Well ladies and gentlemen finally pulled the trigger on my own shop. Picked up keys today. Got all the gear out their boxes carts welders and such. Should be expecting customers in a week or two. Dealing with all the vendors now setting up accounts pos and all data. So a lot on the list right now. But after turning wrenches and making other people money finally going to give it a run on my own. Very exited!!
Well finally pulled the trigger
- Thread starter Havelka44
- Start date
carnutdallas
Well-known member
- Joined
- Nov 6, 2013
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- 141
Hard work. Great feeling. All the best! As a 25 year shop owner, I can tell you everything to do wrong and what is best to do right as comes to money, cash flow, accounting and success. But alas, you have to learn on your own, or it just does not stick! Great feeling of independence though. Have a great 2020!!
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PugetDude
ALLIANCE MEMBER
Congratulations; we're going to need pictures. 
Farmall450
Well-known member
Very nice. Definitely 
And an address/# for local members!
And an address/# for local members!
Mike.ASC
Well-known member
I did the same 30 years ago. Wishing you good fortune & much success.
CJDave
Well-known member
Good luck on your new endeavor. CJDave.
Congratulations. The first business I went into was a catastrophe. Totally self induced. I was good at the trade but had never been in business. It is funny today, but absolutely was not back then. I didn't know what i didn't know and was putting in so many hours I was not taking the time to learn. Get professional help and listen to them. CND makes a point that you have to learn it on your own, but hints and directions should be solicited and followed. Just think, from now on when you wake up at 3am you will always know what you are going to be thinking about
BillK
Well-known member
h,
Dont make the mistake that a lot of people, me included make. DO NOT try to be less expensive than other shops to try and get business. Once you get that reputation it takes years to shake it. If anything start out as the most expensive place in town but make sure that you can back it up with the best customer service. One of the most successful shops in my area is also one of the most expensive and has always been. But he treats his customers like gold.
Also do not even imagine that you can make a decent living by yourself. Just figure that you need to hire someone as soon as absolutely possible. Then concentrate on running your business.
Dont make the mistake that a lot of people, me included make. DO NOT try to be less expensive than other shops to try and get business. Once you get that reputation it takes years to shake it. If anything start out as the most expensive place in town but make sure that you can back it up with the best customer service. One of the most successful shops in my area is also one of the most expensive and has always been. But he treats his customers like gold.
Also do not even imagine that you can make a decent living by yourself. Just figure that you need to hire someone as soon as absolutely possible. Then concentrate on running your business.
homelessdespot
Well-known member
Living the american dream you lucky sob, good luck to you. Hire an accountant to do your taxes. Did you form an LLC?
Milton Shaw
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- Joined
- Feb 11, 2011
- Messages
- 4,835
A single bad check can ruin you, so set limits on checks without calling and checking with the bank to see if they are good. For instance a engine rebuild or replacement check could be all your first year profit if it bounces or worse. Lots of luck, keep control on all your expenses and don't overload your shop with rarely used expensive equipment.
ScottsGT
Well-known member
And be prepared to put a mechanics lien on someone's car. In other words, know the process before you have to do it. There are folks that jump from business to business trying to get things for free. Don't let anyone play you. You are not a charity. You have bills to be paid, etc. Make sure you get customer signature authorization before any work is done.
Oh, and when you do hire someone, keep in mind that they are there to do one thing. Make you money. If you catch them stealing in any way, shape or form, let them go. I watched my brother try to run a Midas franchise. Not only was the franchise stealing from him (franchise fees without the promised advertising and corporate help) but employees were stealing products, customers and doing side work when they were closed on Sundays.
They figured they were safe to sneak into the business since he lived 20 miles away and only came that direction for work. Showed up one Sunday after church and found the shop manager with a customer. Long story made short, manager was fired and customer had to pay the shop rates, not the discount for side work they were offered.
Oh, and when you do hire someone, keep in mind that they are there to do one thing. Make you money. If you catch them stealing in any way, shape or form, let them go. I watched my brother try to run a Midas franchise. Not only was the franchise stealing from him (franchise fees without the promised advertising and corporate help) but employees were stealing products, customers and doing side work when they were closed on Sundays.
They figured they were safe to sneak into the business since he lived 20 miles away and only came that direction for work. Showed up one Sunday after church and found the shop manager with a customer. Long story made short, manager was fired and customer had to pay the shop rates, not the discount for side work they were offered.
LS6 Tommy
Well-known member
Congratulations and best of luck!
Tommy
Tommy
firebirdparts
Well-known member
Best of luck!
Bretny
Well-known member
I dont own a businnes but i can tell you that customer service is severely lacking in this country. Do good work and treat your customers correctly and you will have a good name in the business.
Theres an alignment shop on my way to work, been in business for over 30yrs. He does all the oddball large vehicles to a honda civic. Hes never the cheapest but your steering wheel is always streight and does a very good job. His lot and buildings are spotless. Hes not even in a nice part of town yet the lot is always full and not the same cars every week.
Theres an alignment shop on my way to work, been in business for over 30yrs. He does all the oddball large vehicles to a honda civic. Hes never the cheapest but your steering wheel is always streight and does a very good job. His lot and buildings are spotless. Hes not even in a nice part of town yet the lot is always full and not the same cars every week.
Congratulation -- started my first company when in my late 20's ... still going strong at almost 30 years.
Pricing is important ... you don't want bottom feeders in any business. They are also the most difficult clients/ customers. Better to have fewer clients paying you well.
Learn some basic accounting --- make sure you have an excellent system to generate invoices. Falling behind on invoicing is all too common.
You will need an account to do your taxes ... but much of the other items can be done "in house" ... also -- remember ... you can't do it all yourself.
Pricing is important ... you don't want bottom feeders in any business. They are also the most difficult clients/ customers. Better to have fewer clients paying you well.
Learn some basic accounting --- make sure you have an excellent system to generate invoices. Falling behind on invoicing is all too common.
You will need an account to do your taxes ... but much of the other items can be done "in house" ... also -- remember ... you can't do it all yourself.
Jrad235
Well-known member
Plan for the winter/slowdown!!! I have a hard time working my **** off all year without buying some toys, and really ANY extra money needs to go into savings asap. Never expect it to get busier to make up for whatever you spent on non-essentials for the first few years.
rust in the eye
Well-known member
What immediately comes to mind is A: The golden rule B: to try to recognize what business you are better off without. It might be tough to walk away from certain jobs/customers when new and hungry.
Good luck sir!
OH, don't be a sucker for the tool truck.
Good luck sir!
OH, don't be a sucker for the tool truck.
Last edited:
The Tool Tyrant
ALLIANCE MEMBER
#1) Be Honest
#2) Be Fair
#3) Do Good Work
#4) Know When To Say "NO"
#5) It's Okay To Be A Sucker For The Tool Truck...He Probably Has Mouths To Feed Too!
#2) Be Fair
#3) Do Good Work
#4) Know When To Say "NO"
#5) It's Okay To Be A Sucker For The Tool Truck...He Probably Has Mouths To Feed Too!
SJW
Well-known member
Congratulations and good luck!
One more rule:
#6) Be mindful that there are people whose actions would indicate that they are not well acquainted with #1, #2, and #3.
One more rule:
#6) Be mindful that there are people whose actions would indicate that they are not well acquainted with #1, #2, and #3.
PWC Repair
Well-known member
Well said. I ran a side business wrenching for many years. I specialize in watercraft. Word of mouth is all you need if you follow what The Tool Tyrant posted. I just kept working on more and more which allowed me to build my shop and pay for it. Jumped in with both feet first thing this year.......it was scary. Worked out just fine and I stayed busy enough to set back funds for the winter. I am basically closed until March 1st, appt only and I have some projects lined up. I love being my own boss. My wife helps out too, she answers phone calls, makes tickets out, orders parts, etc. I have people drive over 100 miles for me to work on their toys because of my reputation. I have learned that other peoples problems are in fact their problems. If they can't afford your work they can go elsewhere. Sometimes quotes just can't be made.....especially if you don't have a history on the vehicle. Craigslist trades are the worst. I tell them up front what I think it needs and that we will probably fix all that just to find the next issue. Get a shop labor manual to help quickly give an estimate but let them know that's all it is......an estimate. Sometimes bolts break, things are rusted up and stuck, or you get into a project and find something else that some meatfist tore up. That's not your problem and they need to pay the bill. Only other thing I can think of is don't spend all your free time working after hours and weekends. If you get behind, so what, they can wait or go somewhere else. In June and July I run about 4 weeks backed up. Most people will wait because of my reputation
shelteredV
Well-known member
"Don't let the business of running your business get in the way of running your business."
In other words, do what you're good at, and put people in place to take care of the things you aren't good at.
The best thing I did was get really good office help and an excellent accountant. That freed me up to run the crews and jobs properly and spend the right amount of time to try and keep the clients happy.
You'll find yourself making a lot more money, and not spreading yourself too thin. Oh, and most important of all- HAVE FUN DOING IT!!! or at least try...
In other words, do what you're good at, and put people in place to take care of the things you aren't good at.
The best thing I did was get really good office help and an excellent accountant. That freed me up to run the crews and jobs properly and spend the right amount of time to try and keep the clients happy.
You'll find yourself making a lot more money, and not spreading yourself too thin. Oh, and most important of all- HAVE FUN DOING IT!!! or at least try...
smiller605
New member
Work hard! But don't forget to have a life. Our local shops are a father and son that have shops 4 miles apart. They both are at the shops at 6 a.m. and go home by 6 p.m. Monday thru Friday. They and their employees do not work weekends. They work hard and still have a life. Good luck, you will make mistakes just learn from them.
carnutdallas
Well-known member
- Joined
- Nov 6, 2013
- Messages
- 141
Great advice.
Gross profit on a mechanical service business should run 60-65%, depending on a few factors. You need to calculate your “stall profit” per day, per week, per month. Will need 90-180 days of data, but that means keeping good records and using a quality management software like Mitchell, where you can job cost and track all expenses. You need to know what a stall generates for you and jobs that “churn” work through, not dead weight. My techs generate about $50k per month per tech. Space and techs equals $$
I know you are starting small, but have a plan, work towards that goal. Most small business fail in the first two years, mainly from poor management. SEO - search engine optimization is the name of the game. A small shop with no web presence is competing in a huge “pond” of opportunity. I spend $4-6k a month depending on cycle to generate $280k in revenue. My SEO expert has me dialed in, to more spent, more sales, more activity. We have a 23 year web presence which helps. You have to spend money to make money is not always true or advisable, but know your market and your Web Presence.
Every Tom, **** and Harry or Harriet salesman will pitch you ideas and opportunity in the shop for needs, tools, market and advertising. They rarely help or have your best interest in mind. Ignore them. Not always, but most of the time. Join a small group through a main vendor - part supplier maybe. Some companies do that and that is wise use of time a few times per year to talk to like minded shops.
I say open two to three checking accounts too. One for operational deposits and a transfer account for all parts cost. Each week, transfer your parts purchase cost for the week to the parts account and never use that for anything else. That way you have a gross profit account for working from, but will always have the parts money there to pay for it. I work off of three credit cards and enjoy lots of points and cash back instead of checking accounts, but for me, one is paint, parts and operational - I own a collision center.
PAY ALL OF YOUR TAXES EARLY OR ON TIME, never late.
That is a brief and simple group of thoughts I can share. Some is common sense. But after 25 years, my employees work for me, I pay them well. I come and go as I please. I do all my own banking and bills. My account looks at the books and manage the payroll and taxes. 25 years have been fantastic. I still spend more than I make, but that is how I am wired. I just make more, LOL. But today, right now if the Good Lord said it was time, my family is set, my employees are protected and the business would go on.
All the best!
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Farmall450
Well-known member
Solid advice.