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Let me ask you a question. When was the last time you walked through your shop, looked around and thought, man, I've accumulated a bunch of stuff? Maybe, you know, it's another mower or another spreader sprayer. Maybe it's another trailer. Maybe you got shelves full of spare parts and a machine that still runs but hasn't been in production for months or even years. And I'll be honest, I've done it too. In fact, I'm living it right now. I've got equipment that still works. I've got shelves full of replacement parts. I've got enough pieces to keep some of these machines running for years. And every once in a while I catch myself thinking, boy, I got a lot of value sitting in the shop. But do I? Today I want to challenge that idea. Because sometimes what feels like wealth is really just the illusion of wealth.
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Today's episode is brought to you by Yardbook, the all in one CRM for your lawn care business. And as an exclusive partner of this podcast, you can get started today and begin simplifying your business and maximizing your profits. Sign up now@yardbook.com the link is in. The show notes Time now for Profits with Paycheck, an essential podcast for you in the green industry who are looking to unlock the full potential of your business. Hosted by John Pajac, your certified financial coach, the show features in depth discussions with successful entrepreneurs, thought leaders and industry experts providing practical advice and proven strategies on financial planning, operations, marketing and sales. Profits with Paycheck has valuable insights and action steps that you can implement today for creating long term success. Now, here's John Pajak.
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Welcome to Profits with Paycheck, the podcast where we dive into business strategies and financial insights for the green industry. I'm your host, John Pajak, and whether you're driving between jobs, you're wrenching on equipment, or cleaning the shop, I'm glad you're here. So let's get into it. If you're anything like me, you probably love equipment. I honestly still get excited when I'm looking at new spreader sprayers or new skid steer or even though I don't need one or you know, maybe just a shiny truck. You know, every, basically any kind of piece of equipment that promises to make life easier. You know, I, I'm, I still get excited about it and you know, there's nothing wrong with that. Equipment is what allows us to do our jobs and without it, we don't have much of a business. But somewhere along the way, many of us begin confusing Owning equipment with building wealth. And those aren't always the same thing. It's all right with you. I'm going to kind of tattle on myself here for a little bit. You know, I've accumulated equipment over the years, and most of it still runs perfectly. You know, some of it has been replaced by newer equipment. And because I'm the kind of guy who likes to be prepared, I've accumulated shelves full of spare parts. I mean, I've got spark plugs and belts and bearings and hydraulic components and electrical parts and little odds and ends and, you know, whole things filled with the fluids and oils and all the stuff. And basically the purpose is, I'm going to need this someday. And honestly, you know, some of those parts have really saved me, you know, especially during the middle of the season when, you know, the lines are, you know, the. If you took it into the shop, you know, you'd be waiting weeks for that stuff to get back in. Well, because I already had it on the shelf. I already had what I needed. It was incredibly helpful. But eventually, every machine reaches the end of its life, and eventually that spreader sprayer gets retired, that mower gets sold. Or, you know, I've even had machines where I just said, you know what? That's it. I'm just going to scrap it. And you know what happens next. All those spare parts that once felt valuable suddenly become almost worthless. And it's not because they stop working, but it's because I no longer own the machine they're designed for. Someone else is eventually going to buy those parts and probably for pennies on the dollar, and they're going to think that they hit the jackpot. And honestly, good for them, you know, because it also reminds me of something. I wasn't building wealth. I was collecting stuff. And I think this is something every contractor struggles with. You know, we walk into our shop, we see rows of equipment, we see the trailers, the spreaders, the sprayers, the shelves of inventory, and we feel successful. It really feels like we've built something. And we have, you know, but here's the question. Is it producing anything? Because an asset that isn't producing income isn't helping you build wealth. It's just taking up space. And that's a hard lesson, especially for people like us who love machines. Now think about it this way. You know, would I rather own 5 extra write on spreader sprayers just sitting in my shop or 500 recurring customers? Well, I'm going to take the customers every single time, because customers produce income. They produce Income every month, every season, every year. The spreaders don't. They just sit there. One is producing and the other is waiting. And that's a huge difference. And again, there's nothing wrong with owning equipment. I just, just make sure that that equipment owns a job and not the other way around. And I know you're going to say, you know there's somebody out there looking at you right there. Yes, you are telling me. You're like, well, when I get the clients, I'm going to need that equipment. Yes, you do. Exactly. But again, like I said, let's not put the carriage before the horse. We want to make sure that the driving force, the reason that we have the equipment is because we have those clients. Back when I was getting my lawn care business off the ground, I was juggling routes, invoices and customer notes with paper and prayers. It was chaos until I found Yardbook. Yardbook gave me the structure. It helped me track chemicals, route efficiently, invoice faster, and most importantly, it helped me grow a profitable business. If you're tired of duct taping your systems Together, go to yardbook.com and sign up for free. And if you're ready to go premium, use promo code PAYJACK to get your first 30 days on me. If you've been thinking about attending Equip Expo this October, don't wait. Right now. Registration is only $30. And when you use promo code PAYJACK, you're going to get your ticket for just $15. But here's what most people don't realize. Registration jumps to $60 after September 10th. And if you wait until the show starts in October, you're going to pay 120 bucks at the gate. Why spend $120 for something you can lock in today for 15 bucks? Equip Expo is the biggest event in the green industry. You're going to get access to three days of exhibits, education, networking, outdoor demos, and free parking at the Kentucky Expo center. Head over to equipexpo.com use promo code PAYJACK and I'll see you in Louisville this October. Now, here's a thought I had recently. Everything in your shop is doing one of two things. It's either producing revenue or it's losing value. That's it. It's kind of hard to make it pull, make it so black and white, but it's kind of true. You know, even equipment and sitting inside your building is aging. You know, even if it's not being exposed to the elements, it's still deteriorating. As you know, the belts the rubber, the tires, they dry out. You got seals that are deteriorating. You've got, you know, maybe a piece of equipment that you had forever. It's still good, but the manufacturer stopped making parts for it. Time keeps moving whether the machine is working or not. Now, I personally, I started asking myself a different question before I buy anything. And it's not, can I afford this? I'm in. I am blessed that I could pretty much buy whatever I want and not have to think about it too much. You may not be in that position, but you know, just someone who, from experience that I'm just sharing my outlook on this instead of asking, you know, can I afford this? Instead, what is this going to produce? Is it going to reduce labor? Is it going to help me increase productivity? Is it going to help us improve the quality of the work that we already do? Is it something that we're, we're venturing into, like we're opening a whole new service line, like a different type of service? Is that, is that what this is going to help us do? Is it going to create more revenue? Or is it, do I just want it? Now? Those are two completely different purchases. One is an investment, and the other might simply just be an expensive reward. And don't get me wrong, there's nothing wrong with rewarding yourself, but I just don't want you to confuse the two because trust me, you know, I have bought some expensive rewards for myself that were out of the parameters of what I would normally buy. Just because it's like, well, I'm going to use that machine. It's for me again, it's still out there producing, but it's not as. Because I'm the only one using it and I don't work full time in my business anymore. Probably an expense I didn't have to make. But one of the biggest shifts in my business happened when I stopped looking at equipment as the goal. You know, the goal wasn't another truck, it wasn't another spreader sprayer, it wasn't another mower, it wasn't the skid steer, it wasn't another trailer. The goal became building a business that created freedom, a business that generated profit, and a business that could support my family. You know, if you can create something that's going to continue creating value long after today's equipment's worn out, that is a whole different mind shift. That's a completely different way of thinking. And as many of you know, one of my biggest motivators today is building something that outlives me. You know, When I think about my daughter, I don't want her her to inherit shelves full of obsolete parts. I don't want her inheriting equipment that has to be auctioned off. I want her to inherit a business, a system, one that has cash reserves, one that allows her to make investments, one that brings her recurring income. Something that, you know, this is like a vehicle that creates opportunity. And I'm telling you, that's real wealth. Everything else is inventory. Now please don't misunderstand me. I'm not telling you not to buy equipment. I'm just stating that you should buy equipment that makes you more productive, equipment that earns its keep. You know, buy equipment that's going to pay for itself very quickly. You're going to get your ROI back very fast. But again, don't confuse the ownership with wealth. Because there's a big difference between owning a shop full of equipment and owning a business that creates financial freedom. One of these things fills a building and the other changes a family's future. So the next time you're thinking about buying another machine, ask yourself one simple is this going to produce something different or is it just going to take up space? And that one question might change the way that you build your business. So I want to thank you for listening to profits with PayJack. This episode made you look around your shop a little differently. I'd love for you to share it with another business owner. Chances are they've they've got a few shelves of valuable stuff that they've been hanging on to too. So until next time, God bless. Keep pushing through and we'll catch you on the next one. Thank you once again for listening. If you've enjoyed the show, please leave a review and share it with fellow business owners. Your support means the world to me and helps keep the show going strong. I want to give a special shout out to our friends at Yardbook. Their continued support has been instrumental in bringing this podcast to you week after week. If you haven't checked them out yet, visit yardbook.com and see how they can give you the tools to streamline and manage your lawn care business. Also, don't forget to explore the resources and upcoming events that I've collected here just for you in the show Notes. These are curated to help you stay ahead in your business with the latest tips, tools and networking opportunities. Whether it's a new tool, an insightful article, or an event you don't want to miss, I've got you covered. Until next time, keep pushing through and God bless. Sam.