Posted by MistarellaFL on 9/7/05 3:37pm
Msg #64066

Need Funding for My Mobileness OC=operating capital

Is anyone else out there decreasing their service area's? I ask, because I used to have a complete 2 county service area, but becasue of the price of fuel and the length of time it takes for me to receive payment for services rendered, I am now out of OC to provide the funds for fuel to keep going until the next rash of checks come in. My husband and I were wondering how you do it? That is, continue to sign full time, receive checks net 30-45, buying gas as needed, and still paying the home bills. I need some good advice, as I spent over $200 in gas last week, earned $1000, but don't expect the funds to arrive til 10/15-ish.
Intelligent suggestions appreciated.

Reply by LilyMD on 9/7/05 3:57pm
Msg #64068

I feel your pain! I can only say that for me, I try not to take anything more than about 35 to 40 miles away. And, I'm greatful my husband has a good job.

Reply by Glenn Strickler on 9/7/05 4:16pm
Msg #64071

Something in your math doesn't add up. I live in the largest county by land area in the US(and the county in sceond place isn't even close) and on weeks that I do 25 jobs, I don't spend $200 in gas paying 3 bucks a gallon and I drive a GMC Z71, not exactly a gas mileage champ. But then again, I don't take the $50 jobs, either.

I would begin by looking at just what you are doing to market yourself directly to title companies. You need to reduce your expense to payment ratio.

Also, on your personal finance side, how are you addressing your expenses around the house? Everyone, no matter what the budget, had wants and needs. Get rid of a few of the wants. Can't be done, you say? I had a very good job as a retail manager earning with bonuses 100K plus, then I had a stroke. My Dr sat down with me and had a few words about slowing down or dying and after I fully recovered, decided to retire. So I went from 100K to 30K overnight with my youngest starting college. My wife and I made some hard choices on streamlining the family budget and getting rid of stuff so we could still help with college. You would be surprised on what you can get by on. Most people make the mistake of wanting to have a lot of "stuff" when they can still have a comfortable life with a lot less.

Reply by Margaret_FL on 9/7/05 4:40pm
Msg #64074

Use a gas credit card, thats what I do and when the bills comes in I pay it. If I don't my money yet, I pay the minimum or $50 and they I pay the rest when I do get paid

Reply by Glenn Strickler on 9/7/05 6:00pm
Msg #64088

also, if you have to charge gas, then consider ..

using a card that has rewards and pays cash back or points on purchases. Citi even has a card that gives 5% back on gas purchases. But credit cards can either be your friend if you pay them off every month, or can be a killer if you let them charge interest. They have to get thag reward money from somewhere. They get some from the retailer, but most of it comes from interest.

I am told that things are going to slow way down, so it would be a good idea to control expenses ahead of time before the crunch hits.

Reply by MistarellaFL on 9/7/05 8:46pm
Msg #64096

Re: also, if you have to charge gas, then consider ..

I have maxed out the gas card, didn't really want to get another one, but maybe I should.
Where are you geographically, Glenn? I ask because you say you have heard it is going to slow down, my TC people keep telling me it is going to get busier for me here in SW FL, so I have that to look forward to.
After consulting with another SA friend, it was suggested to me that since I have only been full time for 2 1/2 months that it is too soon to be expecting checks more frequently. I did this part time for 2 years before I went full time, and OWNED A GAS STATION. Never had to lay out the cash for fuel, just paid a check to the biz at the end of the month. Very convenient.

Reply by Glenn Strickler on 9/7/05 9:34pm
Msg #64106

Re: also, if you have to charge gas, then consider ..

You can click on my profile to see what area I service. I was talking with a group of my friends that comprise a variety of businesses and some think the economy will slow down and some think things will take off as soon at the reconstruction begins in New Orleans and the surrounding areas.
we always get together a couple of times per month and discuss investments and things like that. Of course, I don't play on the same financial level as some of these guys, but it does help me overall.

Also, I do the loan signing to suppplement my retirement income, so even if I don't do any signings, I can still pay the bills so I am in a little different position. The money I earn doing signings I use for supplemental income so we can do the extra things. I never planned on doing 50 to 70 signings per month, but that is where I seem to be if I take everything. So I am going to make hay while the sun shines and put it in the bank. I don't think this can keep up forever ....

Reply by Becca_FL on 9/7/05 9:51pm
Msg #64107

Well, I starved for the first 9 months and paid my phone bills on the cut-off day every month. I live alone and had no second income to keep me going. After 9 months of hard work, sweat equity, credit card debt and a couple of small loans from my boyfriend, I was finally able to pull out of it. Like so many other things in life, this business takes a lot of time and hard work to even begin to pay off.

If you expected to start earning the big bucks in the first year, you may have over shot your wad. If you do a great job everytime and really work at it, you will make it through the hard times and begin to realize the fruit of your labor.

Oh BTW, gas on the credit card is the way to go. Margaret, as always, is right on.

Reply by Barry Silver on 9/8/05 6:34am
Msg #64124

I suggest taking some time to sign up with more companies that offer payment twice per month. They are out there. You are wise to limit your travel area, but if someone wants you to go outside of it, do not be bashful; ask to be compensated for your time and fuel. Business is business.

Reply by Art_MD on 9/8/05 7:17am
Msg #64128

Re: Cash flow, receivables, and miles/$ of revenue..

In the long run you, if your signings keep up the same pace from month to month, get a cash flow which will lag the work by 45-60 days. You will end up with an "accounts receivable" equal to 1 1/2 months work.

As many of the "oldies" will tell you, the first year is tough on cash flow.

Something is definitely wrong with your numbers.

Analyzing in a wierd way ----

You are spending $0.20 per dollar of revenue.
Assume that your vehicle gets 20/mpg
at $3.00 for gas, thats .15/mile for gas
that equals 1.33 miles/dollar of revenue.
Based on this, if your average RT mileage was 50 miles, your average fee was $38
If your average RT mileage was 75 miles, your average fee was $56
If your average RT mileage was 100 miles, your average fee was $75

Look at it another way.
$210 gas = 70 gallons at $3.00
at 20 MPG that means you drove 1400 miles. At 25 MPG you would have driven 1750 miles.
What also is a problem, is that at 25 MPG and 45 MPH, you spent 39 hours driving last week.

I checked my numbers for the year and average .54 miles/dollar of revenue

Art

Reply by Nicole_NCali on 9/8/05 6:36pm
Msg #64274

Re: Cash flow, receivables, and miles/$ of revenue..hmm

Art: I need you to help me with my Financial accounting homework..

I think that with being in business, sometimes it is impossible to determine how much it will take to stay in business. I think that there was a miscalculation of what it would take to be profitable.

Reply by TCMN on 9/8/05 10:26pm
Msg #64287

Agree with Nicole...Art you are too smart. And

I bet your mind is working on something you are asked to do far before the person asking has finished telling you what they are needing. I'm always impressed.