How to fail part 2

Discussion in 'Lawn Mowing' started by PROCUT1, Feb 18, 2011.

  1. Plantculture

    Plantculture LawnSite Member
    Posts: 128

    Just read both threads. What an education! Sobering and motivating
    Thanks procut1 for the read and good luck. I'll buy you a beer if you come to FL
     
  2. GrassesGuy

    GrassesGuy LawnSite Senior Member
    Posts: 326

    One of tenants is section 8 and the government pays the rent. Not to mention she keeps the house imaculate better than mine. I should hire her to clean my house. Replacing carpet and painting is covered with the deposit. Tthe worst is over homes and once obama Rama is gone in 2012 then we can start rebuilding again.:weightlifter:
     
  3. GrassesGuy

    GrassesGuy LawnSite Senior Member
    Posts: 326

    Ya some of the mowing goes into the houses sure, so what I'm building equity. I do landscaping also and other stuff as well, I'm a machine!

    edited: please watch the language.
    edited by Majortom
     
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    I used to be. Then I got married
     
  5. GrassesGuy

    GrassesGuy LawnSite Senior Member
    Posts: 326

    Ground control to Majortom! I censored brother!
     
  6. GrassesGuy

    GrassesGuy LawnSite Senior Member
    Posts: 326

    Classic! It will get better man you just gotta ride out the storm.
     
  7. cms289

    cms289 LawnSite Member
    Posts: 81

    This has been a great read. Lots of thoughts, some great, some not so great.

    I guess I will put in my two cents. I am smaller, but have owned a much larger company in the past (sold it for flight ratings). Credit is a wonderful thing, leverage (when used properly) is equally wonderful.

    All that said, on the landscaping side I only do contract type work now, and they either have money on account or an auto bill on the day of service. I started doing this years ago, when I had several people not pay (took a huge loss one year, that ended it for me). I have lost bids due to this, but I am ok with that. I am not a bank, if they want the service, they pay for it when it happens. I understand the commercial side of it, but even when I did that I never did 60 or 90 net. The longest I did was 30 net stuff. I understand some of the big companies do not think much of what we do, and it is not much money to them, but if that is the case, then why not pay it quickly.

    I think too many smaller guys who are trying to grow take risk they should not so they appear to be a big player. I think what happened here was someone wanted to grow, and was worried about appearances, so he took the deal offered him. And he was right, if his credit had not gone away he would have been fine. But banks have no loyalty to you at all. Credit lines come and go, they change without notice. That is a known thing. I think he would have done well to be honest that he could not cover that long. Even if he had to give them a grand or two discount to have it paid on completion, it would have been worth it in the long run! I have lost clients due to my terms, but I have also had several that said no way, come back later and do it my way.

    Net 60 or 90 is a sales tool for manufacturing, and not a good idea for service. Our margins are much too low, and since we are service based, it is very difficult to reposess what we do. How to you unmow or in this case, un stripe. You are carrying all the risk.

    I hope the move works out great for you. The best lessons are the hardest when you learn them. I think you have learned a great deal. I would stop with the class warfare though. We all have a chance to be rich in this country. Some will get lucky, some will work hard and never get anywhere, and some will fail over and over.
     
  8. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,499

    I htink procut puts probably one of the best threads on lawnsite, this is something anyone in buisness should read. It takes a real man to stand up in front of his pears and try to explain where he went wrong, so others don't do what he did. So Thanks Procut and sorry to hear things aren't going so well.
     
  9. J.R. Services

    J.R. Services LawnSite Senior Member
    Posts: 259

    subscribed
     
  10. ncknaklawns

    ncknaklawns LawnSite Senior Member
    from NY
    Posts: 379

    I just realized the real difference between watching cash flow monthly and weekly. I just updated my tracking spreadsheet to do weekly as I let myself get close to the bottom. I made a big extra truck payment last Nov to save $900 in interest and now I'm getting close. When I tracked monthly I should have put February deposits under march and March under april etccc.... Now because the March income I was expecting hasn't arrived yet (because it usually doesn't until the last week), I'm startin to sweat. I know alot of talk on the thread goes into payin cash but financing stuff can really help you long term as long as you don't overextend- but how to figure- seems like a basic mistake I made. You have to gamble a little. Now I might need to go back to monthly insur billing on the trucks and not buy parts until I am out and need it.
     

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