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  • Multiple units

    Do any of you have multiple units? Did you go with the same kind of vehicle? How long after you had the first?

    Here is my dilemma. My bank turned me down on buying a new van. They said that a mobile business is too risky. I have a 712 credit score, have a great business repor with this bank. My first van was through the dealership but I am thinking of buying a used van for the second. What did y'all do?

  • #2
    Originally posted by Gracy Rose View Post
    Do any of you have multiple units? Did you go with the same kind of vehicle? How long after you had the first?

    Here is my dilemma. My bank turned me down on buying a new van. They said that a mobile business is too risky. I have a 712 credit score, have a great business repor with this bank. My first van was through the dealership but I am thinking of buying a used van for the second. What did y'all do?
    We've had multiple units for almost 20 yrs. We pay cash for used or build our own, cash again. Building our own wins hands down for keeping overhead low and keeping an extremely healthy cash flow. We've used everything from snazzy aeordynamic RVs to raised roof cargo vans.

    Remember to let me know what your lawyer said about ICs and WC, mmmmm'k?

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    • #3
      Go to a different bank. Also make sure your business plan is updated and shows how you intend to secure the business.
      I think my business plan was a key factor for getting financed.

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      • #4
        I don't have a second unit, so I can't help you with your dilemma. I did want to say how discouraging it is that a bank would turn you down. Were they even interested in seeing your books? You obviously run both a successful shop and mobile business. What exactly would they be looking for? A mobile business may be "risky", but you certainly don't sound like a "risk".
        don't find yourself up a creek without a poodle.

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        • #5
          When we had two vans going they were two different types of vehicles.one was geared more twards big dogs one more for smaller breeds.You could suffer through any size dog in either van but one also was equiped to operate further away from home.The insurance was the killer in the end.while there was no multible vehicle discount there aparently was no difference in price between one or two vehicles because the bill remained the same after the second was taken off the road. I have atribute the lack of difference in cost to the new math system.Bendovercalculous.

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          • #6
            Doug!!! "Bendovercalculous" thats funny as shih! roflmao!!!!

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            • #7
              do you have home equity you could tap. it really is a much easier loan to get. much easier. that is, if you have a house and equity. lol...i guess it would be alot harder if you didn't!duh!! jk

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              • #8
                Yes, i could do home equity but that scares me, my home is almost paid off (three more years:-)

                I know that I could cash in a cd or two but I was trying to figure out what y'all have done as well. I hate to have my personal finance support my business finance:-)

                I am looking at used so i don't have the option of using the dealership financing:-)

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                • #9
                  Originally posted by Gracy Rose View Post
                  Yes, i could do home equity but that scares me, my home is almost paid off (three more years:-)

                  I know that I could cash in a cd or two but I was trying to figure out what y'all have done as well. I hate to have my personal finance support my business finance:-)

                  I am looking at used so i don't have the option of using the dealership financing:-)
                  The economy is making bankers and economists very nervous. The housing market has basically kept the economy going since 9-11 and it went belly-up dead over a year ago in most areas of the US. Too many starry-eyed folks used ARMS and bizarre creative financing to buy into the market, are over their heads and hitting the wall this year and through 09.

                  If the bank feels you're overleveraged they're probably right. If you have the CDs to cover a used unit and your CPA and business plan both say another unit is justifed...cash out and shop carefully and wisely. Personally, I'd sit tight on the CDs and put aside cash from every groom in your mobile and shops to pay cash from the biz.

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                  • #10
                    Katy, I agree totally. I have paid cash for everything so far in this business. I truly just wanted to get some of those "creative" ideas from other groomers.

                    As far as bank, my dti ratio is quite low as everything but my house is paid off and that only has three years left in an area where 12 years ago when I bought my house the homes were in the low to mid 100's, now they have built 3... yes 3 subdivisions on my street (or, should I say the main entrance is on my street) where the homes start in the low 9's.

                    I am not a patient person :-) I believe it is the right thing for the business as we are booked in the mobile for several months and are ticking off clients who can't get in.

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                    • #11
                      Gracy, what are the homes in that area going for now?? when I was looking into moving to the st cloud area, down in Harmony, it was 200's and up! I love that lil place Harmony....you know where I'm talkn about ?

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                      • #12
                        Yes, St.Cloud and Kissimmee are still somwhat affordable:-) If, hubby and I hadn't bought so many years ago we wouldn't be able to afford it now... hell, I couldn't even afford the tax bill :-)

                        Harmony is a sweet town. I am in Chuluota- we still have ranches and every home has to be on a minimum of 1 acre:-)

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                        • #13
                          Gracy Rose --- I would like to know how you find employees that you trust when they are working in the mobile unit? I would like to expand my mobile business, but I can't figure out how I would be able to oversee an employee when they are grooming in a mobile van. I just feel like I would have my reputation on the line and the liability exposure without being able to supervise the situation.

                          I have heard many shop owners complain about their help, so I am inhibited when it comes to expanding my business.

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                          • #14
                            Originally posted by PoodlePal View Post
                            Gracy Rose --- I would like to know how you find employees that you trust when they are working in the mobile unit? I would like to expand my mobile business, but I can't figure out how I would be able to oversee an employee when they are grooming in a mobile van. I just feel like I would have my reputation on the line and the liability exposure without being able to supervise the situation.

                            I have heard many shop owners complain about their help, so I am inhibited when it comes to expanding my business.
                            I worry about the same thing. How do you do it?

                            Gracy, if you write that book like I told you, it will more than fund your new van...it could fund a whole fleet! Do it do it do it!

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                            • #15
                              Okay y'all I am not quite ready to write a book :-) Besides, I am a lousy typist.

                              I have thought about writing a small flip book for things to say to clients, etc. How to advertise yourself.


                              Okay, back to the topic: as a Mobile you have the best advantage of knowing who you trust.

                              Let's look at the reasons why they should be mobile-
                              More flexibility
                              Better money for less work.

                              Mobile grooming should be anywhere from a 30 day -90 day companionship trial.

                              Lets break it up for 30 days (for 90 you just triple the time limits).
                              Week 1 (5 days)- Just ride along, maybe help with bathing but mainly a watcher.
                              Week 2 (days 10)- Your bathing, drying, grooming assistant
                              Week 3 (days 15)- She grooms along side you, you inspect everything
                              Week 4 (days 20)- She starts to drive, you ride and both of you groom together.
                              Week 5 (days 25)- Plan 1 or 2 light days- She goes out and returns afterwards, the rest of the week y'all are together.
                              Weeks 6 (days 30)- She does it on her own with you constantly checking in via phone.

                              I hope this helps you.

                              And, yes I bought the second unit today. My fab Hubby said to just do it and take it from savings. I can't believe that I am going to use personal money for business... ugh... I am excited:-)

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