Originally Posted by White Gardens
Cash is all a mentality, a habit, and discipline.
In the Bible, "The Debtor is a slave to the lender."
I always pay my suppliers the day I pick something up.
So, we run on cash. I only have one truck payment and that will be done with a nice lump sum payment at the end of the year.
I always buy used, work trucks and equipment get used and abused. If your buying new and trying to keep stuff pristine, then your just wasting time in your life.
I also work on all of our equipment. Occasionally I will take something to get worked on if I just don't have the time to do it, or if it will take more time for me to fool with it compared to the money I could be making.
The bible coincides with my saying that I write on this forum "all you're doing is working for the banks".
I will usually work my finances so that I do not have more than one loan at a time. I am that guy that had multiple loans out at once, that was way way way before the recession. Had I had all those loans during the recession I would have lost everything, guaranteed. About 6 months ago I had a customer say to me "wow you survived the recession, that's impressive", my response was "that's only because my equipment is paid for and I don't have a desk drawer full of payment books".
I also pay for all materials on the spot. I don't have a single account opened anywhere. I'm a demanding customer, sometimes I need to remind my suppliers "hey, I buy this and that from you and I pay on the spot, if you can't meet my demands then someone else will appreciate my cash.
I too do my own repairs and maintenance. You save a bundle right there.
But reality is hardscapes is a cut throat business. It's very hard to have the extra money to be able to buy equipment and pay cash. This is the first year I have been able to do so. But I had to make some changes. The recession was terrible for me, there were a few nights during the winter where my kid had to eat peanut butter and jelly for dinner because we had no money to buy real meals. And in the end, the recession turned my life around for the better, it forced me to try new ideas, and they're working! In maybe 4 or 5 years I may share my story on here, sharing everything starting with the bad to the good.
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