Starting a shop in this day and age??

Thanks again guys......very valuable info was posted here!

I may do as suggested an open the doors to ALL initially to see what the area market bears.....The general area I'm in is BMW,MERCEDES,LEXUS land....So some geographical problems may exist for me due to the area's high dollar income and use of high end luxery and sports cars. I wish I was into vehicles more like that...wouldn't mind working on brand new $100K cars putting on some fancy wheels, high end audio/video and interiors...nice clean work and clientel that has $$$!

Will have to evaluate the area a little deeper...but what I do notice....the older generation (around my age) are mostly "hands on" individuals...whereas the younger guys don't know what end of a screwdriver to hold!...but they drive imports!

So many different avenues to go, but so many stop signs as well!

Thanks again for everyones input.

 

"...wouldn't mind working on brand new $100K cars putting on some fancy wheels, high end audio/video and interiors..." Yeah, you could call the business "Unique Whips". vic

 

I would say staying diverse would be the way to run a specialty shop, especially in our current economy. We've run our shop that way for the past almost 10 years and has proven to be the only way to do it without spending tons on advertising to grasp only a specific group of people who have a specific style of car. I would prefer to only work on the kind/style of cars I like but that has'nt been realistic especially in CT. If I were to build cars in my backyard shop with no overhead I would do only what I liked. Maybe it's sort of selling out but it cost money to make money.

 

nah will moved his shop to florida and reme stayed here he has his own shop in the hamptons now me and the wife plan to visit him when its warmer

 

>>>What would you WANT to see?>>>

Something interesting under construction on the Jig...

>>>What would you EXPECT to see?>>>

A reasonably clean shop with a fair amount of tools & equipment, maybe a small stock room or at least some shelves with basic stock & supplies on them, a Chassis Jig, or Spray Booth or an alignment rack/lift or something along those lines that the average enthusiast doesn't have access to...

>>>What would make you want to to come back???>>>

Fair (but not too cheap) prices and polite people; along with good quality work of course.

Al in CT

 

Vintage Muscle-

Where abouts in N.Y. are you located?

-Shifter

 

Some good suggestions. I would add that it turns me off when a shop talks trash about other shops, even when you've been there many times and they consider you friends. It's just not professional. Something simple such as 'We don't have a working relationship with them', or something like that is all your customer needs to know.

 

Brewster NY area...Just on the CT border

 

DO IT!!! I was asked what I'd do if I got layed off and without hesitation I said "pre 73, bring it to me." Dont hire friends or relatives under any circumstances. You will become their slave. I have a past with that and its twooo.
Good luck and git to it.

 

Vintage,
I am in the process of doing the same thing where I live. I have always built my own rods and helped friends with theirs. I am starting the shop while still at the daily grind. My plan is to get a couple of complete build jobs and a couple of restor-mod jobs lined up and then go at it full time. Have been spending all my extra time at auctions buying equipment and getting it ready to open. After it is open, I think diversification is a must. My area has alot of DIY guys, but I am targeting the 40+ market that has $$$, wants a cool car and cant do it themselves. My 2 cents, anyway good luck, god bless and if your doing what you love it will all work out.

 

We have more than we can do, and turn down projects regularly. I turned down a '34 chassis job today - IFS/IRS chassis - project did not sound fun, doesn't not fit the culture of our shop(flatheads & wishbones) etc, etc.

We are highly specialized, traditionally styled '32-34 frames an rolling chassis - we are shipping nationwide, one to England in Dec, and have a '32 frame on a table now that is going to Germany.

I suggest pick a tight niche, and position yourself as the best and don't stray from that. The old saying, "jack of all, master of......"

 

EXCELLENT ADVICE. Go do something fun on Saturday - drive your car to a show/swap and stick a dozen business cards under the cowl vent - remember why you love these cars and why you weren't sitting in a cubicle all week.

 

Thanks again everyone!!! Was out and about this weekend looking at possible locations of a shop...WOW...even with the economy as crappy as it is and many vacant buildings...they still want a arm and a leg for a place!!

In my area...a 1500-2000 square foot building (like an industrial condo) is upwards of $2000 a month! I think I need to start looking at some older buildings where they may subdivided!!

I have a monthly budget around $3000 figured for RENT, insurance and utilities...ect. I either need to figure HIGHER monthly expense or find a cheaper location!!

Idealy I would like around 3000 square feet to "DIVIDE" into specific work areas....time will tell!

 

$1500 a month here in Omaha, plus insurance, utilities, and all that...so about 3-4,000...But buisiness is better than it has been in years.

As for what to work on...Do it all! If you've got the tools and the knowledge do it all. New Camaros, clapped out Model A's, a sound system in a Ford Escort (okay maybe not), Luxury cars, basic auto repair, welding, custom fab, stereo install is a big deal if you know how to do it. Hell learn how to sew, I'm sure there would be some one who needs an interior. And then when you get to where you want to be financily you can narrow it down to your roots, or if buisiness is going real good, leave it alone.

As long as you diversify you'll be good..If you've got all your ducks in one pond they're easier to shoot, ya know?

 

Man what a tough call. We specialize in the restoration of heavy American Classics as defined by the CCCA, but we'll do most any of em. We're busy. We have a small waiting list. Cash flow is like gear lube in sub-zero weather. Regulations have changed and the payroll taxes need to go out within days of payrol vs quarterly. Your employees cost you 26-28% more than you pay them in MI. Unenjoyment ins is a percentage of payroll as is Worker's Comp ins as well as gross sales and sq footage. And that's the easy stuff you can look up. If you have the rep and work ethic, don't like to answer to anyone but yourself, and think you'll enjoy being "owned" instead being an owner, go for it. Any buisness will OWN YOU for at least the 1st 2-5 years. There's more good points than bad in the long term but you need to be up to it. We opened a salon and it's doing well but my wife isn't. I have to give her the "pep talk" every so often. I'm everything but the owner here and feel all the pain involved. Hard to smile and be positive sometimes but we do it. Mostly, we love the cars and there's something about finishing a 1st rate restoration that is worth more than $$$$$$...but I can't seem to pay bills with that

 

What do you guys think about bringing "others" in with me? What I mean is...I know a few others whom want to also be involved in what I am trying to get going here. One guy currently works for a interior shop and has been thinking about branching out on his own...I have another guy who has been wanting to get a automotive machine shop going, and have a body man as well whom would like to get away from modern car collision repairs.......would love to have these guys under one roof with me...but not as partners...more of being housed with me, under my name, paying me rent for their "spot" but allowing them to run their own show but getting a % of $$ for work "I" feed them with. Any work on their own is all theirs... I really would like to come across to customers as a shop that does it all...... For example...using my screen name...."VINTAGE MUSCLE-AUTOMOTIVE FABRICATION SHOP: CHASSIS, PAINT, INTERIORS, AND AUTOMOTIVE MACHINE WORK"......catch what I'm trying to put on the table?

It's just a random thought I had

 

When your in buisness you are basically solving other folks problems. Also others want to make money from you.Namely insurance companies local goverment from sales tax ect. Statically most buisnesses fail within the first year. I have been in buisness before It ruined the enjoyment of mechanic work when i did it for a living. It is not fun when you make very little or just swap nickles. Do what will make you the most easiest profit in the shortest possible time. Work only 5 days a week. Use the weekends for your self If you dont take time for you and your family you will soon become jaded and burnt out. Start small and farm out extra work . The best buisness is one where you dont even have to be present and makes money while you are sleeping. Things like mini storage,Self serve car wash, Laundromat, Portable toilets. I know a woman who rents out highway barracades ,safety cones, flashing lights , road signs ect. Try to find something that people who have money want solved. You cannott earn a decient profit from those who dont have any disposable cash. You might just want to think about doing something totally different from what you really enjoy. Nowadays i drive a truck part time and have time to do what i want when i want dont ever plan on working on other folks stuff again ever. OldWolf

 

i'd say go ahead and start it up man. have fun and work hard.

 

"Partners are for dancing." It doesnt matter who it is, sooner or later something is going to come up and yer all gonna butt heads. Too many times have i seen good businesses fall apart because people can no longer deal with each other because of bad business skills or ethics. Much like a marraige.

You could run the shop and have them be your employees.

 

Doesnt matter how you start. Follow the money flow. Most successful business end up in a different place than they thought they would . Just make sure to do what you love,money is secondary.

 

Go after the market that will make you the most dough. "Adaptable speacialties". A self made millonaire once told me you have to specialize and get away from the general stuff. Have the knack to make customs and hot-rods look right but not cookie cutter. Have an eye for whats cool. His point to me was ""Anybody can build a race engine but few can build one that screams,stands out from the rest and wins !! Plus stays together !! Best advice I ever got >>>>.

 

When running a small business you have to think like a hunter killing food for survival.
When your really hungary and food (work) is sparse, you kill the first thing you can and eat!
When you come across a ton of food and your not that hungary....then you could be picky on what to kill

Good luck!

 

I say do it all. Why limit yourself. Guys like Troy Trepanier at Rad Rides and Chip Foose will be working on a '40 Ford one moment and a '69 Camaro the next. They seem to be doing ok for themselves.Do what pays the bills.

Some of the old krusty farts here will only tell you to do the vintage hot rods. They don't acknowledge that there have been cars made after 1960.

Ed

 

I have a business that is just a year old in California. I would not bring any partners in or
Bring someone in that is willing to pay you rent, to much conflict. Also what you are trying to do you will need a shop with shop space around 4000 Square feet. I started with a 1600 Square foot shop but had to expand to 3800 just to do what we need. I build custom Racing Chassis and also do work on Muscle Cars and Street Rods. One reason I had to expand was We were doing all the body mods and sheet metal work , then having some else paint it for us (not a good idea). This is from my experience you may have better luck and GOOD LUCK if you decide to give it a go.

 

Hi Vintage Muscle, I have worked in two modifed car related businesses. One failing the other thriving, in the same economic climate.

Heres what the differences were, I wont mention names as I don't wish to trash talk a guy who really gave me a leg up.

The first shop i worked in was a purist Hot rod Shop, (nothing newer than sixty four and half) his work was amazing and had a great rep. There were six unfinished projects there, some would go untouched for months because he didn't feel like workin on them, generally grumpy and stand offish toward customers. as soon as the economy slowed his work slowed, he is going to shut, layed off his employees and will just finish the last few rods himself.

The shop were i work now builds speedway cars, I'm just a storeman but I can tell business is Good. They park there cars out front so passers by notice. they stock speed parts so they don't solely rely on labour to earn, and they are polite and hired me to keep the shop looking clean and presentable.

The main difference was this, when someone comes in. the speedway guys show genuine enthusiasm for the project. They dont complain if its different they just do it.

I feel more confident in any company that shows enthusiasm for the project I am commissioning whether it is my car or even just repairs on my guitars,

just my opinion