There is nothing totally wrong with using credit. There is nothing wrong with going all cash.
If you keep things in moderation and in control.
If you approach it in a smart manner, and realize the dangers.
Everything I have ever written on here in my "infamous threads" has not been preaching my way of doing things. Its been about opening other peoples eyes to common mistakes that creep up on you. They creep up on 90+% of businesses and thats why they fail.
I choose not to use credit, though by now with my experience I could do so in a smart way. Its my personal choice and it my business. I just like it that way.
I could grow faster with it, but there is something about money in the bank that I like better.
My whole set of threads a few years ago talked about the problem of business slowing down and bills staying the same. Thats a scary feeling.
There are so many temptations I have now in my new business and new area.
I used to have a big shop and a big office when I was doing the amount of business I have now. I want one bad right now. I rent a small fenced lot and a shipping container. My office doubles as my laundry room in my house.
I had a new truck every year for a personal truck. Now I drive primarily my 04 ranger.
I had a shiny fleet of newer trucks. Now I run mid 90's trucks.
But you know what? I am growing like crazy, I am sucking work up left and right and have a reputation that Im proud of.
My suppliers who didnt know me last year and would only take cash, I can sign for anything I want and I pay my bills in a day or two like clockwork. They treat me like a rockstar when I go in there.
I run my older fleet of trucks and the other contractors laugh with their big shiny new trucks. Yet, I am the most hated person in the business here. Because they keep hearing "Sorry, we awarded the contract to Joe"
Everything is relative.
I do high end work, complicated work, work that takes a lot of selling and convincing to get. Then my crew rolls in in our 90's equipment. And does a job that is picture perfect.
I dont think the year of my trucks had a thing to do with it. Theyre all lettered, all the same color, and no panels falling off. And I paid less for all my trucks combined then I paid for one new one years ago.
So I dont think we need to talk extremes. Its not a 2012 vs a 1978 rust bucket.
But nobody is going to look at my 1999 chevy or 1994 box truck or any of the others and say I need to go with the guy with the 2012.
Im up 1000% in business this year over last year (my first in my new area)
I moved here with some old equipment, no business, and no money. And trashed credit.
My way isnt the only way. I just like it. When Im making a presentation, customers dont know I operate out of my laundry room and a gravel lot.
But the end result of their job is what they see.
Ive done it all before. Now I run my business hard core simple. Money in, money out, bank profit, make a wishlist and save for it. Buy it once and own it.
I can sleep at night. I can make payroll every week. I get bills in the mail, I dont have to wait for the next check or use my credit line. I write checks right at the post office and stick them back in the mail.
After going through what I went through. Im loving this.