Recomendations For Starting A Shop
04-26-2004, 09:21 PM
#1
Senior Member
Thread Starter
Join Date: Jan 2003
Location: redondo beach
Posts: 983
what would you guys that own a tuning shop recomend in terms of square footage and number of hoists to be successful. Also, is there any specific thing i should shoot for in terms of school? so far im thinking a degre in business, but someone said that it wasnt needed. any info would be appreciated.
04-26-2004, 10:56 PM
#2
Super Moderator
Join Date: Sep 2002
Location: Savannah, Ga
Posts: 2,763
What you need depends on the market in your area, your financial support for getting started, and your short and long term goals. You need a much more specifc game plan before asking those questions.
As for knowledge, you dont need the degree. You need the knowledge you will learn getting the degree. If you are serious, when you go to school, go for the enterprenuer focus for the business degree. That would teach you what you need to know to run your own business.
Youll likely need investors, unless you just have more money laying around then you have a good use for. Investors will want to see a very detailed business plan outlining how you plan to take their money and use it to make even more money.
Another option would be to take out a small business loan, but again, youll need a good business plan. And while you wont have to share profits, you will still have to pay it back, whether or not the business succeeds.
As for knowledge, you dont need the degree. You need the knowledge you will learn getting the degree. If you are serious, when you go to school, go for the enterprenuer focus for the business degree. That would teach you what you need to know to run your own business.
Youll likely need investors, unless you just have more money laying around then you have a good use for. Investors will want to see a very detailed business plan outlining how you plan to take their money and use it to make even more money.
Another option would be to take out a small business loan, but again, youll need a good business plan. And while you wont have to share profits, you will still have to pay it back, whether or not the business succeeds.
04-27-2004, 03:58 PM
#3
Senior Member
Join Date: May 2002
Location: California
Posts: 22,465
yeah it really depends on the mix of buisness you do (mail order vs shop stuff vs like a body shop).
basically it works like this (# of lifts * techs effiecency * labor rate) - (rent/fixed expenses {power, water etc} + salaries/profits)
or if you have 1 lift and one tech you can do 8 hours of work a day, at 100 an hour thats $800/day or $16,000 a month (working days, i used 20). this would be 100% efficency by the tech, some techs will beat it some wont.
now on the expense side, you gotta pay rent, say $2000 a month, you and the tech. at $20 an hour you're getting paid 3200 each, so thats 6400. plus we'll say $500 for water, power, phones etc. thats 8900
obviously theres stuff i'm leaving out, like buying parts, taxes etc etc. but thats kinda the gist of it.
to get started from zero you need to buy the equipment (usually not all up front), rent a building, buy furniture, advertise etc etc, depending on how big you go you could be out of pocket 10,000 all the way up to millions if you're building your own building and stuff
most of this stuff is really basic, but it might not be common sense
basically it works like this (# of lifts * techs effiecency * labor rate) - (rent/fixed expenses {power, water etc} + salaries/profits)
or if you have 1 lift and one tech you can do 8 hours of work a day, at 100 an hour thats $800/day or $16,000 a month (working days, i used 20). this would be 100% efficency by the tech, some techs will beat it some wont.
now on the expense side, you gotta pay rent, say $2000 a month, you and the tech. at $20 an hour you're getting paid 3200 each, so thats 6400. plus we'll say $500 for water, power, phones etc. thats 8900
obviously theres stuff i'm leaving out, like buying parts, taxes etc etc. but thats kinda the gist of it.
to get started from zero you need to buy the equipment (usually not all up front), rent a building, buy furniture, advertise etc etc, depending on how big you go you could be out of pocket 10,000 all the way up to millions if you're building your own building and stuff
most of this stuff is really basic, but it might not be common sense
04-27-2004, 06:44 PM
#4
Senior Member
Thread Starter
Join Date: Jan 2003
Location: redondo beach
Posts: 983
i was planning on getting a small business loan for it, id like the shop to mostly be like service and selling parts. i think id have to start off with one first and then move into doing both, but im not sure which i should start off with. and little to no mailservice. on average about how much can you get for a small business loan?
05-03-2004, 06:41 AM
#8
Super Moderator
Join Date: Jul 2002
Location: My BIG ol TURBO-DIESEL
Posts: 5,181
First you need to figure out what you are going to offer:
General Bolt-ons?
Diagnostics and Repair?
Custom Work?
All of the above?
Mail Order; are you going to be a STOCKING Distributor or Drop-ship?
What size city are you in?
Are you specializing in one make/model or everything?
How much is leasing pre square foot?
Is 3 phase power available?
Are quality techs available?
Other things to consider:
Cost of parts cleaners (Some parts of the country uber $$$$)
Used oil/coolant collection and disposal
Refrigerant collection and recycling
How are you going to staore "projects"
INSUARNACE, General Liability/Garage Owners Liability, fire and theft
Alarm System and Monitoring
Diagnostic Scanner Lease
COMMERCIAL QUALITY Air System ( a $500 compressor from LOWES isnt going to hack it)
How are you paying the TECHS? Per hour or FLAT RATE?
1 Bay for one tech dont cut it. A good tech needs 3 bays. One for the car he's working on, one for the car he is waiting on parts for and one he is troubleshooting .
You need a SHOP-RAT; minimum wage type guy who is TRUSTWORTHY, to : run parts, sweep, lot work (landscaping) take out trash.
General Bolt-ons?
Diagnostics and Repair?
Custom Work?
All of the above?
Mail Order; are you going to be a STOCKING Distributor or Drop-ship?
What size city are you in?
Are you specializing in one make/model or everything?
How much is leasing pre square foot?
Is 3 phase power available?
Are quality techs available?
Other things to consider:
Cost of parts cleaners (Some parts of the country uber $$$$)
Used oil/coolant collection and disposal
Refrigerant collection and recycling
How are you going to staore "projects"
INSUARNACE, General Liability/Garage Owners Liability, fire and theft
Alarm System and Monitoring
Diagnostic Scanner Lease
COMMERCIAL QUALITY Air System ( a $500 compressor from LOWES isnt going to hack it)
How are you paying the TECHS? Per hour or FLAT RATE?
1 Bay for one tech dont cut it. A good tech needs 3 bays. One for the car he's working on, one for the car he is waiting on parts for and one he is troubleshooting .
You need a SHOP-RAT; minimum wage type guy who is TRUSTWORTHY, to : run parts, sweep, lot work (landscaping) take out trash.