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FourSeasons
01-08-2008, 10:24 PM
Question: Mary and her husband are starting a small grass-cutting business. They've had early success and want to upgrade the equipment. How much should they spend?

Dave Ramsey's answer: I started my business on a card table 15 years ago and have been running it debt-free ever since. We have lots of fine equipment and good stuff, but it didn't start that way. We'd make a little money and buy a little equipment. That's how we started because we didn't borrow money. Any time I'm buying equipment, I either buy high-tech equipment as a percentage of our worth, or I buy used and get a great bargain. In your world, that would be October or so, at the end of the season. Make due for the summer with what you've got, but start talking to equipment dealers. You can buy their castaways for little to nothing in the fall.



go here :
http://www.daveramsey.com/tdrs....rtRow=5 (http://www.daveramsey.com/tdrs/index.cfm/Small-business?&startRow=5)
and listen to the whole call (its the bottom one and click on listen to the call)

what do you think. my goal is to stay out of debt!

Steve
01-08-2008, 10:26 PM
Hi Rob,

Good post..

Are you applying these same principles?

How much of what you see in the lawn care business is business owners buying more equipment than they can afford to just show off?

FourSeasons
01-08-2008, 10:31 PM
I try to apply alot of his principles to my life. I don't want to be in "bad" debt.

I think alot of it is a pride thing. We all see the guys with the nice truck and equipment and it hurts are pride when we dont have it. Oh well I am going to try to work my way up. Listening to Dave Ramsey and John Commuta changed my whole thinking on getting into debt. Which is the lifestyle for most people today.

Steve
01-08-2008, 10:33 PM
I am glad to see you are going for that direction.

Let the others have monthly payments while you laugh all the way to the bank!

What equipment do you see yourself needing this coming year and how do you feel you will go about getting it?

FourSeasons
01-08-2008, 10:37 PM
what if you applied these principles to buying equipment:
http://www.daveramsey.com/etc/lms/drive_free/player.cfm

EARLY BIRD MOWING/LANDSCAPING
01-08-2008, 10:41 PM
I thank you should take it step by step if you have to get a loan be sure to pay it off befor geting something new! I try to stay away from loans , it may take longer to get what you need but it's worth it in the end.

realhuntin
01-08-2008, 10:42 PM
Quote[/b] (Team Gopher @ Jan. 08 2008,10:33)]Let the others have monthly payments while you laugh all the way to the bank!
Hey Rob do you rememver our phone call and a statment iI made about my equipment and truck? Read Steves quote it is very close to what we talked about.

Steve it is funny how great minds think alike.

realhuntin
01-08-2008, 10:45 PM
Quote[/b] (FourSeasons @ Jan. 08 2008,10:24)]We'd make a little money and buy a little equipment. That's how we started because we didn't borrow money. Any time I'm buying equipment, I either buy high-tech equipment as a percentage of our worth, or I buy used and get a great bargain. In your world, that would be October or so, at the end of the season. Make due for the summer with what you've got, but start talking to equipment dealers. You can buy their castaways for little to nothing in the fall.
Here is another thing we talked about. Funny how thing come together huh.

FourSeasons
01-08-2008, 10:45 PM
Tim-
Yeah, I found this later in the day after we talked.

realhuntin
01-08-2008, 11:29 PM
Hey Rob
I'm glad you brought this topic up because there are alot of good points to all of it that everyone starting business should understand.

FourSeasons
01-08-2008, 11:38 PM
Yeah, Im just really against going into debt if at all possible.
That is the way most of America lives today. I believe that if you use certain planning and strategies you can avoid going into debt. If your wife can work with you on it of course. Some people can't help but just spend everything in THEIR bank account.
One of my goals is to work on having my money work for me. Not work for my money forever. I'm reading about investing right now to.
I just met with the guy that does welding for me tonight. He showed me his portfolio. In the 15 years that he has been investing he is now on paper worth $1 million.

Steve
01-12-2008, 03:37 PM
Quote[/b] ]I just met with the guy that does welding for me tonight. He showed me his portfolio. In the 15 years that he has been investing he is now on paper worth $1 million.

That is quite a meeting! How did that come about? Are you just friends with him or was he trying to sell you something?

FourSeasons
01-12-2008, 03:44 PM
Quote[/b] ]That is quite a meeting! How did that come about? Are you just friends with him or was he trying to sell you something?

He does any welding for me that I need done. He likes to talk alot and I went to talk to him about doing some welding on my trailer and making a potting soil mixer for my friend that owns a nursery.
I don't know how we went from talking about welding to stocks. LOL

He's just a nice guy I guess. Thats kind of personal info I would think. He broke out his statement from Edward Jones and everything. But I want to start investing so it was kind of informative for me.

Steve
01-12-2008, 03:58 PM
Well that is fantastic! I hope he was inspiring and you find yourself invest very soon!

Good job!

ABurlison
01-12-2008, 04:36 PM
Yeah I love Dave Ramsey, I have 3 of his books, but I have 5 kids and its sometimes hard to put his principles in place, but I'm working towards it, as a matter of fact I just went to my local pawn shop and bought a nice running SHindaiwa trimmer for $100, I could have went down and bought a brand new one and spent over $300, but I didn't.

http://www.daveramsey.com/

His total money makeover is well worth it, kinda the reason I decided to start this business as a second income and side job.

Steve
01-12-2008, 05:17 PM
Quote[/b] ]Yeah I love Dave Ramsey, I have 3 of his books, but I have 5 kids and its sometimes hard to put his principles in place,

Which principles stand out for you?

ABurlison
01-12-2008, 05:28 PM
I think the biggest principle I try stick in my head, is, lets say I'm getting a 4k tax refund, okay and I need a pickup, do I see what I can buy for 4k, or do I buy a nicer one and use this as a down payment, his principles would teach us that we should ALWAYS, buy what we can afford now, I'm not perfect at this, but I'm definately working on it and making it *a mental note in my head.

His books would teach us first and fore most if I get money like this to pay down or off the credit cards or any debt first.

Like that Prosper loan, I'm just going to pay off in Feb. or March first.

FourSeasons
01-12-2008, 05:30 PM
Quote[/b] ]Which principles stand out for you?


Everything on there should stand out to you.
Have you checked out his site and listened to some of his shows.
\Being in debt is the way for most of America. Why would anyone want to be that situation. Look at the foreclosure and bankruptcy rates.]
No one can save up and buy stuff. They want it today. People have told me I need to have a business plan so I can get a small business loan.
Why? I am not buying a franchise. I sold a car I never drove for 1500 and started my business. I started and lived off that money until I had income coming in.

Steve
01-12-2008, 05:31 PM
You know that is a very good point. As I read what you were saying I was thinking to myself I know people who if they had $4,000 in their hand, they would go out and spend $10,000. Then they constantly find themselves in a hole!

I am glad you shared that one with us. It is good advice.

ABurlison
01-12-2008, 05:36 PM
Yeah, exactly, I'm not going to say I'm perfect at this concept, but definately working on it. Actually the 4k should be spent on that late power bill and things like that first, and to be honest I actually seen a decent White 4 door long bed Ford Pickup, like early 90's for $1500, That's probably going to be the one I get, nothing special, but serves its purpose.

FourSeasons
01-12-2008, 05:37 PM
Quote[/b] ]You know that is a very good point. As I read what you were saying I was thinking to myself I know people who if they had $4,000 in their hand, they would go out and spend $10,000. Then they constantly find themselves in a hole!

I am glad you shared that one with us. It is good advice.


Exactly. I almost fell into this trap. I have around the same amount saved up for a truck. I told my wife I'm going to use it as a down payment and then pay off the rest this season.
No! Why would I put myself in debt if really its not neccesary. Do I really need a 10-15,000 truck to work out of. Not yet. Except maybe one with a dump. Even those are cheaper than that used.
Work trucks get beat on. The bed on my work truck is tore up from stuff in and out of it and my employee from the summer put a dent on the top of the bed. Good thing its just a work truck. And some one rear ended me while I was working.

Steve
01-12-2008, 05:40 PM
Quote[/b] ]I actually seen a decent White 4 door long bed Ford Pickup, like early 90's for $1500, That's probably going to be the one I get, nothing special, but serves its purpose.


Good for you! Let us know what happens with this!