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How to get the funding!

Discussion in 'Starting a Lawn Care Business' started by Future LCO, Oct 13, 2005.

  1. Future LCO

    Future LCO LawnSite Member
    Messages: 14

    Hey all. Ok so if i dont have the money and I cant find someone who has the money to back me, how do you go about convincing a bank of loaning you money for a company to operate in an industry that many people, that aren't in the industry, feel is saturated with companies as it is? Of course, we all know that houses are being build everyday and grass always needs cutting and companies are always going out of business. Especially the smaller ones that dont have money backing them. Of course having your plan together is awesome and of course banks want to know that you understand the finances of owning and operating a company so if you have that down, what do you use as leverage when you're in that big room with that banker making your presentation to make that light shine in their eyes and make them think, "hey, this guy knows what he's talking about and this company can and will work".

    I know i can make a company work if I have sufficient funds to get it off its feet. I know there's work out there for me to no end. I know the finances of the operating and owning a company. I have a workable business plan. What now?
  2. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,004

    i started with no job, no vehicle, a 20 year old snapper push mower, and $300 cash to my name. bought new stihl trimmer with cash and went off mowing.

    that was 6 years ago.

    if biz plan is that good, then you dont need money to back you. just a little sweat. the ones that go out of biz is not from money, but bad biz plan that lost the money.
  3. DistLawns

    DistLawns LawnSite Member
    from Midwest
    Messages: 120

    I was in a similar sitiuation this last spring. I bought an exhisting company and added to it. I went to sevral banks and got turned down. I finaly came across a smaller bank that would give the loan. Hers some tips I picked up along the way. Share any experience you have in the industry, if you dont have any, make some up!My banker told me I had to have at least 3 years in the industry b4 he would finance me.Secondly, in your biz plan, have a spread sheet with your total renenue that is realistic to what yu think yu can generate. Then, have another spread sheet with your revenue you think you will be generating in 2 years.I no this sounnds basic, and you already probably already knew this, but make sure you realy sell that second spread sheet with all your goals for revenue on it. I found My banker had more questions about that then anything. Another good idea is stay away from big banks, go to the local bank that only has a few branches. You may even end up with them as customers, I did! Good Luck.
  4. Darryl G

    Darryl G Inactive
    Messages: 9,500

    I started with a 15 year old truck, a 21 inch mower and a Ryobi split-boom, all of which I already had. Ran that way for the first year and did a lot of yard work that didn't require anything but hand tools.
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Yeah me too, my first truck was 30 years old lol.

    Let me tell you my story what I learned in this business you HAVE to know how to save your money or you will not last (at least that's been my experience). There are times when it doesn't rain for a month (or three) and there's times it DOES rain for a month (or three) straight and for other reasons it is always up and down. Save your money when things are good and you can last for months when things are not so good. Fail to do so, and you will hate life because when demand is low the only work out there is real pita crap pay you nothing to bust your tail on bs dirty work make a humble (and maybe later smart) man out of you.

    So save your money for the next 2-3 years, every month put aside whatever you can, start with 20 dollars then maybe 50 or 100, you need to know this to me is a vital part of my business. Even after I saved my money for many years working as a pizza delivery driver then later washing dishes at a restaurant (man it was a LOT of dishes every night), I find today this skill continues to prove itself with me, it never ends, I always save my money, right now I got near 10 grand in the bank so if I need a loan for a few thousand, it shouldn't be a problem (especially this way I get the sweet no-interest loans). But then, the secret to saving money is NOT to spend it in the first place so I'm not sure I understand everything except the more you save the better it is. Last but not least, operating on SAVED money is a LOT easier than operating on borrowed money because at least in my case, I respect saved money a LOT more than borrowed...

    Perhaps it is possible you can run a business without this skill, but I wouldn't know where to start.
  6. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,004

    good post topsites........
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    If you have the "plan" and all the other answers to a saturated market, then you should have had the forethoght to save some $$$ to get your plan off the ground. If all you have is a plan and ideas, I wish you good luck in finding financing
  8. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,691

    Future your right you need cash to make it I started with 65,000 and in less than 3 years have a quarter million a year business. But one little thing was the 65 grand was my own money. I think you will find few willing to share the risks with you if they do not see you risking anything. Not only do poorly funded companies go out of business oh no well-funded ones go out all the time as well look at Enron. You know what I have never bothered to do I have never made a so-called business plan there is no need. The plan is in my blood every move is thought out months and sometimes even years ahead. That’s just the chess player in me I guess I do not need some piece of paper to tell me what I know needs to be done. If you fail to get a loan what is plan B in your plan? Do you give up or get a job to save up the money?
  9. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,691

    On the other hand I recall a man talking about his plan to fix everything but when asked he could never answer anything. Guy was a moron but always when pressed claimed he had a plan for that too. I do hope it’s a better plan then Kerry’s was LOL :D
  10. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    you should not go into debt to get into this business, the barriers to enty are too low, you go get a loan, and have higer overhead for it, joes lawn care down the street starts whith what he has, saves, payes cash for everthing and is able to underbid you over and over again......

    start small and grow, listen to the more experienced people that frequent this board, follow a plan that is already proven to work, why reinvent the wheel....

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