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Discussion in 'Starting a Lawn Care Business' started by CatholicLawnie, Jul 27, 2006.

  1. CatholicLawnie

    CatholicLawnie LawnSite Member
    Posts: 8

    I have a question about debt. If you guys feel like this is to personal of a question then you don't have to answer it. Anyways, I was just wondering how much debt you were in in the first year of your business. Also, how much money did you actually end up making(or losing as the case may be) after the first year. Thanks!:)
  2. GardnerLandscaping

    GardnerLandscaping LawnSite Senior Member
    Posts: 310

    I was in about 300K in debt. Trying to do the business all cash.
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Lucky me I had gone through bankruptcy by trying the credit method to start a business years before so I had no credit and had to do things the hard and proper way. I saved my money until I had 5g, thou looking back, 8-10 would've been better.
  4. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Well it hasn't been a whole year, rather about 2 months for me.

    I owe about 2K for the exmark, everything else is paid for.

    Roughly 500 made so far but sitting on my desk as checks. Figure I'll want 3 times that much to open a small business account somewhere... By the end of this month, I will have about 2K in accounts recievable(though I won't see all that money till the end of august).
  5. BBN

    BBN LawnSite Member
    Posts: 133

    I'm going debt free. This is a job that requires you to be healthy to make money and if you're hurt you ain't making money. Those monthly debts won't pay for themselves. If you're laid up with a broken ankle the creditors aren't going to feel sympathy for you. I read others take out insurance for this occasion. If you're going big then this may be a good idea but if you're like me and not going big, at least early, then debt free is the way to go.

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    My business is in no way connected to personal finances,
    1 truck was bought with OPM- 4 Mowers- one enclosed trailer- and a few other items- around 70K was financed in one way or another.
    I was paid every year but it took 3 years before business showed profit. Which was close to plan.
    Finance in the name making money is not bad (know ALL about what you are doing first)
    I am down to 8 homes in my rental plan and all are financed- yet all run at a positive cash flow.

    Buying a big screen TV at Arron's Rents is dumb
  7. Korey

    Korey LawnSite Senior Member
    Posts: 269

    Luckily, I started off really slowly, doing a couple of neighbor's lawns with the family garden tractor. One by one, I slowly acquired equipment and paid cash for em all. They were all used and in good condition. If you want to show profit right away, you should pay with your own money unless you acquire a lot of accounts that you know will pay off the debt pretty quickly. It may be a good idea for you to come up with a good business plan. Take a look at www.sba.org if you are interested in starting a small business.
  8. Korey

    Korey LawnSite Senior Member
    Posts: 269

    You have rental properties? I'm interested in buying some as well for cash flow. I like the concept of having money work for you. :)
  9. LindblomRJ

    LindblomRJ LawnSite Silver Member
    Posts: 2,570

    That does not make any sense. Welcome to my ignore list.

    I have run businesses both ways. Debt is sometimes necessary to accomplish your dreams. Owning your home or business.

    The lawn care business I am doing debt free.
  10. onthesidelawncare

    onthesidelawncare LawnSite Member
    from Jax. FL
    Posts: 43

    I am very new been doing this for 2 months. I paid most of mine in cash, but I do have about 3200 in debt. I just wish I would have been able to start earlier in the year being that I got started half way through the cutting season.

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