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Debt Free business

Discussion in 'Starting a Lawn Care Business' started by Hoss4x4, Sep 18, 2011.

  1. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339


    X 2
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  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    $40 G is $40 G unless there is interest on the loan. Then that $40 G truck cost $50 G.

    April 2011 my brother bought a Silverado 1500 reg cab, 4.8 v8, 4wd, $26,000.
     
  3. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    Y'all are totally missing the point.
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  4. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    My mowing trucks average 20-25 thousand miles a yr, all of it pulling several thousand lbs. that is absolutely an environment that is suited for a diesel.

    I would never buy a 1500 for work.
     
  5. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    I agree with your point, it is harder to lay down the cash on big purchases when you dont finance. It makes you really evaluate your decisions, because of how hard it is to accumalate cash.

    I run 4-5 crews and everything is paid off, from my 4 mini skids, 30k taki, isuzu nprs, 5500s, 5 vrides.. hell even my office/shop is paid off. It really makes things a little less stressful.
     
  6. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    Right and for those who argue cash flow... The arguement doesn't really have any substance
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  7. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    I agree you do need at least a 2500 for mowing and mulch.

    And if you are so big why not use a landscaping truck ?
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  8. dlandscaping

    dlandscaping LawnSite Senior Member
    from mass
    Posts: 835

    There should of been an extra few words in the title of this thread. It should have said those with a business operation with employees and did you or how did you use debt to grow your business. This site has been completely over run with weekend warriors and high school kids who "pay cash for my used mower." In order to grow in this industry where profit margins are relatively small one usually has to borrow. There is a balancing act between how much debt one can incur and how much is needed to grow. Why respond to a thread about using debt in your business if you are in highschool and dont have any credit?
     


  9. Your right but it is pretty entertaining reading.
     
  10. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    I'm not really a weekend warrior. I have 43 weekly accounts. Not a lot really but I think you saying debt is required in this business is silly at best.

    Not saying its wrong or anything. Nobody is mad at anyone for having debt. Just two very different business models. Used equipment doesnt make someone any less professional or cause poor workmanship.

    I buy equipments in the winter when those weekend warriors can no longer afford theirs.

    When I go to purchase a shop I'll more than likely have to borrow. But borrowing for mowers and even trucks in some cases is silly.
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