Investing In A Shop
01-06-2004, 03:06 PM
#34
Junior Member
Join Date: Nov 2003
Posts: 20
I used to own a shop here in my hometown "Custom Inspirations". We mainly did Honda's 
But hey thats where I started. We were in bis for over 4yrs. And yes it was a REAL shop store front and every thing. It was a TON of hard work with lots of blood and tears. I had many ups and downs with it but allways enjoyed myself. But be very carefull! I opened the shop with three "friends" I can only call 2 of them "friends" today. The 3rd one Greg Jones turned out to be a lying theif! Thats why I had to end up folding...he sucked us dry. I was young and didnt know every thing I needed to know. But I would still do it again. I worked 7days a wk from very early to VERY late at night. But the trips to SEMA alone were worth it. I would say go for it. I have a good paying job now but...I hate it! So go for the gusto but be preared to cry like a baby!
01-06-2004, 05:05 PM
#37
Super Moderator
Join Date: Feb 2002
Location: Amityville, New York
Posts: 12,288
I dont like a few things:
the 3 other partners and the fact they dont own the building
why would 3 people who are doing well need another partner?
im sure your a nice guy and all, but why split the profits with someone
else if the only investment is going to be $25,000? They are basically
asking you to pay $25000 to earn 1/4 of the profits and there is no
real estate investment?
Progressive is doing that insurance thing, one of the reasons they
are doing it is to knock out the body guy, in other words- progressive
is going to be dealing direct with the owner, not the body shop.
You will basically be a sub contractor for them, and if you have ever
done sub contract work before you know its very cut throat.
Not too mention they want thier work done for even less then
the $34 a hour they are paying body shops now, its a big topic
of discussion in the auto body world, I DO NOT think it will work out
or last. Plus- how does the body shop establish a relationship
with the car owner for further work?
Have a accountant look over the books, and if you do go thru with
it also have it in signed contract that no one can own,operate
or be employed in the the same type of business within lets
say a 100 mile radius for a period of 2 years should a partner
split from the rest, this way he cant decide to leave
and take the business with him.
I know its all very exciting to own your own shop doing something you
like, I would feel better if there was a real estate investment
involved for your money. Just be sure to look beyond the
"now I can have a really cool car" part of it.
the 3 other partners and the fact they dont own the building
why would 3 people who are doing well need another partner?
im sure your a nice guy and all, but why split the profits with someone
else if the only investment is going to be $25,000? They are basically
asking you to pay $25000 to earn 1/4 of the profits and there is no
real estate investment?
Progressive is doing that insurance thing, one of the reasons they
are doing it is to knock out the body guy, in other words- progressive
is going to be dealing direct with the owner, not the body shop.
You will basically be a sub contractor for them, and if you have ever
done sub contract work before you know its very cut throat.
Not too mention they want thier work done for even less then
the $34 a hour they are paying body shops now, its a big topic
of discussion in the auto body world, I DO NOT think it will work out
or last. Plus- how does the body shop establish a relationship
with the car owner for further work?
Have a accountant look over the books, and if you do go thru with
it also have it in signed contract that no one can own,operate
or be employed in the the same type of business within lets
say a 100 mile radius for a period of 2 years should a partner
split from the rest, this way he cant decide to leave
and take the business with him.
I know its all very exciting to own your own shop doing something you
like, I would feel better if there was a real estate investment
involved for your money. Just be sure to look beyond the
"now I can have a really cool car" part of it.
01-06-2004, 05:06 PM
#38
Senior Member
Join Date: Aug 2003
Location: green brook, nj
Posts: 792
Originally Posted by Jims5543' date='Jan 6 2004, 01:24 PM
Drop V-8's in all the 7's
Where is this shop gonna be?
I'd say go for it, to learn the strings, then you could possibly open your own shop in the future, if you do it, always keep an eye on everything, so you don't get screwed over
01-06-2004, 05:28 PM
#39
Senior Member
Join Date: Jan 2003
Location: redondo beach
Posts: 983
yeah not being able to own the land could end up being a huge problem.
also how exactley did this offer turn up? since there are 2 origional owners it makes it sound like they ran out of money and need more money to get themselves running.
also how exactley did this offer turn up? since there are 2 origional owners it makes it sound like they ran out of money and need more money to get themselves running.
