New Owner

[AD & Son's]

New member and new shop owner, sure am glad I found this site! Thought I would run my basic ideas by you guys and see what you think. I retired from the Marine Corps and I'm in this process of outfitting my shop. I'm not borrowing any money to fund the shop. I have enough money set aside to pay for the equipment and cover the overhead for the first year. I've got a 10,000 square foot shop on a major highway. I plan on doing tires, brakes, oil changes, exhaust, state inspections, and whatever else comes in. I don't plan on rebuilds or anything like that right away. I do plan on major projects for when times are slow. Mainly when I'm able to hire someone else. Right now it's just going to be me, but I think my Dad is coming to work the front with the customers. Luckily because of my retirement I don't have to draw a check from the shop, although it would be nice. For the time being I would rather use that money to pay someone elses salary if I can get enough cars in the door. I've got a website being built, a sign for the building, a CPA, insurance, and ATD for tires lined up. Shop equipment consists of a 2 post lift, 4 post lift, tire changer, tire balancer, exhaust bender, and various odds and ends. Anything I'm forgetting? I haven't done this before and you guys have, your opinions matter! Thanks

[xrac]

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[mspecperformance]

Any large purchases I would suggest discussing with a CPA any tax strategies. If I were you I would want to hoard as much cash as possible. What you can buy as a lease or finance with a decent rate it might be better off for depreciation purposes.

[AD & Son's]

Thanks for the suggestions, XRAC the above tools are figured in. MSPEC I haven't looked into leasing equipment, I was just figuring on buying to try and keep my overhead as low as possible. I'll have to talk to the CPA about it. I was thinking the Autel scanner could do TPMS functions, more research is in order for me!

[kars]

Take the time now to get some auto management training. Do it now or it's not going to happen. This was the biggest mistake I made. I started out the same way you did, same plan, no debt, only employee etc.. If you do not know what numbers you need and how to get them it will be a long and painful road. There are a number of different companies out there that will help you (read, take your money). Do your due diligence in researching them and choose the one that fits you best.

I would advise partnering with a parts distributor, NAPA etc.. You will be able to offer nationwide warranties as well as many other perks.

When the shop is running try to join ASA or some similar group. They will offer training and some mentorship in most cases.

You know about the hard assets you need, tools and equipment. You may know how to repair vehicles. What you probably don't know is how to run a profitable shop (5 years later and I am just starting to get a handle on it).

[mmotley]

Take the time now to get some auto management training. Do it now or it's not going to happen. This was the biggest mistake I made. I started out the same way you did, same plan, no debt, only employee etc.. If you do not know what numbers you need and how to get them it will be a long and painful road. There are a number of different companies out there that will help you (read, take your money). Do your due diligence in researching them and choose the one that fits you best.

I would advise partnering with a parts distributor, NAPA etc.. You will be able to offer nationwide warranties as well as many other perks.

When the shop is running try to join ASA or some similar group. They will offer training and some mentorship in most cases.

You know about the hard assets you need, tools and equipment. You may know how to repair vehicles. What you probably don't know is how to run a profitable shop (5 years later and I am just starting to get a handle on it).

Probably the best advice you can get!

 

A good management training course will teach you KPI's, advertising, employee management, basic accounting/bookkeeping practices, etc. Just like kars, I went almost 2 full years before I actually started being profitable. This may seem like a huge investment, but you'll likely make that money back in 30-90 days if you apply half the information they teach you.

[Jay Huh]

10,000 sq/ft shop and just yourself??? That's huge. you are going to need hired help, even if it's just a teenager to give you an extra hand for $8/hr.

Get the right software. I strongly recommend Identifix, saves you a lot of time diagnosing. Very important since you're the only tech

[AD & Son's]

It is a large space, right location right price. There isn't a lot of buildings available. No one really complains about having too much room!

[ATSAutomotive]

I started my shop with just the money I had in my account and slowly grew over time. I had just the tools in my toolbox and no actual equipment. Start slow, don't try and buy everything at first. See what items you need and take the time to do an ROI report for every one. Shop has been open going on 8 years. Have 9 employees, three tow trucks. Just keep your head on your shoulders and THINK about every decision you make. Good luck!

[Jay Huh]

I started my shop with just the money I had in my account and slowly grew over time. I had just the tools in my toolbox and no actual equipment. Start slow, don't try and buy everything at first. See what items you need and take the time to do an ROI report for every one. Shop has been open going on 8 years. Have 9 employees, three tow trucks. Just keep your head on your shoulders and THINK about every decision you make. Good luck!

Tow trucks! For some reason I never thought about that. How is it? Do you have a tow truck driver full time? ROI?