For about the past year or so after dealing with so many bad body shops in my area (collision work of various cars & business vehicles) it got me thinking there is a huge market for a good body shop in my area and just in general. As it is right now I know almost nothing of actually doing body work or major collision repair. Could I get the proper training at a trade school to the point where I could successfully open up a shop? I am a good businessman and that would be my role, i would not be doing any of the actual paint/body work myself just running this place, I realize I would need to know the business, hence the need for classes etc. in general how much start up capital for equipment is needed (looking for a general cost) could I get a good operation going for a couple hundred grand or so? As of right now these are all just thoughts in my head and not much research backing them. any comments are welcome.

You are the first guy I have ever seen ask the question who is REALLY qualified to open a shop. You are a BUSINESSMAN, that is the one thing that most guys are lacking who open shops. They are bodymen, being a bodyman means you can do body work, being a businessman means you can run a business, BIG difference.

There are plenty of places to start. Most major paint companies have training centers which include managment courses. That would be something you could do.

I would think a good starting point just to get your feet wet would be the ICAR 3000 class Click here for ICAR (http://www.i-car.com/) . There was just a class held in Gardena Click here (http://209.103.220.182/class_schedules/search/FMPro) The next one is in Cathedral City in Dec.

That is a course many insurance estimators take and is a very, VERY good overview of the industry.

A couple of hundred thousand would be a minimum depending on the property costs. Around here, you need about a $500,000.00 minimum I think closer to a million to open the type of shop where you would get on DRP programs (Direct Repair) with insurance companies.

The shop where I work does about four million a year in sales if that tells you the money can be made. But, that is SALES and the overhead is enormous. If you didn't catch the debates with the governors race, workmans comp was a big issue. The cost is astonomical, I believe we pay about $50,000.00 a month!.

As you can see, a business man is needed.

martinsr, thanks for the info, I'm going to look into it more, $500,000 to a mill is more than I thought but not out of the question depending on once I do my reasearch how long it would take me to make it back. I am looking in starting a bigger business in the automotive field then the current small parts business I have now, I'm going to explore franchises as well. Maybe I should just open a full service paintless dent removal & detail shop VS a full on body shop, I have expeciance in the detail business. If anyone has better ideas im all ears

Thanks very much

I agree with everything MARTINSR has said, start up costs will very depending on area. I work as an Estimator/Inspector for the largest insurance company State Farm and believe me you want to be a Direct Repair Facility for as many companies possible. I see the program shops in my area doing over 80% of the work with the remainder going to struggling shops that are not on the program. Also look into fleet service along with government agencies contracts. Make your building appealing to your customers, seems like the shops with the nice lobby and clean estimating environment see more customers-reguardless if they produce quality work.

Martin,
Not sure of the actual workmans comp rates for bodymen, but steelworkers pay 30 to 60% of a mans wages per hour worked, I believe thats the highest catagory other than off shore fisheries. The payroll would have to be 100K/month @ 50% to be that high. At 50% rate , that equates to 1.2mil salary for bodymen (non clerical/officers)+ 600,000 for W/C. Close to 2 mil total. Thats half the gross. Now add consumables, overhead.

I think the actual startup costs would be prohibitive, considering paints booths vs EPA guidelines, VOC regulations, etc. And you have to love OSHA regulations..... (Even though worker safety is MOST important). Quick story: I sat thru a 10hr OSHA construction safety course with my carpenters a few years back. They hit hard on workplace ergonomics. Comfy chairs, position, etc. We sat in hard plastic uncomfortable chairs FOR 10 HOURS!! My butt/back killed me for 3 days! The course was "10 solid hours" straight, that lasted 11. 1/2 hour lunch, (2) 15 minute breaks. I asked the instructor why OSHA was exempt form this. She wasn't too happy with me, but hey , I was looking out for everyone in the room. Part of Employer responsiblity, which I also brought up. So I'm a troublemaker....
Biggest thing I learned from the OSHA meeting: Doesn't matter what the employee does, the employer gets fined, and can't backcharge the employee for neglecting to use supplied safety equipment. Example: If I supply all my guys with hardhats, which I have to show them how its worn once a month, and they get caught not wearing it, I'm fined $250.00 for each employee/occurance. Same with GFI breakers, lead cords, shoes, gloves, shirts, etc. I am SUPPOSED to have a full time safety coordinator on all my projects, who has MSDS sheets, safety program, monthly safety meeting minutes , etc. But the guy that doesn't want to wear a hardhat for his OWN protection, doesn't have to worry about anything. AND, if my guy walks by a hole in the floor, thats not safe, the inspector can fine ME if he doesn't immediately barricade it. And someone else put the hole there. Sorry- I'm rambling....