ThE sPaCeCoWbOy

I am thinking about opening the business of my dreams...

Rebuilding cars....basically I wanted 3 sections...

Performance - rebuilding engine, supercharging/turboing, exhaust manufacturing, etc...

Stereo - Systems, replacement, etc...

Bodywork - Painting, bodykits, etc...

I was wondering what would it take to get this thing going and to make it a success?

What are some things I need to consider?

Thanks,
Travis

esanmiguel

I am not a shop owner but for what you want, It would need lots of capital investment and liability insurance. Also certified mechanics and technicians.
You need to have lots of cash initially to get the required tools (lift, compressors, etc.). If I was you, just stick to the stereo stuff, since it wont require as much capital as a mechanic/body shop.

OriginalSterm

I disagree. Start out small, and be patient. It will require lots of capital, and you have to be able/willing to possibly lose money for a couple of years before things start to pick up. Make sure you're early work is exceptional, word of mouth is great advertising.

'86 944 turbo

MONEY. Once you have money you can open anything you want.

ThE sPaCeCoWbOy

actually, I might have a place that already has the equipment....i hardly doubt that he'll sell it...its also in a bad location too....

we planned on starting out small and over the summer, the 3 of us could take classes to get certified...I one in welding already and could get one on engine rebuilding, my brother could get bodywork/paint and my friend knows his **** on stereos and has a good idea on that....then we could each cross train....I rather do the work myself then hire others as of right now....

money I don't see to be much of a issue...I feel that each of use could get a loan somewhere as long as we have a good plan to back it up....

W88951

Yes, you almost always can find a loan. The hard part is paying it back. Unless you start off with a large fortune it will take a long time before a business becomes profitable. Now, there are exceptions to this rule but they are few and far between.

The slow route will usually involve starting and running your business from your home. Leasing a commercial property will only double or triple your cost of living. You will have to have Phone Lines, Data Connection, Water, Trash, Electricity, Gas(Maybe) Lease payment. There, I have just spent $1500-$2000 and that does not even include deposits. Remember, this is per month. Then add cost of buying tools and equipment. The good news is that you can write off probably all of you equipment costs your first year.

Oh, if you do decide to start with a business loan, be prepared to offer your house as collaterial. Automobiles are not of much value to Banks.

Now, I am not saying it is not a good idea to start your own business, just be aware of the risks involved and the amount of time to maintain them. You also will probably never go on vacation again. Because when you are the labor and you own your business when you are gone, money stops flowing.

Also, if you do start your own business, make realistic goals and timelines and try to stick to them.

Good luck.

Matt H

I am looking at a shop now that is fully finished and is currently doing just fine (about 100K a month in sales). Rent is about 7K before insurance and taxes (which bring the total rent to about 13K a month). Before you start keep one thing in mind; automotive is a TOUGH business to be in. It can be hard to get and keep insurance (which you will have to have), there is a lot of competition, the return on sales is quite small (i.e. profit margins are not that good compared to say a computer business), etc. etc. I love your idea but at this point I dont think it has been though through very well. You will also need permits for keeping the welding equipment, and the list goes on and on. Most independants have a very difficult time for the first 2-3 years BTW. I worked for one of the most successful single store owners in the country (2.5 million in sales last year), and for a while he was living in an office in his building because times were that rough. I say go for it but you have to live with the reality of the business that you are choosing.
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ThE sPaCeCoWbOy

I'm also looking at the area i live in....the demand for a place i'm saying would keep you alive....granted starting out will be rough but I say it will gradually go down....we have only one audio store in a large radius, and they don't have a good reputation....there are alot of paint shop, but nothing that does custom paint (flames, skulls, etc...)....no custom enigne shops....just shops that do normal rebuild or race car engine....nothing that does custom kits such as turbos, etc.....the only place i can think of would be howel automotive (those who are into neons) but thats practically all they do is neons.....on top of that, turbo/supercharger kits can also be sold on internet along with exhaust, intakes, etc...that you make in the shop....if your strickly specializing in one car, I think you'll have a rough time compared to if you can specialize in more then one car....

keep the input coming guys....this is what i need

space

Matt H

Spacecowboy - I will offer you a one time offer. I will send you the demographics for the area you are looking in (just give me the zip) BUT you have to absolutely promise not to redistribute them to ANYONE. I have a program here at my office to do that. It has a host of data that you need to have in order to make a decision about your area.

Where local tuners get in trouble is with things like warranty, collecting payment for services (people dont pay up front for the most part and you have a lot of capital outstanding), credit card fees (you will almost have to accept them and all that goes with them like chargebacks), etc.

Keep in mind that most custom shops do something else to keep money rolling in between projects. It will also be hard for you to get the really good deals since you will be low volume. That will cause your price to be somewhat higher than others BUT this can be overcome with great customer service.

If there is only one piece of advice it would be, OFFER THE BEST CUSTOMER SERVICE, not sometimes or to some customers but always and you will make money in this business with good customer service. I have failed to give good customer service more times than I can count, the customer didnt know it but I did, you learn something from every customer. Ask me how to sell a high dollar item, bet I will shock you.
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Matt H

I actually need the street intersection if possible.
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Red1

Cowboy, I'm sure you can recognize the value of Matt's offer. Very generous Matt.

Not to be a wet blanket, but you sound a little short on experience. I've known guys to make a go of their own shop, but they usually cut their teeth working for someone else for awhile first. Maybe that's not an option for you, I don't know. There's a reason shops specialize on certain focus areas of specialty. It's very hard to be all things to all people.

I also think you should initially be cautious in your business approach. If you take on more than you can handle, the disappointed customers can spread negative vibes that will be that much harder to overcome.

Best of luck to you.

Matt H

Brian - I agree.

It is my long term goal to open my own shop and I know what you need to know to do it, even still it is tough to get the right people. I will be looking for help from friends and groups like this to hire some people from.
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Devia

The three of you will have to pay for 2-3 employees:
1) Receptionist; can also place order, also double as assistant, doesn't need to be certified. Can be high school student, college student, male or female. Part-time work.

2) Gopher, who can help run errands and assist you; Can be high school student, college student, male or female. Part-time work.

3) Full time Receptionist, if warranted.

I've owned a few businesses, and seen Tuners' places. The #1 problem I have seen with Tuners is trying to do everything themselves, instead of working on the damn cars!

That's where Receptionist helps take the load off you, plus placing orders for parts for you.

One of the Tuners down here has a gal that does reception, and she can take down a 944 engine herself!

- Julie

Water944t

I can offer a first hand testimonial. Running your own business is VERY ****ING HARD. I cannot stress just how difficult it is, even for a profitable business. I was pulling in over 20K a month in my computer store, and I still was tighter than a nun most months. And adding employees just compounds the problems.

Build a business plan, and try to get your local economic development committee to give you a start up grant, not a loan.

3 things I see as problems:

1. Lack of experience running a business.
2. Friends. (OMG are you in for a revalation on this one, you can make friends in business, but never do business with friends!)
3. Lack of start up capital.

I have owned my own business many times, construction company, bar, used car dealership and computer store, all of which had additional employees, and all of the headaches mentioned in other posts. You simply cannot believe how many things you must know/understand/handle/multitask/ect just to stay afloat.

With that said, good luck to you. Make sure you form an LLC, define roles and responsibilities clearly and in writing.

Matt H

I agree about the friends bit. I have run my own store a number of times BUT there is a big difference. I had NO personal capital involved. I dont think we are saying dont do it, just that there are a lot of things to think about.
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