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View Full Version : How far to go?


tiedeman
03-24-2006, 12:41 AM
I am curious as to how many people go really far in debt either at first or currently to fund their business?

NickN
03-24-2006, 06:55 AM
Not me.I bought everything cash.Sold a boat I had,but didn't have time to use.(Had 2)Used money saved to invest in other equipment.
All jobs(landscaping) require a deposit of at least enough to cover expenses.(Nobody has a problem with this)I'm not in the business of financing peoples dreams.I only make them come true,with THEIR money.:D
Since you're only going to be offering fert and herb,you really should have a low cost of entry as far as equipment goes.Advertising and marketing is where you're going to need to pour money into.You're directly competing with well known names.That would seem to be your biggest barrier.

Steve
03-24-2006, 08:44 AM
Quote[/b] ]I am curious as to how many people go really far in debt either at first or currently to fund their business?
I think the vast majority of people do. There was another post I saw lawngodfather make about an ebay listing. He was saying how high the price for an lawn care operation was and how long it would take to make that back. I think he was right in his reasoning as well.

New business owners want to buy into this dream. They feel the more they spend, the more legitimate their business will be. The more equipment they have, the newer it is, the more people will think they are doing great.

It's a shame but all too often, people spend money like crazy when they start a business. They hear the saying in the back of their head, you gotta spend money to make money.

In some cases which we can go into further if you want, it makes sense. But the vast majority of times it doesn't.

Think of starting or running a business like learning to swim. You have to be able to stay afloat. You can't do it when you are weighed down with debt.

Quote[/b] ]You're directly competing with well known names.That would seem to be your biggest barrier.
This is the reasoning behind why I suggest to Troy to market his 'personalized' services. Promote himself as the business owner. To stand out from the franchises.

tiedeman
03-24-2006, 11:15 AM
I have been trying the personalize approach more and more lately. Instead of directing the marketing material towards the business, I am directing it more towards me now.

For me personally, it seems as though sometimes you can never get ahead with the debt situation. Soon as you pay something off, something else jumps up and takes over. Perfect example was my new truck that I just had to get 3 weeks ago. I had to step out and get $3,000 for a downpayment on the truck. And now I have to deal with truck payments again.

lawngodfather
03-24-2006, 07:28 PM
You have to spend money to buy the basic tools you need to generate your income, if need be you may have to barrow money to do it. Paying CASH foreverything isn't always the way to do it. sometimes you need to use other peoples money. You are doing so by requesting half down as a deposit, but you don't do any landscape jobs of considerable size, they just don't give you half. Not every way works for everyone, or it would be a standard. The only thing that works that was is credit which is bias to begin with.

I can ramble all day long, but you still need the equipment you need to work, and by any means you need to use to get it. The extra things you want is what getsyou in trouble. Things like a $50k truck etc....


You need to balance things out. paymenst are a way of life for most of us.

Steve
03-24-2006, 07:29 PM
There will always be things breaking and needing to be replaced. We do have to make allowances for that. One of the ways is to save money throughout the year so such things can be covered.
Keep at it and I bet this year you will see a lot more growth.