hi all i'm in the process of turning my car hobby shop into a full time business, because the son-of-a-bitches at Exxon Mobil is deciding to close down our facility by the end of the year. I've been doing metal shaping and building street rods for about 10 years. Always done work for other people on a hand shake, only had one problem. Now that I have decided to go into business I probably ought to get some kind of contract. I'm looking for some advice on what you business people put in your contracts. Any suggestions would be greatly appreciated. Johnny
Turning your hobby into a full time business is not a good idea. As far as contracts go, each customer is different. Its the ones flashin around big dollars that you got to watch out for, those pay in full before they pick up. They will try some shady story every time. I would sugest a quote, then 25% down, then pay as you go. Bill every 40-60 hours. When no pay, no more workin on their shit. Good pay, every time you bill, then their job is a priority. Good luck.
Okay. Im sure people that say dont turn your hobby into a job mean well and more than likely speak from experience. I actually feel the same way. However, You have to Survive and NEED to do whats right for YOU! If using the skills that you possess and the gift of creating Hot Rods can save you from Bad financial troubles, by all means DO IT! You have those gifts for a reason and sometimes you have to RISK to get ahead or just to stay above water. You are smart to come on here and ask for advice but do realize that only you and only you will sleep or not sleep based on your decisions. Good luck and God Speed
Put everything in a written contract that states what work to be done and how it is billed. Per job, per hour, whatever. Get paid on a weekly or bi-weekly basis. Do charge for storage if someone stops paying, you are not going to have abundance of space. Do not take on more than you can finish in a normal timeframe. You expect to get paid for work, the customer expects to get the work done.
a bad day doing something you love, is better than a good day, doing something you hate. pick your customers
My "contract" states 1/2 labor and all parts and materials up front before work is started. Balance due before vehicle is picked up. Thats all based on an estimate that stays the same unless the job scope changes.
never do work for relitives. I built custom chassis for my brother inlaw a year ago and still haven't got paid
actually i think the person that turns a hobby into a business has a leg up on the people that are in a business just to make money. if possable i would try to work at a shop to get knowledge about suppliers,customers and so forth, just dont advertise to the owner thats what your goal is.
What everyone else said and I'd like to add... Have enough money in the bank to finance the business for a year if you have NO WORK. If you can't do that, you'll regret it later. six months is the bare minimum unless you've got a steady stream of work already.
Don't turn your passion into a full time job. You're much better off with a safe, boring job, wishing you were doing what you love. Wait until you're old and retired, and barely able to work on anything. Take it from me, I've had many friends try to start their own business and they and their families starved to death. If you do ignore this advice, my 2 cents would be to document everything you spend money on for tax purposes, and research any/all tax breaks you'd be eligible for.
PM me and I can get you our "new project" and "project delivery" contracts. They tend to keep both the shop and the customer "in the know" about what both wil receive.
Never take in more work than you have facilities to keep inside and still be able to work on (if you're in a bad area) or outside and still have room to work and move and breathe. More guys have been sunk by taking in more than is going out paid for than by any other error except genetic stupidity.
My one piece of advice would be insurance. Make sure you have at least minimal coverage on the projects on location, and parts that are stored on location regardless of what the customer says. I had a buddy lose everything in a fire, and his insurance would only cover what he owned. He was sued by several people who had very expensive cars in his shop for minor repairs.
Wow I just logged in to ask the same question. I am looking at starting a shop too. Ive been a mechanic for many years and spent some time restoing classic cars. Hotrods and customs have been my hobby for many years-oh since I was 5yrs old! NowI'm 37yrs old and have some small business skills too. Yep I was told making your hobby your job would kill your hobby but I got through that stage. Go for it, I am, just be prepared and informed before you start and get too busy to know how to run a business ie keeping up your book work, CASHFLOW!, insurances, contracts etc
Just to add to my above post, anyone on here that owns or works for parts suppliers I would love to hear from you as I am seeking suppliers for my business Thanks.
I'd just like to add what may not seem obvious. Insurance, talent, contracts, work, etc. is important, but don't forget to make sure your family is on board and if possible pitching in. Wives make better bookkeepers and organizers. Starting a business from scratch is not like holding down a job. If you are going in early, coming home at all hours, working weekends and going to swap meets/flea markets/cruise nights in what little time you have left to market your business, your better half better be on board, especially if you have kids. Trust me.... My wife is at home with our 18 month old son right now and I'm building my business. She knows I'm working my ass off and gives me space. I don't need to hear about not doing the dishes or washing the windows if I've already worked 60 hours this week. Just my 0.02
Be patient.Sometimes passion clouds good judgement.When you think you have thought of everything and all bases are covered,multiply that times two.If you are married make sure she is beside you 150% and sometimes listen to what she says.Pride can destroy a business and a marriage if not careful.The best of luck in all that you do.
I guess I just don't understand that rationale. Some people just like building hot rods but do not enjoy driving them or going to rod runs. Some people only like driving a hot rod but don't like to work on their car. Some people just like to show or exhibit their car. There is no right or wrong there unless it is someone trying to tell me what I must do to enjoy my car. So if someone is the type that likes to work on a car with a budget bigger than their own wallet, ...then owning a shop working on other people's vehicles is a very smart thing to do IMO.
Id be glad to email you a copy of the contract we use at my shop. Its a ton of work 100hr weeks but I think its the best job around. Do what you love and you will love what you do. Just remember one thing: You open you doors for business and someone wants work done- they are a customer FIRST , a friend second. And if they are a true friend , they will understand that without you having to tell them. Good luck and PM me if you want a copy of that contract and release form I have.
Go to your bank and ask for the name of the go-to-guy at the Small Business Administration. Also ask if there is an economic enterprise zone or some other type of operation designed to help guys like you start a business. Sitting across the desk from a mentor who's been there and done that is invaluable Don't discount the possibilities of a partner. My only regret in running an advertising and marketing business in the hot rod industry for 20 years was not hooking up with a partner that came to the table with business expertise to compliment my creative skills.
I've found it easier to build/finance a project yourself and then sell it, it limits the liability. No customer cars around the shop. Best of luck! Dave
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