Where Did You Get Your Funds To Start?

Flimmer

Ruskent, sorry I missed your question. My Answer is simple, I don't plan on selling one job finishing it and then moving onto the next. I plan on selling many jobs ranging in simple shells(majority of sales) to total turnkey homes(a couple the first year). When I sell these, I believe it is of the utmost importance that I have a solid infrastucture in place, or as we all know, I will be gone as quick as I arrived. I know you are all thinking that I am a dreamer when I tell you this, but this is the type of business I basically help run for someone else. I know the 1st group of jobs may be total caos. Who ever said that this would be easy. I definately do not expect that it will be. But I sure as hell will not run from a challenge..

Flimmer

donb1959

I was laid off from a battery plant here after 6 years, I had been in the painting trade all my life. I took my entire 401K, all my savings, got a small bank loan, maxed out a card and started my business, this allowed me to buy a used 81 Ford Econoline that I had to replace the tranny in, all my ladders,brushes,rollers, etc... as I finished jobs I added to the list sprayer, pressure washer, etc

I am now paying off the debt I aquired to start the business. I spent 6 years in that plant giving blood, and I was sick of working for others, the motivation factor for me to succeed was I had EVERYTHING tied up in this startup, it was sink or swim. So far I am keeping my head above water, and at time even doing the backstroke with some success, I give credit to God and my hard work.

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Flimmer

Hey Don, That is great, sounds like it is moving along. I agree with putting in your own money, I have some rental homes and will either sell one or refinance it to get started. after all if I refinance it is tax-free. I believe that by me showing my banks, that I have my money invested it will open some credit lines in the future..

Flimmer

copusbuilder

I believe that you need to take on some risk in order to be successful in any business. Some hear seem nervous to do this. Is that the case? If so, Why?

I may be wrong, JMO
Thanks for the info, Flimmer[/QUOTE][/
I think you are seeing people say "minimize the risk". Living on the edge is not a lot of fun for you or your family. Run your business don't let it run you!

Keep it in your control and you will be happier. Otherwise you may have to rob banks to supplement your lifestyle

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AkA Richard Cranium

Flimmer

Hey Copus, I wasn't talking about major risk. Just purchasing a truck, trailer, leasing office and warehouse space. In my opinion, this is not risk, it is essential in running my business. In the my business I would need the truck and trailer to deliver materials to the job site. The office & warehouse space is needed to store materials, get jobs ready to go and loaded on the trailers, also to be able to purchase larger volume of studs, shingles, Doors, sheathing, etc.this way I can get a better price. Which in turn will give me higher profits. Of course I would not purchase a bunch of materials without the jobs on schedule. The way we do things in the midwest in the winter is to sell the jobs before building season, which in turn we order the materials in higher volumes and get a better prices and better payment plans(net 60,net 90). Another words if I sell 20 jobs(new construction)before April. That is a nice truss order, and alot of shingles and sheathing in one order.

minimize risk? Yes of course I would do this. But to not take Any risk, is to sit idle and be happy with what you have. That is not me, or else I would stay where I am at. Where I have steadily increased in pay every year, while filling the pockets of my boss.

Flimmer

PipeGuy

I had a combination of resources including a HELOC, unsecured loans from family members, cash from personal savings, credit cards and both a substantial SBA loan as well as an SBA insured LOC. Contrary to the experiences of others I've heard from, I found the The SBA resources easy to secure. I attribute that to:

1. I worked 20 years 'in the business' before trying my own hand.
2. My partner did the same.
3. We wrote a well researched, detailed, business plan.
4. We secured the loan through a small local bank that has a long established reputation for serving community based small-businesses.

TAKE NOTE! Don't ever get the idea that there is some amount of money that is 'enough' to start-up with. Think big when you apply for loans. I secured roughly half the loan my busness plan called for. My experience thus far has been that my funding requirement projections were very accurate.
Make sure you're well informed of the challenges you'll face in the first five years and get all the funding you can.

copusbuilder

minimize risk? Yes of course I would do this. But to not take Any risk, is to sit idle and be happy with what you have. That is not me, or else I would stay where I am at. Where I have steadily increased in pay every year, while filling the pockets of my boss.

Flimmer[/QUOTE]


I hope my guys don't here that

If thats what you need to start your business then that's what you need. But a warehouse for storing studs etc?? I don't think you will recoup the outlay?

Not trying to be negative just hate to see people get hurt.

If you are convinced that is the right path then go for it. I will wish you the best of luck!!

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AkA Richard Cranium

Flimmer

Hi Copus, I'm not talking a huge warehouse, just big enough to hold 10-15 jobs worth of studs, sheathing, shingles, header material, etc. So that I can load trailers with materials and be able to tarp them. With my current employer we keep the trailers on site with tarps over them, where as my competitors throw their materials on the ground no tarps. This does two things, one it keeps the jobs organized, two, it is a great selling tool, to let the customers that we care about the materials that we use in their projects. If it rains during the projects we cover them and go home.

Flimmer

jmic

Flim,
Good luck on your new venture, hope you do well. But I have to agree with Copus and I'm sure the others will agree when you're just starting out to think of pre buying materials the way you describe just don't make a whole lot of sense. I'm not going to speak for anyone else but I think you're heading for a big train wreck. Sorry I'de advise against it!
Joe

Flimmer

Hi Joe,

Actually it's not pre-buying, in the sense that it is not stocking and then selling, it's selling then stocking. I will be starting out in the winter months securing contracts to build, houses/garages. after I start securing contracts I will then buy the material for these jobs and projected jobs that I know I will sell(based on current rate of sales). This is what we do where I am currently working, It works well with minimal risk. The more you buy the better the price. Especially overhead doors, trusses, studs, Shingles, sheathing.

Maybe I wasn't being clear in what I said. Sorry if you guys misunderstood me.

Flimmer

Flimmer

Nice website Joe, do you build them, or sell them and install?

jmic

Hi Flimmer,
I actually run the excavation division, but to answer your question our company either does drop-ships or turn - keys. We do about 16 - 20 turn-keys a year and about the same in drop - ships. We cover all Fairfield County and in the spring will be doing a new model in New Haven County. Gee I hope this isn't considered advertising, wasn't ment to be.
Joe

jmic

Flimmer,
They are actually built at the factory in N.Y.state
Joe

Flimmer

Hey Joe,
So in other words, your a franchise of this modular company.

Cole

Joe, your fine.

That is not advertising.

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jmic

Well Flimmer its not a franchise, we buy exclusivly from that one factory and are their exclusive builders for the counties, but other than paying them for the product there are no ties. Does that make sense?

Thanks Cole.


Flimmer if you go through are whole website you'll see that we're just a small part of the Scazo Group which also does real estate, lending for mortgages, project management, property management, our sister co. Empire Developement does stick built res., multi-family, and commercial bldgs. The whole group probably has about 300 employees, thats between all the co.'s.

Cole, Please let me know if I cross the line. Thanks

Joe

Flimmer

Joe, that is a very impressive company, I can see myself some day diversifying like this and possibly taking on some partnerships

Flimmer