Purchasing a shop

Discussion in 'Business Operations' started by rhatala, Nov 4, 2007.

  1. rhatala

    rhatala LawnSite Member
    from NJ
    Posts: 73

    This is my first season in the business and right now i store my equipment at a friends exterminating shop. My question is how did you know when it is time to purchase your own shop? Right now whenever i need to do maintenance on the equipment i need to bring the trailer to my house before i can start to work.
     
  2. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

  3. shane mapes

    shane mapes LawnSite Senior Member
    Posts: 537

    i too are in the same boat. what i did this year is partner up with a buddy that also owns a auto=o repair shop. i still keep our stuff in a rented barn out in the country, but when i need to do repairs or clean out the trailer i go to the shop and do it there. its a lot easier. my dealer is 3 blocks from the shop. when at my house which is in a different city, i have to drive 22 miles to get a part or 7 miles to put trailer back in barn. the new home i live in the city doesn't let you store work stuff like this at your home. not even in your garage.... also if you can afford to get your own shop and it makes sense then go for it......
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I would suggest renting a place before considering purchase
     
  5. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Ditto on that.....

    I have been renting a shop for years unfortunatly. Would love to buy something but with the prices of land around here its just not feasible for a small company. A half an acre that is zoned correctly to run a business off off will cost you 1/2 million dollars around here.... thats before you even build the shop.
     
  6. grassyfras

    grassyfras LawnSite Bronze Member
    Posts: 1,473

    I think it would be cool to buy a shop and rent it out to other LCO. Maybe all share a small dump area or even a skid that had to remain on site. Do you think their would be a market for this?
     
  7. naughty62

    naughty62 LawnSite Senior Member
    from iowa
    Posts: 368

    One consideration . The last few years financial companys have been handing out low interest loans like candy.Its now starting to blow up in thier face.I talked to auctioneer,who runs a real estate company .He is real busy trying to peddle residential properties and some commercials . I have feeling buying opportunities and lower real estate price are a couple years around the corner.I quess we will see.
     
  8. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Posts: 1,230

    We built a new shop in a local industrial park properly zoned 3 years ago. I mention all of the above because of the importance of possible resale if necessary. I have been in business for 26 plus years and milked being in a residential neighborhood as long as I could. I had 2 crew leaders at that time and had one of them drive his truck and enclosed trailer home. The guys would come by and get the mowers and get out fast. We did get slightly in trouble with the City with a warning letter. I had already purchased a lot to build on and they were really good working with me once they saw I was serious.
    Once the shop was built and we were operating out of it we have been able to expand way beyond what I ever thought possible. We added a 3rd crew this season and can hardly keep up at times.
    With all of this said.....stay as low key in your neighborhood as long as you can and put away every single dollar possible towards your own shop. Money saved ahead will be the dealmaker. My balance once the shop was completed-----0!! Paid in full.
    The pic is of the shop at finished rough in stage. It is 2400 square feet with 14' interior heaight. 2 small offices are in one side with an ADA restroom. If I ever need to sell it is laid out for any type of service oriented use.

    Shop Pic 72.jpg
     

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