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  #21  
Old 06-18-2012, 09:06 AM
Jimslawncareservice Jimslawncareservice is online now
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Quote:
Originally Posted by yardguy28 View Post
I must be weird. I've had no less than $20,000 in the business account at all times for at least the last 3 years.

it's not good business practice or personal for that matter to let things run dry working pay check to pay check.
Now I know who's bank account to hack!! J/k

It sucks pay check to pay check. It happens to a lot at one time or another.
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  #22  
Old 06-18-2012, 09:34 AM
yardguy28 yardguy28 is offline
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I'm just surprised at how many seem to run there businesses that way. it's one thing to run your personal life that way but when your running a business with employees you need to be smarter than that.

personal or business you should always have something saved up, a cushion to fall back on.

unfortunately too many in this day and age seem to prefer to live above there means. those video games, movies, starbucks coffees are more important than saving for retirement or saving period.
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  #23  
Old 06-18-2012, 01:11 PM
Duekster Duekster is offline
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Originally Posted by yardguy28 View Post
I'm just surprised at how many seem to run there businesses that way. it's one thing to run your personal life that way but when your running a business with employees you need to be smarter than that.

personal or business you should always have something saved up, a cushion to fall back on.

unfortunately too many in this day and age seem to prefer to live above there means. those video games, movies, starbucks coffees are more important than saving for retirement or saving period.
Buying materials for jobs and having some float.
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  #24  
Old 06-18-2012, 04:01 PM
yardguy28 yardguy28 is offline
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doesn't matter what your spending the business money on. you should never be emptying out the business account. there should always be a certain amount or more in it.
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  #25  
Old 06-18-2012, 05:07 PM
Duekster Duekster is offline
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Quote:
Originally Posted by yardguy28 View Post
doesn't matter what your spending the business money on. you should never be emptying out the business account. there should always be a certain amount or more in it.
Takes money to make money and I will spend it in a heart beat on the right job.
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  #26  
Old 06-18-2012, 05:23 PM
Mark Oomkes Mark Oomkes is offline
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Originally Posted by Duekster View Post
I am going to suggest that perhaps you actually have a revenue problem which is made worse by cash flow.

If the revenue is there, you should be able to hit a rhythm even with the 30 to 60 day lag in cash flow.
Good suggestion. And definitely some truth to it.

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Originally Posted by fastlane View Post
Why is it that a lot of " lawn care " companies think they should have instant access to their money? Do you you not have a minimum 3 month working capital like most business plans suggest? I do understand " I did the work I'm entitled to the money " If this is a business do you have a business plan?
Because they aren't charging enough to begin with so they think cash flow is going to solve their problems.

Then you have idiots like John Allin spouting BS to the same effect. Cash flow is more important than profit. But we all know where he ended up, but he didn't have cash flow or profit.

No doubt that cash flow is VERY important. And at times it can be more important than profit. But not all the time.

Quote:
Originally Posted by easy-lift guy View Post
My contract had all of my accounts pay in advance for year round service. If my account was 5 days late I would call and remind them they were past due. If any customers had issues with my terms, they new all other Landscape maintenance firms had the same terms. At least that is how I trained my accounts, it worked fine for me.
easy-lift guy
That's the way mine work. But I don't charge per cut. All contracted services are charged at the beginning of the month in which they will be performed. Just like insurance, phone, etc. Extra charges go out at the end of the month, or when finished.

Quote:
Originally Posted by Mountain Peak View Post
I had that problem when I first started out. Turns out I wasn't charging enough, my margins weren't good enough to cover the lag. I also had a few customers that took their time to pay.
Get rid of those customers. Keep the ones that pay you the same day they get the bill. I don't tolerate slow or late payers anymore.
Raise the pricing for those slow customers and see what they do.
Good advice right here. Listen good.
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  #27  
Old 06-18-2012, 05:37 PM
Duekster Duekster is offline
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Cash flow is King but without profits, your cash flow will be negitive.
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  #28  
Old 06-18-2012, 06:27 PM
yardguy28 yardguy28 is offline
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Quote:
Originally Posted by Duekster View Post
Takes money to make money and I will spend it in a heart beat on the right job.
yes but i wouldn't empty or go below a certain amount in my business accounts for anything. just like i wouldn't empty or go below a certain amount in my person accounts for anything.

your type of thinking is part of why the US is in the shape it is in. people spend, spend, spend, thinking the money will come in for it later. when it should be reverse. if you don't have the money to back what your buying then don't buy it.

i pay my credit card off every single month. if i don't have the money to back what i'm buying i don't buy it. regardless of the fact that i could put it on the credit card and then come up with the money later.

i spend and live below my means. if the money isn't in the bank to back a purchase i do with out it. and i don't let my accounts go below a certain amount for anything. so if i have $20,000 in the bank and my limit is to keep no less than $10,000 in the bank i'm not gonna buy anything that costs a penny more than that $10,000.
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  #29  
Old 06-18-2012, 06:52 PM
Duekster Duekster is offline
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Quote:
Originally Posted by yardguy28 View Post
yes but i wouldn't empty or go below a certain amount in my business accounts for anything. just like i wouldn't empty or go below a certain amount in my person accounts for anything.

your type of thinking is part of why the US is in the shape it is in. people spend, spend, spend, thinking the money will come in for it later. when it should be reverse. if you don't have the money to back what your buying then don't buy it.

i pay my credit card off every single month. if i don't have the money to back what i'm buying i don't buy it. regardless of the fact that i could put it on the credit card and then come up with the money later.

i spend and live below my means. if the money isn't in the bank to back a purchase i do with out it. and i don't let my accounts go below a certain amount for anything. so if i have $20,000 in the bank and my limit is to keep no less than $10,000 in the bank i'm not gonna buy anything that costs a penny more than that $10,000.
My type of thinking? I think you have me confused with someone else.

On the other hand I am not some chicken little either. Operating capital is exactly that, money I can use to operate my business.

After doing my due diligence, I will spend it on materials that are to be sold to qualified clients.
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  #30  
Old 06-18-2012, 10:15 PM
yardguy28 yardguy28 is offline
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I'm not trying to be personal or direct my statement directly at you.

but I'm sticking by how I manage my money. and that's keeping a min amount in all my accounts at all times and NEVER going below that amount. whether its business or personal.

I could go a whole year or better and never "need" to receive a cent from a single client.
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