How A Firefighter Bought A $2.3M Trailer Parts Business

Summary

Tony Spencer, an original member of Leo's group, shares his journey of buying and running Capital Trailer and Equipment in Helena, Montana. A former blue-collar worker, Tony talks about his transition from construction and firefighting to becoming a business owner in the trailer sales and service industry. He highlights the company's services, including trailer sales, custom truck beds, and repair. Tony discusses his approach to buying a business without prior industry experience, the importance of understanding industry lingo, and the support from his wife during this life-changing move. His story inspires entrepreneurs looking to dive into new industries with confidence.

Takeaways

• 😀 Tony Spencer is one of the original members of Leo's group and has become the owner of a trailer sales and service business in Helena, Montana.
• 😀 The business specializes in trailer sales, servicing, customizations, and heavy-duty parts, including custom truck beds and trailer accessories.
• 😀 Tony's business also works on custom truck beds, such as flatbeds, tool upgrades, and roof racks for pickup trucks.
• 😀 Tony recently received his first full load of trailers, including dump trailers and a large gooseneck trailer, ordered directly from Texas.
• 😀 The business serves a variety of customers, including contractors, ranchers, and individuals buying personal trailers, with repeat business from major contractors.
• 😀 The service department is currently booked six weeks in advance, with potential for additional capacity if another mechanic is added.
• 😀 Tony admits that he had little prior experience with the trailer business before purchasing it, but his background in blue-collar work helped him relate to employees and customers.
• 😀 The key to Tony's success in buying the business was his ability to communicate his transferable skills and project confidence, even without specific industry experience.
• 😀 Tony mentions that the process of buying a business involves understanding financial qualifications, such as credit score, cash down, and the ability to sell yourself to banks and brokers.
• 😀 Tony credits his success to learning the language and terminology associated with mergers and acquisitions (M&A), helping him become more effective in communicating with brokers and potential lenders.

Q & A

What kind of business does Tony Spencer own?

Tony Spencer owns a trailer sales and service business called Capital Trailer and Equipment in Sunny Helena, Montana. The business deals with selling trailers, offering repair services, and customizing truck beds and trailers.

How did Tony transition into owning this business?

Tony moved from Washington State to Montana to take over the business. Despite not having deep expertise in trailers, he leveraged his blue-collar background and quickly adapted to the industry.

What types of products does Capital Trailer and Equipment offer?

The business offers a variety of trailers, including dump trailers and gooseneck trailers. They also provide custom truck beds, including flatbeds, roof racks, and toolboxes, and sell heavy-duty parts for trailers.

What is the current inventory situation at Capital Trailer and Equipment?

Tony recently received his first full load of trailers. These trailers are from Texas and include various dump trailers and a large gooseneck trailer, with some configurations in high demand due to consistent sales.

How far do customers typically travel to purchase from Capital Trailer and Equipment?

Customers travel from nearby towns like Great Falls, Bozeman, and Missoula. While the business attracts local customers, some come from up to three hours away, particularly business clients like contractors and ranchers.

What is the turnaround time for custom work at the service department?

Currently, the service department has a six-week turnaround time, depending on the project’s complexity and how booked out they are with other customers.

What challenges did Tony face when buying the business?

Tony did not have direct experience in the trailer industry, but he leveraged his blue-collar background to relate to employees and customers. He also had to navigate the bank’s requirements, including credit scores and financial history, to secure funding.

How did Tony convince the banks to finance his business acquisition?

Tony presented himself as a competent buyer, highlighting his transferable skills from his blue-collar background. He also worked on understanding the specific language of mergers and acquisitions (M&A) to communicate more effectively with the banks.

What role did Tony’s wife play in his decision to buy the business?

Tony’s wife was very supportive throughout the process. She had utmost confidence in his ability to succeed and trusted his decisions, despite the challenges of relocating and managing the logistics of moving with two young children.

What does Tony consider an important factor when buying a business?

Tony believes that understanding the 'language' of the business is crucial, especially in industries like M&A. He emphasizes the importance of being able to communicate effectively and having confidence in one's ability to manage the business.