I am looking for a part time job while I go to Graduate school and have thought about doing a speed shop/performance parts deal out of the house. How do you start something like that and what does it take? We only have one in the area that I know of and most people here mailorder. I can even get a cheap warehouse around here somewhere. Any Ideas?
First buy "Starting A home business for dummies". Great book! Everything you would want to know is in there about what you need to know to choose the right corporation for your purposes and what the tax benefits are. I suspect an S-Corp will be what you want since you'll be selling products. You need to read up on it though. I've been looking at this stuff quite a bit lately because I've been taking on a lot side-work and I'm trying to decide which direction to go. This is a good opportunity for some of you home-based guys to share. I think Vaphead might be a good person to talk to as well. I think he started out of his basement with Riley Automotive. I think everyone is looking for ways to make a little more money for their hot rod addictions right now.
The library has some good books on the subject, even the "for Dummies" books... I too have been researching this, trying to come up with "something", either being a dealer for hotrod products/paint stuff, or doing actual paint work.
It becomes a pain in the ass quickly, I built hot rods on the side for probably the last 12 years or so, while working full time at the airplane plant. When from a very enjoyable hobby to another job! Worst part was I never had time for my own stuff ! Getting into the parts business i would guess would take quite a bit of cash for inventory and stuff, plus like here you gotta check on zoning laws to see if you could even do it legally, my deal was i didn't do any advertising or did i have a sign up out side the shop so that no one really knew i was doing it even though it was a legitimate business with the state sales tax license and all that stuff. I "officially " closed it last January and now have time for my stuff even though i still have a few things to do on other guys but no more full turn key jobs, little welding here little paint work but nothing big and i am even getting work done on my shoebox!.
I might suggest that you contact "Thirdyfivepickup" here on the HAMB, as he works at V.S.I. Performance Warehouse in Hammond Indiana. Click here: https://www.vsihp.com/credit.php Have Fun !
Hey that reminds me of a cat I used to know that ran a H-P bussiness. He would sell parts that he never even had to touch. All computer linked from the warehouse to your customer. Didn't need a big location,just a buch of knowledgable dudes to answer the phones and take orders>>>>.
I know VSI, thats why I ask. They do a great job but I guess they, I believe, are more jobber and Van Senus is the parts store. I used to go to the Van Senus on Kennedy Ave. when I was a kid because my Dad did a lot of filter/fluid stuff back in the day for the mills and got big discounts. I was a kid and I thought it was fascinating that Freddie the owner and TV comercial guy knew my Dad by name. He scared me to because he had a real low voice. I was a puss then. Anyways, My problem is I need Friday/Saturday off for about 2 years to get it done. No one will hire me with that criteria. I have two jobs now and with that it will be imposible to go to school. I was thinking I could sell more vintage/specialty stuff and oddball used stuff. Not looking to make millions, maybe 15k-25k a year while I finish Graduate school. Sorry for the ramble. Just looking at my options here.
The difference between someone like Vaphead and Summit is that Summit sells mostly performance parts where Riley Automotive is specifically dedicated to the hot rodding hobby. I don't think Eric sells anything that Summit has and vice versa. Apples and oranges.
When your first post reads "speed shop/performance parts", I thought you meant speed shop/performance parts,like Jeg's, instead of "vintage/specialty stuff and oddball used stuff". Go for it.
I know I can't compete with them. Being a fan of orphans, finding Studebaker, Hudson, Nash, 215 Buick, and DeSoto parts sucks. Dealing in these parts outside of Chicago might not be too bad. Just ideas guys.
it's tough. You gotta have stock which costs bucks. Using home office business deduction is an automatic red flag for IRS tax reasons. Doesn't mean you'll get audited but increases the likelilhood. It really doesn't matter what business type you form as you'll be too small to take profit based deductions for awhile. I'd stay (and have stayed) sole proprietor. I've been a corp also. Check your tax laws. Sales tax and monthly filing is a pain. Plan for it. Taxes are a problem if you don't do them yourself. If people come to buy stuff, you need insurance which is way expensive. If not, less so. Note also that inventory is not tax deductible...it's an asset and as it increases, your deductions are lost due to asset increase. Many states have inventory taxes also. Finally, it's possible, can be a good second income, but it ain't easy and it ain't cheap in most cases. NOTE: All of the above only applies if you're going to do it legally/by the book.
The first thing it usually takes is cool neighbors and cool customers...the neighbors need to be cool and not bitch about ups, fedex etc showing up and customers need to be cool and not show up at your house after your agreed upon hours of operation...I used to screenprint at home and people don't respect boundaries and if those boundaries are at your place of residence you can hope for the best but you need to EXPECT THE WORST! COMING SOON: rodtees.com
Just some food for thought... You'll have to do upwards of $100,000 in sales to clear that kind of net profit... Or about $275.00 a day in sales 365 days a year.
was a dude in hamilton ohio jacks hot rods or something like that.i think he got his parts from speedway or something never came right out and said it.but said he could get about anything in their catalog and that was the price he charged.might contact a few parts houses ans see if you can get a dealership deal or something.had a buddy be fore we had a fallin out open a shop and has been doing parts and street rods for about 8 or 9 yrs now. and i think he had some dealings with jegs.that s another ave to look at. most vendors i'm sure have a "dealer price" start callin a few and pick their brains.but i can not stress enough how much owning your own business can be a pain in the butt.yours might be different.i was never as thankful as when we sold our bakery.damn dude it was 24/7 plus i had a fulltime job on top of it. thats part of the reason i'm going on 14 yrs on my truck.good luck ,beat the bushes........dave
Im currenty in school too as a business major, and with my crazy schedual it has limits on job opportunitys. I started a little Powerwashing business on the side, it has its up and downs but i get buy. I really think you should start a service type of business. Less start up and more cash in your pocket.
Okay, I know that eBay gets lots of flack on this site, but as one HAMBer said in the past, 'eBay money spends just like any other money'. I started it about 18 months ago, selling used parts for cars that I am familiar with: '37-'39 Plymouths. I own a '37, and am familiar with what those parts are worth, and which ones are most rare. I fell into selling '39 parts when I bought a truckload of them off a local guy who had just finished a restoration, and found the '39s share some parts with the '37s. I do this strictly part-time, about 2-3 hours a day. If I want the summer off, I knock off selling, but I continue to buy, so I have parts to sell in the fall. I think you could clear $1K per month, if you offer something few other people are selling, have a good knowledge of what you are selling, and know where to find inventory. Finally, research how to sell on eBay, a lot of success is in how you list your items.
Here's my $0.02...I second the motion for a service business..Here's what I literally fell into..8 1/2 yrs ago ,I hung it up as an auto mech at a dealership..We had just moved and I needed 2 tree stumps removed to build a garage..called a local kid ,who came out with his stumpgrinder...twenty minutes later left with $75..I thought ..Dang,what do you need to know to grind a hole in the ground??...So,after checking it out,I proceeded to buy me one...Fab'd up a small utility trailer..Printed up some business cards,took out a small ad in a local "nickle shopper"..It's now going on 9 yrs ,I have plenty of work that I schedule according to my car project....I subcontract to Tree Companies,and also do a lot of customer work from my ads....Not a lot invested,very few regulations,no inventory,plus my machinery & expenses are used at tax time ...Just a thought Stan
I just finished 6 years of grad school. Luckily I got a stipend. But I sold basic car parts over the internet. Still do a bit. Simple stuff like rotors, drums, coil springs, etc.... mostly targeted via ebay, mostly for muscle cars. I rarely touched the parts. I'm lucky in that my family was in the parts business for 30+ years, so we just upped the order points on some numbers and added some numbers to the inventory at the warehouse. Then I set up a simple ordering system and tracking system. It worked OK. That said I was only pulling in around an extra $5-6k a year. Not bad, but not enough to live on. email me if you have questions.... classicundercar@gmail.com but yeah, one set up a website and two start shilling on ebay. The fees are worth the exposure IMHO. and it is much more work than I anticipated, even at the volume I was working at. Chris
DON'T DO IT. If you love crs go sell something else. I have fucked up 3 different hobbies by getting into the BUSINESS. It took me 20 years to get my passion for cars back after making cars a business. I'm dabirdguy because that was my last hobby to get fucked up. We raised parrots as a hobby. Got to where I had over 100 breedin pairs, a seed and toy businesss, and I got to hate them. Only the nick-name and my very FIRST parrot are still with me from all that. Business is WORK and not FUN. Eventually the WORK will kill your passion. Sell something else, or go do a service job. Keep you car passion PURE. Trust an old man on this one.
Knowledge of the product and business is key. That covers a wide array of things ofcourse, but there is sooo much time and effort that goes into a "retail" type business, behind the scenes stuff, to structure it properly and make it work. It needs to be setup correct from the start, and that takes a bit of leg work and time, that you will not get paid for. Also, very few parts will make alot of money, some you barely make a profit on, others you will do well on... volume is where its at, you need to have a few customers that will do a fair volume consistantly. There is alot of paper work and homework to do each day. I dont do the volume of most places, I do just enough to keep cash flow through my "service" based shop. Someday I hope to have a retail side and showroom etc... right now its primarly online sales. Eric from Riley really helped me out when I was getting "serious" about setting it up properly. Quickbooks is a great acct program, helps keep your books in order, which no matter what type of volume you do, your books are essential. "clean business is good business" is what my fathers business partner told me when I started out, its a very true statement, keep everything clean and legit, its worth it. All this is really a headach and in the end you'll wonder if its really worth it. I personally love the "service" side of things, working, fabricating, creating and building... the parts, paper work, numbers and business side can wear even the strongest soul thin... AND I AM JUST A REALLY REALLY LITTLE FISH IN A HUGE POND, not even close to Riley or any fulltime parts source. Goodluck, do your homework, you better have some capitol (CASH) in the bank and alot of it, even for a part time business, especially in a retail type business. E-Myth Revisisted in a good book... its based on a service type business but the theory and approach can be applied through out the process of starting a business. I am in southwest Michigan, keep in touch and let me know if I can help, good empty room open next to me, might be expanding into even more retail here soon.
Parts sales just isnt profitable these days unless your a. manufacturing your own parts, b. selling massive amounts, or c. selling super niche market pieces. If your thinking of selling run of the mill parts Ive got two words for ya.... buy in. Most wholesalers will require a buy in of a certain amount of money. This keeps joe schmoe from being a "retailer" just to build his car on the cheap. In order to get a discount thats even remotely profitable most places will require $5000 minimum said buy in. Not to be a downer but it wont be easy and has the potential for some pretty good losses if you dont have a solid game plan. The economy isnt exactly booming right now either.
For what its worth,l I have owned a number of businesses and currently have a small corporation. I can tell you that though owning your own business can be the greatest thing in the world, it certainly does not fall under the category of easy or part-time or any other words like that. Especially a retail mail order driven business with microscopic margins. If this business is a dream of yours then by all means go for it and make sure your products are unique and can demand high margins due to limited supply or some other value-add. if its just an idea - there are much quicker and easier ways to make $25k in your spare time.
If you do it, do it as a business, not a hobby. And depending on your zoning, it may be better to do it as mail order (not a lot of traffic to your residential home etc). A fellow in Maynard, Mass. is a well known dealer out of his home in Stude parts... you may know him... Dave at Studebakers Parts & Services 978-897-3158
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