spending big $$$

Hoofer B · Apr 12, 2015

My Dad passed away five years ago, so I will ask here for advice. I trimmed cow hooves for 16 years and now have two guys running that business for me. While trimming I had 6 semis hauling liquid manure seasonally. I switched to OTR trucking 4 1/2 years ago. I am currently at 23 trucks and 30 trailers.
I have a three bay shop near my house with a small office. I have an Operations manager, a dispatcher, and a lady who does billing. They pretty much all work out of their home. It works. I own half of the trucks ( all paid for ) and lease the other half. My conditional use permit at my facility allows 7 semis and 7 trailers at the location at any given time. Half of my drivers live out of the area and keep the truck with them. I have trailers dropped at several of our customers. Weekends get crowded at the yard because most of the local drivers are home. At this point I park 3 trailers at another local business. With a bit of excavating, I could park more trailers at this place. A facility came up for sale three miles from our place. It has a four bay shop, three large offices, employee room, shower, parts storage 60 X 100 warehouse, 120,000 fuel storage ( They use to make biodiesel ),large fenced in lot for a bunch of trailer. So, at 45 years of age, do I buy it, or do I find elsewhere to park equipment on the weekends? I can swing it, but just hate the debt The wife says go for it. I would keep my current shop as well.

M Nut · Apr 12, 2015

If you can swing it, and the future looks solid, go for it. It sounds like an ideal facility for your growing needs.

OH Boy · Apr 12, 2015

I would go for it your operation is most likely only gonna get bigger. You'll be glad you did down the road.

casecollectorsc · Apr 12, 2015

No body knows your situation better than you. I'm 20+ years older and kinda regret not pulling the trigger on some land 30 years ago. Always was afraid to go in debt. Debt free now and enjoying life, but wonder what coulda been. I'd go for it.

Goose · Apr 12, 2015

I agree with your wife. Go for it.

Vito · Apr 12, 2015

Not to be a kill joy but with this current administration in the White House I all ways get nervous about getting in deep. You never know what they will do next to try to damage this country.

JMHO

Vito

DetailDave · Apr 12, 2015

I know it is very easy for all of us to spend your money, but it looks like a good idea to me. I, like you avoid debt, but you,sure seem to have a solid operation going. Wish you the best of luck.

Sparktrician · Apr 12, 2015

As a business owner myself,I can say only toy know what you can do and what your business can handle with the extra burden. If it will make life better, go for it

rrlund · Apr 12, 2015

You'll have plenty of room to work on and collect tractors in the old shop if you get the new one.

Allan in NE · Apr 12, 2015

At 45 years of age, you haven't even hit your stride yet.

Allan

kent@junction · Apr 12, 2015

for me it would be does it give me an opportunity to expand? improve service - more bays, sounds like it solves the parking issues without relying on other businesses.

DoubleR · Apr 12, 2015

I agree with Allen. At 45 your just getting rolling. As long as your healthy, you got to keep looking ahead. Its sounds like you have plenty of potential. Go for it!

VaTom · Apr 12, 2015

You're obviously well organized. 45? I'm maybe your father's age and am actively looking for another interesting investment. Debt is simply a tool, can cut both directions, but does wonderful things if used carefully.

At your age I went deeply into debt on real estate, which provided our comfortable retirement. My plan worked as expected. Always a good idea to have a back-up plan for "what if".

Listen to your wife, she has faith in you.

black · Apr 12, 2015

You sound like a good business manager . The real estate is always a good invesnment apart from the business. A smart wealty friend of mine once said " invest in yourself large or small " and that's why I by iron and land at a good price to make a profit some day . On the other hand , be carefull what you by , because it's east to by , but hard to sell.

Pair-a-dice farm · Apr 12, 2015

Those are numbers that I have a hard time wrapping my pea brain around but I agree with Allen. I'm almost old enough to be your dad but from what you describe, I would likely make the investment. I've always thought of real estate as a good investment as long as it doesn't make your debt load over 25%. But that is just my philosophy.

chucksoliver77 · Apr 12, 2015

(reply to post at 09:48:13 04/12/15)

Make sure with all that fuel storage you are not buying a big hazardous waste clean up. Chuck

Brent Zappe · Apr 12, 2015

I would like to say this to a young person all the time. If you have money in the bank and think it is going to grow bigger the interrest paid on it is tax income. It is nice to have money saved for rainy days but it is also nice to have some money to spend for things that will make you happy and keep your self moveing foward. It might be a gamble but just think of those poor people who stands in front of a slot machine in hopeing they will big money. Need to ask will this make your life easier and also give your self some more free time in your personal life. Than running around trying to find spots to park those trucks and etc. Family comes first time for your family and enjoy being around them. Hey you need to think. Good luck.

David G · Apr 12, 2015

I am 55 and still investing in my business. It sounds like you have your head on straight, I would not worry about your age, buy it if it makes sense for your business.

MARK ROBKE · Apr 12, 2015

If you still have the energy to devote to the business,to keep it growing,at your age you should probably go for it.BUT-I agree with chucksoliver77 = MAKE SURE that there is no EPA issues with that 120,000 gallon fuel storage.Even if it is ok now,it has to be constantly monitored for leaks.The EPA will always be needing inspections,record keeping,and reports.Cleanups and fines can be costly.That is what I'd worry about.My former workplace had a 10,000 gallon diesel tank,and used to have another gas 10,000 tank that was removed in the '90s.In 2013 and 2014 benzine was found in the soil from the gas tank and the ground water had to be cleaned up.A pump house, collection lines,special sewer lines,power feed to the pump house all had to installed.And all this too, has to be maintained and monitored,besides the tank that is in the ground.Good luck with your decision.Mark

IowaJohn · Apr 12, 2015

I'm kinda' siding with Brent Z. If you think it will cause you to lose sleep over it or make you burn the candle at both ends walk away quickly. Enjoy life it is short. Although if this is enjoyment for you by all means go ahead. That may sound sarcastic but it isn't. Only you can make the decision that's right for you and your family.

Mike (WA) · Apr 12, 2015

It looks like you've grown your business up to this point, and I guess my take on it is, if you think you can continue to grow some more and remain profitable, I'd go for it. As others have said, your age is not an issue at this point. But there needs to be some advantage to getting the new place, and it needs to pay for itself in a reasonable period of time. And that probably means some expansion, because while having everything in one place is nice, there isn't a number you can put on it.

It does sound like you have about as many balls in the air as you can manage, with your present setup.

ErnieD · Apr 12, 2015

I doubt you will be able to borrow money any cheaper than now. At the next business cycle downturn how will your trucking business fare? Can you shed the leases or turn down the expenses and still make fixed cost? Who else would want the property and can you lease with option to buy? Why would you want to keep the present property? You must answer that yourself and I don't care to know. Can you make a business servicing other class 8 rigs?

Frank 41 · Apr 12, 2015

It depends on what the price is and if it has a clean title with some security. Three miles will be a pain some times and other times peace and quiet. It seems these days, expanding is the name of the game but what is your efficieny level?
It sounds like a good move.

Texasmark1 · Apr 12, 2015

You are talking to the general "farmer" public here. Some are doves and some hawks. Some edge dwellers and some are couch potatoes.

Your life, your decision. You are a little over 20 years to retirement. You need to give that a real serious consideration with respect to what income you will need and how you are going to obtain it. Now is the time to prepare.

A nice trucking operation with a reliable manager could be the trick. I think rails are mostly a thing of the past and trucking is where the movement of goods gets done. Sounds like you are a hands on, get-r-done kind of guy and can make it work. I tasted the business and know if run right it can be a winner, especially in today's world. With your own operation and a good manager that you trained as you saw fit, you can come and go, semi-retired if you will, and let him run the show, his calling the shots, and you can work as late in life as you choose. One bit of "butting in" if you will: Once you get him trained the way you want him, stay out of the business end of it. If you butt in every time he makes a decision that you don't like or have a disagreement, he won't be worth a hoot to you, himself, or your employees. You can't have 2 "CEO's". The buck stops in one place.

HTH,
Mark

spending big $$$

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