go for it!!! or play it safe?

Paul Biester

Paul Biester

Location
under grace
I know most business owners are agressive types. I am wired the same way. TO be competetive and aggressive in my decision making process. WE are haveing a very active spring and the work seems to be backing up quickly.With all of that being said however, wich way is this thing going? Are we really pulling out of this bad economy ,or are we looking at a sustained down period? Many folks I read and listen to seem to think this could be a double dip recession.And with the dollar not doing so hot we could be in worse trouble.
Ok so heres my Question! Are most of you business owners still in a more conservative,sort of pay down your debt mode.Or if you saw a good idea or needed a big peice of equipment would you still try to fuel growth and assume some risk at this time??
I would love to pull the trigger on a knuckle crane or another piece, but I have my doubts as to wether the timing is right . This goes against my "nature", but its kind of what my gut is telling me!
Thoughts?!
 
A newly busy spring after a slow winter always brings back my buying itch, but I have to remind myself to make sure that the winter will still bear the payments of that equipment bought back in the spring!

I think this year will be a good one, so I plan on buying some new equipment. You sure are right about work backing up. We have a good few weeks ahead of us.
 
headboom.gif
 
I totally agree with mpriley02. Dad has been wanting to pull the trigger on a sweet deal for a Gehl AL20 loader with a BMG, because we could definitely use something like that quite a bit. But we barely scraped by this winter, so another payment on top of everything else would have really hurt us. On top of a slow winter, two of our top clients have cut way back on what they normally spend on us every year, so we're going to take a huge hit, unless we can find other sources to supplement that lost income.
 
If my gut tells me to go against my nature, to be more conservative, I think I might think thoroughly about it before acting. Get the brain (number crunching) to go along with the nature and gut.

I'd be looking at how much of the cost I was able to put up, or if I was 100% financing.

I'd wonder how many months of expenses are saved. Consider if any equipment seems like its due for significant maintenance/ repair expenses.

How hard would it be to offload if money got tight?

Will the big storms out east bring in a lot of new tree companies to your market, driving supply up and demand questionable.

How long will it take to pay for itself?

Will you be able to do a lot more business than before, or will it be replacing bodies with machines--efficiency, or both?

Figure what you are spending on crane rental now, and where that balances with payments.


I don't keep close tabs on Wall Street or the Dow Jones Average, so those are things that I would ponder, and I suppose how the gut and the nature have worked out for
you in the past.

Good Luck.
 
CAsh is king, the recession ain't over yet. We have some good times going right now but I seriously doubt if thing are gonna just be all rosy now.

Wait till winter and then ask yourself if you can comfortably make those payments.
 
[ QUOTE ]

I like to know how others work through the process.i find that I always learn something on a thread like this!!

[/ QUOTE ]

I learn a lot from threads like this, too. I'd like to upgrade my chipper, but I'm going to wait for a while before taking on any payments. And who wouldn't want a mini-loader. Haha.
 
Yeah i bit the bullet on the mini at the end of last year! Now that little beauty pays for itself quickly!! The first time you can use it to get some wood out from a yard you used to have to cart out of, youre like "uh huh,uh huh,uh huh!"
Blinky, Im kind of where you are ....its like if you wait and continue to pay down debt and increase your cash postion,can that really ever hurt you?!
 
I'm gonna say out loud that i agree with Holly
bowdown.gif


If you have a solid plan, then GO FOR IT!

Throughout history more fortunes are made in downtimes than up.

THe money still goes somewhere. The majority of your competitors are laying low. Take advantage of that. Lay the foundation now.

When it does pick up, your competitors will be left behind and disadvantaged.
 
First and foremost I need to get myself out of last year's hole while still maintaining and improving the stuff I already own. At the same time I'm sticking a little capital cash away for later purchases.

The idea is to have have a small wad of cash just waiting for some screaming deal of which, if things keep going as they are, there should be several over the next couple of years.

So, for now, it's simple repair, renovate and improve what I have. Save a little for later.
 
[ QUOTE ]
I have a very nice crane for sale.

[/ QUOTE ]

Nice!
applaudit.gif


It is a beautiful crane...

[ QUOTE ]
Are most of you business owners still in a more conservative,sort of pay down your debt mode.Or if you saw a good idea or needed a big peice of equipment would you still try to fuel growth and assume some risk at this time??

[/ QUOTE ]

For the sake of the thread. It's a good question Paul. I'm sort of in the same position. And I sort of waiver back and forth. One day I want to pull the trigger and purchase machinery. One day I want to pay off other current machinery...

I'm more like Rick at the moment...

[ QUOTE ]
First and foremost I need to get myself out of last year's hole while still maintaining and improving the stuff I already own. At the same time I'm sticking a little capital cash away for later purchases.

The idea is to have have a small wad of cash just waiting for some screaming deal of which, if things keep going as they are, there should be several over the next couple of years.

So, for now, it's simple repair, renovate and improve what I have. Save a little for later.

[/ QUOTE ]

Ask this question, this summer, I may have a more agressive answer.
crazy.gif
 
[ QUOTE ]
School always said, in a recession, to surive you grow and attack. Otherwise you bob along, this can lead to a sink or swim.

[/ QUOTE ]

I agree. Go for it!

-Tom

(PS - Did you sell the bucket? That would give you some downpayment $).
 
[ QUOTE ]
[ QUOTE ]
School always said, in a recession, to surive you grow and attack. Otherwise you bob along, this can lead to a sink or swim.

[/ QUOTE ]

I agree. Go for it!


[/ QUOTE ]

I'm pretty sure that is in the context of advertising. Advertising in a resession is the way to be agressive. This way we aren't relying on our current customers and referrals to get us by. My advertising is paying off right now. The majority of my current phone calls are from new customers. And I think that's sort of the goal...

But, I suppose it could be a two-fold approach. Invest in more advertising and machinery to pull a one-two combo on the comp. Hmm....
thinking.gif


I told y'all. I waiver on this question all the time. Now I want to buy something.
bangtard.gif
 
You must log in or register to reply here.

New threads New posts

Back
Top Bottom