How'd you get started?

[Matt_Jr]

When my retirement plan was pushed back another 20 years due to the stock crisis that we have witnessed, I started thinking about ways to get ahead. Safe investments aren't working out as planned, and although new car/truck sales are down, the repair business is prospering. More and more people are preparing their vehicles for the long haul. Realizing this, it would be a great time to open up a repair facility.

I've got a ton of tools. Almost everything one would need to be successful in such an endeavor. However I don't have lifts, a building, or place to do it. I would like to be far enough away from where I work so as not to compete with my current employer (out of respect). I still owe quite a bit to the CANDY truck and have LOTS of other bills to pay. I'm really just keeping my head above water financially. The bank would never loan one in my income to debt ratio anything if they were smart. I've been fixing cars since I was a little over 12, went to a trade school after high school, and have been learning more ever since. I feel very competent in my field and usually only ask for help if I need an extra set of hands to persuade a large engine to line up with a trans, or place a heavy head on a block. I know how much profit my boss is making and I'm looking at ways to give myself the same kind of oppertunity. Although it's been over 10 years since I've taken any business classes, and at least 3 years since taking any leadership classes, I do have a basic understanding, a wife that's a financial analyst, and a willingness to learn more and take calculated risks. While I'm not asking for advise on how to do such a thing on such an open forum.. seems somewhat inapropriate 'cause it kinda walks the line on legal advise which I don't want, I do value what you say. The knowledge, caring, and experience that the members of this forum have surpass those of any group anywhere else.

My question to you is, if you were in a situation somewhat like mine, what did you do to get on your feet? If one was to write out a solid business plan, are there financial institutions out there that would be willing to help out the "little man" that isn't open yet? I ask you instead of my wife 'cause she has no idea what's in my head, and I like to have things well thought out before I open my mouth in front of her and give her another reason to make me feel like a.. well.. you know. Thanks.

 

[JB4310]

With out knowing your whole situation I can only comment on what you mentioned,

First of all I agree 100%, more people are fixing older cars out of necessity, which equates to more business for those doing the work.

The impression I'm getting from you is that your thinking about jumping into this full throttle? Like quiting your job and opening a garage. Now of course I don't know you or what other obligations you have, but you mentioned your finances are not exactly stellar at the moment. If my assumptions are correct and your thinking of doing it full time, IMO it would be very tough in just about every aspect of it, but finacialy would be the buzz killer.

I would suggest doing it on the side part time to see if it's something you can handle, You can do alot of work in a 1 bay garage, try and save up some money and build up slowly.
Do you do side jobs now?

Good Luck! JB.

 

[Matt_Jr]

Thanks for the reply JB. I do side jobs, usually stuff in driveways(no garage), but I think you're on to something. I'm gonna start looking for a single bay shop in my area this weekend. Building up the customers will be the hardest part 'cause I don't know a lot of people where I'd like to do this but it might be easier here in town than closer to DC where the rent is waaaaay higher.

 

[rcrcomputing]

I initially started my business by working on the side. At the time, I was management at a company I'd worked for 19 years. I then rented a cheap building to work at night on this "hobby" of mine. I had no further plans. I then got very angry and gave my employer 30 days notice. No plan, no borrowed money, but luckily I was in a position to give it a shot. I had all the tools paid for. This is key. Start buying what tools you have with CASH. Live poor while you do this. I have never borrowed a dime for my business and never will.
It was the best career move I every made. I'm better off financially than every before. That was 11 years ago.

Lastly, I will say this, not everyone has what it takes to be all things. Book Keeper, Technician, Sales, coordinator. You can be the best at what you do when you work for someone else. But when you work for yourself, you must get good at all things.

As for a customer base, I often get a good laugh when I'm told I need to advertise, my standard reply is "I'd get busier"..

What I'm saying is this, set up a shop at home, get busy. As things heat up, rent a building, then as things continue to heat up, quit your day job.
You have one major hurdle I did not have. You are trying to start a business doing the same thing your boss does. That's a touchy one.. I've had former employee's try to become my competition. When they failed, I'd not hire them back..

Why has competition failed?
1 - Great tech - everyone hated him.
2 - Good tech - wouldn't listen
3 - Good tech - not dependable
4 - Good tech - would not stand behind his product even when it meant he'd have to "take a hit"
5 - Not real good tech - in it for the money (you must have a "thirst" for what you do!)

All three decent or really good at what they do. None could run a business.

Hope this helps. It's much more than I intended to write..
Good luck!

 

[EddieWalker]

I can only speak from my personal experience and what I've done. I worked for a company for 13 years as a full time employee, but had allot of experience working on rental homes and apartments doing repairs and remodeling them. It was partly the family business, and also helping out with friends of our family. I know a little bit about homes and how the go together from a lifetime of fixing them.

Before my regular job, I worked a few jobs building homes as a sub in various areas. Mostly it was as a helper or under the table type, short term work.

While working, I bought a house, fixed it up and then started doing jobs for neighbors on weekends and some evenings. That was cash money and it seemed there was always somebody who needed something done.

When the dot com bubble broke, I thought the housing market was next. Homes where I lived were over priced and people were buying without any regard to value. It was just silly what they were paying. The company I worked for was also making some very big changes that I thought were going to destroy them. As a Union Steward, we fought them on these changes, but even after meeting with five different company VP's, we didn't get anywhere.

My fear grew as to what I would do without an education and being out of a job where I needed allot of money each month just to pay my bills. I was employed, making good money, very secure with great benefits, but afraid and stressed about what I saw coming. This was around 1999 and into 2001.

When 9/11 happened, I decided it was time to do something. I looked around for a place to live where I could afford to go out on my own without a massive mortgage. I wanted a place that was business friendly and politically conservative. I didn't know if I could make it on my own, and was very afraid that going to a new place without any contacts would be suicide or not, so I also wanted a place that had jobs available that I could survive on with minimal pay.

East Texas has all this to offer, so when the house was ready, my bills were caught up, I sold the house for more then it was worth in 2002, and moved to Tyler, TX I bought a house for $30,000 and started my first flip. I did several more and took out adds in the local papers for handyman work.

It was all hustle and there was times when I went months without a call or anything to do. It really took several years to get to the point that I was working regularly and making enough money to feel relatively secure. More then once, I was looking at the want ads for a job, but somehow got lucky and it never got to that point. I've been down to $300 to my name and nothing lined up. But again, got lucky and the phone rang.

I don't advertise anymore, it's all word of mouth. I have jobs lined up and the phone is ringing with people wanting to hire me. My rates are at the top end of things and that hasn't been much of a factor. They hire me because a friend has recommended me. Word of mouth is what I rely on and what I work towards. Every job that I do, I think of what it will take to make the client want to tell their friends about me. When I tell them a price, I hold to it. If I go a day over, then that's what it takes. They still pay the agreed price. If I see something extra that needs doing, I do it. If they ask for something extra, I try to do it for free. If not, I give them a price up front and they decide. Those little free things go a long ways in getting other jobs.

Knowing how to fix something is a very small part of being in business. Anybody can fix things. What is important is being able to get the jobs. I get hired on a regular basis. I'm not a contract, I am a professional job applicant. Once I get to a persons home or business, I'm doing a job interview. They already want to hire me when they called me.

If you want to make a living working for yourself, you have to build up a client base and be able to sell yourself. You say your current boss if making money and turning a profit. It's not that he's the best mechanic around, or knows everything there is to know about a car. It's because he takes care of his clients and they tell others about him. One job will never make you enough cash to stay in business, but one job done well and making your client happy with you can create multiple jobs. That is the secret to going out on your own and staying in business. The rest is just paperwork.

Good luck,
Eddie

 

[Uncle Doug]

In my rural area a good mechanic is worth his weight in gold. There are a few small auto repair shops within a 20 mile area and a few more backyard mechanics. All stay very busy. A co-worker of mine has small 2 bay shop with lifts she ended up with in a nasty divorce many years ago but has constantly kept it leased to someone or another for the past 20 years I have known her. Some for only a few months and go bust others for a few years then expanded into larger shops. I have no first hand expearance but to me it seems like either working from a home shop or leasing a existing place is the way to start small without a lot of capital.

One local guy has even opened a 4 wheeler repair shop out of a mini storage unit. He leased 2 of the largest bays facing the highway and hung a banner with phone number. He uses one to store ones waiting parts and the other to do his repairs out of. In under 6 months he has more work than he can handle. I was on his wait list for 2 weeks before I could even drop mine off. He called with a good estimate a few days later, then it was ready about a week later. I had never heard of the guy before but he says he was working out of his garage for a few years just down the road from me.

 

[Matt_Jr]

Thank you for the replys. Seems like starting off part time is the way to go for me.

Where I work now is about 40 miles east of where I live, and I'd like to do this in a town about 6 miles west of home, so I don't think my boss now will think of what I'm gonna do as being competition. Heck, he wouln't even know if it wasn't for the fact I'm gonna have to take lots of tools home with me every day. If he asks I'll be up front with him. If he doesn't like it I'll deal with that when the time comes. One things for certain.. I gotta do something 'cause I'm going crazy just thinking about it. I know this much- if nothing changes, then nothing changes. I'm at a dead end and want more. I order parts, deal with the customers, write the work orders, and fix the cars. The only thing he really does is supply the place to do it and the customers. When I go out on my own I'll pretty much be doing everything the same, just a little less untill I can go full time and quit my day job. I learned a while back from one of my mentors that a job is Just Over Broke. He was right. I'm just itching for more. Thanks for lettin' me vent and thank you for helping me sort this out a little too. Although I don't know you guys personally, I feel like I do after reading so many of your posts and as a young'n I look up to you guys. Thanks.

 

[jdbower]

Heck, he wouln't even know if it wasn't for the fact I'm gonna have to take lots of tools home with me every day.

Here's where things get a little murky. Are these your personal tools or tools for the business? Even if you bought them personally and then wrote them off for taxes it's feasible that if he's not happy with the situation this could make things difficult. Whether or not it's legally valid isn't the issue, the real concern is how much you can afford to pay a lawyer to defend yourself.

Even if they are yours, what happens when you use the fetzervalve tool on one of your personal clients and it breaks or you leave it at home. The next day the some guy comes into the shop you bought the tools for because the framus in his fetzervalve needs to be replaced and you can't do it because of your side job. Now you're costing your primary job money and friction mounts.

This shouldn't stop you from doing whatever you feel is valid, but be prepared for some of the consequences. Especially if the ownership of the tools is ambiguous instead of being outright owned by your boss you'll probably want to consider getting a second kit that stays at home. As someone who bought all his own tools for work and took them home with him every night I can say from experience that it may save some conflict later on.

 

[2manyrocks]

You say you owe the Candy truck and lots of other bills. I suggest you consider working down these bills and getting yourself into a cash position. This may well mean cutting back on some things. Explain your goals to your wife. Get her on board with your goals. Work on this together. Then transition into your own business. Unless you are very fortunate, there are going to be some lean times before you get established, and I don't think you or your wife want to be hounded for unpaid bills. There's a proverb that says the borrower is servant to the lender. My interpretation of the meaning of this proverb is that when you owe $, you're working for your lender instead of yourself. If you want to be really free, you need to work yourself free of your employer and your lenders, IMHO.

So, I suggest you want to plan for 1) your business; 2) your finances and 3) your desired personal goals with your wife.

 

[Matt_Jr]

You make a good point there Jeff. I do have some "basic" tools at home but financially I don't want to buy anymore than I absolutely have to. I'll just have to keep what you said in mind and remember to bring everything back the next morning. The thing is.. I bought all my tools. The shop doesn't reimburse us for anything, rubber gloves, cut off wheels, nothing. Legally I wouldn't persue anything if he fired me for not haveing a certain tool, but everyone in the shop barrows tools off of me, and IF he was to make a case out of something like me not haveing something that I normally would, I would imediately stop letting others use my stuff, and quit helping others at the shop for free like I have been for the past 6 years. I am not entitled to lend tools or help others for free but do to help them and the business. It also helps me learn when we run across a new problem someone else can't figure out. Will it make others mad at me, for not helping? Probably, but they'll come around. Could I get fired? Sure, but I'll deal with that when the time comes. But, until that time comes, I'll have to carry a large chest back and forth I guess. That'll make it easier to avoid such conflicts that you mention. Thanks again.