Loans?

Discussion in 'Starting a Lawn Care Business' started by GravelyWalker, Oct 10, 2012.

  1. phillie

    phillie LawnSite Senior Member
    Posts: 861

    100% Agreed
     
  2. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Which is exactly what happened to me, I financed another stander at 0% for next year, so I could increase production and make more room on the schedule for more business. I ran maxed out the last half of the season and it was no fun working weekends when it rained to makeup for lost production during the week, my new stander has already added at least two days to the schedule, and as we get better organized I anticipate even more time to be made on the schedule.
     
  3. CL&T

    CL&T LawnSite Senior Member
    Posts: 493

    I guess it's because they sleep better at night with a new machine and no money left in the bank. Hey, I ain't beholden to nobody! If that isn't a recipe for failure I don't know what is.
     
  4. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Yep if you go out and buy a new machine, with no planning and it leaves you with no money in the bank your probably not going to make it anyway, it takes some sense of knowing when and if your even in the right position to buy and when you don't. Unfortunatly in this trade it takes machinary to run an efficent (SP) operation. I read a post a while back about how in the long run running with the right equiptment is a much smarter approach than trying to throw man hrs at a job.IE: equiptment pays for itself whereas man hrs is ongoing forever.
     
  5. Woody82986

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

    I suppose this is all relative, but your assumption is wrong and illogical in it's very fabric. Not all successful businesses run with some level of debt. For you to use the word "ALL" and in big capital letters no less, makes you look ignorant. There are plenty of businesses that are very successful and run with absolutely no debt. For you to think otherwise is foolish. My assertion that what I am saying is all relative revolves around everyone's own opinion of what "successful" is. To give you just one of many examples of why you are wrong, I'll simply point you to Dave Ramsey. He runs a completely debt free company. If you don't think he is successful, then you are the ignorant one. And if you think he utilizes one red cent of debt, then you are beyond help. I don't like credit, and I wouldn't advocate it's uses unless you truly understand it's inner workings, but if people want to use it, that's fine with me. There's no incorrect answer to the credit/cash debate. Either way, if you are responsible and pay attention to what you are doing, you will achieve whatever you deem to be "success". I agree that responsible use of credit can help some people. But don't go spouting off falsehoods that you have to know will be disproven as utter BS. It makes you look foolish.
     
  6. Woody82986

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

    Also other debt free companies who don't use debt and have large cash reserves... American Express, Mastercard, Blinds.com, Amazon.com... I guess those guys aren't successful. What the hell was I thinking trying to prove you wrong. Those guys don't have a clue. I wonder why American Express and Mastercard are debt free with huge cash reserves. hmm. Think about it....
     
  7. Blades Lawn Maintenance

    Blades Lawn Maintenance LawnSite Bronze Member
    Male, from Baton Rouge, La
    Posts: 1,233

    I'm surprised the thread hasn't been closed yet
     
  8. CL&T

    CL&T LawnSite Senior Member
    Posts: 493

    That may be true but you nor I know what their actual financial situation is as well as what your interpretation of "successful" is. There are some companies that are better financed than others and can afford to take the hit. But even then a smart business person may want to get creative by financing or even leasing new assets and leaving his money alone in investments.

    So really the question here is who is the business person or who creates a job for themself cutting grass.

    Ok, now I see what's stuck in your craw. Why don't you explain it to us?
     
  9. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    The difference between you is there are 100 guys come on here wanting to fiance a bigger mower.

    You had a full schedule of work. And, I'm willing to bet if you lost 20% of your busness you still could pay off the loan.

    As for the other 100 guys here, the Dwayne "The Rock" Johnson would call them Jabroni's having 15 to 20 hours of work each week and want to increase their capacity. Hello, helloooooo, Jabroni's going into debt to buy that 48"-60" mower so you can get that 15-20 hrs of work down to 7.5-10 hrs of work a week is not going to get you another 20+ hrs of work a week.

    People confusing wants with needs.
     
  10. justanotherlawnguy

    justanotherlawnguy LawnSite Bronze Member
    Posts: 1,245

     

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