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Paying cash is a mindset

Discussion in 'Business Operations' started by muddywater, Sep 3, 2012.

  1. zak406

    zak406 LawnSite Bronze Member
    Posts: 1,519

    Yeah paying cash really worked out for me ..... Now wwhen I need a loan I can't get one because I don't have enough credit history. I'd rather be 100 gs in debt
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  2. 123hotdog

    123hotdog LawnSite Senior Member
    Posts: 481

    I guess I will weigh in one time. No debt here at all. I think some thoughts from some on here are more personal preference than business decision. I have never financed anything including my house that is paid for. It's not much but it is mine. This year we are to purchase our first foreclosure to flip for a rental. Because I am a owner operator with no overhead the business now makes enough profit to purchase one rental property a year and I have all winter to get it ready to rent. I have friends in this industry on both sides of this debate large and small. There really is no 100% correct way.
     
  3. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    How is it possible to have no overhead?
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    And you called me the smuck. :laugh:

    That is assistant attorney type money.

    Difference is I deal with book keepers , Accountants and CPA for for many years after about 5 years I think I have paid enough and learned enough to have a CPA. I can run quickbooks and do tax planning pretty well.

    Cash is very safe for sure and excessive debt is bad too, then there is somewhere in between.
     
  5. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Yes...do tell?

    Maybe his equipment never breaks down and run on air.
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  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I thought Overhead included things like owner salaries too
     
  7. 94gt331

    94gt331 LawnSite Bronze Member
    Male
    Posts: 1,692

    Congrats to anyone that is debt free. I hope to be there someday. I couldn't have started in buisness without going into debt. I wanted to grow faster. It can be done for sure I didn't have the patience to pay cash for everything. Trust me theres been many times i wish i didnt finance things, I've been struggling to overcome my debt and get out from underneath my debt. It's been getting better. I feel like I'm a slave to work currently because of making poor descisions with credit. But there's two options, take the coward way out of bankruptcy or let the bank take it or work hard pay off your debts and be debt free. I have 2 more years and my $300,000 dollar investment will be paid off, my shop and ground included. I can't wait for that day. And then cash will be paid for everything. Thats probaly the best feeling to know your waking up in the morning and your banking most of your money other than your daily operating expenses like fuel,payroll, insurance, comp etc.
     
  8. 123hotdog

    123hotdog LawnSite Senior Member
    Posts: 481

    Depends on what you call overhead I guess. I'm a owner operator with one part time employee that works between six and forty hours a week depending on landscaping projects. All my trucks and mowers are paid for. Oh yea and shop and all equipment is paid for. My total insurance for business, trucks, and all is barely $100 a month. My fuel bill has averaged $81.62 for the past thirteen weeks and my labor (not including myself) was under $100 as well. I have a strong grip on my cost. My Dad mowed for twenty years and is dumbfounded about the fuel bill. That fuel bill is trucks, mowers, and two stroke equipment. This is mowing 35-45 lawns a week. I only drive 166 miles a week on average.
     
    Last edited: Sep 4, 2012
  9. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    What is good debt?
     
  10. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    Using someone elses money for free. Credit cards for fuel and equipment maintenance. Kinda tough to give employees cash for this kind of thing.
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