Free project truck for a new business-is it worth it?

[jordanmorningstar]

So I was having another talk about "the future" with my folks the other day-namely, the fact that I can't really make ends meet on what I'm paid at the dealership anymore. The discussion somehow went from openings at a local John Deere dealer into getting my own pressure washer/steam cleaner business, and how "cheap" it would be to get the equipment (compared to $300,000 for a new tractor to go back farming). When I pointed out that it would take another $15,000 for a good used truck to haul everything around, my father said, "Oh, I've got a 3/4 ton you can have!"

The 3/4 ton is a '76 Chevy, 350, 4 sp. standard, 4x4. No rust, mechanically sound, and it only has about 60,000 miles on it (we think-the speedometer cable was pulled to make room for a PTO) but they were a hard 60,000 miles. Actually, it looks more like it was pushed sideways for 60,000 miles by a herd of stampeding cattle. Probably because we used the truck to feed a herd of stampeding cattle that pushed the truck sideways twice a day.

So now the big question-is it worth it to fix up the old truck and get going on the steam cleaning business? I know everyone's going to say "Hell Yeah!" but this is a pretty big investment (cab replacement, brakes, tires, making the flatdeck look like something that didn't crawl out of the scrap pile) for someone earning minimum wage to wash cars. The big thing is, the steam cleaning would have to work out in order to make the truck worthwhile. What do you guys think?

[milner351]

Re: Free project truck for a new business-is it worth it?

That's a tough one.

Are there other similar businesses in your area already? Are they profitable?

Compare the cost of fixing up the old truck that you're getting for "free" to a used truck you could buy for the money you'll have invested in the "free" one.

[squirrel]

Re: Free project truck for a new business-is it worth it?

If you can use the truck as is, then go for it. If you have to restore the truck first, then you might get the truck now (while they're offering) and park it, and get a more suitable truck to see how the business goes.

[Loren]

Re: Free project truck for a new business-is it worth it?

Steam cleaning, carpet cleaning, auto detail...seem to be common mobile business guys start. Best to began with spare time while you still have a job and income as many of these flop after draining their owner's savings accounts for a year or two. All the normal small-business caviats apply.

That old truck? Forget it. 8mpg and looks like crap without a huge investment after which it will still look old. "Hobby" vehicles don't generally fly as business vehicles (insurance co's don't like 'em) although it would seem like a novel idea. Better to find a nineties Chevy in fair shape to start with, for a couple thousand, and focus on the business and not truck restoration.

[jordanmorningstar]

Re: Free project truck for a new business-is it worth it?

That old truck? Forget it. 8mpg and looks like crap without a huge investment after which it will still look old. "Hobby" vehicles don't generally fly as business vehicles (insurance co's don't like 'em) although it would seem like a novel idea. Better to find a nineties Chevy in fair shape to start with, for a couple thousand, and focus on the business and not truck restoration.

If I could get that beast to give me 8mpg, I would jump for joy. I seem to remember it doing a little worse than most of our 600ci diesel tractors. I think you guys are right though; a Silverado from the '90s seems to be less than the price of new tires and a motor rebuild, not to mention the better mileage.

As for the cleaning business....

[JeffMcKC]

Re: Free project truck for a new business-is it worth it?

Put it on a "Nice Trailer" it is cheaper, and better use of your money. I have a Cuz that does this, and is very busy, he sold the truck and put it on a Trailer, tags, ins, everything was cheaper, his trailer is kept very nice and has signs on it, that is where he gets a lot of his work, no jobs to do he parks it in a store front in return for washing the store front and side walk. In fact when he got a divorce they fought over the business more than the kids, doing decks and treating them pays real well.

[Brian Lohnes]

Re: Free project truck for a new business-is it worth it?

I'd say perception is a big thing as well. Having seen the quality of work you turned out with your book, I'm sure you'll do a great job for your customers. However, if you pull up looking like Fred Sanford, it won't make a very good first impression.

I know a few guys who do this down South and they do very well. There's lots of business in doing mobile homes and stuff like that too.

Good Luck!

Brian

[urwurznitmahre]

Re: Free project truck for a new business-is it worth it?

with cars not selling, hell not much selling..
is a preesure wash of cars or company buildings a "need" that they can do without..
with alot of help standing around, dealers might just wash the cars themselves..
this is a biz. that most can drop and still go about the day..
be very carefull starting this NOW.
you can be the cheapest in town hell the state, but if there is payrolled employees sitting on there @$$es,
them doing it is even cheaper..
not to be a downer..
but,, if you try this. I'd do it as a side thing untill you got so much work you can stop the daily grind

[jordanmorningstar]

Re: Free project truck for a new business-is it worth it?

I know a few guys who do this down South and they do very well. There's lots of business in doing mobile homes and stuff like that too.

Good Luck!

Brian

Thanks Brian, and thanks everyone for your input. I'm going to seriously start looking into it, maybe we'll have a BangShifter special for car/house cleaning next spring!

[1badmonkey]

Re: Free project truck for a new business-is it worth it?

I say go for it... I say that, because I recently(last Wednesday) purchased..well, started purchasing, a used tire changer, and balancer, to go with the 2 post hoist I got the week before.... and a hunt for a shop is underway.

selling tires and wheels for other people for 20 years and 2 months, late spring/early summer 2010, I will be selling them for my damn self.

also, the pressure washer people who wash the fleet of straight trucks and tractor/trailers hit our distribution center every 2 weeks. and they use an older chevy cube van and a trailer.

cube van makes for a large sign, and usually the are fairly cheap...ish.

good luck dude!

charles

[Caveman]

Re: Free project truck for a new business-is it worth it?

THE TWO most important things you've stated:

'MECHANICALLY SOUND'

and

'FREE'

You could probably spend an hour of quality time underneath the fenders with a sledgehammer and make it look halfway decent. Old iron is good iron. You can't kill those old SM465 four speeds. Not even with explosives.

If you're only getting 8mpg out of a 350, you've either got 5.13 gears or a serious tune-up issue goin' on.

[jordanmorningstar]

Re: Free project truck for a new business-is it worth it?

I say go for it... I say that, because I recently(last Wednesday) purchased..well, started purchasing, a used tire changer, and balancer, to go with the 2 post hoist I got the week before.... and a hunt for a shop is underway.

selling tires and wheels for other people for 20 years and 2 months, late spring/early summer 2010, I will be selling them for my damn self.

also, the pressure washer people who wash the fleet of straight trucks and tractor/trailers hit our distribution center every 2 weeks. and they use an older chevy cube van and a trailer.

cube van makes for a large sign, and usually the are fairly cheap...ish.

good luck dude!

charles

That sounds awesome, Let me know where it'll be and we'll make the family road trip down for a set of skins someday!

[SuperBuickGuy]

Re: Free project truck for a new business-is it worth it?

the free truck will cost you the price of another truck to fix it up - so why go to all the work of fixing it up (and the loss of time you could be devoting to your business)? Buy another truck or better a van for doing the work. After all, how safe from the elements (human and environmental) is having your tools in the open bed of a truck?
I like the trailer idea - but make sure you have good insurance to cover against loss of that trailer (including loss of use/loss of business).

[RCR]

Re: Free project truck for a new business-is it worth it?

Cruisefever , I've been in the pressure washing business for 15 years now , maybe I can help you out a little . First , if you are going to do this full time I would get some reliable transportation, nothing pisses customers off more when you tell them you can't make an appointment because your vehicle is broken down. I would suggest looking for a cargo van a late 90's to 2004 models ( look for old fleet vehicle's they usually PM them so the milage does not really matter), I know they are pretty cheap, and for the cost to fix the other truck,(in most cases) you might end up with something better.

As for going into the steam cleaning business , it has it's ups and downs just like any other business. The one thing is it's cheap to get started, as far as equipment as you probably have allready found out . There are some things to consider though. 1st the bad ..... insurance very expensive , this also depends what you are cleaning and if you are working in the commercial market, most companies require a minimum of 500k to 2 million worth of insurance. Labor (if 'you decide to hire people ) very expensive ..worker's comp, unemployment taxes, etc etc equals about 38 to 44 % total of what you pay an hour , and this doesn't include anything extra like med insurance , etc etc.. Finally competition... just remember that everybody with a pressure washer or steamcleaner will be your competitor, in most cases these people will only do a job once or twice until they screw something up because they will not have insurance ,but this may cost you the job . The one word of advice to you is hold your ground when pricing .

Now the good : you can just about work when you want to , you can do this out of your home , and if you working for yourself ( no employees) you can make a pretty good living .Once you have your equipment payed off, your expense will be low just your labor , chemical, and transportation (maintaince fuel ect) .

Hope this helps you out
Rob

[Hemi Joel]

Re: Free project truck for a new business-is it worth it?

However, if you pull up looking like Fred Sanford, it won't make a very good first impression.

I agree with this 100%!

I have 25 years of experience as a contractor. Experience tells me that when you look poor, good customers either reject you completely or expect the lowest dirt cheap price. The tight wad customers who chisel and don't pay on time will seek out the guys with the 30 year old equipment, hoping to exploit their perceived desperation.

When you look prosperous, the bad customers don't bother with you, and the good customers who are willing to pay a premium for quality work and excellent service will seek you out.

You don't have to spend $15,000 to look prosperous either. You can pick up an '04 low end work truck (still looks modern) for $6000 or less, make sure you keep it all clean and shiny, throw some nice wheels on it and definitely put some nice looking vinyl graphic logo's on it, and if it has a painted grill, get a chrome one.
The professional/prosperous image needs to carry throughout the business, not just the truck. Instead of spending $15 for the cheapest business cards you can find, invest $60 and get something that looks expensive on nice heavy paper. Same for your quotes. Do them on your letterhead paper (a heavy cotton bond paper with your logo pre-printed) printed out on the computer. A hand scribbled quote on a generic Nebs form is no longer considered professional. With a little extra effort, you can appear to be a successful business that has been around forever and attract the best clients.

Good luck!