Success Story: Trux Trailer Repair Inc.
Springfield, Mo.

Traveling south from I-44 on North West Bypass, visitors to Springfield, Mo., encounter a bevy of businesses devoted to tractor-trailer service and repair. But one of those businesses — Trux Trailer Repair Inc. — stands above all the others in appearance and performance.

At the client showcase in Jefferson City in early 2010, Scott Coleman of
Trux Trailer Repair Inc. describes the successful first year of business,
including adding new staff.

"We put a lot of emphasis on keeping the place running smoothly," says owner and President Scott Coleman. "Every afternoon when 4:15 rolls around it's clean-up time. I get out there with everyone on the crew to make sure everything is in good shape for the next day. I don't ask my employees to do anything I wouldn't do."

Scott Coleman owns and operates Springfield-based Trux Trailer Repair Inc. He bought the business two years ago based on a financial plan he developed with counseling assistance from the MSU SBTDC.

That daily ritual lets his staff know he cares about them, their performance and the way things get done for the customers at Trux.

The 38-year-old entrepreneur exudes energy and enthusiasm. He bought the business in January 2009, from previous owner Darrell Kays. But the business didn't change hands until Scott had finished a lot of homework.

Originally from Potosi, with an interest in a dump trucking business started by his father, Scott and his wife, Mary, decided to explore new horizons. They targeted Springfield, Mo., and engaged a business broker in 2008 to scout existing businesses for sale in the area. After months of serious looking the broker introduced Scott to Kays, who was seeking a buyer for his 36-year-old tractor-trailer service firm.

"We started serious negotiations in June 2008," recalls Scott. "Darryl was ready to retire and I remember him saying at the time, 'We'll make it happen no matter what.'"

The biggest part of making it happen was lining up the financing. After discussions with a few Springfield-area financial institutions, two loan officers at Bank of Missouri suggested Scott contact the Small Business & Technology Development Centers on the Missouri State University campus.

"They thought the SBTDC could help me develop a financing plan that would make sense," says Scott. "After working with Isabel Eisenhauer, I learned they were right."

Coleman relies on Wes Thurston (left), vice president for sales and service, to help manage the 30-person staff at Trux. Thurston joined Trux 35 years ago after serving in the United States Marine Corps.

Eisenhauer, a business consultant at the MSU SBTDC, helped Scott devise a business plan and financing approach involving multiple sources. It included a combination of an SBA-guaranteed commercial loan from the bank and an owner-financing agreement with Kays.

But before he signed on the dotted line, Scott ensured he was making the right move by spending a few months on the staff to learn the ropes at Trux.

"The day I started as general manager (Nov. 13, 2008), Darrell introduced me as the new owner," recalls Scott. "It was a little premature, but Darrell had confidence everything would work out. And on Jan. 9, 2009, it did. That's when I became the owner of Trux."

Eisenhauer says Scott's initial approach at Trux helped with the final transition and made it possible to keep business volume steady when ownership changed.

Around 60 percent of the revenue at Trux comes from the trailer repair side of the business. Another 20 percent is derived from parts sales; trailer sales makes up the other 20 percent, says the company president.

And to maintain that steady business the 30-person staff at Trux does a lot to keep their customers rolling. About 60 percent of the business involves trailer repair, according to Scott. Trailer sales and parts sales each contribute another 20 percent to overall revenue.

A dominant portion of the repair work is on petroleum and propane tank trailers, a highly specialized area. Critical to this service is an initial steam process that can take as long as eight hours to remove volatile fumes from the tanks.

"For much of this work our mechanics need specialized training that requires certification after a two-year on-the-job training period," says Scott. "Consequently staff selection is a critical part of my job. I look for dedicated, hard workers who have a willingness to learn and are in it for the long term."

After nearly two years as owner of Trux, Scott knows he and his staff are definitely in it for the long term. His SBTDC business counselor is helping Scott develop a five-year plan for the business.

"He (Scott) has taken the time to set down some mid-to-long-range plans," says Eisenhauer. "But he is very conscientious about not overextending himself, as he is fully aware that his business is responsible for the livelihood of his staff."

The steady and solid approach Scott applies to life and business keeps his employees busy and his customers happy. Business is good at Trux.

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This story was featured in the December 2010 newsletter.

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