Company monies

Discussion in 'Business Operations' started by bohiaa, Aug 16, 2007.

  1. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    wondering how others invest the monies that there co's are making.

    seems I am starting to aquire a great deal of money and really dont know what to do with it.
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    most reinvest and put it back into their business
     
  3. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Talk to a Financial Adviser or an accountant, only reinvest in you company if you need to.
     
  4. 2 clowns mowing

    2 clowns mowing LawnSite Senior Member
    Posts: 566

    or just give it all to us!!!
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I put the bulk of it back into parts, some equipment, but parts, supplies, things I know I will need.
    To make it an investment, I buy only parts and supplies that are on sale, and only when they go on sale.
    Take for example motor oil, I buy all of it on buy 1 get 1, that's 50% ROI on my money as it gets used up, the advantage is you don't need a TON of cash to get going, I think I still have 80 or 90 quarts, not sure thou. Lube grease, 79 cents each, I bought like 60 of those tubes, yet another thing I never worry about, blades 30+, the list goes on and on, I must have 4-5g in stocked supplies.

    Now don't get too excited on the %, if it takes 3-4 years to use up something I bought at 50% off, that's more like 10% APR, and those are at times still lofty figures, but help it does, thou it takes time to see it, unfortunately at least several years.
    So, first I get great ROI, it also works well as a tax deduction.

    The other advantage, during a drought like the one I'm dealing with, I can run fuel only for a long time, I'm running a bit low on oil filters and a few other things I have to purchase if I need it, but for the most part all of my maintenance I already have what I need, for years to come, it's a part of my long term survival package.

    Last but not least, 5 thousand dollars in parts is a LOT less attractive to some greedy fool than 5g cash.
    It's just better to have a parts reserve vs. cash, at least for me, I can't go through parts nearly as foolishly as cash.

    The rest stays in an interest bearing money market account.
    The best time to build up this stuff is when you have the money and business is good.
    Draw back when business gets slow, the effect is amazing, helps me be able to turn down pita work even in the worst of times.
    That's just how I do it, works for me.
     
  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    thanks been thinking about this...


    to the other post maybe they didn't understand

    there is NO need to reinvest into the company when it doesn't need it.
    and buying supplies is just kind of a given,

    were not talking about a few thousand,
     
  7. Bigray

    Bigray LawnSite Member
    Posts: 140

    bohiaa, if i understand your post, u r looking to inverst your money ?

    i c that u r from tx. one thing i am wacthing is the housing mkt. the effect of the sub-prime mkt bust is creating some very interesting opportunities in your state and if your in that kind of position, GFU...
     
  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Build a Pool Hall ....make it have a BIG bar ... have lots of room with good food ..... wait 5 years .... sell the LCO n than take multiple fishing trips to the Keys

    That's MY Plan ;-)
     
  9. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    yea it's really a bust now. all the rain we have had.

    I have a customer that sells lumber to home builders, he does 1 million to 2 million a month, he told me that his sells are down 60%, and I know that the stock market has been falling because of the rain and home sells.

    Good luck
     
  10. lawnscapesLLC

    lawnscapesLLC LawnSite Member
    Posts: 113

    The stock market always goes back up. I actually like when it goes down, i get more for my money. I have my IRA for retirement, and other misc stock investments that make me as much money as my lco does.
     

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