Steve's Place

Discussion in 'Starting a Lawn Care Business' started by steveiiturf, Nov 6, 2013.

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Whats Holding You Back From Growing Your Business?

Poll closed Nov 27, 2013.
  1. Lack of Good Labor

    3 vote(s)
    20.0%
  2. Not Enough Sales

    5 vote(s)
    33.3%
  3. Cash Flow

    4 vote(s)
    26.7%
  4. No Direction or Plan

    1 vote(s)
    6.7%
  5. No Key Support Staff

    2 vote(s)
    13.3%
  1. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Actually only two problems and when I state them if he did one thing different he might of been able to regroup.

    Procut kept using a line of credit with his bank to finance work. He never saved up a cash to buy materials for new jobs or for a emergency fund to carry him through a dry spell. So once the bank stopped him from getting credit he no longer had money to operate.

    When the economy when bust along with the housing bubble bursting in 2007. The Fed gov forcede banks to tighten credit. Lines of credit are a type of loan except the banks can demand payment in full at any time and refuse to make any more loans. Procut's bank without warning demanded payment and cut off credit.

    Procut had his business accounts and personal accounts with the same bank.

    And this was Procut's biggest problem. His bank took all of Procut's money from his personal accounts and applied those monies to pay off his business loans. Leaving Procut without a dime.

    No cash no credit and with receivables coming in to slow procut had no money to operate.

    So you see Procut's biggest mistake was him not keeping his personal money with one bank and his business money at another bank.

    For even if his business bank stopped his line of credit they could of not taken his money out of his personal bank to pay his business loans.
     
  2. steveiiturf

    steveiiturf LawnSite Member
    Posts: 50

    Good points.
     
  3. Armsden&Son

    Armsden&Son LawnSite Silver Member
    Posts: 2,357

    Very good points^^^^^^^.. Everybody always talks about Procut's story this and Procut's story that.... It is really simply folks.... What happened is exactly as was stated above by 32vld... No hidden problems, no behind the scenes drama.. I mean, this is one of the first things we learn when learning to manage money... An emergency fund. If Procut had 100k under his mattress then that thread would never exist...(of course that is simplifying it but you get my drift)
    And coolluv.... Why don't you try asking Donald Trump, Or maybe Mark Cuban exactly how they came up through the ranks and exactly what their systems are. Do you honestly believe that ANY successful person is just going to tell you step by step exactly how to be successful? Either in a book, at a seminar, or on a website? Get real! You are correct in one aspect though... in one whole book you might get a nugget, but in 20 books, you get 20 nuggets. There is no easy way to do it bud and don't think for a second that somebody is going to do it for you because that is how a sucker thinks.....
     
  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    The "Donald" had a dad that had money and owned NYC real estate.

    He followed his dad into the real estate developing business using his dad's assets (money and NYC properties) to make himself super rich.
     
  5. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,716

    We all say that about the "emergency fund" It just becomes to easy to borrow money to expand, adding our second mowing crew was close to 70k in equipment. Now what if we had the opportunity to gain more work for crew number 3, well there's another 70k. Now figure in daily operating expenses and it's easy to see that 100k under the mattress can only pay off the existing debt, but now how do you pay to operate?

    I've read a few threads about companies landing "the golden goose" only to find out they bit off more than they could chew, some survived and some folded. We all have different ownership/management styles so I agree "generalized" operating systems don't work. I also agree we have to take those nuggets from books, articles, whatever and apply them to our business applications to compete and grow successfully.

    As for the examples Armsden :nono: :drinkup:

    Come on, Trump has filed for bankruptcy how many times:confused:

    And how's Cuban's insider trader thing going :laugh:
     
  6. Armsden&Son

    Armsden&Son LawnSite Silver Member
    Posts: 2,357

    Yeah, Yeah, Yeah, .... I knew somebody was going to bring up Trumps Dad.... You guys are totally missing my point! Coolluv is asking for step by step directions for success.... Jrs... You seem to be successful, are you going to take coolluv aside and tell him EXACTLY what you did to gain your success? Of course not! And not offense Coolluv, just trying to point out the fact that nobody is going to write a book, or hold a seminar, or host a thread where they tell you every and all of their secrets to success.....
     
  7. Coolclay84

    Coolclay84 LawnSite Member
    Posts: 47

    I understand what he's saying when he talks about books. They are full of anecdotal information that does little to give someone a clear path to what they need to do step-by-step. With that said I wouldn't go as far to say that they don't offer any information worth reading. I read just about every business book and magazine I can get my hands on.
     
  8. steveiiturf

    steveiiturf LawnSite Member
    Posts: 50

    I think both Armsten&Son and Coolclay84 are right, first of all there is not any one book that will tell you exactly what to do to be successful in business, however like Coolcay84 said if you read anything relating to business you can get your hands on you will benefit and learn something to help improve your business and hopefully your life.

    Since I'm working on a book specifically for landscape company owners I'd really like to get some input from this forum on some things that you would like to see included. My book is going to be targeted for companies that are in the $1 million or less gross sales category. Let me know your thoughts.
     
  9. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,759

    How to make employee handbooks, how to properly set up systems and checks and balances, how to do overhead recovery and set up pricing better
     
  10. Armsden&Son

    Armsden&Son LawnSite Silver Member
    Posts: 2,357

    I would love to know more about the EB-4 program... We all know that one of the major problems facing owners today is employment.(actually, lack there of..) Between the video game/computer generation showing absolutely no interest in working hard and slim margins dictating a smaller hourly wage, us owners are left with slim pickings to say the least. I recently left the Greater Boston market and many of my friends who are also business owners have turned to the EB-4 and it is working wonders for them... Of course not every LCO is doing it legally and I have even heard rumblings that the program is slated for review and perhaps shut down. Either way, I believe this would be a great topic to dedicate some real estate to in your book....
     

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