Need money to grow

Discussion in 'Business Operations' started by wildstarblazer, Jun 22, 2013.

  1. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 982

    Okay, I would like to know how those who have grown past solo operator got the money to expand. Did you use your own savings or a loan backing. I am so sick of seeing all these crews pulling up to a house a few doors away from my lawn and being done in literally 10 minutes while I'm still weedeating.

    I just can't figure how they all have 2 or 3 $8 thousand dollar mowers and 3 or 4 guys. I been doin this sht since before some these guys were even born and I just can't work any harder than I do already. I just can't see how they could acquire all their equipment and accounts only from what they earn from lawns unless they live with their mom and have zero bills.
    What gives?
     
  2. Vecchio Lawn Care

    Vecchio Lawn Care LawnSite Senior Member
    Posts: 905

    Just because they have all that stuff doesn't mean they are making more money or are out of debt. More equipment means more gas, breakdowns, etc
     
  3. dKoester

    dKoester LawnSite Gold Member
    Posts: 3,242

    Here's how.............. you live Frugal. You eat on the cheap, live on the cheap while you save. Some people lived in their truck so later they could have a better future. After a few years you should have plenty of money to use to grow your business. Never go into debt!!! You will be a slave to the one you borrowed from and have to face the repo man if the economy go south.
     
  4. trock

    trock LawnSite Senior Member
    Posts: 430

    Only used saved money. Price jobs correctly. If your not making money at the end of the week something is wrong. My walker mowers cost $14,000 each I have two and my vantage was $9000 I write checks for new equiptment. I dont get loans on anything except trucks. i run enclosed trailer me and two guys in one truck. One guy mows front one in the back and a guy to trim edge and blow. We are usually done in 8 to 9 mins we will mow 30- 35 lawns per day three days a week and still done early in the day...
     
  5. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 982

    That's insane! In a good way... How did you start out? Money had to come from somewhere?
     
  6. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,405

    Do you build profit in to your bids? Do you use that profit to give yourself a bonus or do you reinvest it in your company to help fuel growth and equipment purchases?
     
  7. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 982

    Most of what I make goes to keep my household expenses. 3 kids wife that's disabled and can't work. I make good money but it just never able to save anything. I can only work so hard.
     
  8. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,277

    Then you have a real big problem because as your stuff ages you need to be able to replace/upgrade. If you can not do this you will eventually wake up one morning and find all your equipment is no longer of any use and your broke on top of it. I have seen this happen more than once. Now if you have the work there is nothing wrong with getting equipment with payments. I am doing the just that this very week I am replacing 2 mowers with a major upgrade to Lazer X models with 34-38 hp efi motors and Trac Vac collection systems needless to say with sales tax I am looking at around $35,000 for 2 mowers. But they offer 0% financing now for 48 months so the decision is an easy one. There are risks in business but some are sound and some are not you just need to be able to decipher which is which.
     
  9. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    You have to owe someone. Use someone elses money to grow. IF your business is stable, you should be able to get a loan for a mower.

    I don't finance small stuff. Mowers and trucks and Ive only financed one truck. The others I bought used and paid cash for. 3 year loan on the truck.

    0% financing on the JD Stand on. o% financing on the exmark stand on aerator.

    The scag has another year or so to go to be paid off.

    My problem isn't the financing or getting the equipment....Its the employees to run them...LOL.
     
  10. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 982

    I have perfect credit. That's not the problem. I'm just a bit jealous when I see these guys driving around with 60 to 100 grand of equipment in a town where everyone with a truck is in the lawn business. I just wonder where they get the money and how they could have enough work in this area with like I said the competition is so fierce to say the least..

    I remember when I was younger I wanted to impress people with my new 1 ton and 16 foot trailer and equipment etc.. I made so many payments and paid helpers and I had nothing left for me. So I downsized back to solo since then. So I've been there. Maybe I should have stuck it out but I was young and wasn't good at business management. Still not, lol. I am the best at what I do. Just suck at running business if that makes sense...
     

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