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  #1  
Old 01-06-2014, 09:42 PM
newguy123 newguy123 is offline
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My personal take on success/growth/profitability/business Part II

Can we continue on where we left off? Although there may have been some accusations or insults thrown around, I still felt like this was a great thread!

Looking forward to reading more please...
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  #2  
Old 01-06-2014, 10:54 PM
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94gt331 94gt331 is offline
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I hope to stay my size operation of 4-5 guys for awhile and get my sales up each year by learning how to get more efficient and more profitable each year. I don't want to really grow with more employees and more trucks at this time. I also want to get my debt down as much as I can. I personally think it would be wise for me to get to debt free before I make a push for a larger size operation. But I think if I decicded to get bigger it would be a higher reward if I was debt free. Good luck to everyone, it's a grind anyway you look at it, everyone can be successful in many ways even if you are solo or a 10 man company, it's all on your own deffiniton of what successful means to you.
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  #3  
Old 01-06-2014, 11:30 PM
Armsden&Son Armsden&Son is offline
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Jacob had a good point about a golf match!!! HaHa... That was funny... But seriously, here is my question... Why does it matter? If Joe wants to remain solo for 5 years then grow his business that's cool. If Harry comes out of the gates like a beast and starts off with 5 trucks that's cool too. It's honestly about personal preference and financial preference and business preference. If you wanted to wear a blue shirt tomorrow, would I basically scream and argue until my last breath that you should wear a red shirt? Of course not, yet this is what is happening here. I actually learn a lot from these threads just from hearing how different folks do things but can't we all at least agree that what is the best business practice for a 42 year old guy living in Texas with a family of 8 might be different than a 24 year old in Maine who is just starting out. Depending on where one lives, what circumstances are present, and about another 200 variables will help decipher what is best for that business owner.
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Old 01-07-2014, 09:11 AM
djagusch djagusch is offline
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One thing that wasn't brought up was how growth occurs. Its not steady at times. You might have a growth spurt in 2012, then steady/retract slightly in 2013 (shed bad accounts/etc), then another spurt in 2014. This is what I have seen and have also read in books as a growth cycle.

Far as growth and debt. 20% growth or under is easy on the wallet. Normally new purchases can be kept up with cash from the operation. Above 20% adding debt occurs because the amount of growth happening. The growth cycle discussed above most likely occurs partially due to this. Helps get caught back up on the debt.

Uncontrolled growth is a bad thing.
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  #5  
Old 01-07-2014, 09:37 AM
larryinalabama larryinalabama is online now
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Ill stick with what I said " Your business should provide you financial security"

Becoming wealthy takes 20 to 25 years.

Part 1 was a good thread, don't know why they closed it.
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  #6  
Old 01-07-2014, 10:37 AM
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Efficiency Efficiency is offline
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Quote:
Originally Posted by djagusch View Post
One thing that wasn't brought up was how growth occurs. Its not steady at times. You might have a growth spurt in 2012, then steady/retract slightly in 2013 (shed bad accounts/etc), then another spurt in 2014. This is what I have seen and have also read in books as a growth cycle.

Far as growth and debt. 20% growth or under is easy on the wallet. Normally new purchases can be kept up with cash from the operation. Above 20% adding debt occurs because the amount of growth happening. The growth cycle discussed above most likely occurs partially due to this. Helps get caught back up on the debt.

Uncontrolled growth is a bad thing.
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There is a mathematical equation called your sustainable growth rate and is heavily dependant upon your net margin among other things.http://en.wikipedia.org/wiki/Sustainable_growth_rate
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Old 01-07-2014, 10:40 AM
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Efficiency Efficiency is offline
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Originally Posted by larryinalabama View Post
Ill stick with what I said " Your business should provide you financial security"

Becoming wealthy takes 20 to 25 years.

Part 1 was a good thread, don't know why they closed it.
You're stuck in your ways and it's understandable. You only know what you know.

However, at the age of only 29, last season I added roughly $300,000 to my net worth. I did it with employees and some debt. Smart leverage can be a great tool if you are willing to take chances and have an understanding of what you are doing.
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Old 01-07-2014, 10:51 AM
larryinalabama larryinalabama is online now
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If a person can create and keep 300k of wealth why in the world we he have to "leverage" anything?
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  #9  
Old 01-07-2014, 11:06 AM
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Efficiency Efficiency is offline
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Originally Posted by larryinalabama View Post
If a person can create and keep 300k of wealth why in the world we he have to "leverage" anything?
You're confusing cash and wealth. Sorry friend, not much I can do to help you here.
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  #10  
Old 01-07-2014, 11:26 AM
larryinalabama larryinalabama is online now
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Originally Posted by Efficiency View Post
You're confusing cash and wealth. Sorry friend, not much I can do to help you here.
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Oh man Come On......Since you know it all ........tell us how to borrow your way into prosperity.

Everyone I know that borrows money is Broke!
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