Are you prepared for a recession? | TruckMount Forums #1 Carpet Cleaning Forums

Are you prepared for a recession?

rob allen

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We’ve had a few great business years due to a strong economy. But economies fluctuate and what goes up must come down eventually. I’ve weathered a few recessions since 1985. My question is are you prepared for a possible recession? What steps have you taken?

 

Common janitor

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Yes , always . Been warning the children for more than a year .
Every type of debt is at all time highs right now from the government to someone swiping a credit card at Starbucks .
We carry very little debt or zero . Anything that’s owed can be paid for with cash in an hour . Assets are expensive in every category so the only “ preparation “ ( if you can call it that ) would be to have as much cash as possible .
You make money “ going in “ , not on the way out . JMHO .
All the Best , Ed
 
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Spazznout

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I can not wait.
So ready to buy equipment for pennies on the dollar and to pick up all the customers from you folks who have taken out loans for all of your equipment.

It can not get here soon enough.
Our economy needs one desperately.
So much money has been malinvested creating false market signals over the last 20 years. Time for it to flush to give us folks who did things right with no or little debt and positive cash flow companies opportunity to grow.

Lets get it on....!!!!!

If you provide over the top customer service
have great reviews
have NO DEBT.
Have very low fixed costs..

You will grow through a recession. Folks want to take care of stuff like their carpets and home so that they last and they can preserve what is left of a falling home value due to the market correction.
 

Spazznout

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Yes , always . Been warning the children for more than a year .
Every type of debt is at all time highs right now from the government to someone swiping a credit card at Starbucks .
We carry very little debt or zero . Anything that’s owed can be paid for with cash in an hour . Assets are expensive in every category so the only “ preparation “ ( if you can call it that ) would be to have as much cash as possible .
You make money “ going in “ , not on the way out . JMHO .
All the Best , Ed
Ed, If you have a war chest of cash. You should make money both ways.

Just sayin

Last recession we lost 30% of our small and midsized cleaning business. Lots of auctions. And every one of em had their entire company purchased through loans that they could not keep up with.

This provides us with a war chest of cash huuuuuge opportunity. I helped the guy I was working for grow from 3 to 6 trucks during the last recession. He subsequently retired 4 years later as he also had a very smart stock broker who directed him to purchase a serious amount of mortgage backed securities.

Anyways. Recession are opportunity for those with cash.
If you run your business with debt for your vans, equipment, etc...you are gonna be in trouble....Big trouble.
 

Jim Davisson

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We are ready. Only have regular upkeep and payroll, no payments, no marketing expenses, 6 months bills for the company and 6 months personal set aside as always and a pretty good mix of types of work that's proven to be recession proof. Been through a couple of these, I know what to expect and what to do when the time comes.
 
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Todd the Cleaner

Todd Cottino
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I started my business towards the end of the last recession we had. I’ve paid cash for everything I have bought for the business and we have no business or personal debt except for about 50k remaining on our mortgage.

I’m not real sure what to expect if we go into another major recession. Maybe those of you who have survived prior recessions can give us newbies some advice.
 

Spazznout

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My understanding is carpet cleaning increases during a recession as people don't want to spend money to replace floors.
IF you have a good community reputation (branded vans, uniforms, print material, community involvement with schools and sports programs etc.)
IF you have good online reviews.
If you have a good marketing strategy.

You are correct

People also become more discerning with their financial expenditures during and after recessions. They demand personable.... quality service and cleaning tailored to their specific needs and timeframes.

Recessions are a buyers market after all.
And we are sellers of our services.
So understanding your roll in your LOCAL marketplace is essential.
 

Spazznout

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PS

This recession is gonna be different.
Its gonna destroy wall street.
Meanwhile low debt to cash flow businesses models on main street USA are gonna thrive.

Join a local credit union and stash a good percent of free cash there (under the FDIC insurance limits of course. Diversify once you do reach those limits)

Its gonna be about who writes the rules on the next definition of the dollar, much like Bretton Woods............Trump or the corporate Uniparty (Thats the majority of Dems and Republicans in elected office)

Also I think we may have another 16-24 mos before the real action starts.
Still time to save a few nuts and get debts paid down or off.
 
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Smtwn janitorial

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I am not as ready as some of you. But have limited debt and I dont rely on residential customers. Most of my commercial accounts are indian medical places, public library, utilities, ect. They aren't going anywhere.
Going through cancer lately has taken a toll on savings and stuff. But my buisness has saved us in many ways. We have just enough employees to do all our work when I've had to be out of town for radiation and surgeries. If I was a one man show like some of you I would have limited income for almost a year of my life.
 

Spazznout

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all carpet cleaners are millionaires anyway or what I see they are on the bulletin
boards
A few,
Certainly not me.
But no reason a carpet cleaner can't run a debt free/low debt business model giving them a leg up going into a recession.
 

jtsunbrite

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Ed, If you have a war chest of cash. You should make money both ways.

Just sayin

Last recession we lost 30% of our small and midsized cleaning business. Lots of auctions. And every one of em had their entire company purchased through loans that they could not keep up with.

This provides us with a war chest of cash huuuuuge opportunity. I helped the guy I was working for grow from 3 to 6 trucks during the last recession. He subsequently retired 4 years later as he also had a very smart stock broker who directed him to purchase a serious amount of mortgage backed securities.

Anyways. Recession are opportunity for those with cash.
If you run your business with debt for your vans, equipment, etc...you are gonna be in trouble....Big trouble.
im ready , with cash to spring on equipment, I grew thru the last few recessions, but we are not headed to a recession unless trump loses and that wont happen...
 
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brian3180

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Didn't notice the last one. Hopefully won't notice the next one.
I wasn't going to say anything but yeah me too. When people would talk about the recession at the time, I would ask them not to include me in their recession.
 
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Kevin Dumas

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I wasn't going to say anything but yeah me too. When people would talk about the recession at the time, I would ask them not to include me in their recession.
The only thing I really remember is some of the work slowed down from the most wealthiest of people. I guess when you are staring at huge paper losses it is hard to justify freely spending.
 

Select

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Before deciding to start this business I would say yes, I welcome the recession. Especially, before I left my job then definetly bring on the recession.

Now that I am taking the risk to run my own business it is something I am less comfortable with. But, to me, taking the risk was essential and was the only way. Fingers crossed I am right.

FWIW it seems the comments are going both ways. Some have seen big slow downs during these times and others continue to thrive. Encouraging to see some have continued strong through economic slow downs.