[Neil kell]

Jamie

sounds like your about to borrow some money. my advise don't do it. raise it by earning it. what ever you think you don't need that big machine or extra equipment. Sales should drive all investment. grow a step at a time there are no short cuts to this business.

respect

Ian Harper

Thats a brilliant bit of advice, that I had to learn the hard way Ian.

[derek west]

nothing wrong with loans for funding a business as long as there used wisely. why spend your own money when you can spend the banks.
if youve got 10k in the bank then why not borrow 10k instead of blowing all your money.

bank loans are a valuable asset to any business.

[Carpet Dawg]

I think its better to use funds you have laying about rather than paying huge intrest on borrowed money.
Your money sitting in the bank will probably be doing bugger all anyways so better to invest it in good equipment for a business which can then make you more money.

Plus, some people just cant help themsleves! Once they get in to a "borrowing" mentality!

Dont have the money?? Sell stuff! liquidise some assests :-)

[wynne jones]

There's no straight answer to this you need to know yourself. If you look at those characters in the Dragons' Den that Jock guy borrowed as much as he could and bullpoopted his way to it. Ask another billionaire and they will say never borrow a penny.

These rich guys always say there's big opportunities in a downturn. What they mean is low interest rates and people desperate to sell you something they paid top dollar for. 

[Carpet Dawg]

Of course borrowing sometimes is vital! .... In other businesses.

My comment was more amied at the carpet cleaning business.

Duncan Bannatyne is a very shrood business man and knows what he's doing (or atleast he's very lucky lol)
But you cant expect all new start ups to have this same level of shroodness  : or balls!

[wynne jones]

Debt can be a good thing. If you can borrow at 5% and make 30% then it's a good thing isn't it.

If you have debt for your new 60" plasma and 2 weeks in Disneyland, that's a bad thing.

[Jamie Lindsay]

people like duncan banatyne etc are not going to give their million dollar secrets away on tv... people look for solutions how to make there business successful but really its all about opinion belief and natural judgement... there is no mathematical solutions in carpet cleaning if there was everyone and there gran would be in this game

just my view lol 

[ianharper]

Guys

with respect, if you where just about to buy something and the priced jumped say 10% would you still buy? because thats what happens when you buy on finance. the ting ends up costing you more. every pound that goes on interest is one thats not going on beer -)

[jasonl]

Buying assets on finance is a fantastic idea , if you can make those assets earn revenue in excess of the financing costs.


That is what every business does that borrows money , the only downside is when the revenue is not coming in.

With carpet cleaning, getting a steady income stream is  not always possible , the capital and interest still needs to be paid though.  This is wht most buy cheap equipment and muddle through .

[wynne jones]

I think the answer to this is obvious. If you like leveraging your time then do it although it is a CALCULATED risk. If you like the saftey of knowing it's bought and paid for then that's the way to go for you.

[ianharper]

Jason

dont you think that that extra interest money with testing would be better invested in marketing?

respect

Ian

[Ian Gourlay]

Go On Training Course Learn Basics

No Money Start Up Plan

Design Simple Leaflet explaing your service.

Go door knocking for a week asking if you could qive a qoute for carpet cleaning.

Book job,

Now you can either phone up a carpet cleaner you have made a prior arrangement with and collect 25% of ticket price for yourself,

or Previously book a top end Hot Water Extraction Machine from a Hire company such as HSS for a week and do jobs yourself.

Follow this pattern until you have enough cash to invest in regular leaflet distribution , and advertising.

Continue Door Knocking

Once you are sure you have a market invest in a good quality machine,

Keep working until you have the money as Ian says or lease one or buy on 13month interest free credit card  but only after you are sure you can make a go of it,

If you get bored with door knocking sell wide screen tv  junk in garrage, bikes cds dvds

No need for anyone to be unemployed