How to Acquire Equipment on a Budget Ft. Cowtown Wood Co
“We have been growing a lot, and every month has been going really well. But there are a lot of things that we still need equipment-wise and because we started the mill this year, we can’t really go to a bank because the business credit hasn’t existed that long. What would be some other avenues that you would suggest for us to try to get equipment?”
- Justin
One of the common pieces of advice provided on the Woodpreneur Podcast is the importance of only buying the equipment you need, as you need it. In the case of Justin and Olga, their business has expanded so rapidly that they need the equipment faster than they can get a bank to lend them the money to do so.
“80% of your time until you get to about a million is about perfecting your sales system. About 80% of your time should be spent on marketing. So for a skid steer, forklift, whatever, how much do you get one for, 15k-20k? I would equate that to lumber. How many stacks of lumber do I need to pre-sell in order to afford that?
I’d go to people and say, ‘Listen, I have all this lumber that’s gonna be air drying.’ And in your mind, you’re like, ‘This is my skid steer fund.’ Then go out and friggin sell lumber, sell logs, and then just start stashing that money away. You’ve got to make sure that your sales system is there, but you could put half down and put the other half on a credit card.
Get a business credit card. You can get one for 0% financing, 0% APR, get one of those. Then you can use the points from those credit cards and then pay it off later. There’s different ways that you can hack getting the equipment that you need, but look at it as a sales problem. Use the bank loan for something that you know that when you get it, you have money waiting for you. Don’t use it on these little things. Use it for the big stuff where it matters.”
- Steve Larosiliere
Take Advantage of Every Avenue
Finding revenue streams when sourcing equipment for your business can be challenging, but there is money available, it’s simply a matter of finding every possible avenue you can. Federal, state, and municipal grants are a spectacular way to find additional income to get the equipment you need, and you should always leverage every one available to you.
“Business investment grants, equipment, loans. All of those sorts of things are fine, because they are low cost. But like if you’re going to go out and get a bank loan, that’s different. Look at equipment loans, look at small business grants. The fact that you’re Latina could help, there might be some minority, small business owner type grants, especially with manufacturing type businesses, you probably have a shoe-in there.”
- Steve Larosiliere
As Steve explains, when searching for grants, loans, or other ways to get some extra funding, think of the things that make you and your business unique. By leveraging your strengths and the things that separate you from the pack you will have an easier time creating an identity for yourself that sells to grant owners better.
Website: https://cowtownwoodco.com
Instagram: @cowtownwoodco