I would go to the nearest Small Business Development Center (usually associated with colleges or universities) and get a specific spread sheet template and calculate the operational costs of the enterprise.....what an eye-opener! There is so much more involved than most people realize. You can use these spread sheets to determine how much money will have to be generated to stay afloat.......many times it becomes clear that such a move would be ill advised.
The ideal thing would be a good auto body shop (insurance pays) and a hot rod shop in the back.......Getting mother-fuckers to pay for car repairs, hot rod or not is ALWAYS a bitch......dealing with insurance companies is sort of a bitch, but they sure as shit have the cash.
I can tell you this for sure - the high's are the highest and the low's are the lowest. Using your skills to craft ( somthing excellent ) out of raw material is the greatest feeling.....and when you recieve payment & prasie on top of that - it don't get any better...! But putting your heart, guts & sole into a project your building for somebody that does not APPRECIATE your skills, dismisses the amount of real time you have in somthing, or bull nose's you and cheats you out of money - well that's the basement dude. I would never tell any one NOT to TRY - But you have to remember - its a bizz - and if its a sucsessful biz, you have to remove the passion. And if you remove that, is it still fun...??? One more thing - Your only in charge when you can say ( NO ) and refuse to do work on a project you think might be trouble - if you HAVE to say YES to jobs you smell trouble on cause you NEED the money - your screwed.
for ten years now we have taken no money down and bill about every two weeks, parts and labor alike. never stiffed never wait for money and one car at a time never more. we stay about two years booked up.... my hobby is still my hoby , just do it on my time eve and weekends just like before, kept one shop bldg for that and i still enjoy doing it... good luck and never let a customer owe you more than the project is worth at any given time 2 cents
I've only owned a business in trucking and somehow succeeded. I quit a job to persue my dream.Even if your customers pay, "if you own a business,the business owns you".Good Luck!
Been in the hotrod business for around 30 years. I've seen the best of times and the worst, but overall I wouldn't change a thing. I financed myself with no bank loans. (In my area if it doesn't Mo,Oink or grow out of the ground it is hard to get money) I am in the chassis business and get half down and the balance at completion. I have stopped doing customer turn keys because it got to to much of a hassle for me personally. I have been stiffed by couple of (friends) but that was because I didn't follow my established business practice or got involved in a so called trade deal. Just remember lots of hours and dedication are needed to be successful. I have made it a practice to keep the customer informed as to the progress of his purchase. The hotrod business has allowed me to go places. see things and most of all meet some of the greatest people in this country and abroad. Go for it!
Go for it without a doubt. I am a CPA, there are always corporate type jobs to fall back on if somethin goes wrong. Definitely take a pay as you drink approach. I am part owner of a company and have helped/watched many others start theirs. Most end up discounting price on the front end to get rolling. Once established, dont be afraid to raise prices, it will help you a ton.
hi all WOW what a response. I never expected anybody to offer me a contract to look over. Thank you very much Chop Shop and Clean Cut Creations. There was some very good points I would have never thought of. I have alot to think over and some decisions to make. So, I would like to thank each and everyone of you for your suggestions and inputs, they were very helpful. Its nice to know that helpful hints and suggestions are just a click away. The Power of the Hamb!!! Thanks Again, Johnny P.S..Thanks for the advice Brent, it was greatly appreciated!!
No problem- you are welcomed to call me to chat if you ever need to have someone else understand what you are going through- its hard but rewarding . Thank goodness my wife and family have been so supportive- my wife handles just about everything else BUT the building in the shop (website,PR,our office staff, emails ,correspondence) and still manages to hold her own full time job working in middle management AND take care of our son. Your family has to love what you do too. We are all in this together- there is definitley enough work for everyone....
Are you talkin handshake with new customers, or on rent with the landlord? I'm not sure which direction your question is aimed at
ALWAYS! Also get it signed by the customer. Keep detailed notes on how you've spent your hours. Customers almost never understand why they are being billed for so many hours and see so little change. Show them all the little things you do and keep digital photos as documentation. You can also give the customer a disc with all the photos documenting the build when you're done.
If you will be hiring staff too to help, remember to write your OWN hours down too... I used to forget in the first year that once I had staff and it costs ya in the end. If you have to hire anyone else- make sure you can trust them as you would trust yourself. Ask around about them- most dirtbags are well known but most people wont tell you unless asked... I also give my customer pics once finished and if you look at my site- they get a webpage to check the progress too. Nothing hidden is always the best approach. And if you do have a customer who starts getting itchy and bitchy- schedule time to sit down with them and talk until you both feel like something has been accomplished.
good luck with your new venture i take 50 percent down and the balnce at the end if its a long project like a full car do a payment plan as others stated if your family isnt behind you 100% you are screwed and always remember about customer service one unhappy customer can screw you over. and dont be afraid to take on new project we install bags and do metal fabrication and we work on minitrucks lowriders imports and once in a while hot rods
You only live once. If you fail you will get up. I jumped and have not looked back. Put everything in writing, get it signed off on and get a deposit. People have short term memory loss. Good Luck. Larry W www.metalworksdfw.com
It's wonderful to go to work every day and do something you like. However, you should retain an accountant to help you set up the business part of your new endeavor, so you have everything in order for tax time and also you should visit with a lawyer to understand all the legalities. Have a business plan. Businesses that don't plan, plan to fail.
Don't take credit cards. Unhappy customers can get all their money back and you have to take em to court to fight it. The card companies bone the business owner. It happens to everyone sooner or later. Good luck, better you than me.
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