Hey everyone. I am thinking of expanding my business. I have some very promising contracts coming up. I am afraid if I don't jump now, I may miss the chance. My thoughts are of another line pump, or a small boom. I am very leary of hiring help. I am not a big risk taker, and my business is good even in these troubled times. What have some of you small guys seen over the years regarding growing or staying small? Thanks in advance for any insight.

Expand or not, is the question....  This depends on allot of things.  Most people, at this time, would tell you not to do it.  I believe this is something for you and your accountant to discuss in detail.  It is a no brainer if you have contracts in place that will pay for this expansion. 

I don't know who you are, or where you are, or even what it is exactly you do.  I am assuming you pump concrete now.  Are you a mason, wall contractor, or general contractor?  Do you have something else going that will help pay the bills if pumping gets soft in your area?  How many pumps do you presently own?  If it is only one pump, then I would say you should have a back-up pump to assure you don't miss any work.  I agree that adding people is expensive, and training someone is both time consuming and expensive.  Payroll is by far the most expensive part of everyone's business. 

If you were looking at a line pump, I would say that would be the least risk right now.  Dollars per pound (of equipment), trailer/line pumps will make more money.  Booms are another story.  Can you make money with booms?  Yes.   Just remember....If you are going to be an owner/operator, your personal life will probably go down the tubes.  Most of the finishers are NOCTURNAL.  They want to pour at all hours of the night.  So for you to make sure you have your payments and other expenses covered, you better be ready to pump night and day.  If you are in a larger metropolotian area, make sure you know who your competition is.  Some of the larger pump companies are OK with you as long as you have trailer pumps, but if you decide to grow into booms, they could turn on you and run you out of town. 

On the flip side, you stand a better chance of picking up a newly used pump at a good price right now.  The market is flooded with them.  If you have the money to invest and you can afford to wait anywhere from 6 to 12 months you will probably be alright.

Kretch

Pretty good advice. The trick to success is the timing. We have seen slow downs and bumps in the economy before; but unless you are old enough to have lived the depression, you [and I] don't know when this will play out.

It will be interesting. I hope that the young people are paying attention so that the next time they will see this coming and head it off at the pass.

The guy that buys the used pumps at $00.20 on the dollar right before the recovery is the winner. Let the game begin. ;~)

Redman1

The big guys with the written, signed contracts are just like you. If the funding for the construction is delayed or cancelled the contract has no value. There are few guarantees in the world; there are fewer now. Dont leverage your equity on a maybe. You worked too hard to get where you are.

And HEY, lets be careful out there ;~)

i have been caught in that trap many times outside of pumping but my friend bought a second pump being told that story. well i work for the friend that has the customers so why not sell the job and sub it to another pumper and when the job is over no one gets hurt.

I am a owner operator, and am not new to the site, been a member here almost 2 years. been pumping a little longer. Benn in the construction indusrty 10 years and concrete about 7. My business is not struggling, in fact is thriving. Best 2 quatrers since I started. I am by no means a business man and appreicate the advice. I have decent business sense, just no formal business education. I am college educated, and sperad my investments wisely and conservatively. Think I will continue on making good money and see what plays out. Can one achieve great success without great Risk? Don't think I am ready to find out just yet. Thanks again.

Redman, I would suggest, if possible get your promising contracts in writing. There are to many uncertainties and variables that could undermine your solid contracts. As an example I purchased a 2 year old trailer rock pump last year on the promise of  about 3000+ yards for some house slabs. Well just as the economy was taking a dive( here in so cal especially commercial), some boom pump co came in and cut me at the knees. Now this contract was a good customer of mine for 12+ years, but I can't be mad at him for going the cheaper rate,MONEY is MONEY.I did'nt lower my price to get the work that was mine. I figure if a co can smoke a boom for half of its value just to work, let them ,its not my equiptment,maintenance repairs,wear and tear. The bonus of my story is that I, ve been able to pick up work that I otherwise would not have gotten, and the pump that I purchased is so ultra smooth, that I, ve picked up several contacts. It did,nt work out as I had planned,but it did work out. P.S I did end up doing a little over 1000 yards on that job I got snaked on(in pea gravel).

P.S.S, You may find pumps for pennies on the dollar,but being that you're in ca I'd make damm sure any pump (used) will be able to register in ca especially the california air resource board.Tier 0,1,2 are no longer registerable in ca.As a matter of fact starting july 1st of this year any pump sold (used) here in ca, the seller MUST disclose wheather that pump is regiserable.

Wannadrag. thanks, Like I said I am doing fine, and think I am going to stay where I am for right now. Maybe sub some work. That's not to say I won't fiddle with #'s and look for steals on pumps, just no hugh risky decisions right now. Funny, one of my upcoming jobs is 3000 yd, same as yours, was thinking of buying another pump... your story hits close to home.

YOU TRAILER PUMP GUYS ARE THE SMARTEST ONES OUT THERE!!!

Good Luck ;~)

Rebman1, you poor guy!!!

You ask for a little advice and they all tell you their story. "I was born the son of a sharecropper..."

But dont get me wrong ..I'll throw my two bits in...

Number one...If your makin' money i would first pay down debt, cause the guy that always wins is the guy that pays no interest

If youre takin out a home equity because pumps are cheap, look out.

number two... the market will come back. Everybody lives in a house, we will always need em, they will still build them in 2,5,or 10 years down the road.

Everyone will tell you its the end of the world out there, but the winners call this a slow beginning to great start.

number three... if you are thinking about it and dont do it, you will always say "what if"

You sound like you got it figured out, you just need some idiot to give you the thumbs up

ill be you idiot for the day

Last time you didn't like what I said so again the thoughts.

I have a good friend that now has 3 trailers and business is fairly strong.He consatrates on smaller jobs,stamped,less overhead than boom pumps.Another indicator would be your insurance,check rate changes when adding boom.My guess is your getting close to what they get for a 28m now.

In my heart if you added do another trailer.I have seen some really good deals on them.Just have had some good friends go down the tubes,even in better times.

Good Luck