Ag services and fence install across 30 states with a focus on helping veterans and those in need to get work and at times helping farmers, ranchers in need. Mlgco is the parent company and nexgen fence llc the working end.
This work involves primarily building fences and other agriculture services. this is the foundation of food production and of a industrialized society. focus has always been helping others whether its picking up homeless veterans getting them on there feet or helping farmers and ranchers struggling. i have spent the better part of 20 years building this by myself. getting any labor is nearly impossible being at the very bottom of the food chain. Average net is $1 to $2 per foot so its a grind. theres fewer then 6 full time businesses in the us doing this work. what i have known from the beginning and what sets me apart that has allowed me to survive this long when the average span is less then 3 years is efficiency. building tools to speed up the process and reduce the labor costs, what typically takes 6 workers, 2 to 3 weeks can be accomplished in 2 to 3 days, with 2 and 4 gallons of diesel. There is more projects then there is materials and businesses available. agriculture is at a taping point. most of the fences i replace are approaching 100 years old. there will be a federal reinvestment in the next 2 years in fencing or the US faces a collapse of the agriculture industry. right now can drive 60 to 200 posts per hour, the industry average is 20 to 60. Nothing is bought, even new trucks and machines have to go thru serious retrofits to work and survive the conditions. even at that run times are low, this can be improved upon but takes time and serious in depth upgrades. these upgrades are and will become a business in themselves. there is several splits of this company coming in the next 2 years. Conventional lending wont consider a business nor will the sba which leaves few options to see these necessary improvements to survive the volatile conditions with material and parts shortages along with potential for increased production.
The extent of this next phase depends on funding available. goals listed below,
Purchase 3 more trucks and equip,
Over haul 11 trucks and retool,
Purchase or lease up to 2 shops,
Fabricate and build new tools and equipment for work,
Cover costs during winter, operating cost total roughly $20,000, projected costs to continue to take on projects next 4 months $210,000. cheaper to shut down, retool and get ready for next year,
Hire on 2 to 4 employees, goal is to split up nexgen fence into 2 entities by regions. which will reduce operating and travel costs.
purchase of 2 more machines,
debt consolidation, total interest adds up to 9k per year on 8 current loans. amount left owed is $113,000, value close to $500,000.
phase 3 is a multi pronged split diversifying this business further,
Set up material manufacturing to reduce volatility and costs involved. this includes getting timber that's discarded, slash burned or chipped to make posts. this reduces carbon footprint and increases capture. once milled, treat posts on site.
Put together a rail distribution network to more efficiently move materials and reduce costs from trucking.
diversify business for more stability, 2 areas actively being pursued is mining and fishing.
focus will be to stay in the bottom tier industries that are the bottom of the food chain and the backbone of a industrialized society. its never easy and most have given up, but this area is largley unchanged since the Romans made there mark on society 2,000 years ago. theres room for improvement and profits to be made.
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