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Looking for some business savvy

Bob Sweet
Bob Sweet Member Posts: 540
in THE MAIN WALL
As far as a service truck goes, what would you recommend as a start up vehicle, new or used? What are the benefits, or disadvantages to either of the two options. This is not my first go around at self employment, and looking back I see mistakes that were made. Hoping to implement some business strategy from some of the more savvy business minds on the Wall. Thanks.

Comments

  • Brad White_51
    Brad White_51 Member Posts: 18
    Ellen Rohr?

    Just a thought. I keep meaning to buy her books...
  • Bob Sweet
    Bob Sweet Member Posts: 540
    Thanks Brad

    Done!
  • Al Letellier_18
    Al Letellier_18 Member Posts: 7
    what truck

    three words of advise for you......budget-budget-budget.
    By that I mean have you set your budget and what can you afford to do is the key. In my book, if you have the cash or can afford to go new, do it....and buy the extended warranty. Nothing will blow your budget to pieces any faster than a blown tranny or a shot front end.....leasing is an option but does nothing for your bottom line. I would buy to build some equity in the company.
    One man's opinion. Been there, done that and getting ready to hang them up...all the best of luck to you and your venture.
  • Weezbo
    Weezbo Member Posts: 6,231
    Looking at the sprinter and this last year....

    vs. my F-350 4X4 and its proclivity to a paid vacation in a warm shop with a couple thousand spending money,,,and a thirst for gasoline surpassing my coffee intake ...i would suggest a new van.....
  • Nron_13
    Nron_13 Member Posts: 164


    take a look at Ellen Rohr articles in mpmag.com web site they will help you decide when and if you should try opening up on your own again , I had my own company for 10 years and now get to work on only in the areas I want to , no more paper work for Me thank you .
  • Bob Sweet
    Bob Sweet Member Posts: 540
    Hey Nron

    Do you have an archive date in mind? Which article or issue by chance?
  • gary_6
    gary_6 Member Posts: 60


    Overhead will kill you. Keep your expenses down.
  • Josh_10
    Josh_10 Member Posts: 786


    We bought a used Penske cube van and painted it white. It had 75,000 miles on it and it runs great. Got it for next to nothing. It is like a shop on wheels and gets the same gas milage as any van I have ever driven.
  • Jerry_15
    Jerry_15 Member Posts: 379


    It depends on what your doing, but I love my GMC Safari, no racks. I can get into underground garages. Comes from dealer with inside storage package, and center filing cabinet between the seats. If I need big stuff the supply house boys deliver it. You write the whole mutha off and don't pay no taxes that year. AC is standard, a little extra you get cd, cruise control, and power windows. I'm on my second one, and that's only because I wanted it in Blue, and my five year warranty had run out, although I never had any problems. A real work horse, looks good on the street. Live it up. How's that for business sense?
  • Long Beach Ed
    Long Beach Ed Member Posts: 1,798
    Save your money...

    Buy a good used van. Look for something a year to four years old. It has already lost a huge amount of depreciation and you'll pay half the price of a new one.

    Just make sure it wasn't hauling bricks or demolishing buildings.

    every penny you save at this point is a penny in your pocket. Theres enought time for toys after you start making money.

    Long Beach Ed <--- still driving used trucks
  • [Deleted User]
    [Deleted User] Posts: 1,160
    Or...

    compensate for you overhead in your hourly prices to allow for overhead and other expenses. That's what business is all about. Knowing what your costs of doing business, avoiding exstravegance and generally taking care of business. Be prepared for a shock. After you've read Ellen Rohrs book denial will set in, but if you don't follow her formula to a T, you will most probably fail. Be prepared to have to charge well over $100.00 per hour for your services. With the little army you've got, you have to charge a LOT of money to cover expenses and guarantee that you WILL be in business next month, next year, and the year after that, and so on and so forth.

    Go in shallow, and get ready to take a beating, mentally, monetairily and physically.

    You MUST add value to the package. If your customers think you're just out bagging them, they WILL disappear. Give'em something for their money, and they'll keep bringing the money to you. And, they'll tell their friends about you.

    Good luck in your adventure. I hope you've already bought all of Dans's books. He's got a jillion ways to wake up and keep business.

    Ellens web presence is at http://www.barebonesbiz.com/



    ME
  • Kevin A Gerrity
    Kevin A Gerrity Member Posts: 5
    what vehicale to buy

    Someone once told me that a van costs you nothing (new or used). It only cost you what it dose not make when it sits.
    I agree with this, if you are not commited to the company then you are just working (Some of you may know this person). I started my company 4 months ago, bought a new Sprinter. Right now spending more than making (budget wise). The van is just another tool to make money, used may spend more TIME to keep running. Remember somebody else got rid of it because it may have started to cost them more TIME to keep it. "TIME IS MONEY"
  • ScottMP
    ScottMP Member Posts: 5,882
    IT may have been costing time

    OR maybe they went out of business, lost an employee, decided to get a larger or smaller truck.

    I have bought many used vehicles and some gave me years of serviceI have had very few bad purchases. I have a Dodge Ram was the ebst value I have EVER had, that thing just keeps on going. I'll be replacing it but manily because its looking tough.

    I TOTALLY agree with starting of small and growing as you go. A good used vehicle with low milage is a good way to start. I also agree you want to keep that truck working. If your not willing to put in 12 hours a day ( and sometimes more ) and all day Sat., then think again.

    Also LISTEN TO MARK ! Know your cost, know your overhead, Ellens books are easy to read. Mark-up Everything you use. Listen to your customers what there needs are and supply them. Don't listen to your customers about how much you should charge they have No Idea how to run your business.

    Oh and by the way ...... PAY ALL YOUR TAXES.

    SCott

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  • Jim Pompetti
    Jim Pompetti Member Posts: 552
    Do yourself

    a favor,put enough money away so that you can live. I've seen many contractor go under the first year ,due to lack of cash. Watch you P&Q and keep current,that advantage of cash discounts and pay your Uncle Sam his due.
  • swanmech
    swanmech Member Posts: 69
    Know your cost!

    > a favor,put enough money away so that you can

    > live. I've seen many contractor go under the

    > first year ,due to lack of cash. Watch you P&Q

    > and keep current,that advantage of cash discounts

    > and pay your Uncle Sam his due.





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  • swanmech
    swanmech Member Posts: 69
    Know your cost!

    > a favor,put enough money away so that you can

    > live. I've seen many contractor go under the

    > first year ,due to lack of cash. Watch you P&Q

    > and keep current,that advantage of cash discounts

    > and pay your Uncle Sam his due.



    Been in bussiness 16 yrs. Wish i could have the first 5 yrs. back. ( was trying to match competition, instead of being above them)

    Trucks,I love our NRP'S.

    To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"
  • swanmech
    swanmech Member Posts: 69
    Know your cost!

    Been in bussiness 16 yrs. Wish i could have the first 5 yrs. back. ( was trying to match competition, instead of being above them)

    Trucks,I love our NRP'S.

    To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"
  • CHARLES_4
    CHARLES_4 Member Posts: 61


    > As far as a service truck goes, what would you

    > recommend as a start up vehicle, new or used?

    > What are the benefits, or disadvantages to either

    > of the two options. This is not my first go

    > around at self employment, and looking back I see

    > mistakes that were made. Hoping to implement some

    > business strategy from some of the more savvy

    > business minds on the Wall. Thanks.



  • CHARLES_4
    CHARLES_4 Member Posts: 61
    Starting a business

    If you want to make a small fortune working for yourself, you have to start with a large fortune...
    And keep working until it's gone.
  • Jerry_15
    Jerry_15 Member Posts: 379


    All good advice, and anything you can do to cut down on bookkeeping is worth it. Buy everything on account, take the 2% (some suppliers want you to pay individual invoices on 30 days, don't do it! Pay your bills on-time for a few months and go in and re-negotiate for monthly statements, 2% tenth, 30 net. They'll bite, if not threaten them with a Visa.) I started using a Visa for all incidental expenses about a year ago, pay it in full, pick up an extra 30 days interest free, and have enough mileage already for two round-trippers to Mexico. One check. I pay small recurring costs, Phone, answering service, utilities, in round dollar amounts, usually $500, always the same. One check every 3, 4,6 months. Let them keep track. Guess what, they never complain, and talk about service! Problems get fixed very, very quickly. Good luck, and remember when you work for yourself you work for a s.o.b., but it's worth it. Remember equity lines are tax deductable, if you're gonna pay interest, pay it there. as is toilet paper, sodas, water,snacks, coffee, etc., That's why they sell all that stuff at office Depot. Home office? You bet! Get a good CPA to set up a strategy (tax deductable), and be prepared for the shock of your life. The first year you won't have any taxes, just a big fat SEP IRA, and social security, due to your start-up costs. Put some money aside, you'll need it next year. Don't freak out, the IRS expects new businesses to show a loss for the first few years. If you feel guilt for not supporting the govmnt in the manner to which they would like you to become accustomed, find a good charity (tax deductable).
  • Jerry_15
    Jerry_15 Member Posts: 379


    Oh yeah, one last thing. Assuming there is sales tax DO NOT bill your jobs materials and labor. This opens you up to re-sale, a truly mind-numbing and expensive accounting headache. You are a contractor, and do not need, or want, a re-sale license. Pay tax on your purchases, and charge by the job, not the hour. If the customer asks, explain that by doing it the other way, you would have to charge them additional tax on your parts mark-up, which you have to do to stay in business. They get it. I flat-rate at the door, sometimes over the phone, i.e. small pump replacement $450. The response: How soon can you get here. I also have a 24 hr 800# (in another state)answering service that sends me a printed message on my pager. NOT VOICE MAIL!!! People hate that. Dirt cheap compared to a full time office staff. I call them back on cell at my convenenience, and never give them that # or you will be interrupting your work, or speaking with a customer constantly. It's rude.
  • tom_49
    tom_49 Member Posts: 267


    Thats great advice jerry!

    I pay all suppliers thru Amex, their not crazy about it, but all my bills are paid on time. And I took 5 of us to California for zippo w/ my miles.

    As far as trucks, I have 2 ford e250's and 1 Izuzu 14' box truck, all bought new. i got sick of of buying used trucks and have them wind up in the shop, costing me more in lost business ,never mind the cost of repair, than the monthly payment on a new van. And their 100% tax deductable.

    good luck, dont kill yourself working 24/7 it aint worth it. enjoy the FREEDOM self-employment offers, my daughter comes to work w/ me some days during summer, you cant put a price on that. Just keep your word to your customers and they will spread the good news like crazy.


    Good luck. Tom
  • Jerry_15
    Jerry_15 Member Posts: 379


    There you go! Sometimes I even call in a visa payment to a main supplier, especially if I missed the 2% discount. They never complain. The hardest thing when you're starting out is to have a big enough limit on the card to use it for big purchases. I once overpayed by ten grand to be able to use it in that manner. That totally confused them, but one phone call to a supervisor in Calcutta fixed it right up, and they raised my limit toot sweet. Play by the rules, but play hard.
  • Darin Cook_2
    Darin Cook_2 Member Posts: 205
    Jerry

    As a business owner that is some of the best damn advice I have seen posted on this web site in a long time. There are alot of great mechanics here. But the business side is something many of us had a RUDE awakening to here. Work the system, do not let the system work you. You can do that and still be legal and not have a guilty conscience.

    Darin
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