At a certain point in your business career you’ll probably think about buying some type of company vehicle.
Some people wind up purchasing a small truck while others go for either a small or full-size style van. It just depends on your taste in vehicles.
When I was just getting started in the business, well before getting a company vehicle, I only had my trusty Ford Probe to work with. In case you’re not familiar with that type of car, it was a smaller two-door car that was on the sporty side. It was a great car, but not a great work vehicle.
At some of my accounts I could leave my supplies there, but at others I had to transport them in my car. This meant I had to load everything I could into that car then make the rounds cleaning all my accounts.
In most cases this arrangement worked just fine, but when I had to transport larger buckets and mops this became much more of a chore. I put up with the hassle of it all as long as I could, as I didn’t want to have car payments at first.
My goal was to bank as much of the money I had coming in from the cleaning business for as long as possible. I kept my expenses low and only spent money on things that would make me more money, such as advertising.
This “keep my expenses low” approach coupled with “spending more on advertising” paid dividends over the long haul. My monthly revenue from the business grew quickly and my bank account got bigger as a result. So far, so good!
My initial benchmark for even “thinking about” getting a company vehicle was $4,000 per month in revenue. It was just a made up number in a sense, as all I was worried about was being “well over” the minimum needed. I wanted to LIMIT my risk as much as possible.
In other words I didn’t want to buy a vehicle then go on a losing streak and get let go from a few accounts. I had no desire to sweat the monthly payments each and every month. I wanted a nice fat cushion to work with, the bigger the better.
Though I did start looking at buying a work vehicle at my $4,000 income goal, I didn’t actually make the purchase until I hit a little over $8,000 per month in income. I made that Ford Probe work for as long as I could take it!
I wound up buying a Ford E-150 work van. It was a full-size van that also had the towing package. I wanted that because I thought at some point I may tow a trailer. That never materialized, but that option didn’t set me back much anyway.
In case you’re wondering, I put $1,600 down and my payment was $346 per month. These were easily manageable numbers given my income. After that I spent $200 the next month to have the van lettered professionally.
I wound up paying the van off about eight months early, as I would double up my payments from time to time. I currently still have the van. It has served me well over the years, getting me from account to account much better than my car ever did.
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