New, Used, or Lease? And WHEN?
As a small business owner it has been nothing short of challenging to build a business from nothing. I came from nothing and have built this thing from the ground up. I didn't have a lot of money. When I first started I couldn't afford company vehicles. I eventually bought used vehicles in the $20K-$30K range and financed them and that was fine until I unexpectedly slowed down and had to sell off my trucks just to survive. Once I rebuilt from the slow down I decided to buy used vans around $9K to $10K cash. Right now I have 6 vehicles. One of those vehicles needs major work done. And the others are all 100K miles or more and I feel like they are just ticking time bombs. I want the reliability of newer, or leased vehicles but the risk intimidates me after my struggles in 2022. Is there a formula for when you should go from paying cash for used, to financing newer/new, and to finally leasing? Is there a revenue metric, a number of vehicles in your fleet, or some other sign that going one route over the other is more advantageous or less risky? Thanks for taking the time to read this and share feedback!Do you utilize battery-powered tools?
Handheld battery-powered tools have come a long way from their first iterations, especially over the past few years. I've started making the switch away from gas-powered equipment throughout the last few seasons for my business and have found the switch to be positive for my workflow and bottom line. This is a trend I believe will continue as batteries become more powerful and long-lasting. Are you utilizing any battery-powered equipment and, if so, do you have any favorites you'd like to share??You Quit Your Job to Start a Business — So Why Gamble on a Used Truck?
Everybody says the same thing: “Just buy a used truck, it’s cheaper.” Yet, That same truck breaks down 3–6 months later. Now your jobs are delayed. You’re borrowing vehicles from your spouse or rental. You’re stressed out and behind on bills. And suddenly the “cheaper option” is costing you way more. Here's my personal take: You quit your job ... You are betting 100% on yourself, to care for your livelihood. If you’re betting your whole future on this business — why risk it with a vehicle that might leave you stranded? I hate blaming others, or the lack of accountability. So if I can control one variable — like my ability to show up to the job, that will pay me for my services... I’m going to do it. But that's just my opinion. My hot take, What do you all think? I created this visual for myself to follow and share whenever anyone is deciding to get a vehicle.Sticker SHOCK! 😲
I have been doing my office's annual purge and came across some old invoices from the earliest power equipment my business purchased. Believe it or not, some of the equipment I use has doubled in price for the replacement model at today's cost. Since it is our responsibility as owners to be profitable enough to replace/repair equipment as needed, I find myself adjusting my equipment cost recovery number upward almost monthly in my budget. How often are you adjusting your cost recovery upward to adjust for the ongoing inflation?
Green?
So, as a general contractor, framing, cabinetry, finish carpentry, flooring, and painting as my trades, I am looking into a new form of construction. Literally building the entire structure out of styrofoam. Walls, roof, floors, everything. Curious what this forum/chat would think of it. Is there a niche in northern Arizona for an alternative form of building? A green way of construction in both residential and commercial applications? strataus.com
