It’s Brandon Lewis with Painter’s Weekly. I want to talk to you about something really important. That is staying out of debt in your painting business. If you’ve been in business more than three years, and if you are covered up with credit card debt, with other types of personal finance debt, with vehicle debt, with line of credit debt, then you have done something wrong from a cashflow standpoint.
I’m going to give you some advice and some tips about how you can stay out of debt in your painting business. First, if you can’t pay cash for a vehicle or a piece of equipment, you don’t need it. Go out, get jobs, get revenue. Set that money aside. Do whatever you can to make certain that you can pay for things cash.Heading into the winter is a great time to buy work vans, sprayers, ladders, onCraigslist and other places for cash, that are perfectly serviceable. I watch people bury themselves in vehicle debt. That includes your personal vehicle. If you can’t afford your vehicle with cash, then do not buy it. Let your ego ride in the passenger seat. You drive in the driver’s seat knowing that you’re building equity.
Number two, you need to stay away from credit cards almost entirely, especiallyin your personal spending. Credit cards entice you to spend more than you can afford. Every time you think you’ve got money in the bank, the old Chase statement, the MasterCard statement, the Visa card statement becomes due. Run your business on a debit card. Run it with cash.
Number three, I’m going to ask you look at things that you’re spending in your painting business right now that are not contributing to driving leads, that are not contributing to driving sales, that are not contributing to operational improvements, and to consider getting rid of some of those things. That could mean downsizing your office, whatever it is, but if you will tackle debt, you will be in a better equitable position.
Fourth and finally, you’ve got to improve your sales and marketing systems. I’ve rarely ever seen anyone save [theirself 00:02:22] to wealth. I have watched a lot people earn their way to wealth. You can do that as simply as reactivating your clients, staying in touch with them, raising your prices by 10% after you’ve improved your sales process and put that money back towards servicing debt until it’s completely gone.
If you’ll look right behind me, it’s not much to look at, but it’s our paid for building where we house both the Academy for Professional Painting Contractors, Painters Weekly, and we’ve got three other businesses in here that rent out this large warehouse space.
Christen and I have been very careful with our finances. Our cars are paid for. Our house is paid for. We are in zero debt. I encourage you to do the same. It may mean that for a short while in your life, you have to live unlike your neighbors, unlike your friends, unlike other family people. But at age 37 and with Christen being 32, I can say that we are completely debt free. It took some doing and a little restraint, but we sure are glad we’re here. You can’t put a ticket on piece of mind.
I’m Brandon Lewis with Painters Weekly saying do your very best to stay away from debt. I promise you it will service you well as you go through the years.