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Good times or bad......Hard to tell

FrancSevin

Proudly Deplorable
GOLD Site Supporter
Many years ago I left the corporate rrat race and set out on my own. From my good friend and mentorJack Taylor, I learned the secret of how to make a small profit in the Co-packaging business. My mentor gave me this advice,, "Start with a large one."

As many of you know, my wife and I have a contract packaging business which produces promotional products, coupons, premiums and samplings for the food industry. We have been servicig USA food companies for over 30 years. If you recieved something in a box of cereal, frozen veggies or a bag of pet food, chances are good we may likely have packaged it. We also do sampling programs for perfumes and cosmetics, vitamans, gummy bears and pet treats, teas and condiments.

It has been a struggel since the crash of 2000. Most do not remember that GWB suffered a down spiraling economy he inherited from the Clintons. Well, that was the year we set out to start our current versin of the bussiness. Then came 9-11 and virtually every customer cancelled their contracts.

We hung on for 10 years barely making ends meet and then in 2008-2009, for some reason, things began to improve a little. However by 2011 most of our customers had moved the work off shore. Reasons given,,,,Obamacare and the uncertainty of the future regulations.

We went from 50 employees in 2009 to eleven in 2012. Downsizing partly due to business volume but mostly because of Obamacare.

Last July, 2013 we closed the company. We are selling or refinancing to pay of debts. To do this we set up a small Corporation to close out the old business and complete contracts. One contract is very lucrative and has allowed us to make a living as well as pay off creditors. All of whom. but one, are working with us.
The plan was to stay small and lean, complete the work over the next year, sell assets and pay Uncle Sam off. And hope to have a little nest egg left and retire.:whistling:

I'm 67, the Wife is 63 and we planned to retire, raise little cows in Hippie Ridge, High Lonesome MO, and visit grandchildren

But now we have a delimma. Business is booming. It appears we hit a little gold mine by being at the right place, right time, with exactly the right product. Who knew? !:clap:

I had just gotten comfortable with 8 hour days and weekends off. The small staff was freindly and we had very little supervision needed to get the work out. Now we are working 60 hours a week and weekends consist of Sunday''s, most of which we are catching up on paperwork. We are up to 20 employees and growing. I'm not complaining but, at my age one wonders how long I can keep up the pace.:w00t2:

At least we are making a little money. Evil as that sounds, I kinda like making a small profit.
 

BigAl

Gone But Not Forgotten
SUPER Site Supporter
And Business is good because of .....??? What Obuma has done or ???? Count your blessings , Your one in a million who is doing good under this POS .
I hope business stays good for you !!!:clap:
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
And Business is good because of .....??? What Obuma has done or ???? Count your blessings , Your one in a million who is doing good under this POS .
I hope business stays good for you !!!:clap:

Hardly because of anything Barry has done. Where o where did you get that idea?

His policies damm near put us under. In fact they did put us under. We were in the hole over $500K.

This is pure serendipity. In spite of Obama.
 

waybomb

Well-known member
GOLD Site Supporter
Have you anybody in the background that could take over the day-to-day stuff so you can go enjoy life and still pocket some money?
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
Have you anybody in the background that could take over the day-to-day stuff so you can go enjoy life and still pocket some money?
My son moved to CT and is not interested.

I have a young man we took in as a stray years ago. He runs production but is not yet mature enough for the whole enchilada. The plant manager might be capable but our management styles are really different. And he is a Zero at sales.

The answer, at least for the moment, is no. However, the serendipity moment includes a possible offer to buy us out. We find that out tomorrow.
If they do wish to buy us that puts me in a high pressure environment for at least two years. If they don't, having taken the chance and invested in the new product line, we may well be toast.

It is both exciting and scary,,,,hence the thread title.
 

tiredretired

The Old Salt
SUPER Site Supporter
My Dad ran an electrical contracting business when I was a kid. He had a saying. "We are either too busy or not busy enough. Being too busy is the lesser of the two evils."

Enjoy the lesser of the two evils Franc. :biggrin:
 

mla2ofus

Well-known member
GOLD Site Supporter
Good news to hear, Franc!! I do hope you get a good buyout, it's time to enjoy your later yrs.
Mike
 

squerly

Supported Ben Carson
GOLD Site Supporter
However, the serendipity moment includes a possible offer to buy us out. We find that out tomorrow.
I understand exactly what this entails, having spent (and just finished as of 2 days ago) a buyout process. There were times during the due diligence process that were so onerous I just about threw up my hands and said it wasn't worth it. But the never ending negotiations, paperwork, attorney's, etc did come to an end and now it's over. It's hard my man, and at the end the government helps itself to 25%-30% of your rewards. :sad: Got to give everyone a "fair shake" you know...

Good luck Franc, either way you've got a plateful ahead of you.
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
I understand exactly what this entails, having spent (and just finished as of 2 days ago) a buyout process. There were times during the due diligence process that were so onerous I just about threw up my hands and said it wasn't worth it. But the never ending negotiations, paperwork, attorney's, etc did come to an end and now it's over. It's hard my man, and at the end the government helps itself to 25%-30% of your rewards. :sad: Got to give everyone a "fair shake" you know...

Good luck Franc, either way you've got a plateful ahead of you.

We sold our company once before. Back in 1995. It was as you discribed. Testy, exastperating, and tense. The people we sold it to, spent two years and ran it into the ground. Which is why, at the request of former clients, we restarted the thing.

Perhaps that is part of our current dilemma. Like a child, when you let it go from the safety of your guiding hand, you want your offspring to thrive.
 
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300 H and H

Bronze Member
GOLD Site Supporter
How ever it turns out I wish you the best for you and the Mrs's:flowers:... As they say don't look a gift horse in the mouth....:whistling:

Best of life to you franc:clap:

Regards, Kirk
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
Things went well today. Nothing in writing but, we have like minds.

The fit of our two companies will be complementary so together we will proceed to address this new venture. The exact form of that "together" has yet to be mapped out. We have what they want, and they have what we need.

I am afraid I cannot be more specific, but it looks like my retirement plans will have to wait for a few years. All indications are that it will be fun, and fruitful.

Thanks for the prayers and good thoughts guys.
 

ki0ho

Active member
GOLD Site Supporter
Good luck Franc....If it is ment to be....it will....just try to have some fun in the process!!!!!:smile: and most of the time....profit IS....fun!!!!!!!:respect:
 

muleman

Gone But Not Forgotten
GOLD Site Supporter
Hope it continues to turn around for you. By the time you both get retired they will raise the minimum age again.....:clap:
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
If we sell, the Assets amount to depreciated machinery. All of which has a tax lien. Agaionst losses,,,,We show no profit from it.

If we blend companies, there is no asset or real property issue.

Thanks for the heads up.
 
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