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Restart of customization/restoration shop, partner wanted

Discussion in 'The Hokey Ass Message Board' started by rschilp, Sep 23, 2010.

  1. rschilp
    Joined: Sep 17, 2009
    Posts: 677


    Not sure this fits here, if the moderators don't think it does, please close.

    About 2 years ago as the stock market crashed we shut down our customization/restoration shop, our lease had come to an end and business was hard to find so we decided to go underground for a while.

    Now there seems to be some work out there and real estate is much more affordable. So we have decided to start our business back up.

    We tend to do a lot of '60s stuff (pays the bills) but have several earlier projects in the works (not on the website yet)

    We just finished negotiations on a 10,000 sqft facility and are expecting to move in before November 1st. Insurance quotes are coming in, we've got our financing in place and have pretty much every tool known to man.

    There are two of us right now, and we are looking to add a third partner.
    We are looking for someone with great mechanic and fabrication skills and experience with building custom cars and hot rods. You don't have to bring cash with you to buy in, we have a solution for that , but be ready to work to cover overhead until we have enough business to pay ourselves.

    Work ethic, skills, experience, customer communications and ability to work with the other partners are all important factors to evaluate before we decide to go into business together.



  2. Merlin
    Joined: Apr 9, 2005
    Posts: 2,546

    from Inman, SC

    Best of luck to ya.
  3. Theo:HotRodGod
    Joined: Nov 23, 2009
    Posts: 565


  4. A bit far for me to come every day,

  5. rschilp
    Joined: Sep 17, 2009
    Posts: 677


    Took the big step yesterday, signed a lease for a 9,600sqft building. We're moving in by November 1st

    There is two of us now and we are talking to several candidates to fill the third partner spot.
  6. skwurl
    Joined: Aug 25, 2008
    Posts: 1,620


  7. If you don't know your new partner or just barely know him, do a complete background check on any potential new partner. Don't screw around with this as this might affect your own personal asset and livelihood. Complete credit, criminal, drug test and even sexual predator list (serious). On line deals may not be 100% accurate. Go to your local investigator and pay $500 and have them do it right. If they won't do the drug test/criminal back ground check something is up and you should walk-run away..

    If you don't know the guy I would not make him a partner at first. Nothing like having him work for you for 3 or 6 or 8 months and find he is a complete waste or a**hole-then you are screwed. Draw a up a legal document that he works for you for 1 or 2 years as an employee then slowly give him stock in the company and allow him to buy in the company over a period of time. A legal doc seals the deal-makes him feel better that what you say will happen will actually happen and protects you as well. Your local lawyer has these doc's other companies have used for "buy in's" and can advice you what should be in yours.

    Make sure you get your company incorporated so your personal assets(home etc) are safe from creditors in case an employee on company time decides to drink a beer while out picking up parts and rearends car killing a baby and you get sued for $10 million or more.

    My wife has a vet practice and she just hired a new doctor/partner-as my wife wants to retire in 15 years. The legal document she worked up is the new doc works for her for 2 years as a regular employee then every so often according to a set schedule she get's a certain percentage of company stock/profits. After 15 years she get's 50% of the company and my wife has a deal to sell her the remaining business when she retires for a predetermined fair market price.
    The new doc my wife hired went through the complete drug/criminal test etc and never balked about it. It's pretty standard stuff today
    Last edited: Oct 2, 2010
  8. rschilp
    Joined: Sep 17, 2009
    Posts: 677


    Yep, required, no question about it, no go.

    Buy in with the option for me to buy him out at any time for any reason for the same amount as you bought in.. That way they can be a partner without having the right be be an a@@hole.

    The whole buy in thing is not even all that important, we've got all the cash we need, just need a new partner to take some responsibility for some of it.

    We're a Texas LLC with all the required corporate and car company insurance in place, both the existing partners have way too much to loose.

    As you say, pretty standard stuff today.

    I've been around the block a few times and this is not my first company.

    Yes, there is a trial period of 3 years
    Yes, we are incorporated
    Yes, we are insured
    Yes, there is a pretty standard but legal airtight partner agreement to sign
    Last edited: Oct 8, 2010
  9. GonzoSS
    Joined: Oct 18, 2007
    Posts: 216


    Sweet!!! Glad you found another partner!
  10. rschilp
    Joined: Sep 17, 2009
    Posts: 677


    Didn't, the other partner and I were in business together before. We are looking for partner number 3, the more people in the shop the easier it will be to cover he overhead and reduces risk to all of us.
    Last edited: Oct 8, 2010
  11. rschilp
    Joined: Sep 17, 2009
    Posts: 677


    Move in day today. We moved some big stuff over the weekend (rotisserie, A-frame) and are putting together shelving units, installing video monitoring and some other odds and ends.

    Got several projects ready to get started, some small and some huge. Should be an interesting ride.

    Certificate of Occupancy inspection later today and we are in business.
  12. 1936hotrod
    Joined: Mar 13, 2009
    Posts: 136

    from RI/CT

    Good luck..........................................
  13. VoodooChile
    Joined: Sep 10, 2010
    Posts: 56


    Good luck guys. I started a shop a few years ago that got through the "hard part" and finally started producing some income.....a divorce wiped that out though.

    Happiest time of my working life!
  14. propwash
    Joined: Jul 25, 2005
    Posts: 3,858

    from Las Vegas

    my favorite line in this whole litany of discussion is the one where you guys "have all the money we need" I've never been fortunate enough to find myself in that situation, and make a lot more income than most. There's always someplace for it to go, and five people willing to take it there.

    It sounds like you two know exactly what you're doing, and it appears that most corporate protections are well in place. I wouldn't think of giving you advice - too cheeky until I have achieved that loft financial position of having more than I need. Just happy to wish you the best of luck. No small risk stepping back into a limited market like this with an economy in the state of flux we're all experiencing.

  15. mkilger
    Joined: Sep 4, 2009
    Posts: 424


    good luck there are so many shops out there right now with everyone out of work. I have had my own shop for over 12 years and been in the Biz for over 25 now and I have never seen it this slow. Even the Big shops out here in So cal are slow with little shop work. lucky some sell parts and do online stuff. I dont know how the money is in TX but good luck it sucks in Caif
    Joined: Mar 30, 2010
    Posts: 3,253


    the daily comute would kill my wages. Best of luck .
    may the force be with you.
    keep us posted.
  17. BulldawgMusclecars
    Joined: Jul 15, 2010
    Posts: 508


    I'm just making the same move myself...only to a MUCH smaller shop. Good luck with everything!

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