on my land. There were no rules about using it as collateral.

Angelo585
05-08-2011, 10:47 AM
Ok so 40k is in the bank then id have the borrow some from that bank add it with the 60k and finally break ground and build my news shop on my land. There were no rules about using it as collateral.

Best answer yet!!! I always figured that when the right piece of land in the right location came along, I would buy it and build a nice steel building on it and stop renting my shop..... then when I am ready to retire sell the land to a developer to build on it.... kind of like money in the bank!

cub man
05-08-2011, 01:09 PM
pay off the house that would give me a huge monthly raise right their with no extra effort on my part or risking it on advertising or buying new equipment that goes down in value

Angelo585
05-08-2011, 02:33 PM
I wish there was a "LIKE" button like on Facebook... lol!!

Jay Ray
05-08-2011, 02:50 PM
pay off the house that would give me a huge monthly raise right their with no extra effort on my part or risking it on advertising or buying new equipment that goes down in value

That was once a safe and solid bet. But during the turmoil of the TARPS the big banks were using their robo-signers to take houses away from people who had paid them off. Maybe they are still doing it, idk. Banksters have no scruples at all these days.

Patriot Services
05-08-2011, 04:04 PM
From the latest version of Merriam-Webster.


Definition of AIN'T
1: am not : are not : is not
2: have not : has not
3: do not : does not : did not —used in some varieties of Black English
Usage Discussion of AIN'T
Although widely disapproved as nonstandard and more common in the habitual speech of the less educated, ain't in senses 1 and 2 is flourishing in American English. It is used in both speech and writing to catch attention and to gain emphasis <the wackiness of movies, once so deliciously amusing, ain't funny anymore — Richard Schickel> <I am telling you—there ain't going to be any blackmail — R. M. Nixon>. It is used especially in journalistic prose as part of a consistently informal style <the creative process ain't easy — Mike Royko>. This informal ain't is commonly distinguished from habitual ain't by its frequent occurrence in fixed constructions and phrases <well—class it ain't — Cleveland Amory> <for money? say it ain't so, Jimmy! — Andy Rooney> <you ain't seen nothing yet> <that ain't hay> <two out of three ain't bad> <if it ain't broke, don't fix it>. In fiction ain't is used for purposes of characterization; in familiar correspondence it tends to be the mark of a warm personal friendship. It is also used for metrical reasons in popular songs <Ain't She Sweet> <It Ain't Necessarily So>. Our evidence shows British use to be much the same as American.
Examples of AIN'T
It's a free country, ain't it?
Those people ain't got a clue.
Her husband left and she ain't never been the same.

Informal or widely diapproved it is still a word in the english language.

Now let's debate over how "LOL" was admitted.

Patriot Services
05-08-2011, 04:53 PM
Angelo- you really didn't elaborate on what your other contractor buddies wanted to do. :usflag:

Angelo585
05-08-2011, 07:05 PM
WOW... went out to dinner and a whole page of posts get deleted.... albeit off topic debate on the use of "ain't" any who.....

@Patriot.. here is what my buddies said...

1. new to business landscaper, Buy a new truck/ trailer 3 Wright standers and new blowers,trimmers, etc. then go out and get the work to support the new equipment.

2. existing lawn mowing guy: advertise heavily, replace 2 machines, get a shop to move out of his garage.

3. existing Landscaper, buy a descent skid steer and begin bidding more hardscape work.

4. Paint contractor: take a vacation and buy a restored muscle car...

5. home remodeling contractor: advertise, advertise, advertise or maybe build a spec house.

6. road contractor, pay off loans on back hoe and dump.

7. me: market (advertise) replace my oldest equipment, add another plow truck to the fleet, possibly buy some more plow boxes for large parking lots or buy a nice piece of land to throw a building on.

Zak's Pro. Lawn Care
05-08-2011, 08:17 PM
I would bank the 40k for backup. take the remaining 60k and buy a little land in a central location to the majority of my accounts and build a nice pool barn that is large enough to hold 6-8 cars, build an office etc. in it. then if there was any money left i would update equipment :)

Angelo585
05-08-2011, 08:33 PM
I would bank the 40k for backup. take the remaining 60k and buy a little land in a central location to the majority of my accounts and build a nice pool barn that is large enough to hold 6-8 cars, build an office etc. in it. then if there was any money left i would update equipment :)

Like.....!

deerewashed
05-08-2011, 09:10 PM
I have been composing a check list for a few months now as to wear i want to be as soon as i get out of college, it was longer than this but i took some things out that i have and some things that arent as important. if i had to spend 100k on my business right now instead of over the next few years here is how i would do it:

advertising-$5000
2006 black chevy 3500 reg cab 9 foot mason dump, DURAMAX!!!-$30,000
diamond plate side extensions-$500
8.5 fisher ss extreme v plow-$5500
buyers 2.3 yard spreader-$3500
underbody toolboxes-$500
diamond plate leaf box-$850
18' open trailer with side gate and front half high sides-$5500
61" bobcat predator pro-$10000
peco 15cu. ft. bagger-$2500
jrco 60" dethatcher-$500
(2)48" bobcat z control hydro mower-10,500
(2) velke x2-$600
(2) accelerator 4.15 baggers-$800
jrco 48" dethatcher-$450
jrco 60" leaf plow-$400
36" bobcat z control hydro mower-$4000
velke x2-$300
bluebird bed bug edger-$2000
billy goat dethatcher-$1500
18hp frandan leaf loader-$3500
(2) frandan sp 18hp blowers-$5000
(3) redmax ebz8500 bp blower-$1500
(2) redmax bcz2460s trimmer-$600
redmax exz2401s long reach hedge trimmer-$550
redmax hez2610f edger-$390
(2) redmax chtz2401 24" hedge trimmer-$960
18" husqvarna chainsaw-$600
12" redmax top handle chainsaw-$300
(2) earthway 100lbs spreader-$700
(3) 10cu. ft wheelbarrows-$500
nursery tree cart-$350
assorted hand tools-$500

deerewashed
05-08-2011, 09:16 PM
let me just say you save 3 to 4 grand on bobcat compared to exmark, the cut is just as good and the machines themselves go 2 mph faster than exmark. i got quoted a 29hp 61" lazer z for 12,500, a 37hp 61" bobcat cost 9800....bobcat makes so much more sense.....

tjjn06
05-08-2011, 09:51 PM
let me just say you save 3 to 4 grand on bobcat compared to exmark, the cut is just as good and the machines themselves go 2 mph faster than exmark. i got quoted a 29hp 61" lazer z for 12,500, a 37hp 61" bobcat cost 9800....bobcat makes so much more sense.....

Makes so much more sense.... until the Bobcats start breaking down. Have three (one with just over 100 hours), services every 50 hours, and had preseason services (well cared for machines). So far, spent over 2500 in repairs, and one is back in the dealer.

There great for secondary or backup machines. Most certainly not primary though. As far as quality of cut. They are no where near as good as exmark or scags velocity decks.

However, if you are a small outfit or just starting out and are not running them 12 hours a day for at least 3 days a week, you couldn't go wrong. They are a good value.

Angelo585
05-08-2011, 09:56 PM
right from the beginning I did Wright Standers and if I had to do it again, it would be the same thing.... Through the years I have used Scags, Exmarks, Walkers, and Bobcats but none hold a candle to the Standers.

deerewashed
05-08-2011, 10:39 PM
what about on hills?

also maybe when they were smaller it was better but i own a 90's bobcat and it runs like a top, just bought another wb!
one thing....i wish they made the hydro wb go 8 mph like they used too.
I have always been stuck between buying bobcat and exmark, i have always gone bobcat, i dont know why but i like them and i think the cut is great! also i am iffy on the new tthp or tt s series.
i will be over 100k but what the hell change mine over to all exmark!

tjjn06
05-08-2011, 11:07 PM
what about on hills?

also maybe when they were smaller it was better but i own a 90's bobcat and it runs like a top, just bought another wb!
one thing....i wish they made the hydro wb go 8 mph like they used too.
I have always been stuck between buying bobcat and exmark, i have always gone bobcat, i dont know why but i like them and i think the cut is great! also i am iffy on the new tthp or tt s series.
i will be over 100k but what the hell change mine over to all exmark!

I have not tried the new 2011 deck design, so if you got a new one, I can't comment on that. If your having luck with Bobcat, by all means stay with them. Like I said, they are a good value.

eXmarks are also time tested and proven. I also don't have experience with any of them except Lazer Zs. One thing that the eXmark has over the Bobcat is the Ultra Cut decks are far and above better than the Bobcat's (again not including the new 2011).

Lugnut
05-08-2011, 11:58 PM
Buy a nice used skidsteer 20K put 30K towards building a shop, save 50K

Mickhippy
05-09-2011, 01:10 AM
Upgrade all equipment that I REALLY NEEDED to, including truck n trailer. Mowing is my job so dependable equipment is paramount, same as vehicle. Would not buy expensive new truck but would want a pro image. Would only buy spreaders etc if really necessary and over time.

Pay off all business related bills, insurances, phone etc for 12 mths.

Most definitely spend as much as needed on advertising/marketing. New pro website, google adwords, yellow pages, flyers, newspapers and maybe even a couple radio adds depending on cost.

If paying off home I would pay about 12mths worth or repayments.
If renting I would look at buying own property. If not possible would pay 6-12mths worth of rent.

I would also spend some on my partner and I for the greater good. Maybe a small holiday or something.

Most important thing is for this guy not to loose his head. Its easy to blow that sort of money. A new TV, spa, golf clubs, computers, guitars etc all add up very quickly. $100k is a great stepping stone to a better, less stressful life. He/they just needs to manage it well!