Cash Flow And Debt In The Lawn Care Business

This article is prompted by a message from the wife of a lawn care operator we'll call, "Sally" on the east coast. Unfortunately, it's a far too common problem.

Sally's hubby was just starting his lawn care business and went to town on the purchases. Nothing but the newest and the best.

Seems, some folks feel the need to buy brand new equipment, financed, a new truck, financed causing too much debt load.

When your business, (or ANY business) is in it's infancy, positive cash flow is like oxygen. You die without it.

Don't feel that you need the nicest, latest, greatest equipment to get started right. You don't! Do everything you can to stay away from monthly debt payments.

Now I know, it is a necessary evil in some cases. But do you really NEED a brand new Ford F-350 Turbo Diesel Quad Cab with $800 a month payments?

A new business needs to be reinvesting it's positive cash flow back into itself in order to grow. That $800 could go towards paying a part time helper to free you up to bid more projects so you can make even more money.

I know, it is difficult to resist the urge to look good I've been faced with the same challenges, trust me. But delayed gratification pays off big time.

Now, I've had to put weedeaters and lawn mowers on credit cards before. I did not OWN any equipment when I got started. I borrowed it from my brother. $1,000, $2,000 OK, but $45,000? Be real.

Remember, do everything you can to allow your business to feed itself, don't feed interest payments in the beginning.

Once your business is big enough it will put you in the truck of your dreams. Just make sure your business gets big enough.

William Feller is a Past State Board Member of the Texas Association of Landscape Contractors as well as a Past President of the Austin Chapter of the Texas Association of Landscape Contractors.

Today William helps people start and operate their own Lawn Care Business through his site at http://www.MowingForMoney.com

Written By: William Feller

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