First off I want to give a big :thumbsup to the founder and Admin's of the site. Huge wealth of information & very well laid out. Thank you for your hard work... It really shows Here is my situation (WARNING: LONG POST ALERT) I am 27 yrs old. My family has been in the construction business for over 90 years. Started with Great Grandfather, Owned & Operated coal mines in Central IL. Grandfather Owned & Operated Redi-Mix for 40 yrs until his early death. Uncle has had Excavating business for 32 yrs. I myself have always been around the construction business due to my family ties since I was able to walk(I was allowed to operate a Skid-Steer before I was allowed to ride a dirtbike ointhead) I however took a different road. Worked in the family business all through my teenage yrs in the summers and one full yr after H.School. I then went into the Car Business while I was still 18. I have been in this industry for about 9 yrs(Which is worse currently Automotive or Construction:beatsme) I am a General Sales MGR at a large GM dealership. I have the typical wife & 2 children. Due to an unfortunate turn of events my Uncle at the ripe old age of 49 has fallen ill with Cancer, and the prognosis is not good. I am currently at a cross roads and I am in desperate need of direction & advice. My family's excavating business has mainly been in the residential side of things w/ approx. 90% of the work involving manufactured & modular home foundations and everything that goes along w/ those projects(septic, min. dirtwork, etc.) I spent 2 yrs part time as a sales rep. for one of the home dealers we installed for. Before my uncle went down & actually became a dealer myself. My first home project is about 30 days from closing currently(just tying up small loose ends, finish work inside). My master plan was to ramp up the home sales and do all of my own site work(foundations, septic, etc.) The business is in less than fantastic shape due to the economy and my uncle's sickness. There are a few small glimmers of light based on my own knowledge confirmed by the information I have read on here. The first and foremost is that there are no liens or loans on any of the equipment or property. The equipment in the business goes as follows: Case 580 SL ext hoe 7+ buckets 2800 hrs ex working shape Case 1845C Grosser tracks 3 buckets, forks, dirtbox 530 hrs. like new Case 580 SE 4000 hrs glory days here and gone but runs & starts excellent 86 IH dt466 sgl axle dump 130k mi needs tires and some other small maint. My own 94 F350 Dump 351W Municpal Truck decent shape Trailers adequate to move all pieces of equip. Due to my family's long history in the industry with the same area my name still holds some water. On the flip side we did little to no for hire work, actually turned down a fair amount of work due to the fact we were doing 120+ foundation projects for the home dealers per/yr. Given that fact there is little to no direct customer base. In short, people know us but haven't experienced our work. So to sum it up: 0 overhead , 0 customer base Due to my yrs around the business I have the ability to operate everything to satisfactory level and maintain respective efficiency. My current position is a 90-100k /yr. job. But that's exactly what it is a job.As you probably know(unless you've been under a rock) the last 12-14 months in the auto industry has been enough to make anyone want to commit suicide. I think I have reached my level of tolerance within the field and I find myself day dreaming about digging in the dirt. I have always loved it and everything that goes with it, even the headaches. Here are my options: A. Liquidate the business and leave the industry that has kept my family thriving for nearly a century. B. Try to juggle both my current job(70+ hrs./wk) and do the excavating business part time(kind of what I am currently doing) C. Leave the auto business in the dust and go full steam with the excavating before it's too late.... Now I wouldn't have spent the last 1/2 hr of my life writing this extremely long post if: 1. The economy was stable 2.All of my own personal assets were paid off (mtg, car payment, boat) 3. I was single, didn't have a newborn, and a teenage stepson eyeing cars & college. I apologize for boring some of you to death but I am in a pickle. I know ultimately I am the one who must choose my path and the glory or consequnces that come with it. I came here to gain any extra industry insight and advice the assist me in making a decision that is going to have a huge bearing on the rest of my & my family's lives. Don't you guys feel special??? lol Thank You in advance for any insight you can give me. Jason * NOTE:Sorry for the double post in the general industry section*
Welcome to Heavy Equipment Forums, Jason. I removed that one, so you get all the replies in one place.
I think only you can make the decision that is right for the long run. It sounds like your feelings may be telling you the construction side but the money tells you to stay in the sales business. My "opinion" is that you should take the construction side and continue your families heritage. In the long run you will probably get more satisfaction , more sense of accomplishment , and the chance of making more money if you put your heart into it. Good luck with whatever you choose.
Offered as opinion only, I think the days of a GM or Chrysler dealership are limited. There is still WAY too much dead weight in the domestic automobile manufacturing business and I suspect (and HOPE) that the 2010 elections will weed out some dead weight in government. I hope for sweeping changes in the size and scope of government. Will the planets align that will: 1) alllow GM to build a profitable, popular vehicle that will sell large numbers 2)get the government OUT of the car business and allow the free market to function? Sadly, once the government sticks it's nose in something, it takes over. I look for GM's business model to worsen, with the government taking more control. Pretty soon they might say that $100K is too much to pay for a sales manager--$50K would be more realistic. I am not in your position but I like the idea of being somewhat in control of my earthy destiny. Go play in the dirt and be your own boss--if it doesn't work out, you can always go back to the sales manager job.
Another opinion for the record I joined just to reply to this post. I have worked in the auto industry for many years and must say that the stress level is a killer. Next, I must tell you something that I have been told all of my life and that is if you find something you love to do then you will never work another day in your life. Go play in the dirt and enjoy your life, you know you only have 1 and you have to make the best of it. : The other thing is if you can be succeed as a sales manager in the auto industry you can succeed at whatever you put you heart and mind into. If you love it DO it and it will be successful!my2c
Unless GM really changes something in their business model, you're absolutley correct.... Take for example the new buick lacrosse. Ful boat loaded w/ every option 38-40K markup >>> $1600.... Would take on a 30-40k liability for the best possible return to be about 4% falling more towards 1%?? I don't think the Gov't will ever step in on an independent dealer and regulate salaries, just too many diff pay plans and forms of compensation, but with the decline in the industry and margins shrinking faster than savings accounts the pay will decrease. I am paid on percentages of gross profit. Even if those %'s stay the same & the profit decreases that still= less money. The Car market is also beginning to be flooded w/ people from other dealerships.Am I worried about being knocked off by some1 else who will work for less.... Not really. I do have a large amount of confidence in my ability and skills. I rose up very fast due to performance. I became a Sales Mgr about 2 weeks after my 21st b-day in a 120-160 car/mo store(not some small town mom & pop). The bad part is all of the work and effort I put into training ppl, maintaing records & standards, the hours, babysitting grown men & womenwho are ALL older than me, & being responsible for producing 150-200k /mo profit to recieve at times less than 5% isn't sitting well right now. You know the car business is one of the best when ur making money. The money is fast & there is a certain thrill to selling a complete stranger a 50K vehicle in less than 2 hrs when they had absolutely no intentions of purchasing one. But the last year has completely gassed me. Today for example 8am - 8pm.... Missed my son's f-ball game, 0 cars sold, 0 money made, staring at the walls.... Atleast I know if I was working for myself I would have been working towards something. Even in crappy weather you can find things to do to either A) Improve efficiency or maintain your current state or B) procure more business.... Starting the day on a project w/ nothing and then being able to visually see your progress at the end is very rewarding and very tangible.
Thanks for the encouraging words... You can feel my pain then as well, lol That is my mantra I have always lived by. I LOVED selling cars for the longest time, or so I thought. The money and the lifestyle pulls you in. Now with a family depending on me and some of the large expenses right around the corner for my son(car,college) I have to keep those in mind. My wife and I have always enjoyed the comforts in life, but have always stayed within our means. She runs a daycare @ home and brings in around 45-55k /yr. We can pretty much live off of her income to cover our bills. It would just kill her lifestyle She has an 07 Escalade, we have a new boat, go on trips, etc etc.... She also is the type(prime example tonight) that cannot go into Wal-Mart w/out spending $200-300. That is the lifestyle spend spend spend and then figure out a way to make your income fit ur habits. There in lies the big change for her. *After reading, I don't to make my wife appear to be a spoiled person. I couldn't do her job for any amount of money. She is a women who would work right beside me at a moments notice. The Auto business has just given us the ability to enjoy certain luxuries
I think you have answered your own question, BIAVAEX. Even from the other side of the globe, I get the vibes that you would really like to give the construction business a go. It won't be easy and while we all need it, money is not everything, satisfaction in your work is much more fullfilling. I also would give away the current job and concentrate 100% on building up the construction business, I do not believe you can do justice to both. Even if it fails, for whatever reason, at least you can say 'I had a go', but if you don't do it, you will never know. I just noticed your last past, the lifstyle will suffer, because you are dealing with machines, but that is a choice you will have to make. With your experience, I am sure there will always be an opening for a car salesman, somewhere. Rn'R.
I say go play in the dirt, and when you can get qualified people to do the work and you put your talent to work at selling yourself and your business. You may be able to find more work than you know what to do with when home sales come back up even a little bit. If you keep working at it part time, and half heartedly, you will loosee the business that is established. If you do not nurture it, it will die. From your record in autos, you can sell, and a lot of people can't. If you can sell the dirt business to enough customers, and handle the business side, you will do well. Starting with no debt helps too.
It took 9 years! What is sad is it took me 9 years of going back to school and getting a business degree to figure out that all I want to do is play in the dirt. I took my JD250 across town (a whole 8 blocks)to my sister's place and moved her drive way. The whole time I was working, she was sitting there laughing at me. After I finished, I climber off the machine and asked what was so funny. Her reply Kinda caught me off guard and nearly brought a tear to my eye because she said, "every time I looked at you while you were running that machine, all I saw was you as a little boy playing with your Tonka toys". At that point I knew that Dirt had always been in my blood and no amount of running from it was ever going to change it. I am now in the process of buying equipment so I can continue play with my big Tonka toys in the dirt. The business degree will help but I am going back to my passion "Dirt". Money is nice but being happy in what you are doing is worth more than any amount of money. But with your background there is no reason you couldn't have your cake and eat it, too, if you know what I mean. There will be some thin times but they won't last long. :IMO
I already feel that C is my decision. I know that I can't drop everything right now going into the winter. I have put my plan into action before I wrote this post. I just needed some confirmation from peers who are in the industry full time. My cousin (25) is actually moving back to central IL this weekend from Oregon. He grew up in Las Vegas and became an operator right out of HS. He ran a hoe,dozer,track hoe for about 4 yrs out there. He then moved to Oregon w/ his mother and ran a hoe for about a yr. until it dried up and has been driving a truck ever since. We both feel that we are wasting the days away at our current posistions and need to make a change. I hope that between my experience and his we can make this thing work. I have a 80x40 poured wall building w/ 17' walls. The roof needs alot of work. It was my grandfathers redi-mix plant. We have a few months of work to get it up to snuff so that we can work out of it. Before I just jump in I am going to give the business a face lift. I have an degree in Bus. MGMT from the local juco w/ a minor in Marketing. Plus I handle all of the marketing for the dealership in excess of a 40K/mo budget. Now I will have to be a little more frugal in my advertising costs on my own, but in the end I can use my experience there. All of the trucks,trailers, & equipment are going to be ran through this winter. Mechanically first then cosmetically. The mechanical condition on everything with maybe the exception of the IH dump is excellent. They have just never seen soap. I am a firm believer in first impressions making a huge bearing on relationships. That is where I am starting..... Thanks again everybody for giving me re-assurance in my decision and words of motivation:thumbsup
one more thing Little boys play in the dirt, big boys play in the dirt with really big toys!:naughty
A humble opinion. Baivaex My good man it would appear to me that what you have been handed is a golden opportunity. You have a skill that will allow you to grow the business,it appears that you have as natural ability to sell , a degree to boot,a cousin to operate the plant and plant that is paid for .Most importantly the business has a recognisable name and if what you say is true, a reputation for quality work. The only fly in the ointment I can see and please don't take offence is your domestic situation.Growing a construction business can be very rewarding but stressful, coping with cost overruns late payments or non payment,equipment breakdown etc etc the list can go on.As you have said you have had a good paying job and it is easy to spend it,it can be very difficult to have to look at both sides of a dollar before you spend it when you never had to before,and it can be very difficult to explain that to someone else who is very used to charge cards and credit cards. given what you have said is true and I have no cause to think different I would sit down with all the stake holders ,from your uncle to you, your family and your cousin ,remember his input will be as a foreman (your eyes on the site) and as so be very important.By doing this you can see what support you have domestically.If I can be of any further assistance just ask .I wish you well with what ever endeavour you choose .
Thanks for an excellent thread. I'm in a similiar boat, I started a Lawn Maint. co 15 years ago, doing alot of Commecial & Association work, but pricing has fallen off & doesn't look to return. Upside is everything is about paid for, I have 2 bobcats, a mini (toro Dingo), a 3 yd wheelloader, etc., good snow customer base. Is there a particular customer that is easier to get started with (solicit); builders always lowballed me & wanted extras for free, not sure how to go after the small stuff which is where I think I want to be. I have a dump trailer & flatbed dump, thinking of trying to deliver mulch & topsoil, but it seems everyone is doing that. I went to school for civil tech, so I have the basics (on paper & theory down), can run level & transits. Any advise ?
Heres my 2 cents, Coming from someone who started a company with quarters in his pocket, you are blessed with being able to start a company with existing equipment, to not take advantage of that would be foolish.
I would say do what you want to do, don't try and do both because you'll burn out and may well start making mistakes in both businesses. You've got youth on your side which is a plus and a good employment history, which means even if the earthmoving doesn't work out, you are likely to find another job to support the family. Ask yourself where you want to be in 10 years time? It comes down to the security of being employed versus the challenges of being self employed. What does the missus think? Women tend to be conservative and it is not in their nature to step into the great unknown, however they also understand that the male of the species needs to challenge themselves in order to feel manly. You may well find that ,if you choose to go the safe route, in ten years time you hate your job because you passed on the opportunity to take on the challenge of running your own business. Also if your missus convinces you to stay in the car job you may well end up blaming her for not having a go. Basically this is a decision you have to take on your own, you can get input from others but at the end of the day it's up to you.
A lot of great advise in this thread. Growing up I always watched heavy construction equipment and was drawn to it. I ventured out into the world with a few different professions but got pulled back into construction equipment. I would advise one to do what they have a passion for. If you love selling cars stick with it. If you love the construction/ dirt business I would try to work towards that. Maybe you could start by getting your name back into the market place and start getting some work in before giving up on the auto industry. That way the transition would not be so harsh. JJ
Just to give everybody an update..... I have left the car business as of this week... I have taken the excavating business over fully..... I am nervous, but at the end of the day(even just working in the shop getting things ready) I have a sense of accomplishment at the end of the day. My wife and I have done some serious financial planning to take the monetary burden off of me completely for atleast 6-12 months. I am ready to go full steam now my only hurdle is to convince her that the 6am to 9pm days in the summer are going to be worth it...lol I appreciate everyone's support and I am extremely excited to get everything rolling
I hope it works out for you, do you have any jobs lined up yet?
Don't forget us we will help if we can and try to keep us updated.
Good Luck!
Good luck man, I think you will do well. Before you can do the job, you need to sell the job. Then you have to do the job. As a young man myself ( 27 ), I rely on some older, more experienced people for advise. Retired union operators and some very experienced friends. Your uncle is a wealth of into, learn as much as you can while you can. There is also alot of good info on here. Equipment wise I think your is very good shape to be debt free. That wil help more than you know in the slow times. If that was my fleet the only think I would do is try to trade the Super E close to even for a small dozer, say a deere 450, dresser td8, cat d4. Get a 6way blade and a winch. Just like the car business, the best advertisement is word of mouth.
Best of luck to you. Just found this thread. Feel your pain with the auto industry. Hopefully things are picking up now in the construction business. And while you'll work a bunch of hours still, hopefully you can better control your breaks to make a football game or such now.
I guess I needed to update a little more... Unfortunately we lost my uncle on dec-14-09. Everything was turned upside down really fast. We struggled to figure out how to handle everything since there was no will. I have just finaly acquired everything(had to end up paying a little bit) but I am more than happy w/ the figures. We had sold the 580E about a month ago to cover some final expenses. The wasn't anything I would use on the job just extremely handy to keep at the shop. I've done a few parking lot patches(ca-6) in the last week. I have gotten hooked up with a good concrete finisher who wants me to do his tear outs( about 4 already this week). Just a matter of working through everything left behind and moving forward. I have been heavily contemplating trading in the 580sl and going to a 10k or so mini ex. I have read a few posts but i think I am stuck going back to case just given the outstanding support and service of the local dealer. I have read a little on the Tak's and know a few ppl who really love their Kubota's. I think the Mini-ex would be extremely more beneficial to me given most of the work I have and will be doing(tight spaces, waterlines, footings, etc) Ant opinions are greatly appreciated and thanks again to everyone for all of the words of encouragement.
I don't have any experience with case minis, but looking around the internet a bit the CX36 and CX50 would be the two to look at. They are around 8,000 and 10,200 pounds respectively.
I just bought a tak 53 fr, and I cannot say enough good about their swing boom design. Its awesome.
Sounds like you are fully amongst it Biavaex, well done I hope things go really well for you and your family with the business. Keep us posted.
Don't think too long... (I'm kind of late jumping into this on..) First off, I commend you for putting so much information into such a readable piece. I can appreciate your situation and the replies you've received here. With regard to liquidating or keeping the business, what do your kids want? Are they interested in working it? This may be difficult because you've always had the excavating business. Family businesses rarely last beyond a second generation (many, beyond the first) just because the kids never had the passion for it that the parents did or, they take it for granted. In one of the Napolean Hill books, Andrew Carnegie impressed upon Hill that if he wanted the opportunity to write Carnegie's story, he had to make up his mind now (I think he had 15 seconds). This was one trait to whick Carnegie attributes success. He would tell you that you know enough: make your choice. Don't overthink it. Easier said than done but I try to practice that whether deciding what to order off the menu or where to go with my career. Sorry about your uncle. Let us know. Sockeye
I'm also jumping in late but I've read over the posts here and I'd like to say congrats on the decision, I think your making the right move, theres nothing better than reaping the rewards for your own hard work, if your family is at all behind you you'll make it, thats the single most important thing beside the passion to do it in the first place. I have a little differnt twist on things, your starting in tough times and in tough circumstances and don't let anyone tell you that you can't do it, and when you survive this economy imagine whats to be made in good times. I"ve seen a lot that only could do it in good times but when things got tough they fell by the wayside. I'd say keep looking for tomorrow because its only going to get better from here on out. One last imput, as far as I'm concerned gm is dead and gone but nobodys bothered to tell them that yet, I think you bailed out of that in a good time to leave and get another venture started. Talk to anybody in the family that has had anything to do with the business side and do it quick and learn as much as you can. I never had that and I'm the first generation and not one of my competators would tell me anything and I had to learn or am learning the hard way one mistake at a time, you've got a golden operatunity to ask and actually get answers and I'd have given anything to be in your shoes. Good luck and get the family involved, and lastly remember if you wait until you can afford it by then its too late to do it at all.
Well, it has been a full year since the first post... how is it going?