The Green Industry's Resource Center

Fwilamosky · #31 10-11-2012, 07:25 PM

i was in the same boat last year and being 18 i only have some many options, most mowers you can find great deals on right now being the season is almost over (here in ohio)...i got a brand new bobcat procat for 0 down 0% interest for 48 months

cpllawncare · #32 10-11-2012, 07:58 PM

Quote:

Originally Posted by Greg78

And that is being "legit"...... I bet his guys enjoy when they go in for tax time and find out they are responsible for all the witholdings....

I don't see a problem with this practice as long as you are honest and inform your guys of exactly what a 1099 means to them. They are responsible for their own taxes what's wrong with that? I've been on both sides of the fence.

Greg78 · #33 10-11-2012, 08:06 PM

Quote:

Originally Posted by cpllawncare

I don't see a problem with this practice as long as you are honest and inform your guys of exactly what a 1099 means to them. They are responsible for their own taxes what's wrong with that? I've been on both sides of the fence.

Really.... You don't 1099 employees. If your an independent contractor then yes 1099.

http://www.irs.gov/Businesses/Small-...or-Employee%3F

32vld · #34 10-11-2012, 08:10 PM

Quote:

Originally Posted by KS_Grasscutter

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.

You make getting customers is just putting out some flyers, etc, and customers will knock down doors to hire an LCO.

Seems there are more people here struggling to grow then their are people having their doors knocked down.

Obama gets reelected, economy gets worse then in 2007. He loses most of his up sell work. Instead of aerateing spring, weed and feed 5 time, slit seed fall, trim hedges, mulch beds, mow, edge, blow. 1/4 of his customers don't cust back, 1/2 his customers cut back to just mow blow and go, 1/4 of his customers can't afford him.

Now that extra $250 is no longer there.

32vld · #35 10-11-2012, 08:38 PM

Quote:

Originally Posted by phillie

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.

You are confusing need with want.

You do not need to grow that fast. You chose to grow that fast.

Truely wish you well.

Another point of view most people here are on there 1 truck 1 crew. This 1 truck and 1 crew has to shoulder the burden alone to generate the income to expand to the 2nd truck/crew.

Taking a big risk.

Now having 10 trucks/crews going into debt to add that 11th truck/crew the risk is spread out.

Now a small risk.

Why spend your cash when you can get 0% loan?

Get a loan when if you lose 5% of your business you won't be able to make payments is not smart.

Get a loan and if you lose 20% of your business you can still pay the loan with no problem makes sense if your need to make a purchase and can't wait to pay cash.

People forget when Donald Trump was going bankrupt it was the time he was getting a divorce from wife 1#. He had a yacht. He stopped paying the loan. I think the boat loan was for 27 million. Point was Trump told the bank that he not only was defaulting on the loan he was no longer keeping the insurance on the boat.

You what the bank did?

They paid the insurance premiums on the yacht till the boat got sold. Trump was so deep into the banks he bent them over.

We are not in Trump's league. We get in trouble the banks are going to bend us and not even use any lube.

Many have started their lawn business for many reasons. One is I got tired of getting laid off.

Well you mess up with debt you will be laying yourself off.

Spring Valley Lawn Service · #36 10-11-2012, 08:46 PM

A person buys a 2550 hundred dollar mower. Motor goes out. Or the electric. Clutch. Don't look at interest on the cheap or zero percent interest rates. Look at it as insurance. My 660 in interest can be considered an extended warranty. My mower has 1200 hrs and 2 year warranty on mower.
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phillie · #37 10-11-2012, 08:51 PM

Quote:

Originally Posted by 32vld

You are confusing need with want.

You do not need to grow that fast. You chose to grow that fast.

Truely wish you well.

You are right, I do not need to grow that fast. I am the type of person that when opportunity knocks I explore the option. I currently do not mow lawns. If I continue to do only fert/squirt, plowing, and landscaping I wouldn't see much profit but would be billing almost $400k worth of work. Like I said, I was cash only for equipment for a long time. I have these contracts for 3 yrs and can easily pay off the equipment within a year or 2 tops and it will open up more cash flow. I guess Im just pointing out that there are times to use credit and times not to. Thanks for the good wishes, and I wish the best for you also.