open a hot rod and customs shop

i think you guys need to re read his post. he is talking about your dumb ass customers who have money to burn on jets and vacation houses, but will give them up before not having a muscle car or a street rod under there belt in hard times. so maybe a street rod shop might be able to make it if you got some high roller gold chain customers keeping you busy.

 

I pay $200/mo for a spot 12' by 10' in a fenced lot to work on my car.

You have room to store cars long term, 50 or $100 a month, maybe an rv or 2 somewhere? That steady income can really help. Plus rent room to buddies and flip cars if you can. Maybe have a tow truck, repo, rental trucks, etc etc

Gotta find as many ways to earn as possible.

Rent the paint booth 75 for 3 hours.

 

If you have to extra scratch, go for it! Just make sure you take care of home 1st.

 

you can tell from reading the replys who owns and operates a shop. If you don't understand what most are saying just do it. One more shop without enough clients will not hurt anyone but you.

 

I don't know the slightest thing about running a rod shop I don't have the skills to even think about it but this thread made me think of something. Is this really what people do? Oneday wake up decide they are going to open a shop and so they do it. I may be wrong but I allways imagined the guys that do this stuff for a living started off doing stuff for themselves maybe with a group of friends and if they were good people started asking them to jobs for them and slowly over time more and more people took work to them. That to me sounds more realistic.

I mean surely in any business no matter what it is people have to want you to do work for them for the business to go anywhere. Right?

What ever the original poster does Good Luck!! I am all for having dreams.

 

You must be young. Go ahead thow everything you own at it. WORK HARD..LONG DAYS,TAKE NO MONEY HOME and if you are good it will pay off. And if you are just half assded,you will learn from losing everything,but you are young you can start over.

 

I gave the shop thing a try a couple years ago, after about 6 months I hated it. I really didn't do hotrods, more lowriders and shit like that. It took all the fun out of it, and I couldn't stand it. These days, I rent a 4000 sq. ft. shop, for my own rides. I don't pay much per month, $500, and I do what I want, when I want.

 

really? maybe you need to read it again...

that seems to be talking about the shop/business owner. I want to know when I get my jet damnit....

 

Just coming from another non gloom & doom viewpoint.
There is success out there alright.
Read up on this.
Started with nothing except a night school course and now turns over a million bucks a year. Won awards and builds 1/4 million dollar rods now.

http://www.stuff.co.nz/business/small-business/3860021/Magoos-goes-from-Masterton-to-take-on-world

His site.

http://www.magoos.co.nz/

 

Been there done that!!!! Owning a shop is cool!!! Good money great times. On the down side no time for a social life. Be prepared to work long hours loose your wife in the process. Do not i mean do not!!!!! Take a partner in a business do it yourself you run the show because as they say money the root of all evil. And that my friends is no joke!!!! Knuck from indiana.

 

is this fantasy island??

 

Well actually, what they say is ...

LOVE of money is the root of all evil.

 

Only one way to find out for sure.

Do it.

 

Nope was talking about business owners. I knew it would get a rise out of some

I know owning your own business isn't easy (specially an automotive one), and lots of sacrafices are usually made if and when success comes, and was kind of joking.

But as far as what I said about the private jet and muscle cars, 4 homes, ect. It is true.
My brothers boss does have his own private jet and plenty of other toys. But he does not own a hot rod shop. He has probably the biggest home improvement stores-installation in the area. Did a lot of work on lambeau field. Doing glass, commercial, my brother is in flooring. Brother started part time out of high school. Worked there part time while going to tech school to be a cop. Never went into being a cop (darn, maybe could have got out of some of the sheet I got into in the past), and has worked there full time since. He brings in twice what I do a year, and I've been doing auto body just as long, mostly all I"ve ever done, and he doesn't have to spend the kind of money on his own tools to do his job like I do. Gets a ton of sidework too, and all he needs is truck and some tools thrown in the back, and doesn't have to worry too much about a neighbor calling the police to come fine him.

The owner of the shop I work at does have 4 muscle cars, along with several other vehicles, and had 4 (i assume pretty nice, only seen the latest one he bought) houses, 3 now I guess. But we don't do hot rods. And he has another shop, and believe involved in some other things. Started in the 80's and he did take the risk. Knows how to work the system too. He doesn't spend any money on the building, dropped health insurance, have to bring supplies from home. Probably would quit buying toilet paper too, but probably afraid what that might lead too, lol.

Me and my brother talked before, both are well enough off, but act the same. Have and keep buying toys, but complain how they are never making enough money. Hardly ever spends any money on the shop or fixing things, ect, and takes more and more away. I've also got an uncle (well cause he married my aunt) that has more then enough money. When my aunt died, he (which was amount that would really be little to him)tried getting money from my blood uncle, who was laid off and hurting and really needed it. There was some insurance policy on that aunt, my grandpa, and another aunt, and my uncle who was now the only one still living. Ha, want to see broke, I could show you broke, I've been there many times. Many with a lot of money really can't relate to someone like me or what hard times really are.

As far as why I haven't started a shop. Well thats hopefully the plan someday, or at least try to get into a different trade (and keep tools at home along with more enthusiasm to look at a car after work), which also isn't easy after doing the same thing so long and hitting 40. But would do it like most others suggested. Start out at home (I've always done some sidework, but stopped since state will be forcing me to move for highway expansion from the house I"ve rented forever soon) and if things become busy enough look closer at getting a shop. Guberment regulations don't make it easy either if you'll be doing any painting. Waiting to see more what the coming waterbase law brings.
Looking at buying a house real soon(gave up doing anything for several years to be able to save for a decent down payment-even with being laid off for awhile last summer), hopefully with some land and a decent garage, but am pretty limited with my income level. Also have already inquired awhile back with urban hope (business classes), but seems a little pricey for the number of classes, and will be checking into others in the future as well.

 

Best advice yet.

 

yup.

you'll either sink or swim.

either you've done your homework or you haven't.

the BEST advice, if you wish to maintain any level of decent living, is to have at LEAST 1 year's worth of living expenses, plus business expenses (rent, utilities, insurance, etc) saved up so that you can focus on promoting and doing good work instead of screwing everyone around because you couldn't hold it together.

you had better be ready to realize that this business is either for you or its not.

if it is, you'll know it. if its not, you will too.

if it is, go for it. if not, get as far away as you can. it will kill you.

there is a HUGE difference between hobby enthusiasm and life commitment.

 

If you have 75% of the tooling...Great. If your thinking of buying more tooling, then bite your fingers HARD. When you can no longer get by without it, pick it up but remember, the day after you bought it, it's worth less than half of what you paid except if you can get your money back from working it.

Thinking of getting some buds in to split the rent. They had better be pretty damn good buds. And they need to have at least as much invested as you. If not YOU will be holding a big bag...... all alone.

Go for it, charge what your worth. Don't sell yourself short.

 

Well you lost me on the reasoning behind this.
Splitting the rent requires this??

 

everybody who wanted to open a shop always looks at how many bays, lifts, reception area,and gets a woody over it. you can't go for the "show". it's what you need when starting out, what it's going to cost you for insurance, supplies, utilities lease, the usual. guys get suckered with that lowball monthly lease payment for a nice looking place until the fire marshall shuts them down for code violation, you find out it's costing more for utilities then rent, there isn't enough parking, or your LOCATION sucks. make sure you have your stuff together or it will come back quickly to bite you in the ass.

 

650 a month WOW a real real...... Does the roof leak or something.....?

 

so is that 2500 sq. ft. with 2 spray booths? Because real spray booths take up a lot of space. If they're not have they been inspected? If not they will be once you hang a shingle out. That can be expensive.

 

That $1Million business in NZ has a customer policy that intrigues me. Are any shop owners on here doing this?

The company's growing profitability came down to letting customers have control over their accounts and how much they spent and when, Mr Wilson said.
"We work purely on a credit system. Each customer starts with a deposit and as we work down that deposit they just keep topping up their accounts. "It's our financial safety net as well."
Despite tougher economic times, Magoo's is in for the long haul. The company had weathered the uncertainty in the economic environment, huge variations in currency exchange rates, rises in petrol and shipping costs and other challenges, Mr Wilson said. "Our sport is still growing and while people are undoubtedly being prudent with spending, hot rods and hot rodding will never go out of fashion."

 

You can ready a book on what it takes to start a business. But if you want to succeed look at it like being married with kids. Lifelong dedication. I wrote a book 20 years ago about how to start a hot rod and Custom shop. The main point was that no matter what you want to do in life, you cannot give up in six months, a year, two years whatever.
Succeeding in business takes flexible planning, perseverence, 15-18 hour days, sacrifices, and hustling. I ask my customers; would you rather be doing this or sitting at home watching the news. No matter what you want in life, it is there for the taking.
Do not let the doomsdayers kill your dream. Sure there are hot rod businesses that have closed but the hobby has not stopped and as long as we have access to fuel and the idiots in Washington keep their noses out of it, it will remain a great opportunity.

I say do it. I'd rather go to my grave knowing that I tried things instead of just sitting on the pot dreaming about. So what if you fail, at least you have the courage to do something.

Mikey

 

don't let those "doom and gloom " guys get you down ... if you have the skills ,,,, hang a sign outside that says " private shop" open the doors ,, and put some great 1/2 done project out front ... start working on some cars for a car club ..... and before long ,,, the people at the BMW shop will stop by while there cars are being repaired next door ... some will have a car that needs fixing as a side job ...just remember that a private garage for a hobby may not need to be insured or inspected ... and don't forget a couch that is big enough to sleep-on .... i hd my own shop way back in the 70's ,,, and didn't have the time to go home .... of course i was single then .... and was the busiest late nite ... you will find a lot of guys who need work on there toys after they get off work ,,, and will pay just to use your space and tools ...
just my 2 pennys worth from a old worn out ex- shop owner .....

 

starting a shop is not easy expecially now, I had just started a shop doing small stuff right before the economic fart, and it was very short lived, I just do stuff on the side out of my garage now only by word of mouth. Like someone said earlier if your good people will come to you, and thats the way you should start. Just because you have a shop doesn't mean the business will come.

 

I hope you have alot of money in the bank.

 

Lots of good advice here!

The best is: "I'd rather go to my grave knowing that I tried things instead of just sitting on the pot dreaming about. So what if you fail, at least you have the courage to do something."

BUT - my other "favorite saying" is "Friends is friends, but business is business!" When I had my parts store, man, I had "friends" coming out of the woodwork begging me to sell them parts "at cost" because they were going to do SOOOO much business with me... Until I asked them "Well, if you're my friend, you want to see me succeed in business, then don't you? I can't pay the rent if I sell everything at cost!!!" Never saw most of them again!!!

Someone said earlier that a "partner" is a dangerous proposition, and I wholeheartedly agree. IF you get a partner, they should have exactly the OPPOSITE skill set that you do. My partner LOVED the "behind the scenes" stuff like paying the bills, making sure that the accountant got all of our reciepts, etc. and HATED dealing with the customers, going to cars shows to advertise & sell parts, etc. I LOVED that stuff and HATED the bill paying, etc. so we got along great! What killed our business was 1) me being offered a job managing a MUCH bigger shop than we had 2) my partner getting tired of "babysitting" the parts vendors (charging us COD fees AND hitting our credit cards for shipping, etc.) and the local, state, and federal government BS that is WAY too tedious for me. The endless line of government organizations demanding that we "fill out some form or another and enclose payment" got to him after two years, and when I got the offer to go to the bigger shop, that was all that she wrote.

The 18 hour days at the beginning, no salary, endless streams of people asking for money (everything from licenses to little league sponsorships...) were a HUGE pain in the...

BUT I wouldn't trade those memories or the experience for twice what I make doing what I do now (working for "the man" as a mechanical designer for a defense contractor... staring out the window wondering "what if...???").

I was damn proud of our little shop and we had tons of fun and met all kinds of really cool people!!! And we were "part of it" - the cars, the people, the car shows...

 

hey bud--it can work--you might have to work two jobs as well for your personal money--but if you have the determination you might be able to do it--i have seen a guy go from sharing a run down nasty old shop with four other guys--now he has the top hd shop in canada---takes balls and a lot of work tho

 

ask your current boss if you can look at the "EXPENSE" side of his ledger. Starting and running a business requires that you understand just how much it costs on a monthly basis to keep the doors open. Taking off half-cocked to take advantage of what appears to be a "good deal" on rental space reminds me of recent HS graduates who run off to get an apartment to get away from the oppressive parents. Yah...they have a job....so...no problem coughing up the first/last and utility connections. But...gee...I though refrigerators just sort of stayed full all the time - the one at home did. Gosh, sure costs a lot for all the premium movie channels, wow, fast food is expensive when there's no one to prepare the meals.

Same thing in business - liability insurance, bookkeeping/tax services, utilities - gas/water/elec, business license(s) and taxes, payroll (you do HAVE to pay at least yourself a reasonable wage. Employees quadruple the headaches, just from a record-keeping standpoint and your quarterly "tithing" to the feds, keeping track of FICA and the other taxes you must take out of their checks, cost of maintaining a company vehicle, cost of maintenance on paint booths and other ancillary equipment. I could go on - but I don't own a body shop - the two business I do own took awhile to get on their own feet and starting paying their own way. I've had a few businesses that I was actually able to sell at a profit, but as other posters have said - be prepared to put in some serious time...AWAY from home - you're the morning guy and you're the closing guy and in between you have to get some work done. You'll have to learn just how to INSIST on cash, or how to collect legal debts some other way.

Don't forget to keep a bottle of Anacin handy.

and - best of luck - owning one's own business is one of the most exciting experiences you'll ever have with your coveralls on.

dj

 

X2. The locals will note, I appear to be getting smaller.