Need money to grow

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

  1. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984



    By having patience.

    By realizing that you will not make much money with six customers.

    By realizing that you walk away when you do not get your price. Lowballing will not leave enough money left over to reinvest in your business.

    By learning to make do with what you have and avoid debt.
     
  2. RWI

    RWI Banned
    from GA
    Posts: 125

    I have 200k worth of equipment and trucks, all of which I bought used and paid cash for. I learned a long time ago my time is worth more than $10-15 an hour. You just cannot get rich holding a weedeater, you have to figure out how to delegate, be cost efficient, manage your money, how to hire and keep good employees, and price jobs correctly.

    And if you really want to get rich, you need to have a desire to be the best.

    And financing is for poor people. And for those that say it isn't please post a pic of your bank statement.
     
  3. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,536

    And holding cash is for fools.
    Which is more important - getting more clients or getting more equipment? Both are assets but one appreciates and the other depreciates. Ive yet to find a way to finance client growth so thats where our cash goes. The bank can provide the rest. If you dont finance out of fear, then you dont trust what you are doing...
    All that said, I used to be 100% debt free until about 500k in yearly sales. As we continue to grow quickly (200k growth this year), its increasingly less appealing to put free cash into equipment as the TRUE value of a business is its client list. Invest in what matters!
    Posted via Mobile Device
     
  4. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,405

    This is an absurd leap in both logic and request. My bank statement is exceedingly healthy, but it only takes a bit of "back of the napkin" math, and an idea of where your business is going, or you want it to go, to know when it's in your business' best interest to finance or pay cash, poor or wealthy.
     
  5. 205mx

    205mx LawnSite Silver Member
    Posts: 2,342

    More accounts. Employees to do the work for you I suppose. Don't know beyond that.
    Posted via Mobile Device
     
  6. herler

    herler LawnSite Fanatic
    Posts: 5,144

    And you know what I see?

    I see people drinking 40-ounce 7-Eleven Pepsis and smoking Marlboros while I'm drinking water out of a cooler and done gave up smoking, but it's not even the smoking, it's the fact that it has to be a name brand cigarette and in the case of the soda it also couldn't be some cheap generic version and that's what I see with people who never have any money it's just a never ending ongoing process where they don't seem to have any problem spending it on everything they don't need.

    Them kind of folks don't just drink coffee, they drink Gevalia.
    You don't want to taste mine, I've had folks spit it out they think it's so nasty.
    But then I think all coffee is nasty, and I'd rather drink 15 cent a pot coffee than $1,000,000 candy bars.

    For example, lets just say we all get paid once a month.
    Most of them kind of folks are broke 10 days past pay day, they got 3 weeks of month left and hardly a dime to their name.
    Same folks who think all that fancy equipment was just given to me, that it just magically appeared one day.
    Same ones, I promise you that.

    That's the difference, stand back and watch sometime, it's all I see, time and time and time again.

    It takes a long term, concerned and consistent effort to turn bad financing around.
    In my case, it's been 16 years since I went through bankruptcy.
    That is how long it took to get from there, to here.

    So I guess I didn't just wake up one morning a week ago and all that great equipment just so happened to be standing in my back yard.

    16 years, every day, can you hack it?

    Yeah it's called I worked my ass off washing dishes in a busy restaurant kitchen for a long time while I put away what little money I could every month until I had the how many thousands of dollars I needed to start out!

    The process continues to this day.

    When I need something, I start saving.
    Matter of fact it is so that I'm always saving.

    It's called having a back up plan.

    What if you get a flat tire, where does that money come from?
    From the back up plan, that's where.

    And if you don't have such a plan?
    A failure to plan is a plan to failure.

    And if you can not save your money, then you probably don't need to run your own business.
     
    Last edited: Jun 23, 2013
  7. wildstarblazer

    wildstarblazer LawnSite Senior Member
    Posts: 980

    You must not be married and if you are your wife must be on the same page as you. Some of us are not that blessed. Your chain is only as strong as the weakest link. Man make money. Women like spend!
     
  8. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,405

    It seems you're taking every dollar made and, beyond expenses, you and your wife are treating it as your personal income. You're not going to grow a business by doing this. In fact, you probably need to recognize that you are self-employed, and not actually a business owner. There's nothing wrong with this approach, but you need to understand you will likely always have the shiny equipment envy you seem to have.

    You would be hard-pressed to find any description of the term "business" that does not include a reference to profit-seeking. Profit is the difference between expenses and what's taken in. That profit can either be rolled back in to the company ( usually to fuel growth or purchases), taken out and distributed to the shareholders/owner, or some combination of the two. It seems you're going with the full distribution to yourself, while ignoring the future potential of your ideal business.

    This leads to the question: What do Mr. and Mrs. Wild Starblazer want out of this deal? Do you want to be self-employed, or do you want to build a business?
     
  9. RWI

    RWI Banned
    from GA
    Posts: 125

    I haven't financed anything in the last 10 years. I am not really interested in "gaining clients", I am interested in gaining the right clients. And I spend 7-8k a month in advertising out of cash flow. I did 1.1 million last year, and had another business I own do 1.7 million. So even though its just my opinion and not necessarily the only way... it has worked very well for me. And I don't owe anybody sh!t.
     
  10. RWI

    RWI Banned
    from GA
    Posts: 125

    Why would you finance anything if you have money in the bank? A business is pretty much the only thing you can get a 20%+ return on these days.
     

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