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Old 12-24-2011, 01:04 PM
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gusbuster gusbuster is offline
LawnSite Bronze Member
Join Date: Mar 2000
Location: Sunny Northern California, San Francisco Bay Area
Posts: 1,841
Buy what your business can afford.

its better to have extra money to spend than spend all your money and not have it when you need it.

The only thing that I dis-agree with the previous poster is sometimes you have to finance. The trick is not to get something just because you think you need it, but you have a real use for it. Then the goal is to pay it off before it is due if possible without killing the bank so to speak.

For example,you have 6 clients. if you if a 2 clients with wide open places where you would get by with a 52 mower but won't be able to use on the 4 other but you could spend a little more on a hoyty poyty 48 mower where you can use them on all clients, be faster than the 52, and in the long run make out better.

but here's where financing makes since. You land another 3 contracts and you already see the potential for the 52 to be a better deal since this way you can do all 9 clients in one long day. I don't have the money up front but, I do have decent credit where I can put down a 25% down and pay it off in 24 months. By 4th month I have enough money to pay off the loan and I do. Now except for any mechanical problems, machine is pure profit.
J-LC Landscaping & Maintenance Gardening
C-27 CA. Contr# 770044
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