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!Sticker SHOCK! đ˛
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?You Quit Your Job to Start a Business â So Why Gamble on a Used Truck?
Everybody says the same thing: âJust buy a used truck, itâs cheaper.â Yet, That same truck breaks down 3â6 months later. Now your jobs are delayed. Youâre borrowing vehicles from your spouse or rental. Youâre stressed out and behind on bills. And suddenly the âcheaper optionâ 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 youâre betting your whole future on this business â 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 â like my ability to show up to the job, that will pay me for my services... Iâm 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.
Tasks in Jobber for Equipment Maintenance
Is anyone using tasks in Jobber to track/schedule regular maintenance on equipment? Oil changes, new tires, etc. If so, I'd be curious to hear how it is working for you. How easy is it to pull up the maintenance history on a particular piece of equipment? Before looking at a separate solution, I'd prefer to use something we already have.Should I lease or buy a work vehicle?
We at GB Plumbing decided to lease our first work vehicle as we thought we wouldnât be growing or doing much besides having 1 truck. But once things got busier, and we had to start hiring more, we had to buy a truck pretty quickly to keep up with the demand of work, and same for our third vehicle.Maintaining Your Equipment: Tips & Tricks from the Prosâ
As a business owner, keeping your equipment in good shape is key to staying efficient and reliable. Iâve learned that regular maintenance and knowing when to upgrade or replace tools can save a lot of headaches down the road. What are some of the tools or equipment you canât run your business without? And how do you keep track of maintenance or repairs?â* Maintaining your equipment is essential for keeping your business running smoothly. Over the years, Iâve learned that regular maintenance and staying on top of repairs can prevent costly breakdowns and delays. Some of my go-to tips are scheduling monthly check-ups, keeping track of warranties, and having a solid backup plan for when equipment goes down unexpectedly.
