Taking the next step

[Eric McCarthy]

Everybody has completly missed the point I was trying to make. I fucked up in the past and was irresponsible with my money and how to manage it at an early age. I filed bankruptcy when I was 23, not long after I bought my first home at 21 and had 5 vehicals in my name.

My credit is shot to shit still today because I havent been able to do much to re-establish my credit. These days I try to live within my means and live as affordably as I can. And Ive cut out ALOT of my old costly habbits.

Paul to answer your question about what I do in my offseason. Im able to stay somewhat busy, or atleast productive enough to pay the bills year round. Its definitely hit or miss, some days I dont work at all. But I take the good with the bad and keep at.

If I was able to have a decent tractor with a loader I know I can keep busy with all sorts of projects. Things like working with acerage and farm owners do chores around their land. Maybe hook up with a housing developer or two and put yards in and lay sod. I know I can find work and where to go look for it. I just havent made that jump without being able to back myself up with suitable equipment.

I actually do, do alot of charity work with what I have now on a ladies farm who takes in rescue horses. I donate my time helping her around the farm with my tractor and using the one she had at the time. Id love to be able to do a bit more donation work for rescued animals. For me its not always about the money, I can earn that later.

 

[chknscratch]

Eric,

I think most of the readers didn't miss the point at all, but are genuinely trying to steer you in a direction of success for yourself and a potential family down the road.

I haven't been a member here long or even a tractor owner for very long for that matter, but I have gotten to know a little bit about you on this form through your post. You seem very humble and life has knocked you down several times the last couple years, but you keep getting back up. I apologize if I am mixing up members, but I even think you mentioned getting into a lull that included drinking. The fact you have come out of that and still have your health, I think that speaks a lot about your character and strength to overcome something like that.

I personally do consulting/design work for an engineering firm and my wife and I own a company completely unrelated to my engineering job. We literally started everything we have as two young adults in their 20's with a dream and a hell of a lot of drive that ran into many hard challenges. We have essentially broken even on our business for 5 years, all the meanwhile, we have reinvested in our equipment and capital with almost every penny. We now have some of the industry's most respected equipment that gets the job done and have funds to have employees do the labor(mind you all our equipment was used and most gotten at a deal after months of looking). We still have yet to really reap the benefits, but we have slowly and steadily built momentum, without any debt.

I know my situation is unique and not easy to replicate. I busted my butt for the man for a number of years and had finally built up something on the side to the point I got to tell my employer, I am moving 200 miles away, I hope you can work something out with me remotely. It was mighty scarey at the time, but I had built the framework that I finally felt we can make it on what we had set up for ourselves, if we truly give it our all. I now get a heck of a lot more done without everyone in my office asking for assistance or just general office chit chat that will kill a day and get to support my wife with her business as needed.

I think what several here are trying to say, is you seriously have to have a business plan on paper, other than "knowing" you can make it and pay the note. I admit my wife and I did not have a formal business plan, but we also never borrowed money other than a credit card that we have paid off monthly the entire life of our business. I agree you could use a bigger tractor to take on bigger paying jobs. I think renting may be your best option for the first 3-6 months of doing this and maybe you can even work out a 3 or 6 mo lease agreement with a rental company that will cut the weekly rate by 30-50%, I have no idea. If something drastic goes wrong with the tractor, you aren't in the hole with a broken tractor and an upcoming note that is due, monthly. Perhaps you can find a owner on Craigslist who is willing to owner finance a tractor that will work for you. Maybe he will accept work on his property as either payment or at least could cover interest in theory... just thinking out loud.

Not sure if Dave Ramsey comes on the radio in your neck of the woods, but we used to listen to him a good bit. I think he says something about when you are floating by with just enough to float by, guess who is really good at coming around... Uncle Murphy. It is Murphy's law that you will have some things break that you just can't afford if you are skimming by on just enough without a safety net or emergency fund in place. You don't have to answer publicly here, but before I would lend you or anyone money, I would like to know what their emergency fund looks like and how many months can ALL the bills be paid if work dries up tomorrow.

With regards to my business, I like to try and keep 3 months of operating costs in the bank. Remember, you may sell the work, but not every client pays under the terms you agree to. I have twice had a client owe me over 10k and we had to keep getting the job done for other clients, knowing some of your clients haven't paid in over 120 or 180 days since they rendered your services. Maybe this will never be a problem you face, but you don't exactly want to take a baseball bat to the knee caps of a potential repeat client. Now that things are better with these clients, I appreciate their weekly/monthly business and have better contracts in place to try and protect us from it happening again.

Since it sounds like you already own a business and have probably become familiar with these types of challenges, I guess it really just boils down to a question of how do you grow your business, with little capital and poor credit. I think a lot of the kick starter sites seem to be for technology or a new cool inventions. I would imagine your options would be left to asking a friend who has had some success or try talking to someone who is open to owner financing. If you are buying a $10k tractor, I would imagine someone wants 3-4k in your hand to take you seriously about them financing, ESPECIALLY if they didn't mention owner financing in an ad.

 

[chknscratch]

I think you also mentioned SEO and a website and all. If you are able to pull that off on your own or with just a couple hundred dollars, then well done sir. I know we have horrible rankings on google and a paying a professional some decent money to build a much better website with SEO and mobile responsiveness in mind for our users experience. Focus on this perhaps, if you think you can get it done, and rent the tractor as the jobs roll in. We are anxious to see the impact of being 1 or 2 on google when keywords are searched in our market, but we have done pretty well just off word of mouth and minimal local advertising, however this is a completely different industry.

 

[D2Cat]

Eric, as you're learning, life is pretty simple- we just make it difficult with our decisions, and then we have to live with them. Chknscratch has given you a boat load of wisdom. It was free, so don't assume that it's worthless. It's his life experience building a business debt free that supports him and his family.

The concept of a written plan is awkward to most people, whether it's a business plan or a personal budget. It forces you to crystallize your thinking. If you don't have a written plan you increase your failure chances dramatically.

Having a rainy day fund, emergency fund-whatever you choose to call it takes pressure off of you to make better decisions when under pressure.

This is a Kubota tractor forum and you come here with an idea. It requires a machine you don't have to create jobs you don't have to create income you have to have. And as chknscratch mentioned, sometimes their payment isn't as you anticipate.

So most everyone wants to use use their tractor to earn income. I challenge you to think outside that box. Within the community you live, the current customers you have, farmer in the area, builders, homeowners you don't even know---what is something they need, have to hire it done, or go to the rental yard to get a machine they don't know how to use to get the job done?

There you are: Find a need and fill it.

And when you find it remember: When your outgo exceeds income, your upkeep becomes your downfall.

 

[ShaunRH]

Something you might want to consider is getting a credit partner. Someone that can put their name and credit to a 'new' unit you want at the 0% interest Kubota is charging and you pay them the monthly fee plus 4% interest. This is a very reasonable interest rate and the partner earns 4% for doing nothing, which is better than most interest bearing items out there so it's a good investment if you can deliver the extra business cash to make the payment each month.

Make certain that your leasing contract with your partner says that when you pay off the unit, it becomes yours, title and all. It might be a good idea to throw in a 1% of the total unit cost bonus on title transfer so your partner has an incentive to see it through ($20,000 x 1% = $200).

This will also help you rebuild your credit as it gives you time to settle out the issues with your credit. If all goes well, 5 years later you can buy your own new machine and really rebuild your credit.

Sometimes if you have a good local Credit Union or Farm Bureau, they can act as the finance partner and really rebuild your credit fast. I would not go over 4% though. A new unit isn't worth more than that.

 

[TripleR]

Eric, I know you're stressed, but people are genuinely trying to help you and the language in your last post was out of line for a family friendly site.

 

[Eric McCarthy]

Listen I know how to run a business, Ive had this one for the last 15 years. I know all about the ups/downs and struggles of owning one. This is my second season with the business full time. I ran it full time 15 years ago, economy went south and I scaled back to part time and did what I could with it. While trying to keep my name out there and earn extra money in tough economical times.


What I was seeking with this post if a a group of fellow tractor guys would be willing to help out a brother tractor guy with a small loan that will be paid back. Im not asking for a free hand out, but a small loan from a group of people so no one has to lend a large amount of money.

My concept was if enough people lend a small amout, nothing over $50 I could save enough and get a tractor I need and affordably pay everyone back. Bigger bonus is it would be an intrest free loan. The idea of people willing to send a check in a self addressed stamped envelope would also help me keep track as to whom lent how much, and how to return the exact funds to them.


If the concept doesnt pan out and nobody is intrested in helping. No big deal I'll figure something else out and go from there.

 

[MXBX]

I think everyone understood your idea. Lots of people are doing something similar on the net. Usually it's considered a gift or there's some sort of recognition that's offered. Actually, you might have been more successful if you just asked for small financial gifts. It appears from research that people are more likely to help another in small ways if their help is an expression of their generosity and less likely if a small reward is attached.

This community seemed genuinely interested in helping you. Their suggestions were sound and coming from a place of real concern, much like the help they gave me with my tractor issues.

 

[Kurtee]

I think everyone understood your idea. Lots of people are doing something similar on the net. Usually it's considered a gift or there's some sort of recognition that's offered. Actually, you might have been more successful if you just asked for small financial gifts. It appears from research that people are more likely to help another in small ways if their help is an expression of their generosity and less likely if a small reward is attached.

This community seemed genuinely interested in helping you. Their suggestions were sound and coming from a place of real concern, much like the help they gave me with my tractor issues.

AMEN we understand. I work a full time job, a part time job, and have a small business. I have had up to 6 jobs at one time. I learned something at each one. Some if I never do again it will be soon enough. I have not drawn unemployment or any other government subsidies. Search all the options, maybe being employed by someone else would help catch things up. Being self employed is the American dream but is not for everyone. Are you working 80 plus hours per week? You should be to build a business. Being a good Joe and donating time somewhere is nice but does not pay the bills.

KURTEE

PS: My day started a 3 AM today, got home at 5. My wife starts at 6 AM every day.

 

[D2Cat]

Kurtee, point well made. I'm simple, if someone's work ethic doesn't at least equal how hard I had to work to earn the money they ask for it's a no deal.

Something to remember when you loan money to a friend. Determine before hand which one is more important, because you will probably loose one or the other!

 

[Eric McCarthy]

Basically all I'm hearing is nobody is interested in helping. Because I've yet to read where anyone would be willing to help.

No big deal, I'll figure something else out.

Thanks for the information ladies and gentleman.

 

[North Idaho Wolfman]

Basically all I'm hearing is nobody is interested in helping. Because I've yet to read where anyone would be willing to help.

Wow, you really don't know how to take good advice do you!
I've read lots of great advice in the answers you have gotten from everyone so far.

Answer me this: In the last year what have you done to improve your business?
What have you bought for the business?
Where does your profit go?

I own several businesses and have to work daily to keep them profitable, growing and strong!
I personally have worked my backside off for years to get a tractor, and all the other equipment and tools that I have for work, nobody just handed one to me!

And basically yes, nobody on here is willing to just hand you money!
Really what would we get out of it?
Quit "Pan handling" and get working!

 

[Daren Todd]

Actually if you live near a big city go dress in some crappy clothes and stand by an interstate exit and work the crowd when traffic stops. Make up a sign saying "why lie, I need beer", or "Obama care makes me do this", something clever. Used to work with a guy who used to use the "need beer" sign and would pan handle after work. He used to make enough to make his truck, and mortgage payment in 5 days, doing it a couple hours a night

 

[MagKarl]

Basically all I'm hearing is nobody is interested in helping. Because I've yet to read where anyone would be willing to help.

No big deal, I'll figure something else out.

Thanks for the information ladies and gentleman.

You guys are a bunch of a$$holes, can't you see he doesn't need any business advice, he wants you to send him some cash instead!

 

[North Idaho Wolfman]

You guys are a bunch of a$$holes, can't you see he doesn't need any business advice, he wants you to send him some cash instead!

Oh he needs lots of business advice!

If keeping and using my hard earned $$ for my good makes me an "a$$hole" then crown me the king!
Just send him your money!

 

[trouble11]

As Tom Waits would say (The Piano has been Drinking)

 

[Kurtee]

You guys are a bunch of a$$holes, can't you see he doesn't need any business advice, he wants you to send him some cash instead!

I have been called worse than that by better men than you. Send him your cash.

 

[OldeEnglish]

Not trying to throw gas on the fire or anything but this is a good article that fits this thread well.

http://www.marketwatch.com/story/wh...nding-and-panhandling-2014-11-24?link=sfmw_sm

I only donate money to veterans, service dogs, and to a local animal shelter to help feed the pitbulls that are creditable organizations. I do not donate money to someone who can help them self.

 

[Russell King]

Eric,

I can only provide some advice. A credit problem in the past does not wipe out you credit for too many years. If you have not attempted to build your credit score back up, you should get advice from a reputable bank or credit service. DO NOT pay anyone to fix your credit - that is (usually) just a scam and does no good. You can normally raise your scores in simple manageable ways and then you can get your tractor directly from Kubota at their 0% interest.

 

[D2Cat]

One of the best things you can have is a bad credit score!! All that is, is a crutch to borrow more money.

Get a job, spend less then you earn. Yep, sounds anti-American. We're taught to borrow money, pay it back in a timely fashion, earn a good credit score so you can do it again.

We have to have it now. And that cost us dearly. We just want to know what is the monthly payment, and what's my FICA score?

One lost job, one late payment and our life changes for years. Why breed grief?