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Discussion Boards > Active Subjects > Messages as Posted > Landscape Design Forum

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 04-26-2001, 05:59 Post: 27254
TomG

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Join Date: Feb 2002
Location: Upper Ottawa Valley
TractorPoint Premium Member -- 5 Tractors = Very Frequent Poster
Posts: 5406

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  Help for a Newbie

Tractoring is a capital-intensive business and such businesses only work when the capital is kept busy (otherwise savings bonds make more money). Unless there's a ready to go client base, a lot of time has to be spent developing clients. Without a developed customer base, the conventional wisdom is 'plan to loose money for about 2-years. Generally, capital intensive businesses don't work very well as 'side-line' ideas, because the owners don't have enough time to spend both developing customers and doing the work. They also don't usually have enough work to justify hiring somebody else. Unless the equipment is kept busy, the investment is just sitting there creating a capital depreciation allowance, which doesn’t make much money and gets the tax people thinking that it’s not a serious business after a few years. Anyway, I had a capital intensive sideline sound and lighting business for 10-years. Didn't make much money, but I did have fun. Then, I discovered it's more fun to be on-stage than behind the audience operating a soundboard. Being a performing musician is an even more sure way not to make much money--sure is fun though.






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 04-27-2001, 06:10 Post: 27284
TomG

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Join Date: Feb 2002
Location: Upper Ottawa Valley
TractorPoint Premium Member -- 5 Tractors = Very Frequent Poster
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  Help for a Newbie

Banks in Canada where I am are a little conservative. They also make record profits--good for shareholders and executives not particularly good for depositors and borrowers. Anyway, Canadian banks almost always ask for collateral for personal and small business loans. First rule in small business (I learned it at a night course) is NEVER NEVER EVER UNDER ANY CONDITION offer your house as collateral for a business loan. If a bank insists on personal property for collateral, what they're telling you is they don't think the business idea is particularly good. However, they'd be perfectly happy to make the loan provided they can get their loan back by throwing you out of your house. On the other hand, right now in Ontario, there are some government assisted loans for small business startup. Such programs probably are available in many places and should be checked out.






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Discussion Boards > Active Subjects > Messages as Posted > Landscape Design Forum

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