Debt free or new machines??

[MatthewTimothy]

So lately work has gone well and ive hit some big web design projects that should be up jan 1st. That being said i have been saving up my funds and im now at a road where im unsure if i should go left or right. If i go left i can pay off what i owe on my two vehicles and be debt free or do i go right and drop half down on fellers gold wrap package and be in the game again...

 

[Jack Knight1979]

If the machines are still doing what you need them to. Hold off as long as you can. If you notice that you're not getting anymore work because of a machine. Which is not likely. Time to buy.

I don't miss my printer payment.

 

[WildWestDesigns]

Personally I believe in being debt free as a hedge against risk. Because of that it has taken me longer to get as far into the game as I am in, but I don't have that stress of always needing the machines running etc to get bills paid.

I think in the end it comes down to how risk adverse you are. We all have some acceptance of risk as we are all business owners and that carries it's own issues with it, but I do like that cushion of debt free.

I'm also in your neck of the woods and there are a lot of tire kickers around, so that does put the ole kibosh on growing on funds from someone else. Nashville might be a little bit better with the bigger business being there, but in the Franklin/Brentwood area (ironically) there are a lot of tire kickers.

 

[royster13]

Do you want to be debt free or do you want to make more money?....

 

[WildWestDesigns]

Do you want to be debt free or do you want to make more money?....

I'm not to sure about that "dilemma" there. You can get more machines and not make any money at all. Depends on what the market needs/wants and what "you" are able to deliver. With deliver, I mean everything from price of the good to the quality of the finished product.

 

[anotherdog]

are you in business to grow or have a comfortable life?

I notice that web design projects brought you a wad of cash, yet machines will force you to go in a different direction.

 

[MatthewTimothy]

are you in business to grow or have a comfortable life?

I notice that web design projects brought you a wad of cash, yet machines will force you to go in a different direction.

actually not... i have business plans in place that im debating on executing... IF i am debt free that will help us next year around sept to build a new home with a full print shop studio basement....

 

[Fatboy]

Do you want to be debt free or do you want to make more money?....

 

[HulkSmash]

I buy everything cash. If i can't afford it, I don't buy it.. unless i really want it.
I've bought a couple machines on lease just to build credit. But i pay them off in 6 months.
It makes life much easier. Do you do enough printing to justify a new printer? Also - dont buy fellers wrap package, that's just silly.

 

[phototec]

Also - dont buy fellers wrap package, that's just silly.

That's right, you don't need someone else to put together a PACKAGE for you, do your own research (here at Signs101), make your own list of what you need, shop around and get what YOU need on sale or purchase separate pieces as you grow.

 

[phototec]

actually not... i have business plans in place that im debating on executing... IF i am debt free that will help us next year around sept to build a new home with a full print shop studio basement....

Now that is SMART idea, just think how much RENT you will save, not having a separate business address. And you will not have to drive to work.

I have a friend who went out and purchased the (so called) Fellers wrap package, making payments on the equipment, then leased a business space, and had so muchover head that his business lasted less than 24 months. He just couldn't make any profit, having to pay for the Fellers package and the commercial rent space.

He had to file bankruptcy and is NO longer in business.

 

[WildWestDesigns]

I have a friend who went out and purchased the (so called) Fellers wrap package, making payments on the equipment, then leased a business space, and had so muchover head that his business lasted less than 24 months. He just couldn't make any profit, having to pay for the Fellers package and the commercial rent space.

He had to file bankruptcy and is NO longer in business.

See that's the kind of scenario that I could envision happening, which is why I was a little surprised by royster's comment. You can sink money into that invest and not have any ROI on it at all or not enough to cover.

Just based on the little facts that are presented here, I would wait. Put that money into areas that will give you some return and then come Sept. use it like you plan to.

 

[MatthewTimothy]

guess debt free will be the way for now..

 

[Gino]

I also believe in being as debt free as possible.
However, you do things as you see fit or need. One's business plan is not to say another's isn't any better or worse. You should probably sit down with a financial adviser and see what they have to say regarding your goals, the economy in your area and your track record and projections.

 

[banditsigns]

I have started and continue to run my business debt free. Like Colorado said, if I can't afford to pay cash, I don't but it. Ya, sure would be nice to have the new printer, but slow & steady always wins the race. I will be leaving in my paid for class A motor-home in 20 days for a 2 week vacation on the beach in the Florida Keys. I would not be able to do that if I had to pay the bank!!!! I have and continue to listen to Dave Ramsey as often as I can. Only being 39 yrs old and doing what I want, when I want seems to be a lot less stressful than being in debt up to my eyeballs (was once). I will sub things out to make a litte vs. having that frickin payment!!!!!!!!!

 

[Techman]

Do you want to be debt free or do you want to make more money?

I am debt FREE and I am making more money now then ever before on a much LOWER gross income.

That is a difficult concept for too many to understand. However, the money I save just on the interest payments alone is now going to the savings account to buy for CASH my new CNC router that I plan to obtain soon enuf..

 

[WildWestDesigns]

One's business plan is not to say another's isn't any better or worse.

That's assuming that one's business plan is sound. I've seen my share of poorly conceived business plans for whatever reason. And none of them thought that their business plan wasn't sound. Going things debt free may not be the best choice in all instances, but it is by far the safest choice in all instances. There are clear cut times when taking loans out is not even a good decision.

But it all comes down to how risk adverse you are.

I have the benefit of being only 20 miles from Nashville, I can tell you that the market is fickle, very fickle indeed. Unless he is in Green Hills, I would look long and hard about this.

 

[rjssigns]

Debt Free. If you are a good designer that can deliver print ready files sub out the work. (pre-flighted files will get your jobs printed faster and cheaper also) No payments, leases, or machines going goofy in the middle of a big job. There are a ton of good subs out there that do stellar work, use them.

We still use our SP540 regularly for the true custom project, but sub out multiplies of banners, boards etc...

Remember what Clint Eastwood said: " Mans got to know his limitations".

 

[royster13]

No where is my comment did I say to be "stupid".....There has to be a plan and a good business case to incur debt....

I have seen many cases in the past where folks run old equipment "debt free" and pay way more for consumables and/or labour than they would with more modern and efficient equipment...

 

[Gino]

I quite agree with you, that's why I mentioned about going over it all with a financial planner.

I know people who have said, unless you're in hock up to your eyeballs you're not a businessman. Some of them were truly successful and others were total bums.

I was lettering a fleet of trucks for a guy and in the middle of lettering them he told me he was applying for bankruptcy. I stepped back and said.... whaddaya mean ?? You want me to stop, you pay me and forget the other trucks and he said, Hell NO..... you keep going. This process takes a few weeks to months. Oh, Okay, I thought I wasn't going to get paid. He then said... you're not. Whadafug ?? He said, unless you've been bankrupt at least once or twice, you ain't running your business right. Uh-huh..... go on.................

See a good person knows how to rack up the bills and then get out from under them and not have to pay them, but the real skill part comes in when re-organizing. Uh-huh........ go on..................

All I have to do is reform and do this and do that and get this guy off my back with promises of doing this and that and in the end.... I don't have to pay a cent. Well, who the fug pays me for lettering your trucks ?? Oh, I will. I got cash and I'll pay ya under the table. Uh-Huh..... go on...............

Here... you take this and we're paid up to date, but you bill me this amount and I'll submit that........ Okay ??

So the piece of slime gave me about $2,100 at the time... this was early 80's and I wasn't doing any die-cut computer stuff, this was all off the brush. I was about about truck 6 or 7. Took the money, left and ignored all his calls from there on. I think I pissed him off, but I just didn't like his method of doing business.

So, some people can make a rather good living... even with ****-poor plans.​