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  #61  
Old 07-18-2013, 12:52 AM
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RSK Property Maintenance RSK Property Maintenance is offline
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Originally Posted by RWI View Post
Is it really that bad of an idea to work toward?
no i just think i might take a few years, being a newer company there essentials to buy once they are paid for then i see no issue with that idea, it sounds like a really good idea. any company that is pricing stuff right, and that has self control, should be able to do that. maybe by their 3rd or 4th year i would think.
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  #62  
Old 07-18-2013, 05:57 AM
RWI RWI is offline
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Originally Posted by fastlane View Post
WOW! So for over 40 years I've been doing this wrong? I only keep 3 months of working capital (not gross) in the bank.
that's good, but I wouldn't be bragging about that. And if you have been doing this for 40 years and that is all you have to show for it......
  #63  
Old 07-18-2013, 05:58 AM
RWI RWI is offline
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Originally Posted by RSK Property Maintenance View Post
no i just think i might take a few years, being a newer company there essentials to buy once they are paid for then i see no issue with that idea, it sounds like a really good idea. any company that is pricing stuff right, and that has self control, should be able to do that. maybe by their 3rd or 4th year i would think.
it took me 10 years. and when you save money... you pay taxes. I could have bought another house with the taxes I had to pay.
  #64  
Old 07-18-2013, 08:12 AM
fastlane fastlane is offline
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Originally Posted by RWI View Post
that's good, but I wouldn't be bragging about that. And if you have been doing this for 40 years and that is all you have to show for it......
Do you not pay yourself and take the profit out of your business?
  #65  
Old 07-18-2013, 09:15 AM
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clydebusa clydebusa is offline
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Originally Posted by fastlane View Post
WOW! So for over 40 years I've been doing this wrong? I only keep 3 months of working capital (not gross) in the bank.
It has worked for you but in 2002 (August 2nd, couldn't be a worst time) I was in a vehicle accident that crushed my left leg and 5" of bone had to be fused and put back together. 16 weeks in bed and 6 months of rehab. 3 months of back to work and then broke my right foot getting out of bed of truck. If I only had 3 months in the bank I would of been sunk. Did have a good employee at the time that kept things half way running.
  #66  
Old 07-18-2013, 07:23 PM
RWI RWI is offline
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Do you not pay yourself and take the profit out of your business?
yes I am an s-corp and deduct my salary among many other things(I own my commercial building outright and I lease it to my business etc), but I still got nailed...
  #67  
Old 07-20-2013, 09:54 AM
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kc2006 kc2006 is offline
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Some of the stuff said in this thread cracks me up.

There's either alot of kids living with parents, guys who's wives make ALOT of money and pay all their personal bills (IE home/auto/utilities), or alot of people that don't grow much per year and hang on to equipment for 15-20 years and continually bandaid it to get by. Not saying there aren't some people that are debt free or can purchase equipment cash but geez EVERYONE on here is that way? Lawnsite must be only the smartest most business minded LCO's out there, because from what I've seen in the real world, LCO's are usually idiots that charge too little. The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

I just can't believe EVERYONE on here purchases their trucks and everything cash and never finance a thing, unless we're all running trucks for 20 years, mowers for 10-15 years, especially with the cost of equipment these days. I financed my mower, and paid it off in the first year just because I didn't want to be out 14k in one hit. I financed my new truck, but I was smart about it and bought a left over and got them 15K off msrp and will pay it off in a year and a half because it was only 20K. If for some reason I have to sell the truck guess what, they had 2 year old used trucks on the same lot for 7K more than I paid new, so I think I'm safe.

No debt is good debt, smart debt is acceptable, some debt is real life.
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  #68  
Old 07-20-2013, 10:34 AM
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Efficiency Efficiency is offline
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Quote:
Originally Posted by RWI View Post
yes I am an s-corp and deduct my salary among many other things(I own my commercial building outright and I lease it to my business etc), but I still got nailed...
Just for fun, what are your gross sales that you have half of in a bank?

Entrepreneurs know the term bootstrapping...
  #69  
Old 07-20-2013, 11:09 AM
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JB1 JB1 is online now
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Join Date: Feb 2000
Location: From the hills of beautiful Southern Indiana
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Quote:
Originally Posted by kc2006 View Post
Some of the stuff said in this thread cracks me up.

There's either alot of kids living with parents, guys who's wives make ALOT of money and pay all their personal bills (IE home/auto/utilities), or alot of people that don't grow much per year and hang on to equipment for 15-20 years and continually bandaid it to get by. Not saying there aren't some people that are debt free or can purchase equipment cash but geez EVERYONE on here is that way? Lawnsite must be only the smartest most business minded LCO's out there, because from what I've seen in the real world, LCO's are usually idiots that charge too little. The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

I just can't believe EVERYONE on here purchases their trucks and everything cash and never finance a thing, unless we're all running trucks for 20 years, mowers for 10-15 years, especially with the cost of equipment these days. I financed my mower, and paid it off in the first year just because I didn't want to be out 14k in one hit. I financed my new truck, but I was smart about it and bought a left over and got them 15K off msrp and will pay it off in a year and a half because it was only 20K. If for some reason I have to sell the truck guess what, they had 2 year old used trucks on the same lot for 7K more than I paid new, so I think I'm safe.

No debt is good debt, smart debt is acceptable, some debt is real life.

it makes for entertaining reading.
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  #70  
Old 07-20-2013, 11:32 AM
RWI RWI is offline
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Quote:
Originally Posted by Efficiency View Post
Just for fun, what are your gross sales that you have half of in a bank?

Entrepreneurs know the term bootstrapping...
1.5 mil... Although i had one really good year and did 2.7 mil.
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