Am I too old to do this?

[michaelkingdom]

Hello everyone,

I have a scenario I am looking for some guidance with. I currently own/operate a restaurant. The economy has effected us pretty severely and over the past few years I have been looking at a career change (selling the business). My father owns a precision CNC shop which he is looking to
retire from. The possibility exists for me to take over the shop. They currently gross $8,000,000 with a 45 person staff. Their focus is on defense/aerospace/medical. This prospect is very exciting for me as the business is well established.

I am looking for advice on whether this is even possible. I'm aware that it will require schooling to learn the engineering core of the business, which I am prepared to do. I have been running the restaurant (an Applebee's franchise) for seven years and I am experienced in all areas. While food and machining are very different, I hope many of my business skills could apply to either. Even before the economy changed, I was contemplating a career change.

Education: I have an Associates Degree in liberal arts and a three year trade school for restaurant management. While neither of these qualify me to enter CNC machining, they don't hurt.

Age:34

So, my question is, what path would you recommend to gain education and experience? I have talked to a few people and I have gotten a surprising variety of answers. Here are some snippets of advice I have gotten from various people:

-You might be too old.
-You are absolutely not too old.
-I have no formal education in machining aside from community college. I have been in machining for 35 years and I do very well.
-Without an engineering degree, you will never make it.
-If you have the mind for the work, it is totally possible.


I suppose the path to running the machine shop will be a mixture of real world experience and education. What path would you recommend?


Any comments are greatly appreciated,


Matt

[Al_The_Man]

You need to be a good manager and look after the customer base, with a staff of 45, get a Technical Manager in to run the everyday machining problems and co-manage to take the load off.
You can pick up the CNC side as you go if you have the aptitude for it.
The only other thing is pricing knowledge for potential work.
If the manufacturing base is already in place, that would be half the battle.
Al.

[awerby]

But other questions seem more relevant. Like:

Do you get along with your dad? You're going to have to spend some considerable time together during the transition. Does he respect your business skills, or do you always feel 12 years old around him?

Is he leaving you this business free and clear, or are you expected to do a buy-out of his interest? In the latter case, you'd want to do an cold-eyed analysis of the business and its prospects. It's great that it's grossing $8M, but what does the net look like? With 45 employees, operating expenses are going to be high just for salaries, and there are probably some big monthly bills due for machinery payments and overhead.

Where do the profits (if any) go? Is your dad the sole owner, or are there investors to pay? Bank loans? Employee profit-sharing or pension plans?

Is this a growing business or a shrinking one? Are they constantly adding new clients through well-organized sales efforts, or just trying to hold onto the ones they've got? Are they dependent on a few major customers? Often businesses that seem to be ticking along nicely get clobbered when one or more major clients defect.

There are probably at least a few employees there who know a lot more about the engineering aspects of this business than you will, even after you complete your community college crash course. Are they going to stick around to help, take early retirement, or defect to the competition?

Does this sound like fun to you, or do you feel that you've been forced into it by circumstances? If your heart's really in the restaurant business, you probably should stick with it, although maybe in some different way. But if you're really up for a change and a challenge, and want to join the struggling ranks of US-based manufacturing firms, I'd say go for it...

Andrew Werby
ComputerSculpture.com — Home Page for Discount Hardware & Software

[lgalla]

Matt,how could anyone 34 think they are too old for a new adventure?I think I am too old for a new career at 58.Al had some very good advice.I will add some related storys.
A friend has a company similar to you dad,over 50 employees and well over 15million in sales.The company does large stretched fabricks over bent aluinium frames.They have 10 people just sewing,4 CNC tube benders tig and mig welding CNC routers,the largest powder coat booth in north America.
The owner does not know how to sew,how to weld,how to operate a CNC machine,how to paint etc.He hires the right people for the job.His skills are pricing and collecting money and management.
I could add many more sucess storys.THE BOSS DOES NOT KNOW HOW TO DO ANYTHING in the shop.
Larry

[DIYaholic]

Matt,

I would say it is all about knowing your skill set and acknowledging what it is you don't know. Then surround yourself with people you trust and respect that are experienced and educated in those areas you are not. There are many facets to any/all businesses and no one person can know/do it all. For now, concentrate on those areas within your expertise while learning about those areas you need to deligate responsibilty for. If you are a quick study, all the better.

In the last ten years, I've gone from Food Service Manager to District Manager for a merchandising company to Operations Manager for a landscaping company and I'm about to start my own woodcraft supply/manufacturing company. Skillsets are VERY transferable to other industries and professions. So, go for it!
Just my .02 worth.

Randy,

[Al_The_Man]

I could add many more sucess storys.THE BOSS DOES NOT KNOW HOW TO DO ANYTHING in the shop.
Larry

You just have to watch Boss Undercover
Al.

[lumberjack_jeff]

No. Absolutely not too old.

The job of the manager is different than everyone else's job. The manager's job is to build a business, not to build widgets.

I don't think you need to be an expert at your employees' jobs. You need expertise at your job - managing. Setting expectations and delivering.

[JohnnyVegas]

So the question is what exactly??? You have a failing business with an opportunity to take over a good business your interested in. Family owned.

Do you really need to think this over??? Jump in and do it. If if doesn't fit then hire out someone who can.

[lheimpel]

If you are alive, you are NOT "too old".

[Fastrip]

Hi Matt,
I think for starts you could/should well be able to succeed. I think the willingness to do your homework is a sure sign of potential. The business being that of an established one provides another glimmer of success. You being related to the current owner only means you probably won't be left out in the cold at the first sign of adversity.
Ascertain what got the business to its present state and do whatever you need to do to comprehend that strategy. Trust your employees to do their jobs and they will need to trust you.
Start the same, don't shake things up, let them work and watch and learn. Formal education is important but the education available within the doors of the business is invaluable and often irreplaceable. Spend enough time in this school that when the formal education starts there may well be a thing or two to be taught the teacher. No disrespect intended for any educator, the fact is you will be in a current functional manufacturing environment which can be quite an advantage in itself.
You were advised in a previous response that ''the boss does not know how to do anything in the shop''. Well maybe the timekeeper or payroll person needs know nothing of the floor or cubicle, but I would have to disagree in the case of ''THE'' BOSS, CEO, OWNER, albeit eventual LEADER. Wouldn't that be like buying a Ferrari and having someone else drive it????????? It may take a bit to learn the controls and nuances but honestly allowing someone else the sheer exhilaration of putting it through its paces seems quite sterile, boring, and bland. I would suggest if you want to own a business just to own a business or whatever, stick with what you have. Again no disrespect intended.

Good luck in whatever you choose,
Fastrip

[Fastrip]

Oh yea, I forgot, too old????
That's really a question for you.
I do not see how at 34 you could consider yourself too old but I am not you.

Again good luck,
Fastrip

[DouglasR]

You're NOT too old. I left the family business to start my own machine shop at age 42.

Yes, you will have to learn machining and engineering etc. BUT, you already have an associates degree so you've conquered education in the past, which means you can do it again. In fact, your community college education, PLUS your experience in the restaurant biz will do a world of good in machining.

How?

You know how to think outside the box and approach problems and challenges from a different angle.

I say go for it.