well guys ive done some homework and hooked up with a guy whose regular job is to manage 50 contractors and market work whose also into hot rods. found a 1200 ft shop for 750 a month gonna keep my job as a painter down the street for a while until it gets rolling and work there at night and weekend. any thought for my begging journey into ownership? ( the guy im going into partners with is a smart person who knows the ups and downs of business)
im opening a shop
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1200 square feet, you'll be tripping over stuff as soon as you get a car torn apart. What part of the country are you in that 1200 SF is $750???
Going into business with a partner can turn into a nightmare. I have never gone into business with a partner. I have a buddy that I wanted to go into business with at one time. We still talk about it, but we have different ideas on how we would run the business after it got going. Both of us being the stubbing guys that we are, would have made it very difficult to succeed in a joint venture.
Also a business class that I took, the professor had recommended to never go into business with another person. He had some clients that went into business together, it ended in murder-suicide after 20+years of business.
I am sure others will chime in with different opinions and ideas. I wish you the best of luck.:thumbsup:
Also a business class that I took, the professor had recommended to never go into business with another person. He had some clients that went into business together, it ended in murder-suicide after 20+years of business.
I am sure others will chime in with different opinions and ideas. I wish you the best of luck.:thumbsup:
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Nothing but good luck to you. I had a friend that opened his own shop a while back. It didnt work out for him and he had to close up after about a year. It CAN work and I hope it does for you. Just remember that this is a business and not a hangout spot for people. Thats what happened to my friend and before he knew it there were more favors being done than actual paying work. Be fair and honest. There arent many fair or honest people out there anymore in the car business. It wil be hard at first, but if you can stick it out for a while Im sure your shop will take off (at least i hope so). Good luck!!
Do NOT do an LLC, make certain you do an LLP.
I own my own business, I hate it. I have two offers on the table right now to close it down and go to work for other shops running divisions of them. I am very seriously considering it. I absolutely hate that I work all day, come home at night and do bookwork, then the rest of the night and while I sleep I have to be thinking about business and whats happening and who has to get paid, who hasnt paid, and everything else. It flat out sucks. I would rather do my job, go home and enjoy life at night and collect my check on payday.
It is far diffrent once you do own your own business than the pretty picture it appears to be before you do it. Once you are in business, that is your life and your only life, you better be dedicated to it.
Dont forget, once you have customers, you have to do everything possible to keep them happy and keep there job on schedule, no matter what happens in your life, because you are not doing them a service, they are doing you a service by using your business. Start ticking off customers and your business is done.
Jeff
Jeff, Don't scare this entrepanuer away with your post. Actually, this is pretty darn accurate as to what you can expect out of starting a business. I have been in business almost 2 years and it is now the world I live in. It is all I think,talk, or write about anymore it seems like. Unless you are doing something that is truly unique, expect to do things you never thought you would do to make a go of it. It is reality and you will be years away from peaches and cream......
It is your information only and need not be disclosed but you need to look into the laws of your state and find out about partnerships. And before you get excited about all this you better have some hard conversations about By-Laws. I encourage anyone to make a go of it. But don't set yourself up and not have any say in the operation of the business. You might as punch the clock for someone else if you do not have a major stake in the day to day operation of the business. I always assume good intent in everyone. I did a multiple partnership years ago and it went ugly. If you want more advice PM me and I will answer questions you may have but trust me when I say that the guy you are going into this with can easily screw you. It sounds like he has some business saavy in place to do it. AND IT CAN HAPPEN!
Good luck,
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Whats wrong did HE cheat on you??
j/k
Turns out, he was a big BS'er like some people we know. You know the type, all talk, no sense.
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5,396 Posts
At least he didn't say with family! That is always a disaster. Just ask me!:sad:
Sorry, I will leave the reality out of it next time.
Really opening your own business is a great time, you make tons of money, have loads of free time, and all the stress in your life goes right away because now you are your own boss, its great, really Is that better, maybe thats what he wanted to hearNot trying to scare anyone away from doing anything, I just think many, many people don't know the true reality of opening most businesses. I say most because I know for certain there are those that freshly open and go pretty smooth and make good money, an automotive shop is not one I have ever heard of doing that, nor are any of the trades, like I am in.
I wish you the best of luck in your venture, in this economy you have to make your own luck. If you and your family are not dedicated to giving this business 100% of your time right now, don't bother, it isnt going to work.
And as the others said, either find a way to do it without a partner, or be prepared for things to go awefully sour, have a back up plan. And if this partner thing is going to happen, dont be foolish, spend a bunch of money and have the best attorney you can find draft up your partnership papers, dont try to do this on your own. Attorneys have settled lots of failed business partnerships (get where thats going?) and know what terminology needs to be drafted up front.
Jeff
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10,303 Posts
I have a full time day job (I'll retire in about 3yrs), and a part time job at home, DZ Automotive (house has a 6car garage).
I require MOST customers to pay cash. I only accept checks from a FEW people who have proven to be reliable.
No problems.
I DO NOT work on nasty, greasy cars, just early Chevys and Vettes--------CLEAN ones! Mostly what I do is rebuilding 4spds, EARLY Chevy rears, Rochester FI units, engines and some chassis, suspension and a little electrical work. I work at my own pace and make NO delivery promises (it'll be done when I'm finished with it :thumbsup: ).
NO computer or emissions related crap.
This gives me extra spending money and finances my annual pilgrimage to Goodlettsville, TN.
I require MOST customers to pay cash. I only accept checks from a FEW people who have proven to be reliable.
No problems.
I DO NOT work on nasty, greasy cars, just early Chevys and Vettes--------CLEAN ones! Mostly what I do is rebuilding 4spds, EARLY Chevy rears, Rochester FI units, engines and some chassis, suspension and a little electrical work. I work at my own pace and make NO delivery promises (it'll be done when I'm finished with it :thumbsup: ).
NO computer or emissions related crap.
This gives me extra spending money and finances my annual pilgrimage to Goodlettsville, TN.
i've owned a small construction company with my partner for over 30 years. he was my brother in law for the first five and then he divorced my sister. she was not a good wife. we have remained partners all these years with very few minor bumps along the way. i will agree that partnerships seldom work, but they sometimes do. the best advice i can give is to make sure you charge enough money to make a good profit, otherwise ,pass on the job. it's better to not have any work than to lose money on a job. don't be tempted to lowball just to get the job. if you are good at what you do, then good paying customers will find you. money problems are a partnership killer. we have a reputation for being exspensive, but all our customers never complain because we get enough money to do a great job. think about it. do you really want to work for someone who wants the cheapest price on everything? these people make the worst customers, so avoid them and stick to your principles and you will make money. have strong payment policies and don't deviate from them unless it's your mother. respect your partner and always talk out your problems. have a system to check each other as far as money is concerned and have this system in place before you start up. it will be hard to do after you start up, because it will look like you think he's cheating you.never ever lie to one another.doubt and suspicion will kill a partnership so be upfront with each other. my two son in laws have a transmission shop and have been partners for ten years and they are doing great also. try to set things up so that neither one gets hurt too bad if it doesn't work out. if you don't try it, you'll never know. good luck!
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Sign in my office-
No partners
No employees
Just me and my imaginary friends
I like it that way
My wife and I started this business in June, 1984. Auto repair and service, specializing at that time in Peugeot, Saab, and Datsun, although I worked on just about anything foreign that I was comfortable with. Niche marketing assured us that the shop would be profitable from the beginning. I work a lot of nights and weekends on customer's cars, shop maintenance, shop books, and it is pretty much my life. I enjoy what I do because I do it for myself, if I was working for someone else, I'd probably hate it.
Good luck, it ain't gonna be easy.
BillL
No partners
No employees
Just me and my imaginary friends
I like it that way
My wife and I started this business in June, 1984. Auto repair and service, specializing at that time in Peugeot, Saab, and Datsun, although I worked on just about anything foreign that I was comfortable with. Niche marketing assured us that the shop would be profitable from the beginning. I work a lot of nights and weekends on customer's cars, shop maintenance, shop books, and it is pretty much my life. I enjoy what I do because I do it for myself, if I was working for someone else, I'd probably hate it.
Good luck, it ain't gonna be easy.
BillL
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