If you have no up close and personal experience in any of the oil field service type businesses (with many years of exposure), and do not have several well-entrenched contacts within companies needing your services, I would look somewhere else to put my money.coastalaggie said:
What service is lacking, or nonexistent, in the Texas oil patch that would be a good opportunity for someone wanting to start their own company?
not sure what your story has to do with his consideration of getting into the oil service business.a07nathanb said:
Not sure how lending is towards these right now.
I watched an acquaintance during a relaxed lending time that was a great salesman go around Houston and round up a bunch of financing. He bought some broken down equipment and folded within about 6 months. Not sure exactly what he did but somehow he seemed to enrich himself without actually doing anything or making any revenue.
Only thing I can figure is that he bought equipment with problems through unscrupulous people and financed them to the max, split profit with seller, then left bank holding the bag
So, if you're into fraud and that kind of thing might not be a bad gig
Says the guy who provided an example from WWII.txaggieacct85 said:not sure what your story has to do with his consideration of getting into the oil service business.a07nathanb said:
Not sure how lending is towards these right now.
I watched an acquaintance during a relaxed lending time that was a great salesman go around Houston and round up a bunch of financing. He bought some broken down equipment and folded within about 6 months. Not sure exactly what he did but somehow he seemed to enrich himself without actually doing anything or making any revenue.
Only thing I can figure is that he bought equipment with problems through unscrupulous people and financed them to the max, split profit with seller, then left bank holding the bag
So, if you're into fraud and that kind of thing might not be a bad gig
His story is relevant!txaggieacct85 said:not sure what your story has to do with his consideration of getting into the oil service business.a07nathanb said:
Not sure how lending is towards these right now.
I watched an acquaintance during a relaxed lending time that was a great salesman go around Houston and round up a bunch of financing. He bought some broken down equipment and folded within about 6 months. Not sure exactly what he did but somehow he seemed to enrich himself without actually doing anything or making any revenue.
Only thing I can figure is that he bought equipment with problems through unscrupulous people and financed them to the max, split profit with seller, then left bank holding the bag
So, if you're into fraud and that kind of thing might not be a bad gig
MS08 said:
If you are asking, then the thought I have is, you most likely do not know. So if you don't understand where there is a need, how would you be able to create a successful company that meets 'a need.' Maybe just Keep plugging and getting experience so that you will be able to better determine where this is opportunity if it presents itself in the future.
IslandAg76 said:
Taco truck
Without question, this is the one stable, constant I've seen in the patch over the last decade. If you want to keep your costs way down, sell tacos and Member's Mark sodas and waters out of coolers in the back of your SUV parked on a dirt road, close to sand plants. Cash only. Thank me later.IslandAg76 said:
Taco truck
Even better than tacos or any sort of prepared foods would be a snow cone place (maybe not in a location like you describe though). No cooking, nothing to spoil. There is one in my town that is near the high school and always busy for the months they are open. Since covid started, you sit in your car and pull up to order and pay. For a couple of hours every day there are around 15 to 25 vehicles in line, other times 2 to 5 in line. They almost all get 3 to 4 snow cones per vehicle. Guy and his wife run it. I would love to know what they are raking in, but I bet they clear $1,000 a day easy.Maroon Elephant said:Without question, this is the one stable, constant I've seen in the patch over the last decade. If you want to keep your costs way down, sell tacos and Member's Mark sodas and waters out of coolers in the back of your SUV parked on a dirt road, close to sand plants. Cash only. Thank me later.IslandAg76 said:
Taco truck
This right here makes the subscription worth it.TxAg20 said:
No one retires from selling a taco truck or snow cone business.
A good service business will be a 100 hour/week job to get up and running. After a couple of years, it should distribute $25K+/month to the owner. After 3 years, the owner should be able to identify someone within the company that can start taking over the day-to-day tasks from the owner. After 4 years, the owner should be able to spend less than 20 hours per week on the business.
What kills service companies is over-spending and debt when there is a hiccup in cash flow. Resist the urge to buy Rolexes, duallies, and Vegas benders and leave 75+% of the earnings in the business until you have no debt and 6 months of expenses covered. Understand your equipment value is equal to scrap value when it's not earning money, so don't ever mistake your equipment value as equity.
I think it's actually relatively easy to build a successful service company for the driven entrepreneur. It's tough to stay in business through a down cycle for all but the most financially disciplined entrepreneur.
Depending on your income requirements, liquidity and experience, maybe consider buying an existing business that's already on the market ...coastalaggie said:
What service is lacking, or nonexistent, in the Texas oil patch that would be a good opportunity for someone wanting to start their own company?
