If I start a rod shop,Will they come ?

If this "BUSINESS" is something you been wanting to do for years...GO FOR IT!! You will find a way to make it work.

As noted in previous posts...DON'T QUIT YOUR DAY JOB! Cut back on your daily spending as much as you can and put that towards your BUSINESS. If you have a decent garage at home..USE IT!! By working from home you will save a ton of $$ and be able to GROW into a real shop if need be down the road.

Your clientel will direct you on what directions to follow/avoid.

Most "HOT RODDERS" out there are self tought/hands on people...They build their own stuff, order parts online..and have minimal to no need for the local "SHOP" other than a hangout place wasting your "business time" bench racing.

I've always wanted to run a SPEED SHOP type business...but with the invent of the internet....those days are long gone!

I'm also in the "process" of getting a HOME BASED shop together..I don't plan on moving out of the garage..I perfer to work out of my home. I will continue to work my day job that I HATE!!! But.... they pay me $30 + an hour, set my own hours and give me a company vehicle...kinda hard to walk away from that right now! (but will when the time is right!)

My house is just about payed for, I have a nice heated and air conditioned shop (oversized garage), and not plannning on having a WALK IN type clientel (will manufacture and ship)...so not to worried about the neighbors. (I've been getting daily UPS deliverys for my "JOB" for 6+ years!)


Here is an observation I had this past Friday....I was at a shop the other day..small area speed type shop..needed some AN fittings for my hotrod. Walk into the store..the place was dead!! Shop side was lit up..one guy sanding a decklid, the retail side had the light off!!

Beautiful shop, quality craftmanship, Dozen or so cars in the shop....no one paying the bills!!! Their RETAIL side of the shop has been dead!! I was their first customer in two days!! I bought the fittings from them..but payed 3 times as much what I would have payed at SUMMIT!! They relize that...but they need to pay their bills and have no choice on high prices on a low volume retail sales.

Thier SHOP end is dead....as mentioned..a dozen vehicles on hold due to their owners not presently having founds to move forward. They have been around a few years doing mostly 50's and 60 era cars (resto's and hop-ups). They are now taking in some "TUNER" jobs (body packages) just to pay the bills. So something to think about before making a big DIVE into this market.



Now is the time to do the ROCKING CHAIR TEST....Think about when you are 80 years old...sitting on the front porch in your rocking chair...reflecting back on your life....will you regret NOT doing what you wanted to do at a younger age because now that your 80 and you can't???

 

I was their first customer in two days!! I bought the fittings from them..but payed 3 times as much what I would have payed at SUMMIT!! They relize that...but they need to pay their bills and have no choice on high prices on a low volume retail sales.


Financial suicide and stupid--Might as well have a sign in his window giving Summits contact details.

 

Go for it! Beats working for the man. Make sure you have a good business plan, capital and maybe some investors. Starting a shop with no capital will be hard. With the right mind set and drive, anything is possible, nobody said it would be easy. Start with a good website describing the services you can offer and pictures of past builds will enhance your credibility. Ensure you can strike deals with part suppliers and local businesses, this will cut costs for the customer by offering them more of a "package" deal, instead of just building/fabricating bits and pieces.

Hope this helps a little in deciding on your new and exciting venture.

If you want it bad enough.......

 

Wow, I am 18 and have wanted to run a hot rod shop my whole life and this thread just scared the shit out of me. On a side note I know a guy who had a big shop that was in all the magazines and even on Speed TV. He now runs it in his garage and still makes a fairly big profit. You pretty much have to keep you're day job and do on the side shit for years. That's what I plan on doing when I am done school. Also I love hot rods & customs but sometimes you have to do the other shit. I mentioned my freind before who just did hot rods now he finds himself widenning the fenders on Audis and shit. I know a couple other brothers who own ashop in Western Canada. They are just into building engines for Checy Muscle cars and doing the whole Car Craft street machine thing. Well they do regular tune ups on all cars as well so they can afford a shop. And in the back of the shop they do all the performance stuff. Good luck and if you do open a shop hopefully you could hire me

 

All good thoughts and perspectives. I'd say just jumping into a business is the wrong way to go. Build up a clientele first... get your name out there.

I retire from my "day" job in about 5 years. Right now I'm working a couple cars and I sign them with my wanna be company signature. My hope is to supplement my retirement fixing up and selling ol' cars on the side. I wouldn't want the pressures of having to appease customers on a daily basis, but would rather work out of my own shop, decide when to and when not to work (one has to fish too you know), and just have fun doing it. I do everything from body work, engine, fab, upholstery.. you name it. I think the more things you can do on your own the better. Even if you specialize in just one area where people usually pay a pretty penny to have that service done, if you can undercut the competition out there, do a good job.. you'll be successful.

I wish you luck in your future endeavour. If it's truly a burning desire.. you'll find a way to make it work.

 

Nobody mentioned hiring Meth addicted employees and then finding out what that means, dealing with supposedly reputable manufacturers who do not stand behind their products, and owners of beaters who think that you should work on their P.O.S. because you are working on Hot Rods anyway.

 

Having examples of what you can do is all important, show us the quality of your workmanship.

I started a rodshop in the UK where hotrodding is fairly small around 5 years ago, I had been building cars for 35 years and needed a change in job and didn't know what to do, My friends gave me encouragement to do it as i was unsure if it would work out. It worked for me as i have around a 18 month waiting time these days BUT don't think you will earn a fortune because you won't, however you will earn fair money and it will be enjoyable.

 

As you know, things are tough here in east central Indiana. I know a guy that opened a general auto repair shop here in Connersville in the summer of '08, went 6 solid months before he brought in enough money to pay the light bill. Then things skyrocketed. At the same time, a couple of other guys have tried and failed.

I'd say this is probably as good a time as any to start a business. It seems some people are just born to succeed in business. If you think you are one of them, give it a try. Part time, if you can figure a way to do it. This is piss poor time to quit a job. They are terribly hard to come by around here.

Bill

 

In the 70"s I wanted to open a automotive machine shop. Small town probably wouldn't support it by itself so I actually opened an auto parts store [and here you will get great support from your warehouse supplier] and added a machine shop in the back. I had an instant income from parts and got the machine shop! The shop work also sold extra parts. Find a need niche in your area and best of luck!

 

i owned the house and the shop paid off no overhead and the machines too. 10 years ago i opened my shop. went ok for a while then no one came. then the only ones that came were window shoppers. then i got a project got it done still waiting for all the money did 2 more with same results.

i still own the shop and house. but am over $35,000 in debt and i have a real job again. i will not do another project for anyone. when i retire in 2 years i will build a car or truck and sell it.

 

You say that you are going to build cars and some ratts.... ratts won't pay the bills. nobody spends any money on them.... If you get a reputation for building cars that look like shit no one will have you work on a nice car... Do the math.. how much are your operating expense's going to be for your shop...? Be realistic and find out don't just guess.... How much does it take to pay your bill's at home right now...? add up those cost's and then look at your bank account and your savings account.... Do you have enough money to go a year or maybe 2 if you aren't making enough at the shop.....? If you plan on getting a loan for capital that is just another bill to pay that adds to the overhead....? What are you going to put up for calatoral for the bank to secure a loan...? Your house or..? What happens if you have to close your shop and you can't pay the loan...? you lose your calattoral.... When do you plan on retiring...? How will you pay for retierment....? You might think that working for yourself at a rod shop might be fun but at every local rod shop I know it has always been hand to mouth.... They struggle to make money and after a few years it isn't fun anymore and then it is just a job that doesn't make any money.... I don't mean to sound down on your idea but it is damm hard running a business.... If you do give it a try let us know here on the hamb.... Good luck.......

 

If you have to ask then you probably shouldn't do it..

 

In case you're not convinced:
1. you'll have to incorporate, unless you want to pay $10,000 for liability insurance (so you don' lose your house)
2. a corporation with no history cannot get credit. Period. Everything you buy you must co-sign personally. That leaves only 1 way out: bankruptcy.
3. do you have enough saved already to start a lease (1st and last + security = $3-6,000), deposits for utilities, licenses, inspections, permits, tools and fixtures, advertising, materials... for at least a year?
4. do you have enough saved already to live (food, clothing shelter, medical) for your family without taking any money out of the business... for 2 years?

Depending on your life now, $50K might do it, and it might not.
If you have to borrow this, you're already finished.

"Working for the man"? You mean 9-5, M-F, vacation, sick, worker's comp, disability, unemployment insurance? Those things are gone. You now work 24/7 for the government, your insurance broker, the bank, your lawyer, your accountant, your landlord, your customers and your suppliers.

How do I do it?
1. it's not my only source of income
2. mail order only = no overhead, no insurance, all employees are per diem, contracted or temp (no health care)
3. mail means my customer base is Planet Earth, not 10 miles to my competitor
4. mail means I'm always open (want to buy something? PayPal me when I'm asleep)
5. mail means I'm always closed (I don't have to show up anywhere, ever)
6. inventory only produced as needed - I have less than $2K worth of shelf stock, because it's all I need

 

sounds like a great idea man, im kinda doing the same thing, but id do other services to "pay the bills" like do auto repair if ur a mechanic or auto body etc and untill u have cliental etc but good look man!

 

Don't quit your job;finish up your sedan and pedal it. Lay back 50% of the money. Build and sell another one,lay back 50%. Continue this till you've piled up 100k,then start your business with this. If you can't pile up the 100k you won't make it. it's better as a hobby.

 

Ive ruined a couple hobbies by turning them into jobs, just saying.

 

I say start out with side projects and move up slowly once you have enough business to keep you busy full time then open your own place

 

One good way to make a little money is to start out with a lot.

 

Is your wife or Significant Other on board with this idea? If not, be prepared for additional pain, misery and abuse because you're always at the shop, in debt, strapped for cash and usually in a foul mood because of work-related stress.

Divorce Court isn't nearly as much fun as it appears on television....

 

This is the best advise posted yet!
Remember, just because you enjoy building cars on the side. does'nt mean you should make it your life..... No matter what your friends say!

 

Yep, they'll come ...but so will your bull chitting friends, that seem to hang on, even when you're grinding sparks in their faces, trying to get em out the door. The phone becomes an aggravation, the months seem to go by like weeks, and the unexpected bills will keep on coming. I was at my happiest in my shop sweeping the floors, while my employees did the work. When I had an annoying salesman come in, I had a mildly retarded kid that worked a few hours a week, that would claim to be the boss, while I swept.

 

So you want to start a business. I got 3 words for ya: TAXES, BROKE, MONOTONOUS. Yeah, that about sums it up. I went out on my own about 2 years ago, things went good while I was doing contract work for body shops but when that dried up I had to go to selling parts. And, nobody wants to hire you once you have been on your own because they don't consider that verifiable work history. One other word for you BURNOUT, after doing it for so long it kind of ruins a cool hobby, I have went from loving to work on my own stuff to blah and took more of an interest in choppers because of it.

 

A weak economy is not a reason to not start a business, a poor business model is.
A successful business will find oportunity in a weak economy and capitalize on it.
Having said that, I don't know if a hot rod shop could find those oportunities in this economy, but remember, economy's, like the weather, are constantly changing, so don't listen to folks who randomly say; "not in this economy". However you must be able to see what is going to be in demand.
How much money do you think you will need to get started?
Double it, then double it again. If you've not run a business before, let me tell you you have no idea how much money you will pay for taxes, insurance, taxes, taxes, and taxes. You know when politicians say only the rich are going to pay this or that higher tax rate? They are full of shit! Small business owners get hit, every stinking time. The more taxes I pay, the fewer people I can hire. If you try to get a business off the ground by flying under the radar, so to speak, it will be horrible trying to make it legitimate later if it does grow.
I've said this before on similar posts, but your most important partners don't work with you in the shop. They are your banker, lawyer, accountant, and insurance man.
Talk to your local chamber of commerce, see if there are any classes about starting a business, they are very helpful.
If you don't think you need those things, you probably shouldn't try starting a business, because you might just have the wrong attitude/temperment for it. It's not just about building something and taking someone's money, even if you do it well.
No one will talk to you without a well thought out business plan and pro forma. Most chamber's have someone with the program to help you build a pro forma. That can also tell you, before you lose every dimie to your name, if your business plan has merit.
I would be willing to bet that there are a few guys on the HAMB who would be happy to help give you some guidance in developing a plan, as well as willing to tell you what their general numbers are to help make a ratioinal pro forma.
I will say one thing, when I set out on my own about ten years ago, I had no idea what my bosses went through until I tried it. It will certainly make you respect those you've worked for before a lot more.

 

I turned a hobby into a business once.

It worked well for a few years, but changes in the economy and my health caused financial stress, and now what was a fun hobby is something I hate to do. As much as I'd like to spend all day every day building hot rods I know turning that into a business would be mistake, and I look forward to making a life in my shop in retirement. And even then I do not plan to have customers, I'll be working on my own stuff.

You may not be like me, and might enjoy working on other people's stuff just to eat. I ended up hating it. I also found that being in business meant working about one day a week for various government agencies doing paperwork and writing checks. That was more time I resented.

Having your own business can be fun and rewarding. It can also suck the life out of you. Mine almost killed me. Its been more than ten years since I quit and those memories are still strong and keep me employed.

 

I like to cook.
I worked in restaurants to support myself while I was in school.
One place I worked, "opening manager" and breakfast cook at a start-up, I think I was taking home more at the end of the month than both the partner owners were combined.
I've had friends ask "Since you like to cook so much, why don't you pen your own restaurant?"
I tell them "Because I like to cook, not run a damn business," (and a "service business" at that.)

"Tired of working for the Man"
In a hot rod shop, every job you sell you will be working for that customer.
The typical guy around here looking to have a hotrod made and with the money to do it probably doesn't have time to do it himself because he's too busy running his own business, but when he comes in, since he is (probably) a business man he will be interviewing YOU for the job just like he would anyone else he was hiring to work for him for part time contract labor.

HE will be "the Man," and if you don't realize that is so, you aren't ready to deal with the usually-weird* public.


*Realize, people who want hotrods aren't exactly "normal."

 

Bob Nebraska wrote: "I had a mildly retarded kid that worked a few hours a week, that would claim to be the boss, while I swept. "

i love it.<!-- / message -->

 

WOW!!! Most of the negatives in this post apply to every business. If hot rods are your hobby, keep it a hobby. If hot rods are a passion, go build hot rods. You have to want it more than anything or it's not gonna work.

Develop a solid business plan, have cash reserves, stay out of debt, keep overhead low, farm out what you can't or don't like to do. Get a great lawyer, accountant, and insurance rep. Market yourself and your product. Take advantage of the tax laws for businesses as much as you can. Good luck!

 

He was hopeing that we would spend more time being mad at them than each other?

Well that and if we never had them we wouldn't have the term "Rat Bastard"

I'm going to say that I probably won't be stopping by your shop any time soon. Hell there are people that I know in Indianna that I don't go visit.

That said what you should maybe do is build rods for a sideline for awhile and when you get too much work to do that and work for "the man" whomever that may be then quit your day job.

Keep this in mind if the Fed gets the health care reform thing passed you will be required to have health insurance. That will put you at th mercy of the health insurance companies, or if you have a job "the man" will be required to insure you.

That's just a thought and not intended to be in any way political, so please don't start a political drama storm over it.

 

Well stated, P&B'er, and I don't think it's political at all, its a business reality and another point to seriously consider.

Damn did we just agree on something?

 

If I had listened to everyone who told me i couldn't do something I never would have done anything! Do what you feel called to do and deal with whatever happens. Live life to it's fullest.