Never Get Ahead

Discussion in 'Business Operations' started by tiedeman, Nov 15, 2005.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    How many of you feel that you just never get ahead? I mean you charge appropriately, and make good money, but after you pay your bills for both business and personal you just never seem to have any money left over

    Am I the only one?
     
  2. Gilla Gorilla

    Gilla Gorilla LawnSite Senior Member
    Posts: 923

    Count me in. :realmad: I think I'm going to roll my tool box into a friend of mines shop for the winter and fix me some cars. LOL But hopefully we will get our fare share of snow events this year so I'm not working on cars for 4 months straight.
     
  3. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    Always. Add a hobby like cars to the list and you really never have money.
     
  4. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858

    I hear ya... The first 6 months of the year (or 7) I cut it pretty close month to month. Then come this time of the season I'm able to rathole 12 to 14 thousand to get me thru the winter. That holds me pretty decent till spring, but there's so many expences in the spring, and the first invoicing is a month after work and expences have started... I'd like to have hobbies and such, like buying and fixing up a car over the winter... But it takes so much money for the right equipment and parts... That's true for about every hobby and home repair. It takes a lot of cash just to keep a guy "busy". I can stare at this computer for the 30 bucks a month the internet costs + the power and not break anything, lol!

    The taxes are a big complaint too, but everyone has to pay those...
     
  5. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    That seems to apply to most people no matter if you have your own business or work for someone else. Human nature seems to be to get as much as you can to make yourself feel better. With this comes living at the edge or beyond your means so in effect you will always feel like your just making it by paycheck to paycheck.

    One to fix this problem is buy a $100,000 house instead of a $200,000, buy a used car instead of a new car,etc.

    The other way to fix it is get a better education so you can get a better paying job or get more customers of you own a business.
     
  6. Scotts' Yard Care

    Scotts' Yard Care LawnSite Senior Member
    Posts: 343

    The nature of our seasonal business and the way we're taxed guarantees will work until we die or can't go anymore.:cry:
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900


    Troy, with all due respect something seems wrong. If you have no money left over its because of only 2 things. #1 your not charging enough #2 your not charging enough for your life style.

    If your just working to pay bills you will soon tire of this work same as any other job. The trick is to make enough money to pay the bills own a few toys AND have the time to enjoy them.
    The easiest way to accomplish this [I know I'm gonna hear it can't be done] is to raise your rates where you do less jobs for more money. That gives you the time and $$$ to enjoy life.

    As I said before You have to believe your worth more, if you don't believe it you will never sell it to your customers. But once you know your good enough to charge considerably more than the competition you will sell yourself and your company as a superior choice to customers.The customer will perceive you as worth the extra money. As I said before a Yugo and a Rolls Royce will both get you where your going, but there are a lot of potential customers out there that will pay extra to go 1st class and take the Rolls. And for the ones that can't afford to own the Rolls they will still rent a limo once and awhile. And either way they pay a fortune to have what is perceived to be the best.

    Those are my customers or who I want, but its gonna cost them to get me. If 90 % of the ppl can't afford the "Best" then I'll settle for the other 10% and only work 1 day a wk. but I'll make as much in that 1 day as if worked all wk.

    Am I the best? It does not matter to anyone but the customers I have or want, and to them I'm gonna convince them that I am. payup payup
     
  8. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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    Hi Troy,

    I couldn't have said it better than olderthandirt.

    What you are experiencing is something every business owner experiences. Beyond what everyone else said my suggestion is too keep your feelers out. Keep looking for add on services you could perform and charge a premium for. There are going to be things you come upon and when you do, you will say, why didn't I think of that before. Just don't give up. Keep looking and keep experimenting.

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  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I think what my problem is that I occured so much debt getting the business up and going and I am still paying off debt that it seems like I am just never getting ahead.

    Right now I producing around a 35.5% profit margin with the business.
     
  10. Need a Little Trim

    Need a Little Trim LawnSite Member
    Posts: 137

    That seems to be a pretty decent profit margin. Since I had to re build my business all I am doing is as I am getting business bidding it with equipment percentages in the total. Have a huge debris removal job this weekend on 12 rental properties and have been able to purchase 2 new chainsaws and pressure washer because of it and still have nice sized profit margin after paying the crew.
     

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