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Expansing business

Discussion in 'Business Operations' started by The Perfect Lawn Company, Feb 26, 2008.

  1. The Perfect Lawn Company

    The Perfect Lawn Company LawnSite Member
    Messages: 15

    I am hiring a new employee this year for the first time. I do not have a business loan or much capital built up. For the last 4 years I have been paying business expanses and paying me all out of one banking account. What are some ways of paying this employee and other expenses? Is a business loan that way to go? Line of credit? Is so, what is the quickest way of getting a loan/line of credit? Hopefully, not going against me personally or my home.

    GSPHUNTER LawnSite Senior Member
    Messages: 311

    I would think financing employees payroll would be a bad idea. There is no equity gained in employees wages. When you take a loan on a durable good, you build equity in it, so if it came down to the business not surviving you would sell the equipment to hopefully cover your debt.

    Also, you don't have to start paying employees until you have work for them. Once you have work for them, you shouldn't have to take a loan out to pay them.

    I don't have employees, but this just makes sense to me.
  3. snobird

    snobird LawnSite Member
    Messages: 23

    if you hire people on credit your digging your self into a hole, if you think you cant handle the busniess now on youre own and you dont think you can afford employee maybe look into raisng the price or look into more thing you can offer your clients but you should only hire people when the work load is too much for you to handle and by hiring them it would benifit you
  4. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    You might want to look into using a temp agency so you get a bill at the end of the month (I think) and don't have to worry about payroll taxes, workers comp, or insurance.
  5. ponyboy

    ponyboy LawnSite Bronze Member
    from ny
    Messages: 1,582

    i hold back 1 week salery 2 reasons makes them come in on monday and the first couple of weeks it bought me 1 week do get pais from work already completed. If you have to take a loan for a worker maybee you do not need him just yet ortry a part time helper?
  6. The Perfect Lawn Company

    The Perfect Lawn Company LawnSite Member
    Messages: 15

    thanks for the thoughts...

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