Debt Free business

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

  1. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    Cash is KING! Never had any debt.
     
  2. THIESSENS TLC

    THIESSENS TLC LawnSite Senior Member
    Posts: 759

    debt free for 4 years! I love cash!
     
  3. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,452

    I dont know what the deal was in 2008 but equiptment was being sold really cheap, I bought a lot of stuff that was near new for around 30% of retail. I cant find these deals anymore.
     
  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,079

    Using cash at this time is not very smart....interest rates are at all time lows. Not possible to grow a business without staying in debt. I never in 30 years had a goal of paying for my equipment. The end game is growing something that can be sold someday for something.
     
  5. flyingdutch16

    flyingdutch16 LawnSite Senior Member
    Posts: 467

    your still paying interest.... might just be me, but id rather keep that small percentage in the bank. Then again that would be what i would do.

    Cash is king like some one already stated.

    Congrats to the companies out there that are debt free. Dont see that much in America debt free companies or private people.
     
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,452

    Its hard to believe that most are debt free, 4 years ago this post would have been like those politiocal posts, anr I think there was only a few of us debrt free guys.
     
  7. You obviously don't look around for deals. I just bought a ferris wb for 3 yr. 0% interest. Payments are $95/mo. But, most of you guys would rather pay the $3k up front bc "debt is dumb" and " I pay everything in cash."
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  8. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,452

    Well try to sell debt on autos and lawncare equiptment.

    I see 14, 15,,and 16 year olds on hers all the time building businesses with cash.

    Its far eaiser to grow a business slow and stable. Debt never equils customers. All mowers start to like like crap afte 700-800 hours.

    Heres how debt work wheather its business or personal

    Debt gets you a new home a new car and if your really stupid you can finance the living room coluch.
    All that stuff is rally quite nice, the downfall is you are now going backwords, yes backwords. The house gets old the car get digned the couch is no longer conformatable. The bill comes for all the crap and you still owe nearly what you paid for the crap even though the car is worth 1/3 of what you bought it for and Good Will wont even pick up the couch. Eventually if you over extend you really LOOSE ALL THE STUFF THAT WASNT REALLY YOURS IN THE FIRST PLACE.
     
  9. MowingMowingMowing

    MowingMowingMowing LawnSite Senior Member
    from Midwest
    Posts: 526

    Yeah, idk why, but 2008 was ridiculous. I was a senior in high school and I was buying mowers left and right and selling them many times within the same month making between $500-$2,000 each. I was living the high life!

    My best find was a floating deck Scag from a local dealer that was 3 years old. It had a flat tire and needed the recoil replaced, and the guy said he got it in on trade, couldn't have had more than 100-200 hours on it.

    Said he wanted $500 for it, I tried to keep my composure and not look too excited as I knew it was already a steal... I bent down and started looking over the tire again and he said I'll give it to you for $400 today and I'll even lift it onto your trailer, and I took it.... I happened to have an extra tire at home.... Fast forward about $75 in parts later, sold it the next week for $2,500. Easiest money I've ever made.

    Since 2008, it hasn't been that easy, but if you check around every once in a while you find some gold or simply a good mower to add to your fleet.
     
  10. MowingMowingMowing

    MowingMowingMowing LawnSite Senior Member
    from Midwest
    Posts: 526

    If you're a big business and your equipment expense is substantial then you have a good point, but just for a $3,000 walk behinds for a mowing business is it worth it?

    For me, I would much rather just shell out the cash, take the discount (whether it be the dealer, around here that will be 2%-3% and if they don't offer it use your CC, go straight to the bank and pay it off and collect the 2% from them) and be done with it.

    Alternatively, you're paying $95 a month. That's one more headache you have to make sure gets paid each month. If I recall correctly, Topsites had some issues with this, where they stopped his direct withdrawal or something.

    Everyone's situation is different, but on items that small, unless you are just dirt poor, I can't make sense of it. Time value of money is important obviously, but given the situation, I can't justify it. Just my 2 cents.
     

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