How much did you guys make/lose in...

Discussion in 'Business Operations' started by twins_lawn_care, Sep 9, 2003.

  1. wacamaster

    wacamaster LawnSite Member
    from MI
    Posts: 198

    Depends on how you buy your equpiment. If you make payments you should profit. If you buy outright, you will lose.
  2. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    At the same time, you don't want to be overextended on credit. Don't go crazy buying equipment that you'll be left paying for for the next 5 years, whether or not your business survives. I know a couple guys that went under in their first year who had all kinds of nice equipment, and all kinds of nice equipment payments to make when they went under.

  3. stevo22

    stevo22 LawnSite Senior Member
    Posts: 344

    how completely looking at your profile i can clearly see that you have not yet had the experience in purchasing/financing much of anything...while financing may work for some people i am a true believer to make purchases as you need them..if you finance you are giving money away, the finance charges...i really don't understand how you will lose if you buy outright...makes no sense...just my opinion..
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I actually really ruined my credit for a while because of the financial promotions that I used for my equipment purchases. Now everything I pay in cash for. I am still paying off equipment from only 1 1/2 ago.
  5. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    Thanks for the advice guys.

    We are strictly trying to not put anything on credit. We started with some cheaper equipment we could afford, and are working toward being able to buy better equipment each year, as we require it.

    I agree though, buying on credit has it's advantages sometimes, but I like to go in the store with big fat green pockets, and walk out owing nobody!

    Keep 'em coming! :p
  6. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    now that the season's getting close to the end, any more help will be greatly appreciated.
    We are looking at possibly breaking even, maybe down a few hundred, but this includes a van, and all of our equipment, although modest right now.
    Not bad for a first year, plus our name is getting out there nicely!
    :blob3: :D :blob3:
  7. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    Lets just say that I broke pretty much even the first year.
  8. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    I took a chance and maxed out a few credit cards, although I did pay a lot in cash to but I couldnt do that for everything. It was stressful knowing that I had some pretty big credit card balances but now I owe only a few grand and for me it was worth it.
  9. twins_lawn_care
    Like I said, be happy if you cleared a dollar profit after purchases,taxes and other fixed expenses.

    Been in this trade for over 30 years, 20 on my own and can tell you it's feast or famine. Hopefully it's more feast than famine.

    Our trade is tied to how well everybody else is doing. People losing factory jobs, no pay raises, can expect to see more competition and less available clients.

    If you cleared money this year, your already on a successful road.

    Your ideal of only paying cash for purchases in the beginning will only help you when you buy on credit later on. However, at some point you should learn how to manage purchasing things on credit and paying off in a timely manner.

    To be honest, it makes me wonder when somebody has to pay by credit for a $20 purchase.

  10. Let it Grow

    Let it Grow LawnSite Senior Member
    Posts: 476

    It was my first year as well. I bought two new Honda hrc 216 (the best mowers they make) a Honda Trimmer, a 5 x 12 trailer, the best Stihl hedge trimmer they make, vairous hand tools, a circular saw, and a few other minor things.

    As of today my net profit is $3,918.00

    I will add probably another $2,000 to that number from the rest of the mowing season, leaf cleanups, and one last retaining wall.

    I'm VERY pleased with my business so far (I have only been going for 6 months) and I think next year will be a year of HUGE growth. I'm planing on buying a ztr mower, and a bigger truck for my landscaping jobs, and maybe a new trailer (for hauling equipment).

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