The equipment leasing business has suffered the past five years, not so much because customers have gone away (although many have closed up), but because banking appetites have changed. Clients who were A-credits five years ago are now B or C-credits and past C-credits can't get approved at all.
So, McCrabby continues to do this business, because he loves the business; he enjoys working with company presidents, CEOs, CFOs, and city finance directors and treasurers, and other decision-makers, to structure the right solution for their equipment acquisition needs. And, he's pretty good at it, provides great customer support, always follows through, and is more anxious to do a customer's second lease than the first (because repeat customers demonstrate his commitment to quality work).
It's a great sales and marketing job, because the solution helps these businesses and municipalities to gain the equipment they need while structuring their financing to best meet the budgets and needs of the companies or municipalities that become customers. It allows McCrabby to interact with decision-makers and to help them impact their business operations.
And, leasing is flexible enough to allow McCrabby to run some workshops for out-of-work folks, and to do some short-term consulting for sales / marketing, communications and writing projects. McCrabby loves to work.
The down side of leasing is that a great deal of business done five years ago is either adjusted, because of the change in banking appetites, or gone, because our customers have not been able to navigate through our tough economic times.
McCrabby will continue to do this business and hopefully see it grow back, as confidence returns to the economy (haven't seen that yet, despite political claims). But, in doing so, McCrabby has made a major life-decision, a major family-decision, a major financial-decision.
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| We're kidding here; it's actually a nice smaller home we'll be moving into |
McCrabby is down-sizing. It's probably time, although not the best time economically. The kids are through college, in their own relationships, have their own kids (at least one does), and are in their own homes. McCrabby probably doesn't need the four-bedroom colonial home with 3-4 rooms that are almost never used. Although he loves that house.
Three weeks ago, the McCrabby house went on the market. It was priced right (although $130,000 less than it appraised for seven years ago) and it sold in two days. McCrabby will be moving; and, the new McCrabby home will be two hours away. McC will be leaving family, friends, church, business associates in the Detroit area, and relocating to a small town two hours west - Coldwater, MI (where McCrabby and Mrs. M grew up).
It will save McCrabby and Mrs. M a lot of money. When McCrabby closed his 15-year-old leasing company in 2008, he had borrowed quite a bit of money against his home, trying to keep the business open. He bought a building in 2004, which turned out to be really bad timing, and his employees quit performing when the economy got tough. He tried to keep employees paid (which he did), and tried to stay ahead of the faltering economy (which he did not).
In keeping the company open two years too long, McCrabby incurred home debt, which he is still paying off. Selling the home will eliminate that, and give Mrs. M and him a chance to start recovering some of the retirement they lost.
In fact, McCrabby can't use all the furniture in this home, so if you know anyone looking for some nice dining room furniture, or family room and other pieces, let us know. Since the home is sold, it's no longer on line, but you can see a satellite shot here: OUR HOME.
A reader once commented at this blog, "I thought that betting on myself, investing in myself, was a safe bet. It didn't turn out that way." McCrabby can certainly relate to that sentiment.
Please stay with us. We'll still write (join us HERE), we'll continue to do equipment leasing HERE), we'll still do some short-burst consulting (HERE) and workshops (HERE); we just won't do it from our Livonia home office anymore. Our new office will be in Coldwater, MI (contact info changes will be updated soon).
And, if you know anyone that could use great service, creative ideas, and a strong advocate for their business, have them call 248.238.7214.
Thanks for reading and thanks, in advance, for sticking with us.
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