A 33-year-old Texas man told BYU-Hawaii students in the November 29 EntrepreneurshipLecture Series how he started his own version of the family armored vehicle business after BYU in Provo turned him down for admission three times.
Trent Kimball explained after he earned an associate's degree from UtahValley State College and failed to get into BYU about eight years ago, he started Texas Armoring Corporation (TAC) in San Antonio. "We manufacture armored vehicles," he said. "My father had a similar company that he sold while I was on my mission. Basically my dream had been to go back and work with him."
Kimball's timing was excellent: TAC has grown from about $700,000 in first year sales to over $5 million a year now as interest in armored vehicles has risen along with increasing kidnapping for ransom, terrorist attacks and the war in the Middle East.
He explained his company usually charges between $50,000-$75,000 for its services, plus the cost of the vehicle if the client doesn't provide one. In either case each vehicle is completely stripped and the passenger compartment is rebuilt using ballistic or specially hardened steel, bullet-proof glass and Dpectra Shield™,a product similar to Kevlar™ that is used in bullet-proof vests and body armor but is capable of stopping high-powered assault rifle shots.
The process adds about 2,000 pounds to the weight of each vehicle, and includes new brakes, suspension, door hinges, electric window motors, "run-flat"tires, and other security accessories such as sirens and smoke screen dispensers.
"At that point, the cars look normal," Kimball said. "An attacker won't be able to tell that vehicle is armored." He added that Chevrolet Suburbans and Toyota Land Cruisers are the most commonly used vehicles, but TAC has armored many others.
Kimball also said TAC financed its own start-up through the 50% deposit he received on an order from a Mexican executive for three cars. "But for the first six months I didn't have a pay check," he said. "Thekey is money management."
"After we were able to produce those cars, more sales came, then more.In the first five years we were able to produce about 50-60 vehicles. After2001, we started doing about 20 vehicles a year; and then with Iraq, we started to produce over 100 vehicles a year."
Kimball suggested budding entrepreneurs should use a "lot of free publicity.About every six months we send out press releases to the news media, andthey come out and do stories," similar to a Discovery Channel video clip he showed.
"Sure, you can spend a lot of money on newspaper ads and commercials,but there are a lot of other things you can do for free that actually help out quite a bit. For example, we promote our business really big on the Internet. We also try to satisfy our customers, because they tell their friends and family. We get a lot of referrals from them."
Kimball added TAC keeps delivery time down to between 60-90 days, while concentrating on competitive costs and high quality.
Asked if customers can purchase an armored car from a dealer, Kimball replied they can from Mercedes, BMW and Audi, "but they won't stop ahigh-powered assault rifle. The problem is the market is very small, so those vehicles are mainly useful against street crimes and car-jacking. GM andFord also both tried, but they backed out."
"We're one of the few medium-sized companies in the business," he said, "but we stay away from government work."
Asked how his vehicles have fared under attack, Kimball answered many of them in Iraq have held their own. "They do well against the IEDs [improvisedexplosive devices], the mines, and the grenades." He also told of one sold to a Colombian general who reported a rocket-propelled grenade hit a pillar post and was stopped. "But he got lucky," Kimball said.
He added TAC will send repairmen to different countries after such attacks. "We can replace damaged parts. Mainly it's the glass. Once it gets shot you can't see out of it anymore."
Kimball said his father has since come out of retirement and now helps him in sales. One of his ideas: "We do offer a $5,000 finder fee, per vehicle,if you know of a client who needs an armored car. It's not easy selling these types of vehicles. You have to generate new sales all the time."