Moneymaker Season 2, Article 2
MoneyMaker Article no. 6
You Get What You Need
Before I begin with the latest installment, I want to take a moment to thank John Crutchfield for all his support. This guy willingly took on my Moneymaker project repairs and engine job, and in doing so gave me a level of support that is way above and beyond anything I had imagined. I was feeling very humbled by this, and to make sure I could give as much back to John as possible, I contacted Luke and he graciously agreed to add a Crutchybuilt Performance banner for John’s continued support of this venture, starting with this article. Thank you, Luke! I’ve got some pretty cool folks supporting me. I knew that John had all the skill you find with any good engine builder, but the one trait my buddy has that will keep me coming back as long as he will let me in the door is integrity. Thanks again John. I hope my actions show you the level of appreciation you deserve!
It’s early April here in the northeast and the weather still leaves much to be desired. By now I had planned on having Barney back and begin my race season in North Carolina at Coastal Plains’ big money race two weeks ago in March. That’s what I wanted but it appears as The Rolling Stones sang so long ago, “You can’t always get what you want, but you get what you need.” Barney will be ready on April 9th. When I pick the car up it will be painted and all the repairs made to the body from my blunder at the Bracket Finals last fall. Brakes have been repaired. We found the culprit of the tire smoke to be not only a bad front hose on the driver’s side but also a failed caliper on the same side. The extensive repairs from the wreck also include the ladder bar cross member and Heim ends. I have the Moneymaker logos ready to be reapplied, provided by Michael Beard, owner of Staging Light Graphics, another supporter of these articles (he has also been the editor for the article lately, so any problems with my grammar can be addressed to him per his request). [LIES! All lies! It’s not humanly possible to fix everything, but I’ll try to make things readable enough while allowing Chuckle’s infectious character to shine through. I didn’t know Microsoft Word had a “chickenscratch” mode. – Ed.]
Since the start of my season had been delayed, it gave me more time to evaluate my plan of racing this year. While I was working on my master plan I began reading Luke’s series of article entitled Racing Economics: Building your Own Empire. I liked what I was reading enough to make these articles the template for my race season. Following this template also gives me the ability to blame Luke IF the plan doesn’t work. Never mind, I’ll choose succeeding (I think Charlie Sheen would call this WINNING). [Boom goes the dynamite. –Ed.]
To back up for a second, way back to 2004, I took Bud’s school to come up with a system to win more often. I already had won but felt I needed a system to apply to win more consistently. The problem I had applying what Bud teaches is that his system requires you to learn holistically. What I learned from Bud is the best way for me to race, but I had to scrap EVERYTHING and do what I learned - not the easiest thing to do when you are an egomaniac.
ThisIsBracketRacing.com generally teaches the same stuff as Bud. This site adds a vocabulary to what we do (spot drop, driver, dialer, etc.) and piece meals information into monthly articles. So when I began reading the Building Your Own Empire articles that gave me a template to follow, it was easy to believe this would work if I follow the instructions. It truly is the same kind of template I got when attending Bud’s class. So basically since I didn’t listen to Bud in 2004, reading and accepting what Luke wrote in these articles over the winter is way easier to follow as a template. I don’t have enough humility to NOT do what I read. I became a member of this site to learn, so the question to myself is why not take what I learn and apply it? I don’t have a reason not to and I have proof of what happens when you don’t. When you don’t apply what you learn, you add to the “don’t do that” list.
My Personal Empire
Once upon a time, about ten years ago, I bought an auto electric rebuilding shop. I bought the shop because I loved to race. You’re probably asking yourself what does buying an auto electric business have to do with going racing? My thought process was I needed a business I could market through racing to make my racing more affordable. The auto electric business was what I knew because I had been working in the industry on and off for 13 years by the time I had come to buying my business. This was my original personal formula for what my racing “empire” was going to be. My plan was fundamentally sound. Still, five years ago, due to mistakes I made and some outside influences, the business failed (we’ll save the rest of that story never to be told).
After reading the first two articles on racing on a budget by Luke, I was inspired to write a business model. I won’t spell the whole thing out here because I don’t want ya’ll to start napping on me. The parts I will discuss are what are pertinent to each article as the season goes on. One of the main points in Luke’s first segment was about writing a budget. We have already had that as a segment of each Moneymaker article since early on. To help keep better track of the budget I had my lovely bride build a spreadsheet in which I will run the budget for the project on for the race season. From that spreadsheet I will report here on what the expenses verses income from racing are per month. These are the two columns at the end of the day that matter. To get to a zero balance, earnings will have to exceed cost by $8,500.00 by the end of the year. That’s how much is owed on this project (personal investment and the unpaid portion of the loan owed to Keith). Earnings will not only come from race winnings but other businesses I am in the works of including to support my racing. As these ventures materialize and begin to produce I will include more information about them in future articles.
I truly do believe in the ideal of no debt business. That cart left the barn with no horse from the beginning with this project. This is one of the reasons I am adding additional forms of income to pay the debt (other than just race winnings). I know what I can afford and am willing to invest out of my pocket to ensure I can race successfully this season. I have had the experience of taking on too much of a load and debt becoming unmanageable. I have no need to ever go there again. My goal is to get back to running the business at zero debt by the end of this season if not sooner. The first part to be paid (with earnings) is investor’s money. Having gotten back to work is a huge burden lifted, and now racing as a supplemental income is really manageable.
Real important to any business venture start up is how much cash is on hand to run the business effectively. Since Barney came with more than just a car I began liquidating parts almost immediately. Last year I did this to have cash to race on. I am continuing to do the same thing (liquidating parts that came with the car) to have the cash to race on. I don’t have a final number yet but so far $2,000.00 has been freed up from the sale of these parts. This is where the majority of the funding to race on is going to come from to begin racing this season.
The progression theme is right from Luke’s articles also. My season will start with a test session, progress to weekly local events and then big dollar events. I am not racing points locally so this keeps my schedule flexible enough to add more big money events when I have success locally and can fund more travel and the pursuit of bigger purses properly.
So, since I have no racing to report on (yet) I am going to end the article here. In closing I would like to again thank John Crutchfield of Crutchybuilt Performance, Michael Beard from Staging Light Graphics, Bud McNasby (just some guy who runs a speed shop), and Luke Bogacki (hopefully you know who Luke is, you’re on his web site). John has also made sure I remember to thank Mike Riale (he located and did the bodywork on the nose that will be installed on Barney). Thanks to Walter Miller, owner of Miller’s Auto Body and Paint (Walter is responsible for reapplying the purple hue from which Barney gets his name and the silver stripe). Thank you to all of you guys and looking forward to seeing everyone in the lanes SOON.