Opening a garage..

[mudflap]

Retiring from the County garage in 2 yrs at the ripe old age of 54. I would probably stay there forever, but they are forcing us old timers out at 30yrs. I guess i could learn how to play Golf..or something. And that might be the smart thing to do...but i have decided to open a garage.. I already have the shop lined up..My Cousin owns a 5 bay garage that he bought from Muffler Brothers when they went out back in the 90s..It's in a great high traffic area..has a big fenced back lot, and is exactly as they left it, lifts and all. I'm sure it will need work, and mechanicals updated..but that will all be negotiated into the lease. He has been using it for storage, and plans to be out of there. As far as the legal stuff goes, i "think"..i have my bases covered. The Lady that has been doing my taxes for years is a CPA, and said she can handle setting up the LLC, taxes, license, payroll, etc. Talked to my insurance guy about coverage i need, and an umbrella policy. I have been running the main County garage for the last 10 yrs, so have some Mgmt experience. But we are all paid hourly..so dont know much about book rate, or if i even want to go that route..? Will buy most of the equipment i will need, except diagnostic equipment...will lease that. so i will get the free updates..plus by the time you get that stuff paid for...its obsolete. I figure on $60,000 to get it up and running, and 3 months operating funds..to carry the shop until i get the car count up..and the place can stand on it's own... So if you read all that...and your still with me...lol. I would much appreciate any advice from current, or former garage owners...

 

[driverinmyhead]

Have worked in shops, went through ASE and was an A&P in the USAF.
I only do my own stuff these days, but I just bought a commercial shop (to expand my classic car business).

Having said all of that... just read this article about an hour ago:

https://www.ratchetandwrench.com/articles/2409-five-secrets-to-efficient-workflow

 

[mudflap]

Have worked in shops, went through ASE and was an A&P in the USAF.
I only do my own stuff these days, but I just bought a commercial shop (to expand my classic car business).

Having said all of that... just read this article about an hour ago:

https://www.ratchetandwrench.com/articles/2409-five-secrets-to-efficient-workflow

Thank you for that link....Much to take in and consider there...

 

[LXCam]

Well good luck and congrats! I would like to offer up a little advice as I've been down this road before. I noticed the comment about three months working capital and would suggest you plan on the first year of at best breaking even. I halve no idea about the demographics nor what your mechanical focus will be but unless your competitors are a bunch of numbskulls with horrible reputations it may take sometime to bring in a customer base that will sub stain a profit.

 

[619DioFan]

Sounds like you have a wealth of knowledge in the field and are doing the leg work to set it up. if the shop is in a high traffic area and you truly take care of your customers I think you will succeed. I have owned several small businesses ( not automotive related ) and the one thing I learned ( the hard way ) was NOT having enough backup /operating funds. I would recommend at least 6 months worth of backup funds minimum. best of luck in your endeavors.

 

[glentre]

Great that you have the physical operation, equipment and your own mechanical skills and experience but you may be missing the most important ingredient. SALES!! Ever wonder why salesmen get paid so much? It's because they bring a steady stream of business to your shop and all businesses fail if they can't load their facility with work. If the work is not coming in, all the equipment and mechanical skills in the world will not save you from failure. Establishing a plan of action to get steady customers as quickly as possible and keeping them should be a main objective at this point. You will have to do this yourself for the first year or so until the customer base is established. You will also have to have a business plan so you understand how to price your material and labor properly with regard to competitive pressures and to establish a target level of income you will need to stay afloat and get profitable. Establishing good supplier contacts who will extend credit is also important for a startup business. Then, if you are going to hire any help, you are into a whole new ballgame with regard to regulations you will have to follow. Thought about OSHA requirements yet? And adhering to local codes. And if your family is ok with the long hours you will be spending away from home in the shop?

There will be a number of additional kinds of things that will be potential bombshells for your new business and it would be wise to make sure you think of everything you can to plan for them. It sounds like you are coming from a job with little or no actual experience in running a business and unless you attack that shortcoming, you will be facing a huge uphill battle to succeed. Having the physical building, machinery and mechanical know-how is simply not enough. If you have two years to prepare before retiring, spend it on your weaknesses so you will be comfortably ready to attack your new life when that exciting day comes when you open your doors for business.

It's folks like you willing to reach for these kinds of opportunities that are the backbone of small business throughout our great country and I wish you the best of luck in your new venture. Again, your success depends upon a complete and workable business plan well thought out before you make the jump.

Been there........done that. It was a struggle but well worth the effort.

Glen

 

[Streetbu]

I applaud your motivation but have one recommendation. Go work for another auto shop for a year first. I know this may sound weird. You'll gain a lot of experience on different brands, how shops run, etc at least compared to the county garage. Somethings will be the same, others completely different. After a year you'll have a much better grasp on what should and shouldn't be done. JMO

 

[joe_padavano]

The real question is, do you want to deal with the idiot general public? They'll bring a car in for brakes and blame you when the rusty muffler falls off two weeks later. Then you'll be fighting the bad reputation on Angie's List and other social media sites.

I guess the real problem is insurance against the (unjustified) warranty work and claims.

 

[glen66]

I second Streetbu recommendation, the experience will be invaluable when you do open your doors. Time is the most important thing to most customers, and time is the hardest to come by as a mechanic.

Glen

 

[BDT/NWMN]

A one horse operation; well operated within Your set limits, is something to seriously think over. FAR less headaches.

 

[Thumper68]

A friend of mine is a heavy diesel mech mostly construction and AG and is getting tired of working out in the cold and thinking of starting up his own shop, to that end he has been taking as many electric and hybrid vehicle classes as he can. He figures that that market is growing and if he can advertise that he can work on that segment along with regular ice vehicles he will be way ahead of the independent shop curve in the coming years.

Just something to think about in the 2 years you have.

 

[Showkey]

I applaud your motivation but have one recommendation. Go work for another auto shop for a year first. I know this may sound weird. You'll gain a lot of experience on different brands, how shops run, etc at least compared to the county garage. Somethings will be the same, others completely different. After a year you'll have a much better grasp on what should and shouldn't be done. JMO

This suggestion has real merit

The real question is, do you want to deal with the idiot general public? They'll bring a car in for brakes and blame you when the rusty muffler falls off two weeks later. Then you'll be fighting the bad reputation on Angie's List and other social media sites.
I guess the real problem is insurance against the (unjustified) warranty work and claims.

The general public........That is a HUGE question?

A friend of mine is a heavy diesel mech mostly construction and AG and is getting tired of working out in the cold and thinking of starting up his own shop, to that end he has been taking as many electric and hybrid vehicle classes as he can. He figures that that market is growing and if he can advertise that he can work on that segment along with regular ice vehicles he will be way ahead of the independent shop curve in the coming years.

Just something to think about in the 2 years you have.

A general independent shop does not want to deal with hybrids or electric...........not mention most are going back to the dealer, they are under warranty, they are not worth the headache and shop is not going make profit trying to learn specialized vehicle plus there’s the parts issues.


The other BIG question is at 54 leaving a county job are you willing and able to work 12-16 hour days, 6 days a week ??

 

[Firebrick43]

You have 10~ years to actually retirement age. Most businesses take 5~ years to start turning a profit and over half don't make it. Why put your retirement and savings in jeopardy?

Have you considered a part time at an agriculture dealer? The county garage prepared you more for this kind of work than light vehicles. Also they need lots of help in the spring and fall giving you time in the winter/summer to travel or other hobbies.

 

[mudflap]

Thanks so much for the good advice...Good point about dealing with the public. as a County Mechanic, i have always been my own customer...lol. I have no intention of working for a private garage..altho..that is a good idea, and i probably should.. I do intend to take an online Certificate course on Business Mgmt thru a local Community College. I will have no problem getting a NAPA Commercial acct, have discussed that with our District Mgr . My CPA tells me i can schedule OSHA to come in and inspect the shop before it opens ..then participate in a program they have that includes voluntary annual inspections..This is free of charge..but any issues they find have to be corrected in 90 days...? The Sales aspect...I have been contemplating.. There are 2 other shops in the vicinity.. One has a good reputation..the other not so much..but they are both clobbered with work..both have 3 or 4 days worth of work sitting on their lot...i know this because i call them once in a while and ask when i could get my truck in for brake work..

 

[mudflap]

You have 10~ years to actually retirement age. Most businesses take 5~ years to start turning a profit and over half don't make it. Why put your retirement and savings in jeopardy?

Have you considered a part time at an agriculture dealer? The county garage prepared you more for this kind of work than light vehicles. Also they need lots of help in the spring and fall giving you time in the winter/summer to travel or other hobbies.

5yrs....??? Who could operate at a loss for that long ? But will look into that..I'm thinking more like 3 Months. I think if the car count isnt coming up by then..it probably never will.. But yes.. i could easily get on at the local Freightliner, Dealership, and do warranty work.. I know the shop manager there.. And double dip for 10yrs.. And that may happen. I started this thread expecting i would get a dose of reality.. And to find answers to questions that i didnt know i had...lol. The plan is to open a garage as of now...The Wife is onboard..will probably be there quite a bit..She has a County job that she will be forced out of about the same time... We have no Grandkids..and have traveled alot... Just not sure what to do with ourselves i guess.

 

[77Birdman]

In my area if you have good mechanical skills, and can do an honest job you would have more work than you could handle. There are a few "mom n pop" shops in the area, of which about half are good. They seem to be swamped for work. Sounds like a good idea to me. Good Luck.

 

[ard]

Hire a kid (20 something) part time to do your social media?

 

[Showkey]

Both leaving the county.........are you able to COBRA your health insurance? Or leaving after age 55 and be eligible for retiree funded health care ? I say this because many leave state and county jobs only after they reach retirement ( early) age to get that health care coverage.

 

[mudflap]

Both leaving the county.........are you able to COBRA your health insurance? Or leaving after age 55 and be eligible for retiree funded health care ? I say this because many leave state and county jobs only after they reach retirement ( early) age to get that health care coverage.

Good question.. Healthcare will be mostly covered by the County.. We will both have to pay $900.00 a year to keep the same coverage we have now..and the same coverage any active employee will have in the years going forward.

 

[Firebrick43]

5yrs....??? Who could operate at a loss for that long ? But will look into that..I'm thinking more like 3 Months. I think if the car count isnt coming up by then..it probably never will.. But yes.. i could easily get on at the local Freightliner, Dealership, and do warranty work.. I know the shop manager there.. And double dip for 10yrs.. And that may happen. I started this thread expecting i would get a dose of reality.. And to find answers to questions that i didnt know i had...lol. The plan is to open a garage as of now...The Wife is onboard..will probably be there quite a bit..She has a County job that she will be forced out of about the same time... We have no Grandkids..and have traveled alot... Just not sure what to do with ourselves i guess.

Not necessarily a loss per say. It takes a while to establish clients and get the word out. Many are reluctant to try new businesses and will wait for word of mouth reviews. Also most of the time people reinvest what profits there are to grow the business, whether it's equipment/more employees/or advertising. Most businesses just can't "pay" the owners "wages" for a while especially considering the amount of hours a fledgling business requires.

I think 3 months is really dreaming.

Another important point, say your used to 50k a year. You are going to have to generate much more than that now as you are going to have to pay both halves of SS and many times other taxes as well depending on you city/state.

 

[jimindm]

I have a couple of things to add. I have ran a small shop in my garage for over twenty years.

From the OP I would ask two things. You say you are not sure about hourly or flat rate. I hope you are talking about how you will pay employees and not how you charge for services. Almost everything is charged flat rate time

Second thing is your building. First I would check with the powers to be that you could run a shop there. Just because it was a shop in may not have been legal zoning wise. Second you say it has been used for storage. Has it lost the ability to use it as a shop. Many times stuff like this is sort of grandfathered in, until it is not used.

I would second using the year or so before you retire to take some business classes. If your wife is going to be a part of it make it both of you. Sooner or later one or the other will be tasked with doing it. Make sure you know how.

The one thing I could advise you to do, is know what it cost you to open the door every day. Try to keep that number low to start with and let it build as customers start using it.

Word of mouth is the best advertising. I have made the best of little things, and many cost very little to do. Advertise in church bulletins, maybe a VFW or something like that. It is usually really cheap, and one job pays for it. Get on board with any neighborhood associations. The one where you live, and the one where the shop is. You never know you may need their blessing if the city decides you need to do something.

Last I would say is show some compassion, when you can. Fix the church van, or pay for a set of tires. That goes a long ways when the elders are sitting around talking about the repair stories, or the old ladies in the kitchen making sunday morning coffee.

After you you open I just have a few more pieces of advise. One is buy your parts from one place. Usually the place that has the least deliver time. You will not stock a lot of stuff, and you do not want to be waiting while a bay is *******. It also gives you some power when you need a warranty claim, or even just need them in a pinch.

Whether you order by phone or over the WWW, it is all about your time. Do not try to save the customer $10 on a part, by checking several different sources. Your time is your money.

The last piece was the hardest for me. I am a one man do it all type shop. It takes a half time support person to make the worker be the bets he can be. If you do not have that it is you. A two hour job turns to three or more. Estimate, getting the OK, writing the bill, paying the bills, even pick up or delivery of customers or their cars. That is all time that you will not be bending a wrench for billable time.

 

[DGersic]

Rather than just another small repair shop, where you’re competing with existing businesses, have you considered something else? You have space, knowledge, and tools. Open a trade school where people can learn to wrench on cars, trucks, farm equipment, whatever the need is in your area. A couple of junkyard wrecks or cheap junkers from a used car lot, and you’re up and running. Or take a page from the “maker space” playbook, and rent a bay to anyone who wants to use it and completes an 8 hour training and safety session.


Sent from my iPad using Tapatalk

 

[lis2323]

Very good advice from jimijdm ^^^^^

 

[Spud1985]

You are in a perfect situation having 2 years to plan before opening your business. Also having a retirement to support you while you get started will be very nice.
From what you describe you are wanting to open a full service garage with multiple employees. That sounds like a lot of work for someone who is retired. Having owned my own shop my advice to you would be start small. Employees are a nightmare and customers are a pain. Since it sounds like you have a location readily available to you, you could work out something with your brother and maybe go ahead and rent part of it instead of the whole building. Then you could use it as a hobby shop for the next couple of years. Don't put a sign up or anything just have the space and start doing some work for friends and family. That should give you a good taste of dealing with customers. Word of mouth will travel and before long you will probably have more side work than you can handle. Use these 2 years to get a feel for the business and the direction you would like to steer it in the future. You might decide that you don't need a full service shop to keep you busy and be making plenty of money with minimal headaches and start up costs.
I'm not sure how it is in your area but around here the counties and state sub alot of repair work out to private shops. If that is the case you are in the perfect position to jump on that and be dealing with the same folks you are already used to.
Best of luck in your new venture.

 

[mudflap]

Really great advice from everybody...will seriously consider all of it....Thank you all....

 

[rsanter]

Starting a buisness from scratch is hard.
How about stepping into an exsisting buisness that someone wants to retire from?
They will already have a lot of equipment and a customer base.
Yes I know you have access to a building but you could always move there later is it will work for you.

Also, it may be tough now but you may want to start doing side work to start a client base.
Get a permit is a mobile mechanic service and start working on the weekends. This will give you a feel for the independent buisness and let people,start to know who,you are.

At first you will not have any customers. How many people trust an empty shop?
Think about buying a few cars that you can fix and flip. Use them for filler between the paying jobs to,stay busy and make a few bucks

 

[Dragfluid]

Mudflap. This post may seem very negative, but you did ask for reality.
It's based on being a professional mechanic for 45 years and a business owner for a good % of that time.

You will be forced to retire in two years at the age of 54? Please ask yourself, do you REALLY want to beat up your body some more? Owning a business, and especially a start up, is NOT a 9 to 5 job. Being the owner means stepping up and filling in and doing everything else because, although you can delegate, you may feel that only you can do certain things. BTDT. And then there's employee drama that adds to the stress level.

I'm ASSuming that the two of you have some savings? Do you have some property that your home is on? Why don't you build yourself a nice pole shed and enjoy life? Put a hoist and a compressor in it. Put in a little office and a bathroom and kitchenette. Make it wife friendly. Think of some things that you can do together out there. Things that would make a few bucks. Sure, change oil for a few people, do their brakes, etc, but don't make it look like a business.

 

[Cougar]

This suggestion has real merit




The general public........That is a HUGE question?




A general independent shop does not want to deal with hybrids or electric...........not mention most are going back to the dealer, they are under warranty, they are not worth the headache and shop is not going make profit trying to learn specialized vehicle plus there’s the parts issues.


The other BIG question is at 54 leaving a county job are you willing and able to work 12-16 hour days, 6 days a week ??

Only 6 days a week? Could be 7.

 

[6768rogues]

I retired at 58 and work part time for my son's construction company. I like the freedom to take time off and to go to FL when it is cold out.