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  #221  
Old 03-12-2013, 09:37 PM
muddywater muddywater is offline
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[QUOTE=newguy123;4704021]
Quote:
Originally Posted by precisionlawnandlandscape View Post

My fault I was thinking of a different company...I think it was RiteAid or something.

Anyways Bed Bath & Beyond is a debt free company...it doesn't really matter.

My point wasn't to dismiss your logic, but to prove there are still large businesses that operate on a debt free strategy.
It happens no doubt, a company spent 250 mil cash on a factory we were bidding landscaping on last year.
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  #222  
Old 03-13-2013, 12:30 PM
precisionlawnandlandscape precisionlawnandlandscape is offline
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[QUOTE=muddywater;4704033]
Quote:
Originally Posted by newguy123 View Post

It happens no doubt, a company spent 250 mil cash on a factory we were bidding landscaping on last year.
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You are correct, it does happen occasionally. One thing that people don't realize is a lot of the times (and not saying it was in the case you described)what happens is companies either raise a lot of cash through investors, or they themselves are an investment company (using other peoples money). They are still using other peoples money, in exchange for a cut of the profits. It still essentially works the same, either borrow from bank and pay interest or borrow from investors and pay with % of company profits. In these cases it still costs you in the long run to get the money. This method has been becoming real popular in the Nascar racing world lately. When sponsorship dollars started drying up, teams went out and started bringing in investors instead of using there cash or savings up. I have seen 1st hand some downfalls to this method in the long run. When you borrow from the bank, for the most part they don't tell you how to run your business, as long as you make your payments on time. When you have investors, and they get their board of directors involved in your day to day operations, to keep their shareholders happy, your world becomes a nightmare. You might as well not be working for yourself anymore at that point.
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  #223  
Old 03-21-2013, 05:38 PM
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Blades Lawn Maintenance Blades Lawn Maintenance is offline
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"There is no such thing as failure. There are only results." – Tony Robbins


Enough Said...
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  #224  
Old 03-24-2013, 09:14 PM
recycledsole recycledsole is online now
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Location: MD
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boil down your needs. keep track of all personal and business expenses. live within your means
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  #225  
Old 03-24-2013, 09:37 PM
205mx 205mx is offline
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Quote:
Originally Posted by recycledsole View Post
boil down your needs. keep track of all personal and business expenses. live within your means
Wife gave birth to my boy over the off season.
I wasn't earning. And neither was she.

We have savings, but we tought ourselves how to budget.

It's been great. Can't wait till my season really starts.
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  #226  
Old 03-24-2013, 10:09 PM
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ringahding ringahding is offline
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Location: Stillwater, MN
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We are not DEBT FREE....we have taken on a certain amount of debt to build the businesses credit. This has actually made a huge difference in the growing process.
I can say my very first ever brand new anything Ford F350 is paid for. My brand new Toro G3/20' Enclosed Trailer and Chevy 3500 4-door will all be paid for before the end of this season.
Obviously there is a lot to be said for OWNING, I mean actually owning something.
I highly suggest those new to the biz, not to by everything BRAND NEW. If you can actually keep the business running past the five year mark, that will be the time to really consider it. Depending on how many accounts you have, budget, etc..
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  #227  
Old 03-25-2013, 09:07 PM
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cpllawncare cpllawncare is offline
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Join Date: Apr 2011
Location: Greenville, SC
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Ring,

We're in our fifth year and we're not debt free either, but I've set everything up to pay off a piece of equipt every year, I bought a new GS our third year which will be paid off this year and a another one this year which will be paid off next year or the year after depending on how business goes. It's really about properly managing your debt and cash flow and not going over board, fortunately our business has grown quite a bit, like you I took on some debt in order to grow the business, I've used it mostly for marketing purposes and it has paid off, when your taking hundreds and turning it into thousands each month it makes sense to use credit to do it.
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  #228  
Old 03-25-2013, 09:37 PM
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ed2hess ed2hess is offline
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Location: Austin Texas 78727
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you can borrow money at the lowest rates ever and people are talking about not taking advantage
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  #229  
Old 03-25-2013, 09:41 PM
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meets1 meets1 is offline
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Join Date: Feb 2004
Location: NW, Iowa
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I agree, you need debt but within reason. Everyone has a different take, different circumstances to which they evoled. I too will have all paid for this year. Over the last 5 years we have new 7 new trucks. Last one is paid in full in september 2013. All equipment is finally paid for which includes 5 new exmarks from a 1-2 years back, 2 new bobcats, etc. Accounting meeting this month, tax man said get things paid for this year but to offset any future taxed, time to think to add to fleet or change out some equipment. You gotta be planning for tomorrow because today already happened, your too late.
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  #230  
Old 03-25-2013, 09:50 PM
mrshelby mrshelby is offline
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Join Date: Mar 2013
Location: binghamton,new york
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I've been in business for the last 7 years debt free.I started out with mostly new equipment including a new 61 scag wildcat.My truck was used but in good shape.I invested about 20k for everything and am still using all of the same equipment including my truck.The key is to take very good care of your gear and buy the best that you can.Also be professional and do your work in the same manner.
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