Plans for next year

Discussion in 'Starting a Lawn Care Business' started by GriffinLawnService, Aug 15, 2006.

  1. GriffinLawnService

    GriffinLawnService LawnSite Member
    Messages: 235

    I want to buy new equipment and gain a more professional look for the next cutting season. I do not know if I need to wait and see if I am going to gain any new business to support this growth. I guess I am asking should I just go ahead spend the money and wait for the business. Or should I wait for the business then buy the equipment..

    I was planing on buying:
    25 horsepower Kubota (diesel) with 60' cut
    fs 130 stihl string trimmer
    new racks for trailer
    stihl hedge trimmer
  2. BQLC

    BQLC LawnSite Senior Member
    Messages: 574

    what type of equipment are you using now?
  3. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    Uh, do you have the properties to support buying(and which NEED) that kind of mower? That will be an expensive and I'm guessing quite heavy machine.

    You do need equipment to take new accounts, but don't dive in over your head with it.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    If you are buying new-- NO wait till you need it-- why carry 10K all winter.
    Only buy what you need to do the work that you sell-- after you sell it!

    That is the best part of buying new-- a phone call and I can put anything I want on the truck in an hour
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I learned the hard way both of those methods are bad news. The first is real risky but even the second carries some risk, if you absolutely can not wait then I guess you wait for the business then buy but I still don't like it because I've learned it is best to have the money in the bank first.

    Because the first situation is risky, I don't need to explain why do I? Ok but even in the second scenario, what if you get the business and go out and spend the money and OOooops gas prices go through the roof or something stupid happens and all of a sudden like HALF of your customers cancel or maybe you get a deadbeat on a large amount, who knows, but anything could still happen long before your investment is paid off...

    NEVER count your chickens before the eggs have hatched, and then you still have to wait until your newborn hens are fully grown.

    So, the proper way I learned to do it is wait for the business, do the work, collect the money, deposit it and wait until you have first your next winter's money saved and then save more on top of that - Once you have enough money on top of next winter's savings IN the bank, then you can make decisions with that money, whether you have the business or not at this time is hardly relevant, see...

    If you want to play it safe, do it that way. Yes it is hard, but the safety factor is unbelievably good and once you do it this way once, it gets a little easier the next time around. I might further suggest letting this saved money sit in a money market account so that as it builds up, you earn close to 5% interest which is like $3.75 / month for every 1k you have saved, either way they pay you interest instead of the other way around. I know it sounds like peanuts but save several k's and all of a sudden you got like 10 or 20k in the bank and they're paying you like $75 / month LOL

    The Ultimate way would be to have enough put aside where the interest itself pays for new equipment, but I'm not quite there yet LOFL
  6. DoetschOutdoor

    DoetschOutdoor LawnSite Bronze Member
    from S. IL
    Messages: 1,818

    What kind of properties do you have where you need a diesel mower? Those diesel mowers are made to be started at 8am and not stopped until its dark so I couldnt justify spending the extra money unless you had alot of big properties. And why buy new if you are wondering about having enough business for next year to justify the purchases. Find a mower that someone bought and never used and save yourself thousands of dollars. No point in getting in debt and then not having enough customers to support your bills. My .02 at least
  7. GriffinLawnService

    GriffinLawnService LawnSite Member
    Messages: 235

    Thanks for the response. I am going to check out the market more and see what is out there. What would be the best used machine to buy?

    An I am runing a cub cadet rite now. The reason for a diesel is because I figure if I was planing on buying a mower that runs around 8 k then why not spring for the diesel and it last longer, that was just a thought.
  8. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    find what you want, save for it(some of it), pick it out carefully, spend a few months researching, then advertise and if you get the business then get the new stuff if you dont get the business you are still on your way to getting what you want by having saved so much in the time you spent researching and advertising
  9. lawncutterupper

    lawncutterupper LawnSite Member
    Messages: 61

    great advice topsites
  10. prn068

    prn068 LawnSite Member
    Messages: 20

    I set a goal one new mower every spring depending on the previous years needs, anything outside of that throughout the year is bought heavily discounted; (used).

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