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.

 

[Matt_Jr]

2ManyRocks, you are absolutely right. I talked it over with the wife today and instead of renting out a space in town, I'm gonna continue side work in my driveway when it's not raining out and put the extra income towards the candy truck. After I'm relieved of those financial obligations I'll look into getting a small garage out in town. I can stay busy on the weekends with the work I have lined up now, so I'll keep that up for now so I don't stress the finances even more. Your right about the lean times. I havn't eatin' lunch at a restaurant in several months 'cause I'm paying extra to the tool truck. The wifes leftovers are better anyway.

 

[EddieWalker]

... and put the extra income towards the candy truck. ...

What is the candy truck?

Eddie

 

[Matt_Jr]

What is the candy truck?

Eddie

Tool Truck-
Snap-On, Mac, Matco, Cornwell. They keep a bowl of candy on the truck. haha. Who could pass up a $40 wrench when there's a fireball in the bowl?

 

[rcrcomputing]

What is the candy truck?

Eddie

Thank god someone asked..

 

[AlanB]

Matt, your current plan sounds like the best course to me. I would also keep my eyes open for "deals" that come along that you truly NEED, (write a list) and continue working to have your own shop equipment.

Sometimes competing on the side with your boss can be very dangerous. Make sure you have a backup plan.

Have you considered speaking with your boss about advancement, buying in, or other options to move up where you are at and become more of an owner?

I would suggest Steven Covey's book 7 habits of highly effective people. I don't have the quote right, but you will find different ways of thinking about business with various folks . I would suggest that you seek out the others that feel there is plenty of business to go around and are willing to work with you and you with them on occasion. It is always helpful to have others in similar or the same business to consult with on occasion. There will be others out there that feel that anything you do is stealing business from them. I would avoid them if possible.

I would also reccomend finding a CPA if your wife is not going to fill that roll. For our business the CPA is our most important resource. For others it may be a banker or lawyer or something else, but for me it is the CPA.

I would also reccomend sitting down and writing out your weak points. Then work out how you will overcome them, maybe you don't like keeping the records, and you can get your wife to do that part, Maybe you don't like cleaning up and you can hire someone in to take care of that, but have a plan to deal with the parts that you don't like or don't do well.

Good luck. Half the battle is having the plan, again, quoting from Covey loosely, so many of us are going through life where we got in the airplane and took off, flying around, missing thunderstorms etc. etc. but we really do not have a destination we are headed for, we are just kind of aimlessly flying.

Having that defined goal to fly towards (even if it shifts along the way) is crucial to getting there.

 

[scott_vt]

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

Good Mornin Eddie,
That was a really interesting read, thanks !

Matt Jr,
I think you have a great idea, and are on to something that can make you some real income ! Not far from my Ct home, infact the guy is only about a 1/4 mile away, he is doing just what your talking about ! He put up a smallish 2 bay garage with a lift and does all types of repairs ! A lot of brake jobs and tuneups, exhaust systems etc. I kind of think he stays away from transmission overhauls etc because of the complexity, but he makes a great side income doing these smaller jobs ! He also has a full time job, and he does snowplowing and grass cutting on the side also ! If you want to work, threre is work out there !

Good Luck with it !

 

[Sigarms]

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.

Bottom line, if you take tools home with you that you don't already own, to make money "on the side" in your profession, you're stealing from the person who you work for who actually owns the tools.

People wonder why some larger business can be more expensive than smaller businesses, and one reason is the right tool for the right job costs money. That money has to come from somewhere.

If he asks I'll be up front with him.

Sorry, but if you can't be up front with him (your boss) from the get go, you know you're doing something wrong.

Sometimes competing on the side with your boss can be very dangerous.

From my expereince, if you're competing with your boss in your profession or trade, it's not "can be very dangerous" but "is very dangerous".

Make sure you have a backup plan.

Other than being in the unemployment line.

My suggestion is to be honest and upfront with your boss. What do you honestly think your boss is going to say?

Not sure about the auto mechanic industry, but my trade is a pretty "small world" and sooner or later, someone will find out what you're doing if you're trying to keep it a secret and don't want anyone to know what you're doing other than potential customers.

You mentioned that you lived 40 miles away from the shop where you currently work. Unless this guy (or you) does wonders with anything that comes into the shop at the absolute lowest price "around", how much business do you think you can "take" from him due to the drive time? I just don't see people in your boss's "business territory" driving out to see you for you to do work unless you tell them you do side work.

 

[tallyho8]

After working for a company for 2 years, I was fired for being late. I was mad at first but eventually found this to be a blessing in disguise. I went into business with a partner and never looked back. I retired early after 38 years in a fairly sucessful business that allowed me to accomplish more than I had ever dreamed of and I made much more than I ever would have working for someone else.

It does take a special attitude to work for yourself, you must be able to control your spending and save and put money back into the business the first few years. My partner had to spend the money as fast as we made it and could not control his spending. He lasted one year then I ran my own business the next 37 years. Today he is delivering pizza for a living.

 

[2manyrocks]

My partner had to spend the money as fast as we made it and could not control his spending. He lasted one year then I ran my own business the next 37 years. Today he is delivering pizza for a living.

Good thing he was there only one year.....it can be expensive to split a partnership.


No touchy the boss's tools.

I would not tell the boss I planned to go into business for myself. I assume there are too many mechanics out there he could replace you with.

 

[Matt_Jr]

Thanks for all the replies.

Just to clarify
1. I own all my tools. I'm still paying for some of them but they are mine. Not the boss's, shops or anyone elses. If I leave one at home the boss can't really be mad 'cause he doesn't know about every tool I own, and if I took half of them home I'd still have more there than anyone else has.

2. I don't have to tell him what I do or don't do on the the weekend or weeknights. When I leave work it's my business, but if he asks I'll tell him. I'm not competing with him. The neighbors and friends who's cars I work on wouldn't drive that far anyhow. I'm not trying to keep it a secret but I'm not broadcasting either.

3. My boss is only interested in making money for himself. He's not interested in a partnership, and I've tried to do extra at work-stay late and work weekends, help others including him, and it leads to me pretty much working a lot more for a little more(not worth it).

4. If I was forced to look for other employment I have two other places that would hire me back(I left on good terms) and spoke to recently just in case.

What makes me confident is I do a lot of electrical diagnostics. I can always find a short or broken wire. It's my specialty. I've been hired by other shops to fix stuff their techs couldn't figure out. I'll do pretty much anything.

I'm just tired of being held back, that's pretty much what started this whole thing. Thanks for all the feed back. You guys really do think of it all. That's why I asked on this forum. I think if more people knew about TBN they'd buy tractors just so that they could post.