Debt Free business

[205mx]

Originally Posted by JB1

Your right but it is pretty entertaining reading.

Right except I'm 22. Married. $170,000 house. 3 week old son. 43 accounts. Own a home in the wealthiest county in Tennessee and 17th wealthiest in the nation. My wife and I support this at our age without family assistance. Even with my son. Jesus some of y'all are dicks
I live 350 miles from any family. It's tough sometimes but I moved to an area with a better economy for the better.

100% of business vehicle repossessions happen to vehicles that have a 'note' on them.
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[205mx]

Originally Posted by dlandscaping

There should of been an extra few words in the title of this thread. It should have said those with a business operation with employees and did you or how did you use debt to grow your business. This site has been completely over run with weekend warriors and high school kids who "pay cash for my used mower." In order to grow in this industry where profit margins are relatively small one usually has to borrow. There is a balancing act between how much debt one can incur and how much is needed to grow. Why respond to a thread about using debt in your business if you are in highschool and dont have any credit?

Muddy runs 4 crews without debt. So what are talking about?
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[JB1]

Originally Posted by 205mx

Right except I'm 22. Married. $170,000 house. 3 week old son. 43 accounts. Own a home in the wealthiest county in Tennessee and 17th wealthiest in the nation. My wife and I support this at our age without family assistance. Even with my son. Jesus some of y'all are dicks
I live 350 miles from any family. It's tough sometimes but I moved to an area with a better economy for the better.

100% of business vehicle repossessions happen to vehicles that have a 'note' on them.
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Well you are doing pretty good then to have all that and be debt free.

[205mx]

Originally Posted by JB1

Well you are doing pretty good then to have all that and be debt free.

I owe 137 on the house so not all debt free.

But yes all else. Completely debt free. I've just been paying attention since I turned 20. Reading a lot of finance books. And avoiding the mistakes I've seen my father make

We have two vehicles. I have a 2003 Chevy 2500 for work. My wife has a 2004 F150. It can serve as a back up if my truck has an issue. I'm currently saving for a landscape truck which I have projections to purchase at the end of 2014.

The f150 is worth about 12,000
My truck is worth about 10,000. (beat up a little more from work)

We just save up and buy with cash. She started with a little ole Hyundai and I started with a $1200 dodge Dakota.

So it is insulting when yall say it's entertaining when I'm working as hard as I can to provide my family a great income and stability of a lifestyle with minimal payment liabilities.

On one hand you say that I'm doing pretty good, then I share my experiences and what I've been doing on an opinion forum, and get blasted as some fly by night meat head.
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[205mx]

Understand that I'm not saying its bad or wrong of anyone to use debt to help them grow.
But the other side of it is that you are blasting me for choosing not to use debt.

The way I see it there are 4 groups

1) companies who use debt and fail because of the high volume of payment liabilities

2).*companies that use debt as a tool and properly grow their business. While using a moderate level of risk they are able to grow at a somewhat accelerated rate.

3) companies who don't have credit thus don't borrow. They then claim the cash only theory

4) those who choose not to use debt to limit risk

It's very similar to the Stick edger vs trimmer debate ;-)
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[weeze]

Originally Posted by JimMarshall

My mowing trucks average 20-25 thousand miles a yr, all of it pulling several thousand lbs. that is absolutely an environment that is suited for a diesel.

my truck can pull up to 6000lbs. a ztr mower and trailer only weigh about 2000lbs. my truck is 4cyl. there's no need for any more power.

as far as mileage well you know how long toyotas last so no need to defend that. 500k miles easy.

[KS_Grasscutter]

Originally Posted by JasonsLawnCare1

my truck can pull up to 6000lbs. a ztr mower and trailer only weigh about 2000lbs. my truck is 4cyl. there's no need for any more power.

as far as mileage well you know how long toyotas last so no need to defend that. 500k miles easy.

I beg to differ. I mow 10+ yards a day, they all get bagged, in the spring I haul over a ton (a real ton, not just "a whole bunch") of grass clippings to the landfill daily. I drag around a 16' trailer with a few mowers on it. Find a way for me to do that efficiently with a 4 cyl and I will buy one.

[weeze]

are you solo? do you really need 2 large mowers? i carry 2 mowers rarely but they are a ztr and a 21" pushmower. why such a big trailer if you are solo? i never bag grass. a ton i could still pull if i needed to.

i think you aren't solo so what i do doesn't apply to a non solo company.

if you are solo i would get a smaller trailer and dump grass clippings on site and get rid of all the dead weight. here you can put grass clippings on the curb and the city will pick it up for free. i never mess with bagging though.

[KS_Grasscutter]

Originally Posted by JasonsLawnCare1

are you solo? do you really need 2 large mowers? i carry 2 mowers rarely but they are a ztr and a 21" pushmower. why such a big trailer if you are solo? i never bag grass. a ton i could still pull if i needed to.

i think you aren't solo so what i do doesn't apply to a non solo company.

if you are solo i would get a smaller trailer and dump grass clippings on site and get rid of all the dead weight. here you can put grass clippings on the curb and the city will pick it up for free. i never mess with bagging though.

Yes I am solo, all mowers are necessary due to varying sizes and types of lawns. No where to dump onsite, if I dumped on the curb I would probably be arrested lol. If I didn't mess with bagging at all I would lose 3/4 of my customers.

As for being debt free, no. I owe on a couple items, and plan to continue financing 2 items at a time until I have built up the cash flow necessary to pay cash for everything I want. I would prefer to pay cash for everything but unfortunately that does not work for me at this point.

[205mx]

Originally Posted by KS_Grasscutter

Yes I am solo, all mowers are necessary due to varying sizes and types of lawns. No where to dump onsite, if I dumped on the curb I would probably be arrested lol. If I didn't mess with bagging at all I would lose 3/4 of my customers.

As for being debt free, no. I owe on a couple items, and plan to continue financing 2 items at a time until I have built up the cash flow necessary to pay cash for everything I want. I would prefer to pay cash for everything but unfortunately that does not work for me at this point.

This is a good way to manage your debt amount. Budget the item in. Well done.

And Jason, I lay out a ton of mulch. (I service a fast food joint that requires a good amount twice a year) so I really do need a 3/4 ton. But that's NOT saying you do.
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