Aaron built a $1M revenue business but spent 95% to get there, leaving him with $400k to $500k in debt on equipment and vehicles. One bad job or unexpected cost could collapse the whole thing.
"We're talking four or five hundred thousand."
Skid steer loader, two tractors, and two trucks.
No sense in having a million dollar business if you spend 950 to get there. Like, to me, that's not a great business, not very sustainable. There was a ton of debt. I was still paying the skid steer. Now you've got skid steer loader, two tractors, so still had two trucks, both had payments. So I mean, there was a lot of debt. Like a lot. We're talking four or five hundred thousand.
As Aaron has grown his business year over year, he has had to acquire more and more debt. In this case, he was able to leverage the loans that he took and grow the business. However, every single time you take on more debt, you're increasing the risk the business. A bad job, unexpected costs, or even just a lack of work could send the business spiraling.
