Starting a business.

[347sc]

I had an offer presented to me to start my own Paint/custom/body shop. New building built to my spec(basically) and to code. It will be next to a performance shop which will help business in sure. Im looking into the over head and start up now which is a big sum but what Im worried about is the market. Alot of you know me and know what I can do. I know the business having worked all sides of it over the years. The unknown is killing though. Im wondering how much business will come in, I know what needs to be turned to keep the doors open but that doesn't always come in. Then comes employees and all the stuff that comes with that. Finding people I can trust etc. Having never ventured out on my own in not sure of the accounting side. Do I handle it? Hire someone? Just pondering. Id love to be in control of my own destiny per say.


Thoughts and ideas are welcome. :popcorn:

[mustangboy]

If only there was a way to ease into it till business could really get going. I would think the first 6mos would be tough. Good luck with what ever you decide:bigthumb

[Mr.Moontang]

Life is like a box of chocolates...you never know what you are going to get. Don't be a pussy and just take the plunge...wait till you have been here a full year so I can get my money!

[2Kblacksleeper]

I wish you luck in your endever. I hope it works out.

John

[79hatch5.0]

insureance would be your best bet when doing this..i worked for a body shop and thats how he did his and got in with a few towing place and let them use his lot as storage and charge the people...and i would only hire 3 guys intil things started to take off...he also did work for junkyards that sale rebuilt cars....just make sure you get a good paint booth like a down draft so you wont have to deal with a lot of dirt...that was his down fall you spent most of your time wet sanding

[79hatch5.0]

i would hire someone to do your books too it would be easier

[NXcoupe]

Here is what I suggest. One, start off with yourself and get a good accountant that can handle your finances. Two, get the minimum in equipment you can get by with, save the high end stuff for when you are established. Take small steps, stay conservative, make yourself put the money in the bank. As far as personal finances go, give yourself a hedge fund first, before you start the business, that will help you get through the lean times. Usually you will have enough work to pay the bills for shop overhead, it's paying yourself that is difficult at first.
You have a great reputation and you should be able to pull this off if you pace yourself and want it bad enough. JMHO.

[347sc]

I agree Mike.
I don't really want to do collision/insurance work. I have had years of that and see how independent shop go out of business by letting the insurance companies dictate rates. Being a preferred shop you have to bend to their will. I realize that i will have to do some(or a lot) to pay the bills. I see long hours and a lot of work ahead of me.

[NXcoupe]

That's for sure on the long hours. The good thing is, that if you work hard and make it a success, you can sit back and enjoy the fact that you made it all happen. That coupled with being your own boss really makes it worth all the hassle and work. Once you get all the equipment and can find some guys that are loyal and work hard, then you can kind of cruise along. The demand for what you do is very high, and few people reliable enough that do it. Put a lot of thought and planning into it before you leap tho. Make sure it's what you want and that you can stick with it to make it happen.

[mustangjon]

I agree Mike.
I don't really want to do collision/insurance work. I have had years of that and see how independent shop go out of business by letting the insurance companies dictate rates. Being a preferred shop you have to bend to their will. I realize that i will have to do some(or a lot) to pay the bills. I see long hours and a lot of work ahead of me.

I've worked body, been party to a similar shop in lexington. They told me they were doing strictly custom work, high end stuff, resto's ect. One problem is which people forget to take in account for, they take alot of time to finish to get paid. So even tho said shop told me they wouldnt do insurance jobs.. after floundering around 6 months in with none of the big projects done the bills were piling and they had to. But then they were playing catchup so their real bread and butter was suddenly on the backburner. So those customers got mad. They also didnt do my below suggestion which created problems.

My suggestion is start with maybe 3 guys and yourself. As said baby steps. And you will have to toss in small jobs. With that being said, be smart about your big jobs. Full resto's cost alot of money and alot of parts not just time. Tell the vehicle owner, here is where we will start out with "x estimate" I need "Y amount" to start, when I run out of "Y money" I'll need more to continue on. This does 2 things. Keeps you from sinking any of your incoming revenue in all these parts and materials, As long as he's covering the materials part mostly you should be ok, and be just fine making it to the "big payday when the car is finished.

Make sure you have at least enough money to float 6 months, as previously stated the first 6 months will be your hardest.

Lay out goals how much/cars ect a month/year, you would like. Increase them as you go.

The performance shop nearby will help. I actually was pondering some business ventures lately, and an all in one shop was something I was thinking could work, if run like a dealership. Body, parts, performance each with a seperate division, so it could be a one stop place. So get in good with your neighbor and if done right sounds like a winner!:bigthumb

[MrsAPE]

...wait till you have been here a full year so I can get my money!

They will screw you out of it!! Or just keep lowering the amount!
I wish you good luck whatever you decide.

[Black92LX]

I wish you luck if you choose to take the endeavor.

A couple of suggestions. Yes hire a very very qualified accountant, ask around. Accountants are worth their weight in gold.

2nd suggestion unless you just have tons of extra cash don't jump in head first in this economy (in any economy really)

Start small with the least amount of overhead as possible. Rent space for the time being to test the waters as business increases and you reach a steady flow that you know will support it, then have that building custom built.

That would be a huge burden if the venture were not to take off.

[Foxxx5oh]

hey bo, if you need a cheap employee let me know!

good luck btw!

[Katmandu]

FYI, Billionaire Donald Trump just said yesterday that he believes this country already is in a Depression.

Most Economic analyst I've heard of late say we are in a Severe Recession at the very least.

You have to ask yourself this question.... How many folks realistically really have the "extra play" money to throw at their play cars right now ??

I don't think I have to say but Ohio is one of the hard areas in the country right now.

I'm just saying be realistic in your expectations and goals.

[KenB]

I'd say unless you think you could get ALOT of insurance business, then I would hold off. And insurance business is hard to come by because they go with the bigger/chain shops.

Everyone I know in the paint business is hurting.

[347sc]

FYI, Billionaire Donald Trump just said yesterday that he believes this country already is in a Depression.

Most Economic analyst I've heard of late say we are in a Severe Recession at the very least.

You have to ask yourself this question.... How many folks realistically really have the "extra play" money to throw at their play cars right now ??

I don't think I have to say but Ohio is one of the hard areas in the country right now.

I'm just saying be realistic in your expectations and goals.



Thats exactly what Im thinking. Ken has a good point too. Im still looking at my options.


BTW loving the sig pic!

[Katmandu]

BTW loving the sig pic!:bigthumb

You're welcome to download/use it brother! :cool2: