When is enough, enough

Discussion in 'Lawn Mowing' started by promower, Feb 7, 2006.

  1. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    For the seasoned veterans of LS. When does equipment purchasing slow down? Every year I need to drop a lot of money on more stuff and I cant wait to get to the point of just having everything I need to get through year. I know theres going to be some purchases every year, just a part of doing business. It seems like a vicious cycle, I feel like once I have everything I need I will have to start replacing the really old stuff for new. I dont see how you can build much equity in this type of business when everything depreciates so fast.
     
  2. sgallaher

    sgallaher LawnSite Senior Member
    Posts: 265

    I agree with you. The only way I can see that you can stop buying more stuff is when your company stops growing. What I do is maintain my equipment very good so that it lasts longer than normal. Another way to lessen the spending is to buy good used equipment.
     
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Its such a vicious cycle isn't it! The bigger you try to grow the more "stuff" you have to buy. Then just when you think you have everything you need here comes an unforeseen breakdown or ins. is due etc. I think its best to stay a smaller company with only having to worry about 2 or 3 big mowers and only enough stuff for 1 or 2 crews to worry about.
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    The answer is simple...it slows down proportionately to your business growth rate.
     
  5. Rev. Crabgrass

    Rev. Crabgrass LawnSite Member
    Posts: 120

    When you stop expanding there is a reason, no growth. Maybe just try and think of it as a good think you have to keep buying. sgallaher had a good point-- maintaining equipment like you are married to it is very important.


    REV.
     
  6. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    Think about this; in the new budget proposed by Bush he wants to raise the section 179 IRS code by 100k. That means you can spend up to 200,000 on new equipment or fixed assets in one yr. and it is 100% deductable. WOW!!
    Go for that new truck....
     
  7. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    Looking back we grew between 90-100% each year for the last 3 years. I guess there will be a point in which you have so many accounts that the ones that drop off each year would even out with new customers you pick up. So there should be a breaking point I would say within the next 3-5 years when company growth will considerably slow down, hopefully? I love this business but besides living expenses I put back a huge % of my business income to get ready for next year. I'm not putting a lot of savings towards a retirement which worries me.
     
  8. deereman

    deereman LawnSite Senior Member
    from USA
    Posts: 518

    What is it that you are replacing so often? What does your replacement schedules look like ? :confused:
     
  9. qps

    qps LawnSite Bronze Member
    from Indy
    Posts: 1,484

    Big deal...when the state only allows 25,000.00 a year (Indiana)...its a wash...you don't pay federal but the state hoses you:realmad:
     

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