If I start a rod shop,Will they come ?

It sure is a tough business to be in. The long hours note is a very good one to take seriously. if you are not driven to do the best work possible, regardless of time invested, it may not be a good idea. my shop has pretty low overhead, services cars,4x4's and motorcycles, provides custom machine work, welding and fabrication, yet making ends meet is still a month to month struggle. i usually work 100+ hour weeks as well, so if you cant see yourself spending this kind of time without having a stack of cash waiting for you at the end of the month, i would say maybe hold out on starting a business. maybe do work for your friends untill word gets out about how good you are at your craft. then again- they say a business that survives a recession will only be that much further ahead when times are good again.

i don"t regret my decision....

 

I didn't want my comment to seem negative, because it wasn't meant to be, but you will experience everything everyone has said and probably more, a guy told me a long time ago, when I asked his advice about exactly what you asked, he said, do it as a sideline, at home, till you absolutely can't stand it anymore, then do it two more years (before you rent or buy a place), it turned out it was golden advice. I read your line about not getting rich just noticed.. and laughed again..in a good way. I think everyone that starts a business wants exactly that, but then all the other stuff gets in the way and pretty soon you're chasing the almighty buck, (Damn, is that phone bill due again, I just payed it). If you decide to do it, best of luck, I hope you succeed and if I can give any advice, don't hesitate to ask. Dave

 

My advice: Use the search function to find a recent thread on HAMB entitled "What surprised you the most in your first 5 years of business?" There are 180+ posts from people who have a vast amount of experience in the type of business that you described. After reading the posts and reviewing all the issues, problems, risks, sacrifices, etc. discussed by these folks, you should have a good idea of whether what you are considering is a realistic career goal for you.

 

A business plan is the most critical part of putting a business together and in the process of developing it you will answer your own question.

Good luck with it, I'm just about to shut my shop and go back to working for the man so to speak.

 

Not going to make any money from the average Joe. I want to be building hot rods at my shop but most of the hot rodders I know have very little money.I get one now and again but I mostly do restos. Doctors,lawyers,big business owners.These guys have the money and understand for the most part that there not getting something for nothing. Stay away from the leaches they are only around you for freebies. I help out my hot rod buddies in the nights and weekends but not in my garage,in theirs.Anything under my roof has to pay the shop rate. Make that clear up front and you will see who your friends are and the leaches will stay away.

 

I don't know, 17...you don't live too far from where I'm at in Michigan. Michigan, Indiana, Ohio area are in tough shape. You guys in the southwest might not realize how really bad it is here. Last year's annual swap-meet near here was a total disaster. Nobody buying a thing. The three shops in this general area that I associate with have next to no work. One guy has been supporting his family doing flathead and banger builds, other services, building cars and dealing parts since before most of us were born, and he's losing big money every month right now. Nothin' goin' on. Another does custom body (chops, etc.) and paint, and chassis mods. He just recently drastically down-sized and told me, "I gotta get outa this." Another is barely holding on, and is also thinking of closing. He may not be there when I need my sandblasting done. Then there are all the other issues the rest here have cited. All that is involved in running a business. The idea that you can actually end up hating what you used to love, etc. The guys saying they're tired of hearing people whine about the economy aren't aware of what it's like up here. Come on you guys...come on up here and try to find one single freakin' job. I'd agree with those that say to keep your present job, and do some cool stuff on the side, and see how it goes. DO NOT QUIT YOUR PRESENT JOB. It won't be there when you want it back...I gaurantee it. 'Cause somebody will have taken it.

 

"Tired of working for the Man!"

Everyone is tired of working for the man. But you can't escape that. Who do you think you'll be working for if you start/have your own shop?... The man. The landlord. The man at the insurance companies. Finance company. Utility companies. Vendors (they're going to be a little pissed when they don't get paid because you didn't get paid). Local ordinance enforcement officer and a dozen more inspectors. IRS (...you can only hope that becomes a reality.) Your accountant. Your attorney. And, last and first, Broke or cranky customers. Broke and cranky customers.

And if you can finally add employees, guess what? You'll be working for them.

And you'll be going home at night to a worried wife who is waving bills in your face. And not the bills with dead presidents, either. And little Timmy needs shoes. Shara needs braces. The pantry needs groceries. Wifey needs new drawers. And Timmy and Shara are set on entering college sooner that you realize.

90 percent of all startup businesses fail within a year. And, I don't know where to verify this, but I'd bet that 90 percent of the guys who do manage to eke out a living at building cars reach 'retirement age' with little in the bank and nothing for the future.

Maybe you can still be building cars into your eighties. Maybe not.

But, if you insist... then heed all the sage advice given above. And I genuinely wish you every success.

 

Read everything that's been posted here 2-3 times. Then read the "surprises the first 5 years of business" thread 2-3 times. I know you won't do it .....................no one ever takes advice when they are contiplating something like this. Or..........if they do in their minds say, "That will never happen to me".
One of the happiest days of my life was when I opened the doors to my shop the first time. One of the happiest days of my life was the day I closed them for the last time. In between I experienced the highest of highs and the lowest of lows. Your milage may vary.

Frank

 

Id say if theres actually a market there for it, start out by doing stuff out of your garage. Put your heart and soul into a project, and gain some real recognition. If you get honorable mentions in mags and such, people will notice. And dont do pre '62. Too many guys with mustangs and chevelles out there.

 

P & L statements. Profit margin. Parts mark up. Gross profit vs. net profit.

If you can define all of these terms and have enough cash to live without any income for 6 - 12 months, than you might have what it takes.

Experience on my part.


FWIW

 

i agree with saskmorris, do it at home until you get your base built, hot rods arre cool but there are a lot of other ways to make money, i do all of my own work and there are several shops around and it is tough to make a living, do what you can on the side and enjoy

 

Ravenwood and fab32, Just absolutely fabulous! OK, I'm done, gotta get off here and go to bed, gonna have to get up early and do some paperwork before I go to the shop tomorrow...Dave

 

they say that if you do what you love you will never work a day... But I say that if you make your love your job, you will learn to hate it.

 

This I know something about. I was the service writer and manager of the family engine rebuild shop and street rod builders. We were located in the San Fransisco Bay area. My Father owned the shop and I helped run it. In that time, My Dad was so stressed out he had a minor heart attack. Every customer wanted a deal. Every customer was given special attention. Thats fine, times that by ten. Some where a major pain in the ass. There were times when there were mechanical failures due to parts defect or your mechanic screwing up. Then you must be the problem solver and smooth everything out. I hope you are a people person, because you must bite your tongue and grin and bear it. Now think about your employees, workmans comp. rent, insurance, and equipment. My dad and I build our own cars alone now. We talk about those days and wonder why did we do it? We didn't get wealthy, the stress gave me a drinking problem, which I quit right after we closed shop. I'm am so much happier now that I'm working for the Man. Stop watching overhaulin and powerblock tv. cuz that ain't the real world.

 

I have to agree with that. The three personal friends of mine that have what could be called rod shops got started because every time either of them got a car finished or near finished someone bought it out from under them. All had day jobs for years and years and while they picked up side jobs that eventually brought enough work to keep them busy full time.

Right now I think the money would be in doing things that others may not want to to tackle on their own cars and keep it simple. If you are good at chassis work maybe just setting up and building the chassis for other guys where you can turn out a rolling chassis in a week or so and get the cash.
What I am saying there is something where you can get it in the shop, do it in short order and get paid in full and move on to the next one rather then build complete cars that take months of time and space and as several others mentioned you end up waiting until the owner pays the next installment so you can do the next step on the project. The guy I know and worked for off and on years ago had set agreements with the owners as to what would be done in each stage and that payment was expected at the end of that stage before he moved on to the next. After several years of having shops full of half finished cars waiting for the owners to make another payment he found that his bread and butter was doing Mustang II and subframe jobs that got in and out of the shop in a couple of days or less each.

 

We are pretty busy at our shop(not mine)where i work but he has been in the industry for close to 30 years.We have 5 cars in the shop and 2 on the way.But, we are in Florida (retired rich farts)and we do have a clinetel base.
I would say no to you right now i have seen people try and not suceed because no capital to put up.I would say start with one car and see what happens from there, build up slowly.

 

If you want a rod shop I will sell you mine!!!

 

Now you guys are making me cry ! I just want my mommy !

Anyways , I'm taking this all in . I like the responses , it's what I need to hear , I have a little vinyl shop on the side ,so I understand the bus. side of it. I keep hearing the economy is getting better on Barret Jackson ,but the cars are not showing it !! I don't think I will quit my job anytime soon .I work Maint. in the food industry ,and people have to eat , even if they pay with food stamps ! Keep the opinions coming though .

 

can i come work for you?

 

If you can get the cash go for it. I have yet to open one, I am not a buisness man I work with my hands so I payed a concideral sum for an atterney to write up a "buisness plan" and It was rejected by the bank. I needed a stapple buisness like parts sales but today how could we compete with online parts sales. Any customer of mine would be paying more I would be the middle man. They told me to stick with general repairs with customs on the side but from my experiances, if people want it they will gladly spend the cash. I people need it they don't want to spend the cash.
for example I had a car come in once that was a complete pos. The check engine lamp was illumonated, the car ran like crap, and the a/c was inop. This customer fixed only the a/c. I would much rather get the customer that wants it done perfectly and If at all possible I want a customer that trusts me enough to creat it for him. Where do you find enough customers like this to keep a shop going and turn a profit. Trust me I share your dream brother good luck. And in the event you get your own custom shop take the time to research me alittle for an employe. All we need is money to make money.

 

In this economy? Keep. Your. Day. Job.

 

it wont be easy but it can be done. it all depends on you. my dad started his own repair shop years ago. it was tough for him for a few years, but looking back it was the best thing he ever did. all he had to start with was some money he borrowed from his parents and the support of his family. this will be his 26th year in business and im hoping for another 26. all you need is the desire and the drive.

 

Do it.

Though you did ask before you jumped...

Only you know your situation.

 

I'll come up and help!! This area is in need of a good ol' rod shop. I'm sure you know how it is down here in Richmond. Jerks everywhere. I worked with a few. Give it some thought. Like mamma always said--If its Gods Will, He'll give you the answer!!

 

Yep. Don't have anything to do with what the rest of us think anyhow.......
17dracing;, follow your dream. , get'r done. You can compete with anybody you set your mind to. Even if you have to live in the shop to save on rent. Bottom line, if you have to you can always go back to doing a job you don't like.

Your shop don't have to be all hot rods. When a potential customer walks in and says "Do you work on.............Cut him short and say "yes"!

 

I think that I might have inherited a few of these customers.

The stress is killing me. I am looking for another line of work, or to go to work for someone else. Things are pretty rough right now.

 

Just keep building and selling. The succcess you have will drive your business. I dont know if you understand how I said it . I mean that as you get busier and need more room and another hoist etc let that be what makes your decisions rather than renting a building and opening the doors as a new venture. Success in this life is more often than not by accident rather than a good business plan, a great location and a fancy showroom. Also charge just enough that they feel the pain. An old dude I knew told me once" if they dont wince when you tell them the price you didnt ask enough." Unfortunately for me it took about 30 years to sink in. By then it didnt matter anymore.
Don

 

56 poncho , I was down at Torbeks shop the other day , He still seems busy . I got a buddy that has a body shop ,and he is swamped . And it sure seems like alot of hotrod guys are coming out of the wood work lately . And everyone that stops and looks at my sedan ,wants one . So it's kinda hard to get a feel for whats going on . I got a couple cars to build to start with ,plus mine to finish . So I will see how it goes from there .

 

In fact, TODAY I went and picked up an 8" rear from a farmer in Harrodsburg KY with a '65 Mustang coupe and a '70 Chevelle SS in his garage.

just sayin...

 

I'm with Frank One of the happiest days of my life was when I opened the doors to my shop the first time. One of the happiest days of my life was the day I closed them for the last time. You will need 6 to 8 months of over head $$$$ to make it work. And never rob Peter to pay Paul. do this and the doors will be closed befor you know it. and the quick fast paying jobs never work out that way.

I wish you the best of luck.

Adam