Debt Free business

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

  1. lawnagent

    lawnagent LawnSite Senior Member
    Posts: 529

    Emptying the account to pay cash for a big purchase shouldn't be to bad if you are debt free. Everything you make this week and next week and wala! alot of cash on hand again.
     
  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,450

    Thats why they call you stan the man
     
  3. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,486

    having a debt is okay, you just have to be smart about, and can't go buying new equipment and trucks for fun, but if you need to upgrade or even want to and know you will have work for said equipment then its not bad to finance it, but if you only have 1000 dollars a month in work and go out and buy a brand new scag turf tiger with a 61" deck and turbo diesel motor, and a brand new trailer and then a 2011 f550 dump to pull it all, that would be dumb. but if you have 10,000 dollars of work every month and need a bigger trailer to fit all of your equipment on it at once, then ya borrowing 3500 isn't a bad idea at all, you just have to be responsible with your money and make smart purchases. also planning out how and when you will be able to pay off whatever debt you get into isn't a bad idea either.
     
  4. stan the man

    stan the man LawnSite Senior Member
    from Maine
    Posts: 705

    the reason they call stan the man. is stan the man is my uncle.
     
  5. BESSY12

    BESSY12 LawnSite Member
    from Ontario
    Posts: 12

    I am running pretty well debt free. I usually don't buy anything until I can pay upfront in full, (only exception was the mower i bought spring of 2011 in a pinch). Currently the only debt I have is to my father for repairs on the bumper of his pickup truck. (LONG STORY)
     
  6. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 981

    I agree with diamond, cash flow is important.
     
  7. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Not trying to be a jerk, but do you regret that decision now? With the snow plow?
     
  8. USA Lawn Care

    USA Lawn Care LawnSite Member
    Posts: 62

    In a perfect world, using debt 'wisely' will always work out.
    It is not a perfect world and what paying cash for equipment takes out of the equation are things like natural disasters, etc. Cash eliminates risk. Financing thousands of dollars worth of equipment because you just landed tons of new clients because of your great marketing looks like a great plan until something happens.
    Ex: Solo business operator. All ready for the big mowing season. Financed $15k worth of equipment. Tragedy in the family occurs and he's mentally just not able to function. Or.....I keep bringing it up simply because when I heard about Joplin, MO last year this exact scenerio was what I was thinking about. What about all the lawn guys who had counted on mowing yards that are no longer there???

    So.....to truly protect yourself, the safe bet is to just completely think the $$ plan through and just pay cash. Buy used gear.....make a little money....sell used gear....get a little better gear......save a little more money....sell the better used gear....buy nice gear.

    Just some friendly advice and I hope everyone has a profitable 2012.
     
  9. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    Debt free business and personal life. (except my house)
     
  10. agent walker

    agent walker LawnSite Senior Member
    Posts: 450

    debt free all my life. Tho I'm still single and at home and don't have any property. Hopefully this year I'll make enough to change some of that
     

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