The Green Industry's Resource Center

Southern Heritage · #21 10-11-2012, 05:11 AM

Quote:

Originally Posted by KS_Grasscutter

Paying cash for everything sounds well and good. But personally, I leverage the hell out of every cent. I have more debt then I'm proud to admit to, but I haven't missed a payment so it must be working out. For example. Joe Lawn Care Guy brings in 3k a month mowing grass. Joe can bring in 6k a month if he buys a 60" zero turn to use on an account he was just offered. Joe waits to buy the mower, pays cash. Doesn't get the account obviously since he waited, then the transmission goes out in his truck and he can't fix it cuz he used his cash on his mower. Mark Lawn Care Owner financed a Walker Super B when he picked up the account Joe passed on. His transmission also went out. He paid cash to fix it, because he still had his cash in the bank, at the cost of .99 or 2.99 percent on the mower. Mark then buys out Joes business since Joe couldn't fix his truck. And since all storied have happy endings, Joe gets to mow the fancy uber high end office complex account, with a brand new 60 zero turn... Since he now works for Mark. Don't be Joe. Finance a mower, make money, pay it off.
Posted via Mobile Device

Bravo that's freakin awsome

32vld · #22 10-11-2012, 08:43 AM

Quote:

Originally Posted by KS_Grasscutter

Joe Lawn Care Guy brings in 3k a month mowing grass. Joe can bring in 6k a month if he buys a 60" zero turn to use on an account he was just offered. Joe waits to buy the mower, pays cash. Doesn't get the account obviously since he waited, then the transmission goes out in his truck and he can't fix it cuz he used his cash on his mower. Mark Lawn Care Owner financed a Walker Super B when he picked up the account Joe passed on. His transmission also went out. He paid cash to fix it, because he still had his cash in the bank, at the cost of .99 or 2.99 percent on the mower. Mark then buys out Joes business since Joe couldn't fix his truck. And since all storied have happy endings, Joe gets to mow the fancy uber high end office complex account, with a brand new 60 zero turn... Since he now works for Mark. Don't be Joe. Finance a mower, make money, pay it off.
Posted via Mobile Device

Joe is out of business not because he waited to buy a mower. Joe's out of business because he did not take that job when offered and use what equipment he had. If he had to work longer days, so be it.

Now Joe could of went out and bought that new 60 mower as you strongly advised him to and be on the account a month and through no fault of his own lose that account. He's made 1 payment on a 48 month loan with 47 more payments to go and no way to make them. Bank goes to court, sheriff auctions off Joe's assets.

Joe is now out of business, out of assets, and out on his ass following your business model.

KS_Grasscutter · #23 10-11-2012, 09:16 AM

Quote:

Originally Posted by 32vld

Joe is out of business not because he waited to buy a mower. Joe's out of business because he did not take that job when offered and use what equipment he had. If he had to work longer days, so be it.

Now Joe could of went out and bought that new 60 mower as you strongly advised him to and be on the account a month and through no fault of his own lose that account. He's made 1 payment on a 48 month loan with 47 more payments to go and no way to make them. Bank goes to court, sheriff auctions off Joe's assets.

Joe is now out of business, out of assets, and out on his ass following your business model.

Wrong. He already brings in 3k a month from his other accounts. He can make the $250 payment out of that. Sure, he might get hungry, but that will provide an incentive to go out and get more lawns. Pass out some door hangers, put an add in the paper, etc.

herler · #24 10-11-2012, 09:18 AM

It is difficult, I struggle with what you speak of on an almost daily basis, like you say, always watching these folks with all their brand new things...
My truck has dents in it, the paint is faded and scratched, rust so bad we have to consider welding steel over the holes, and it's only 17 years old so you get the picture.

But you know what, I don't have a monthly payment on anything and I've been in this business for north of 10 years now.
Then I have seen first hand with these people and their shiny stuff, they never have any money and they're always borrowing from one end to pay off the other, how they manage to get one more loan is a bit far off for me but what I do know is I don't think I want to live that way, either.

Then I remember...
Debt always looks pretty from the outside.
Now I know what they mean when they say "she sure looks pretty"

And if your business were to go belly up, not that it would but in the unlikely event that it did, at least it's still ALL yours.

Quote:

Originally Posted by jsslawncare

You never use credit in this industry. 30 accounts today, 3 tomorrow. Cash is king.

We has a winner!

Same with those Lco's, 30 shiny trucks today, 27 repossesed by the end of the month.

jsslawncare · #25 10-11-2012, 10:11 AM

Quote:

Originally Posted by PerfectEarth

LOL

Don't listen to this.

I've said it before, I'll say it again- intelligent equipment purchases that make your business money, and are financed at low rates, can save you SIGNIFICANT money come tax time (4 times a year for those of us who run legit...) while helping you grow.

That's why business loans are available. Cash flow, people.

I couldn't agree more. I just bought a new Z. 0 down and no payments until Apr 2013, How could you not afford to buy it.
BUT, most don't have the customer base, or a plan. They want to know what everyone else would do that don't know anything about their area, customer base or anything else about them.
You have to be smart with money and you have to admit must of us are not.
And if that was a shot at me not being "legit"- I 1099 everyone that works with me, do you? (well except my son, but he's 15)

JB1 · #26 10-11-2012, 10:20 AM

oh how i love to read all these doom and gloom stories from the experts on finance.

phillie · #27 10-11-2012, 03:11 PM

Quote:

Originally Posted by JB1

oh how i love to read all these doom and gloom stories from the experts on finance.

No doubt! I have been paying cash for the 3 yrs I have been in business. This winter I need to add another truck with plow and vbox spreader, dump trailer, 2 60'' mowers, a 36", a 21", blowers, trimmers, etc. I have landed a bunch of commercial accounts which will pay off this winter and next year but not until then. There is no way I could pay cash for all of this equipment and still pay bills and keep up and running.

nepatsfan · #28 10-11-2012, 05:51 PM

Quote:

Originally Posted by jsslawncare

I couldn't agree more. I just bought a new Z. 0 down and no payments until Apr 2013, How could you not afford to buy it.
BUT, most don't have the customer base, or a plan. They want to know what everyone else would do that don't know anything about their area, customer base or anything else about them.
You have to be smart with money and you have to admit must of us are not.
And if that was a shot at me not being "legit"- I 1099 everyone that works with me, do you? (well except my son, but he's 15)

you 1099 the guys that work for you?