Who spray foams?

[Dmoen]

Been a while since I've been on here! Been months!! Anyways a lots changed. Lost the fiancé, figuring out the lifestyle of a single dad of 2 boys now. Moved, started a new job I love! No more dealership tech here anymore, at a great independent shop. Just me and the owner.

On the weekends to make some extra cash, I've been helping out a guy I am getting to know quite well. He's a plumber by trade. He dabbled in a lot of stuff. Couple rental houses, a little bit of construction, trees and stump grinding. but his main job is plumbing, and his spray foam company. There is a partner in that spray foam company. He is inactive. Helped on one job when they first bought the setup. He wants out. I have the opportunity to buy his 50%. I have been running the truck the past few weekends. I like it. A bit to get used to! And a lot to learn. I've been on my own, all has been well. It would be a part time job for me, like it is for him. Run it on the weekends. the demand is there. He turns a LOT of work down.

Let's hear from the guys who do this?

 

[toyotadriver]

Sounds like it has potential but I have no knowledge of the business. Good luck!

 

[bgarrett]

I need spray foam. Where are you?

 

[dkroth]

What are you buying 50% of? Truck, equipment, phone number, liabilities, creditors?

Where is the value in this business? Does it come from his ability to bring in customers?

Do you need an inactive partner?

What's to stop you from buying your own equipment and starting fresh yourself?

 

[rwilner]

I will just say that I got spray foam in my addition and I will never, ever go back to fiberglass batts.

The only downside is you have better have your plumbing and electrical nailed because after that foam is in, changing things is a major pain in the ba!!s.

If you have a backlog of work and the numbers are righteous, go for it!

 

[Dmoen]

What are you buying 50% of? Truck, equipment, phone number, liabilities, creditors?

Where is the value in this business? Does it come from his ability to bring in customers?

Do you need an inactive partner?

What's to stop you from buying your own equipment and starting fresh yourself?

first, 50% of everything. they bought the 5th wheel trailer set up brand new. brand new everything in it to spray foam. 65k watt diesel generator, 80 gallon compressor, Graco reactor. everything maybe has 300 hours on it now. the buisness is paid for completely as of now.

Getting customers is not an issue. People are constantly building new homes, additions, garages, shops. skirting for campers and trailers to prevent freezing. He actually turns down a ton of work. The demand is there!

There would be no more inactive partner. The current inactive partner wants out. The way they have it set up between them is they cut profit 50/50. If only 1 guy goes to the job, he keeps all profit. So the inactive partner right now, is making nothing.

Buying everything my slef and starting is not a possibility. poor credit, and young. I also dont have 100 grand to go buy everything. The way it would work is, i show up and do the jobs with the active partner. Take the 50% of my profit, keep a little bit for my time, and give the rest to the inactive second partner till his portion of the company is paid back. dependion on how busy we want to be, it could be paid for in a year or so. It could easily become a full time job if i desired.

the current active partner had a hired man to spray full time. that lasted about 6 months. He had more then he could do. he is no longer doing it though for other reasons. i think it seems like a no brainer. ??

 

[pamike]

So how are you going to work the fulltime gig, work the part time gig, and be a single father to 2 kids?

 

[tab2]

If you have the time, do it. Would you trade turning wrenches to spraying foam full time? How would your partner feel about it if you did it 40 hours a week? Do you keep all the profits then too?

Spray foam is the future and I believe it is only a matter of time before it ends up as code over batts. Having a head start on that market SHOULD give you a leg up once everyone starts to spray and floods the market.

 

[jbwilkins]

So I'm gong to play the pessimist here.....

What happens if the truck/trailer catches fire in 6 months and the insurance balks on covering it.....

What happens if you get hurt on your weekend job and can't work the regular gig.....does he have workers comp that covers you??? In some states sole proprietorships don't always have to have workers comp without employees...

What if you get sick of the 80 hour weeks in a couple of months.....do you get anything back you put in the business....

There are tons of other things to consider....I'm not saying don't do it, but if you do go in eyes wide open.....

Whatever you do you need an agreement drawn up (preferably by an attorney) and signed by both parties....while he may be a "good guy" now money can change people's personality....if he balks on a contract that should be a warning sign....

 

[PugetDude]

first, 50% of everything. they bought the 5th wheel trailer set up brand new. brand new everything in it to spray foam. 65k watt diesel generator, 80 gallon compressor, Graco reactor. everything maybe has 300 hours on it now. the buisness is paid for completely as of now.

Getting customers is not an issue. People are constantly building new homes, additions, garages, shops. skirting for campers and trailers to prevent freezing. He actually turns down a ton of work. The demand is there!

There would be no more inactive partner. The current inactive partner wants out. The way they have it set up between them is they cut profit 50/50. If only 1 guy goes to the job, he keeps all profit. So the inactive partner right now, is making nothing.

Buying everything my slef and starting is not a possibility. poor credit, and young. I also dont have 100 grand to go buy everything. The way it would work is, i show up and do the jobs with the active partner. Take the 50% of my profit, keep a little bit for my time, and give the rest to the inactive second partner till his portion of the company is paid back. dependion on how busy we want to be, it could be paid for in a year or so. It could easily become a full time job if i desired.

the current active partner had a hired man to spray full time. that lasted about 6 months. He had more then he could do. he is no longer doing it though for other reasons. i think it seems like a no brainer. ??

Need more information...
So, is the buy in 50K?
What is the annual turnover on the business?
have you seen a certified balance sheet and Profit/Loss statements for the last five years?
Is the inactive owner getting preferred stock or a promissory note? Payment schedule?
What are the outstanding liabilities?
How will any warranty claims/ lawsuits/employment law issues be handled for projects performed before you bought in?
This is going to take a lot of time for you as a new active partner, learning the business, the customers, etc. Can you handle the child care costs while you're out estimating/quoting/scheduling/spraying/driving/cleaning up- time you aren't spending away from home now?
A year payoff is pretty ambitious, especially if you're keeping "a little bit for
your time"
This is not a handshake deal. It's a huge commitment if you're going to do it and you need to get it right- for you, your new partner and your kids.

Good Luck!