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Old 01-13-2013, 11:20 AM
djagusch djagusch is offline
LawnSite Gold Member
Join Date: Mar 2006
Location: MN
Posts: 3,985
Just had a class on this by the van koolie guy that has some books out etc. His number was 20% growth was healthy any more you start having cash flow issues due to buying equipment, etc. He has a hardscape/construction background.

Another number I found interesting is to have 10% of expected sales in cash and another 10% in a loc or cash. Another words if you do $300k a year in sales you should $60k laying around otherwise cash flow issues arise.

I personally did 20% growth 5 yrs straight and 110% growth this year (buying a biz). I'm 98% maintence lawn and snow. Never had major cash flow issues but money was tight at times. I think this was mostly due to being heavy maintence and the size of the company.

If your growing its going to be hard to save. If you want to save or reduce debt just stay your size for a couple years to ready yourself for more growth.
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