You paid cash for everything when you started,so where you in debt?

Discussion in 'Business Operations' started by grandview (2006), Nov 20, 2012.

  1. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    What is your theory? Interest rates will never be this low again?
     
  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,765

    Please do explain.

    Ive bought all kinds of equiptment and parts from the sponsers on this site using cash, or debit card.
     
  3. Duekster

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

    I suspect he is talking about building credit so you leverage growth in the future. I do a mixture of credit and cash.
     
  4. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I suspect he just wants us to click on his links ;)
     
  5. Duekster

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

    The Former Owner has been active today :rolleyes:
     
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,765

    Possible hes going into equiptment banking.

    I think the intent of the thred is if you start your business "out of pocket" how long does it take you "recoup" your investment. My first post was immediately, if I purchase a truck for 5k and its worth 9k I made 4k, although its not "cash".
     
  7. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I'm not quite following the original post. If you still have the equipment it still has value = assests or equity. The only thing you really need to recoup is the depreciation.

    I donated a truck and landscape tractor that I already had to my business when I started out, which was a benefit because I could not deduct their depreciation when I owned them personally. On top of that I was able to show an operating loss for the first two years even though I put a substantial amount of money in my pocket.
     
  8. Duekster

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

    I would like to find some of these late model 2006 + > 100K Mile Diesel NPR /Fusio trucks people are talking about.
     
  9. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,765

    Ive got a 2000 Chevorlet cutaway, I bought it in 2007 for 6k with dovetail and trimmer racks inside the box. It took me 9 months to find it and it was a 4 hour drive from my house.

    If you check truck trader, ebay, craigslist etc all the time and are willing to travel you will find a deal.
     
  10. Duekster

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

    Definately thinking this is likely a good way to go. Just got to squirrel away some cash. Been paying down personal debt. Wife got laid off 4 years ago and decided to become a house wife. Glad she can do it but losing that 60K a year hurts. I was not sure we would make it 3 years ago but things are looking much better.
     

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