July 03, 2012
Kothmann Construction owner Jud Kothmann is becoming well known on the highways and byways in the Menard area for the dogs that ride in the bed of the pickup and the Bible that graces his truck dash. Jud traded in a ranching job and has taken the proverbial “leap of faith” to start his own business.
As a ranch foreman for most of his adult life, Jud and his wife Adi, along with their three kids decided it was time to leave the ranch and start a business. Because his training was in construction and welding, building gates and fences was the ideal business.
Jud contacted Angelo State University - Small Business Development Center and Rural Business Advisor Peggy Hodges for assistance. The bank, Menard National Bank, had suggested he contact the SBDC for assistance with a business plan and cash flow projections.
Jud already had construction jobs lined up and he was able to turn those jobs into the math of money necessary to build cash flow projections. As he built his business discussing income and expenses with advisor Peggy, he began to formulate how he was going to run his company. Jud consulted his attorney and accountant and decided to apply for an LLC designation with the Secretary of State’s Office.
Jud returned to the bank to present his projections. Several bankers were present when Jud finished. “They didn’t give me the loan,” Jud said in a phone call to the advisor, “They gave me a line of credit!” Jud has already settled the first LOC and the bank has increased it. Kothmann Construction is contributing to the economy of Menard and has created one new job.