HEHE well my business is picking up pretty good! I have at least 6 to 10k worth of contracts coming in for this summer alone. I mean it's okay for a guy that started out with -12$ in his bank account!

So far I am having sooo much fun! I love this "being on my own" thing! My only problem right now is my truck payments, they are rather high because right NOW I don't have enough cash to keep on paying for it! Let alone the fuel that thing sucks up Last week it cost me over 100 dollars to meet with a few customers, okay so I made 1440 bucks(payable in 2 months) but still the 60 dollars I would have saved could have gone towards my business cards!

The problem is that my clients are big corporations, they take up to 60 days to pay the contract. Plus the time it will take me to finish the jobs! So during this time period I'm flat broke! I don't have any external help so I will have to give up on the truck for now!

Oh and I may end up with a VERY BIG job from a company in Sweden Don't ask me how I get those contacts??? I just do?

So is it a smart thing to do to take all the "toys" off my truck and get rid of it? In the mean time I will be driving a diesel VW golf LOL a little difference eh?

By doing this I will NEVER be able to get a loan within the next 5 years, I will have to depend on my g/f for getting a house because she has a good full time job. Although this will MAKE me pay for things in cash which will help me out because I'm a sucker for debt! I sort of have a plan laid out which will pay off my debts because of the extra 400-600 bucks per month (depending on the residual value that I will still owe) won't be paying anymore! With those big jobs coming in I will be able to afford a 15K car CASH by next spring which is something to look forward to! I never thought I could be able to buy a car cash before! (even if it is older, but who cares). I also need some cash for the loft I will be renting for the company!!!

So I guess I just need to vent this out because I'm afraid of telling the people around me for I feel like a LOSER for having to get rid of my truck.

I've posted similar things before but this time I have no choice, I have only pocket lint in my pockets Kinda gets me mad because I see the money coming in a couple of months but it is just the NOW that is screwing me over

Any suggestions, ways to deal with my bank concerning my loan, maybe make the payments lower? Or do you think I'm a looser for wanting to start a company like this? Although I know these things takes sacrifices!

Thanks for letting me rant
Steve

 

Steve,

It can be risky if you suspect a client will not pay, but why not "float" your truck payment by putting it on a credit card for a month. As long as you pay off the balance of the card within 30 days (or whatever the card's terms are), you are not hit with an interest penalty and you get to keep your truck...if you want to have your own company, it may mean making personal sacrifices. Based on your passion for this, I would suspect that you'll find a way to continue to pursue your own business rather than giving up!

(the other, but first) Steve

[This message has been edited by webmaster (edited 01-23-2001).]

 

Hey the other but first Steve LOL

Thanks for the reply, I did have a non paying client but I unplugged his web site right before it was announced on television LOL he paid soon after...

That is a good idea but I don't have the "room" on my credit card But I may get a good contract this week and I hope to get at least 5k of cash advance. But I still feel sooo much better after leaving my previous job! Anyway what ever happens I will make it and I will continue to be a fan of your web site Steve! Even if I end up driving a VW or Civic, etc...

thanks
the other Steve with a smaller web site

 

Have you tried talking to your creditors to let them know what's going on? I'm sure they'd rather wait a month or two for payment rather than taking the truck back.

Give them a call.

 

eph1fifty,

If your contracts are on paper bring them to the bank and defer your truck payments. Check with the Québec Government for grants/loans for small businesses. Check with the Federal too. Check out http://www.bdc.ca/ There are programs for Québec.

Good Luck

Jean Marc Chartier

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00 F-150 XLT SC Flairside 4x4 4.6 w/5spd 3.55LSD
Warn XD9000i, skid plates, Draw tite class III,
Rancho RSX Reflex shocks,
BFG 285/75 R16 MTs,
Borla Cat Back, Headman Headers,
Modified Air Cleaner Outlet Tube
and air box, Ported Throttle body,
Shortened MAF sensor tower,
K&N air filter,
Superchips





[This message has been edited by JMC (edited 01-23-2001).]

 

Thanks JMC I will send the contracts to my bank. I have thought about a loan but I don't trust this PQ gouvernment with my business. My credit rating is very bad so, well that isn't very good. I have been very stupid starting out my money life but hopefully I have smartened up and am on the route to success!

My ultimate plan is to move to Ontario, I have a sales rep working for me around London to get contracts also! As soon as I have enough I may go to the Federal for a business loan since I'm only 23.

About the truck, I don't really care anymore to tell you all the sad truth! I mean I have bigger priorities than a truck right now such as a new business to start and such.

Thanks for the link JMC and I will call them for consulting. Who knows maybe I can reach my ultimate goal faster than I have planned?

Thanks again for allowing me to get this off my chest
Steve

 

Steve:

Been there done that. 10 years ago, lost my job as a Vice President with SAAB Cars USA after GM bought the company.

Had my choice of company cars, subsidized lease car, 6 weeks vacation, company credit card, lots of free travel and so on.

After a frustrating year trying to duplicate that position, I took the money I had left and opened a HobbyTown USA franchise.

The first three years were rather hard and lean. We had an '88 Chev Suburban and three old collector cars when we started and we wore all three of those out using them in the business. Just drove them into the ground. After three years, business was good enough to trade the Burban for a Ford Escort Wagon and a year later another.

After 8 years, we have my Lightning, Pat has a '98 Continental and the store has a 98 Ranger, all leased by our Corporation. We have some money in the bank and this month are taking two weeks off to go to California and bring back my inherited '92 Lincoln Town Car.

Moral is, it can be done even if it is hard the first few years.

Advice: Same as earlier posters. Get to know your local Bank Manager really well. Force yourself on him/her. Tell them everything and show them everything, good bad or ugly. Be humble, it really helps even if you hate it.

Research all the relevant programs/laws in whichever Province you decide to finally locate in. While the programs are different in the US, we get some advantage to being a minority owned corporation. My wife owns 51% of the company, so we qualify for certain female owned company benefits.

To the bank manager again, make sure you give them business cards. Take pictures of your loft and hand deliver them. Get their e-mail address and forward examples of your web-sites that you are doing. Never give up. It took me about 20 applications over 2 years to get a $50,000 line of unsecured credit but I got it. I pay it off regularly and now they almost force credit cards on me, now 2 or three with good, high limits.
Business runs on credit, Steve, so get some.

Good Luck!!
Bill

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99.5 Lightning
Build #247
PSP Chip/Filter
Bassani full system
White/normal options
Tamiya 1/10 scale Bolt
Several old trucks/cars
Thunder & Lightning
Rag Doll Cats
E-mail MOSTOYSINC@AOL.com
Kennesaw, Ga. (Atlanta)

 

Is your truck through ford credit? They were more than willing to deferr a payment for me.I was laid off on oct. 20th and made my payments for two months. Money then got tight.I emailed them requesting a deferred payment and they did.(now I get to make a double payment before april 30th fun)I got called back to work on the 15th and all is well again.I will probably use tax return money to make this payment.
Bottom line is banks will work with you, if you communicate what you are going through, and what your income will be a few months down the road.