Landscape and Irrigation is read by decision makers throughout the landscape and irrigation markets — including contractors, landscape architects, professional grounds managers, and irrigation and water mgmt companies and reaches the entire spetrum.
Issue link: https://read.dmtmag.com/i/96774
Business Management By Dan Gundacker means more reliability and reduced maintenance costs, which helps free up capital. Take a minute and think about everything that goes into operating your fleet of mowers — the crew, fuel, maintenance, parts, and attachments to name a few. If you understand your exact operating costs, your bids will be more accurate.You may want to consider matching your finance terms with the equipment warranties to minimize repair expenses. When examining your expenses, look at revenue by month. Most operations have their "busy" and "slow" seasons. In this scenario, it's particularly important to look at the months in which revenue is tight. When you go to meet with your dealer you'll have a plan in place and the ammunition you need to choose the right financing option for your business. You're ready to make the big purchase. Now what? Here are a few financing tips to keep in mind when speaking with your dealer: Photos provided by John Deere Finding Financing that Fits Manage cash flow, organize finances, and plan out your equipment needs he most profitable landscape businesses are those that can manage operation costs, cash flow and mitigate risk.With cooler temperatures consuming many parts of the country, now is the perfect time to organize your finances and plan out what equipment and supplies you may need this coming spring. As a landscape contractor, you may find yourself in an interesting position heading into 2013.You may be looking to purchase new equipment to upgrade or replace your aging fleet, which the slow economy has forced you to keep longer than normal. You might also be looking to improve jobsite efficiencies or take on more work. T But how do you intend to purchase new equipment? You'll need a way to manage your cash flow and cover your business's day-to-day expenses. The answer is simple — financing. Whether you're a long-established company or just getting started, cash-flow management and credit availability are vital to the landscape business. Every professional groundskeeper, landscaper or commercial mowing operation is different, and no two have the same needs. It's important to look for a wide range of competitive finance options to help optimize your cash flow and acquire the equipment and supplies you need. New equipment 10 Landscape and Irrigation November/December 2012 Seasonal payment option A seasonal payment option allows contractors to choose the option that's right for them and is available on regular installment notes or leases. The benefit to contractors is that you can choose the months in which you will have the lower payments. That way you can utilize your major assets to manage cash flow. If your business runs primarily from April through October, you can lower your payments from November through March. Payments can go as low as 1 percent for those "slower" months and provide you the flexibility needed to manage other business expenses.You can choose up to six consecutive months during each year of the contract term when you'd like to make a lower payment. At the end of each year, you will have paid off about the same amount of principal and the interest expense will be very close to a normal level monthly finance plan. If you think about it, this type of payment option allows you to use your assets wisely to manage cash flow. The impact of a seasonal payment on one machine may not be great, but think of what it could do if you did this with your entire fleet. It sure beats having to hit a line of credit and have added interest expenses. www.landscapeirrigation.com