The age of the truck
Understand as much as you can about the age of the truck that comes with the purchase. This will determine how much maintenance is needed on it in the short and long-term future. It will also help forecast the expense of selling and/or upgrading a truck over the years which means you’ll be more financially prepared when this needs to occur.
As with any business purchase, it’s important to understand the length of the contracts that are available with the sale. It’s best if you dig into the technicalities, go into as much detail as possible (we recommend getting professional help with this). Some examples are; how long the delivery time is? What are the rates between the contract suppliers? We cannot stress enough to go through all of the fine print. Some concrete suppliers can have very strict terms. It’s just a matter of seeing what works for you.
It sounds like a no brainer but be smart about the location of the contracts and trucks you are buying. If the truck is for sale in the west, but business is booming in the east, it isn’t such a great deal. You want to have a strong brand presence and awareness and often this is from consistently operating within a certain location. Having the right presence in the right location is a crucial factor when buying a concrete truck business.
Buying a concrete truck business suits someone who holds a Heavy Rigid (HR) license. According to the NSW Gov website (check your state website for relevant info), before you apply for or upgrade a heavy vehicle licence, you need to complete the appropriate knowledge test at a service centre. Then, depending on your location, you can either pay for a heavy vehicle competency-based assessment (HVCBA) from a Registered Training Organisation or pay and book the Transport for NSW (TfNSW) heavy vehicle driving test.
Having prior experience absolutely helps with any business sale. After all, you need to make sure you have the adequate skills to make the business a success. Sure some of these skills can be learned over time and quite quickly, not nothing counts for the experience. Operating heavy machinery such as a concrete truck is a skill that is mastered over time, even if you have obtained your HR licence.
Chris from New Gen Business Agents ensures there is a minimum two week training period before completing handover. Training is important to ensure a smooth transition for new owners. It’ll save you a lot of guesswork but will also make your employees, customers, and suppliers feel at ease too.
If you’re interested in buying a concrete truck business, you can see our listings here.