We had an interesting discussion on the Gopher Lawn Care Business Forum on the topic of lawn care business loans.
One of our lawn care business forum members told us “I did start my business with a loan, but I made sure that it was one that the business could easily pay off.”
Steve: “Do you have any advice to others about the process of taking out a loan for your lawn care business. When you should and shouldn’t? Also what you would say is one that can be easily paid off. Where to get it from? What should you spend that money on?”
Chris: “First for the process of taking out a loan. If you plan on going to the bank for starting your business make sure you have a solid, well thought out, lawn care business plan. It is not a bad idea to have a professional consultant review your business plan before you go to the bank. This can get pricey, but it can be the difference in you getting a loan or not. When I say make sure your business can easily pay that loan off, you should make sure that your loan payment is no more than 10% of your projected revenue. You can spend this money on anything you need, but spend it wisely. I used mine on the truck, trailer, tools, and lawn care equipment. I didn’t really have any tools before, so I needed those. I had an opportunity to buy the liquidated lawn care businesses equipment from my previous employer, but it was trashed. Therefore I got my own, new lawn care equipment. If you already have resources such as your own tools use them and spend your loan on other things. I already had a laptop, laser jet printer and office supplies from being in college so I have been able to utilize those resources.”