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  #1  
Old 06-20-2006, 09:56 AM
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Question New shop

Hey ever1
my dad wants to open a shop and i've told him to go for the high performance, not just a mechanic shop, cause there will be more $$$$ evolved. SOo basicly im here to get any1s feeback on how to start a buisness and should he go for the regular mechanic shop or high performance mechanic shop and any ideas to make $$$$ in this buisness. Im open to any new ideas. THNKS YOU

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  #2  
Old 06-20-2006, 10:35 AM
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The cost of a "start-up" automotive repair facility in this day and age would be astronomical in my opinion, but who am I to shatter dreams.

Personally, I'd open a tattoo parlor. Low start-up cost compared to an auto shop and everyone in the world seems to want one, young and old.
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Old 06-20-2006, 10:47 AM
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cant talk for everybody

but i normaly go for durability, if just as good cheap i get that, but for tools that i realy want to last i get the expensive (well i get Teng Tools, Kamaza, Snap and other) but thats me, in my "earlier" years i just bought what i could afford, so i got a nice mix of ****, half good and realy good tools.

So i guess a Mix :-)
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Old 06-20-2006, 03:33 PM
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I have considered it myself, and was convinced by folks here and a couple in the business that its definitely not a sure-fire deal. One guy I talked to opened his VW shop with basically a screwdriver and a hammer (as he put it) and did pretty well. Today you need to have a much bigger investment and operating budget just to cover the basics.

Since performance or high-end service is considered a luxury for most people, it will be the first thing they will try to skip out on when they can't pay their bills.
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Old 06-20-2006, 08:49 PM
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Where's he work at now? Is it a "high end" shop? If so, does he have a good rapport with his clientele?
If so, then he might have a chance to get somewhere....IF he can have some of his current clientele follow him. If he doesn't want to work on "junk" then he will have to learn to politely refuse junk when it comes in - no matter what the hard luck story is. (well, I suppose exceptions can be made, but they should be few, because word will spread, and next thing they will be knocking his door down with their junk cars)
He needs to make sure the shop always looks clean, the tools clean and organized, and that everyone is in uniform.

Even then...it's a gamble - As you will probably hear from stories yet to come after my little post.

Whatever he does, ask him not to use numbers in his words, it's not considered "high end", nor "high performance".
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Old 06-20-2006, 08:54 PM
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If your father doesn’t have the technical ability to do most of the work, and must solely rely on hired technicians, sorry to say he will fail. A performance specialty shop would require a higher skill level technician, and these guys usually have there own shop.

Tools alone can cost a bundle, diagnostic tools, hand, specialty tools, and lifts. How would you measure your performance work, with out a diano, someone spending money on performance likes to see the results. If he’s a good tech, start as a one man shop with general repairs.
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Old 06-20-2006, 09:01 PM
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Getting the money usualy isn't a problem, its what the money wants from you.

You should do some research and start writting a very detailed business plan. Then go to investors or banks. I will WAG with the cost of things today starting a high end shop from scratch would cost $500k-$1M. Certainly that amount is doable if you present a good business plan that will pay to the right people. I'd also get a lawyer because you would need to figure out what type of ownership to use. IE if you own it as an S or LLC your liability should it go under will be limited, ie they can't take your house.

Maybe purchase an already existing business?
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Old 06-21-2006, 12:31 PM
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Nearly every independant shop in my area comes to me for advice, or to borrow special tools, or to have codes cleared, etc...........!!! Since they buy parts from us we help them out as a courtesy, in most cases at no charge. These favors are becoming so frequent that we've had to start charging all but our best clients. Now, some of these guys were top-shelf tech's back in their dealership days but they're falling behind as time goes by. I don't blame them. I have every MB resource imaginable at my disposal and I get overwhelmed sometimes. Trying to stay on top of current events is like having a job within a job. Personally, I'd never consider opening my own shop. I would consider a franchise deal (muffler shop, brakes, shocks, etc.). At least you'd have less trouble finding qualified help. I think anybody who opens an auto repair shop nowadays is either very brave, very naive, or very crazy!!!
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  #9  
Old 06-21-2006, 07:30 PM
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Quote:
Originally Posted by Mike Murrell
The cost of a "start-up" automotive repair facility in this day and age would be astronomical in my opinion, but who am I to shatter dreams.

Personally, I'd open a tattoo parlor. Low start-up cost compared to an auto shop and everyone in the world seems to want one, young and old.
At my age I'll never see it, but many years from now it is going to be an interesting sight to see a bunch of old women running around all tacked down with perky breasts.

Seriously I go along with my colleague, ILUVCELS, about opening a facility in this day and age. Unless you really know what you are doing and have lots and lots of money, I wouldn't try it. Since I closed my shop about five years ago and semi retired, I've started mentoring a young fellow who opened a shop a couple of years ago on a shoe string. I've bought him alot of equipment and council him on management. I've pissed off a lot of his friends and cheap customers, but he's learning that the clock ticks and the end of the month bills come and none of these people show up to help pay the bills. What I'm saying is to be successful in this business takes discipline, money, professional skills, and serious business acumen. You need all four to survive. If you don't have all four of these skills, you need a partner or partners. If you choose wrongly in this category, you will go down in flames. About 3 years ago I bought a hoist from a bankruptcy sale. I really felt for the guy who sunk everything he had into an upscale facility. He hocked all his property which was over $1,000,000 and put it into the business. His manager screwed him and he didn't even know what was happening. He lost everything. All I'm saying is: know what you are doing.

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