I’m not one to fear monger or stoke the flames of risk aversion but I’m looking for advice and experiences that y’all have in relation to this upcoming downturn.
I haven’t watched the news in two years but there is no denying a recession is coming, the question is how bad. I’ve talked with several mentors and buddies of mine, one of which owns a fairly large construction company in Raleigh, they build developments and the like and buy supplies by the train car load. He told me last week about his troubles finding anything made overseas (not just China) save for wood, which is largely made in Canada. His Calendar for the summer is completely empty and it seems most larger companies are in the same boat. A lot of companies (including us) are experiencing the same with materials because the dollar is weakening. I have concerns that people would rather fill up their gas tank (or fridge) than have their house washed next summer.
This is a bummer for me because word of mouth just hit my company and I’m starting to get a ton of business in the spring. I’m considering downsizing my trailer to a direct drive while I can still sell my equipment for a decent price. If I’m wrong I just bite the loss and get decent equipment again I guess.
I also understand a normal recession just means a “thinning of the herd” and homeowners will only hire contractors who aren’t chucks but I really doubt we’re coming up on a normal recession. I spent 400% more planting my food plots and impoundments this year because fertilizer is through the roof. Hydraulic fluid is 4x the price and tractor parts are getting hard to find.
I’m looking for y’alls 4 cents (inflation) and a casual conversation about experiences and predictions you might have. Again I don’t mean to fear monger or tell anyone to sell all their equipment and move to Alaska, I’m just looking for input. Thank you!
On that note I hope everyone has a Merry Christmas!
I have a ‘triad’ of services so if one is not so much in demand the other picks up the slack. This year was really strange, my window cleaning is usually SLAMMED the two weeks before Thanksgiving but we had pretty much nothing. I think the cold snap coupled with recession fears is making people back off on ‘luxury’ services such as what we do.
It’s a good thing we squirrel our money away for the winter.
I’m frugal, I grew up with my grandparents for awhile and they were depression era survivors. From their viewpoint, stock up on essentials before they go ballistic, flour sugar etc that you can store long term. Gas and oil can be bought ahead of time and stabilized, but you need storage space. Canning, not freezing, is the best way to store supplies. Have multiple heat sources, have a generator, and this one most people won’t like, walk away from debt that you don’t care about. If you bought a harley and owe 20k on it, just walk away. Before people flame me about being responsible etc etc, business professionals and large corporations do this on multimillion dollar debt. Trump walked away from so many debts he should be described as a deadbeat.
Yea I’ve been stocking up for years. I actually just learned how to can food a few weeks ago and that’s been fun. We’ll see which way the wind blows before I make a thread on how to make a wood burning generator though
I’ve got some commercial jobs booked up so in that regard selling equip. probably isnt a bright idea.
Are you concerned about cancellations or having to raise your prices in order to stay profitable? I can imagine youre still going to have more business than you know what to do with though
Apartments get washed because they have money. If they don’t have money they get washed to attract new tenants. People that lose their houses due to recession move into apartments. It’s been fool proof so far. If it isn’t, I’ve been wanting to quit for a long time anyway
Recessions come and go. Anticipation anxiety is worse than the actual experience - in anything.
Cash flow is king.
Your equipment creates your cash flow.
Selling it destroys your cash flow permanently.
Invest.
Add a service, like window cleaning or snow plowing - or multiple services.
Finance the equipment to preserve cash flow.
Instead of walking away from debts, you’ll be using debt to create more cash flow.
Use the time now to read, watch videos, educate yourself.
Why do some businesses survive multliple recessions?
Find the answer to that and you’ll be re-energized to make it work.
One of my favorite quotes is, “Don’t worry. Work!”
The alternative is to go back to a job. I know I’m never doing that as long as I live.
Lol, wrong religion. They don’t believe in the Trinity or that Jesus is deity so they aren’t really into baptizing in the name of the Trinity. There, I’ve made a political and religious statement in the last 12 hours. I need to stop now for another decade here.
hope you are well
