Capitalization

Discussion in 'Starting a Lawn Care Business' started by akiravu, Jan 13, 2004.

  1. akiravu

    akiravu LawnSite Member
    Posts: 5

    When starting how much capital should I have prior to start-up. Do I need to be able to cover business expenses for 1,2, or more months? How soon will cash flow become extablished enough to cover daily expenses? My own earning needs being marignal because my wife is working.
     
  2. WeatherMan

    WeatherMan LawnSite Senior Member
    Posts: 693

    You should start making money your first day. The amount of capital you need all depends on your needs. Like how many lawns are you cutting, how big so on and so on
     
  3. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,260

    Ok you just started its April 1st or what ever date you picked first thing how do you get paid. If you demand cash as you go then this isn’t much of an issue but not many customers like that. So you bill monthly which is the most common. Ok you work the entire month no pay you send your bills out on the 1st of the following month it may be 1-2 weeks before you start seeing any real month in your mailbox. So the first 6 weeks you’re kind of stuck with out any cash flow so how much do you need that’s easy enough to get though 6-8 weeks minimum. Gas oil trimmer line insurance phone advertising any employees all your costs need to be know also do you live home with mom if not rent or mortgage car or truck payments. Figure out what you really spend per month it’s probably more then you think.
     

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