Projects Business proposal- Just brainstorming (for now)

I have been in this business 30 years. I came from another country, paid my dues for 20 years in some fairly well known shops both in SoCal and the Northwest. I was able to open a small one man business almost 11 years ago due to the reputation I had earned. I am always busy, but work on my own out of a small building behind my very modest home. I also don`t make any money. That is to say, I pay all my bills, but there isn`t much at the end of the month. The recession put things back to a point where I survived. That was it. Make no mistake, I love what I do, and I am pretty good at it. Not stellar, but a decent craftsman.

By reading your plan, I don`t see any attributes that you have that would translate well to an actual business environment. Your choice to start and try, but I would never risk my house and savings to do it. Take what the Highlander says as the plain but honest truth. Because it is.

 

As a small shop owner of almost 15 years I would have been dead and out of business with your business plan inside of a year. Grow slow. At the start it was just me and a shitload of ambition and willingness to do ANYTHING to keep the doors of the garage behind my shop open.. Sink or swim. I built a reputation by pulling off the impossible and doing it with a smile on my face. Borrowed 0 money from the bank. Because times get real lean....like rice and beans lean. A lot. You can do it. But your going to work harder for yourself than you ever have for anybody else.

 

No partners.

You have a building with a lift, start there and don't open a business. Buy and sell cars as an individual/hobbyist. Find a body shop that you can work with, not your own bodyshop. Find a good mechanic that you can work with. Every place I've lived, I've found a guy doing side work or full time on a 1-2 car basis from his home shop for cash.

Use your building as storage, the EPA condiserations are very real. Permitting any new commercial additions will be very involved.

If you do enough cars, consider a dealer license and you can buy/sell at auctions. Spend your money on a trailer and a good truck.

 

Whew, lots of comments, and I thank everybody! Too many to answer individually, so I'll try to give some broad strokes answers.

I see I haven't presented myself very well. I do have over 40 years' experience in this field. Along with modern techniques, I can still hammer weld, use lead, English wheel. Hell, I can weld cast with a Lincoln buzz box and nickel rod. My early years were hand forming metal replacement panels. I didn't mean to give the impression that I had no knowledge or skills, or that I was not willing/able to do it.

Also didn't mean to imply that I had NO money. My point was that I don't have millions. But I'm not going in broke.

Lots of repeated comments about doing it 'on my own and seeing how it goes'. That's exactly what I have been doing, now it is time to look at the possibility of taking the next step.

I have plenty of experience in operations- clerical and desk work. I did think that through.

I know my area very well. While not that conducive to walk-in traffic, it's not that critical in this type of business, and in today's connected world I have sold to people all over the country and the world. I have some good regular customers in Australia and one in Sweden that want specific cars. They buy decent stuff but would gladly pay me to make them extra-nice before they're shipped. It's a big world out there. Lots of people for whom cost is of no concern, somebody they can trust is. And I have those hard-won relationships.

My shop- believe me, I know ALL ABOUT what the DEC requires regarding underground tanks. Those were properly removed and certified back in the 90s, and I have all the documentation for that. It was the main requirement my lawyers insisted upon before I bought.

As for a partner, I hear all of you. Perhaps I didn't make my overall point well enough that I intend for anyone who was part of this to be able to share proportionately in the rewards since it will require their dedication. All this is still in the brainstorming stage.

As for the name, yes, that's what I've got. I'm not too worried about Rawlings since he does not use the same name at all, combined with the fact that we can document that we have had our name for a few decades before he came on the scene

Again, thanksfor everyone's input. Special thanks to Highlander for experienced knowledge, and Tony Martino for being the only one to add positive comments I freely admit that this is an unlikely dream. But most of the world's biggest successes tried and failed several times before their ultimate success. And the whole time there was a steady drumbeat of naysayers and I-told-you-sos. Read the stories of Walt Disney, Milton Hershey, Henry Ford. Those guys spent their whole lives becoming 'overnight successes'.

Finally, it comes down to personality type. Some play it safe and keep their lives simple and comfortable. And some want to go to their graves having put it all on the table, win or lose. As a family man I did the safe part, even though it went against my nature. Now, with no children left to support, no debt, and a supportive wife willing to take any road that comes before us on the way to a goal, I can go for what I dream, high risk be damned.

Time will tell where that leads. The future is wide open.

 

I do have a dealer license, and have since 1984, when I took over from my father. I have always bought at auction and sold retail. Almost all modern everyday cars, some collector stuff. I have always loved it. I'm looking at expanding the collector end of it, which is my dream.

As for the addition, it varies greatly by area. Mine is very receptive to what I want to do, and the addition is already approved. That's the big reason I will stay and do this here.

Later today, I am off to Carlisle. Looking forward to seeing what cars are for sale and attending the auction both days looking for a good deal. Thanks again!

 

I think you have a good plan and a shop to do it in already is great,but i think the partner thing might not work out.Its pretty hard to find a young dude thats banging out work, and not in need of money.A guy like that likley has a family and probably needs to be paid every week.Not when somthing sells in a few months or more.I will admit,somthing like this would be a dream job for me but my wife would say no way,we need the cash now.Good luck though.I hope to be in your position someday.

 

When you say partner do you mean someone with a financial interest in the business or an employee?
I suggest that you maintain ownership and consider hiring one or two older, retired, experienced people possibly part time. There are many people right now that want to continue working a few or many hours a week after they retire.
They are flexible, mature, skilled etc. and it would be a win/win for both parties.

 

The answer is, I haven't ruled out anything at this early brainstormiong stage.
I do know a few local retired guys that have expressed interest in working very part time. They are more interested in possibly teaching young guys in a shop setting, which is part of the plan.

 

Here is the deal, if you take on a partner or an employee your mind set cannot lean toward failure being an option. You are the one responsible for the others in business with or for you.

In order to run a successful auto shop you have to do more then keep the doors open, you have to keep the doors open, the bays full and have customers lined up for future endeavors. If I were you I would be on the lookout for someone who is willing to do the heavy lifting, and be building a clientele over the next couple of years until you retire from the post office. Plan on paying your partner/employee out of pocket if necessary especially if they are good at what they do until the business takes off. Do not plan on your expansion until you have the business you have the business to warrant it.

Good luck

 

Bob,
If you are ever up north of Boston, MA, stop in and see this shop,
Don has been at it for 30+ years. www.competitionmotorsltd.com

 

You might find Carlisle the place to sell vs buy. The least you'll come away with is a current market study, real time live results. In my sandbox it's Amelia, Monterey and St John's in Detroit as sell vs buy. I don't know as much about auctions that deal in more generic cars ( no offense to such) which tends to be volume over higher profit percentages. Auction prices are not the end-all numbers either. Tread softly, be cautious. The bubble will burst sooner than we think. Feel free to PM and bounce ideas back n forth. I'd hate for you to think I'm sending a fully negative message. I'm not...

 

just brainstorming (brain farts?) - stop watching fantasy island TV shows, and using them as your business model - even using a twist on one of the names - if you have to watch, check out Misfits Garage - those guys have their everyday chaos on top of their staged chaos to make enough to try to pay themselves at the end of the day - putting up everything that you have that will be paid off is like someone taking their 401K, or whatever, and buying a big pile of lottery tickets in hopes of getting a big return - there will be a time when you can not even go look for a car to flip - you might even live to be really old - normal retirement money will not cover all medical bills, etc - you have a background in a lot of stuff so, you must have contacts that you might be able to work with to help develop a very ground floor operation - through those contacts you might find a talented younger wrench willing to at times expect little income in the beginning until both of you work together to build a business - watch out for the unexpected - keep dreaming

 

Advertise somehow at Carlisle that you are accepting apps for part time craftsmen skilled in the trade.
Briefly explain your plan. Suitable talent may appear. Provide apps for those interested.

 

Like in gambling, you bet big, you win (or lose) big. You bet small, same deal. You seem to have made your mind up that you are going to go for it and have a rebuttal for all the possible pitfalls. At age 75 and having been in the car scene all my life I can say for me personally, I'd NEVER consider a partnership in this type of endeavor. You see it differently and that's your decision. I'd say get going. You're not getting any younger and the sooner you start the sooner you'll find out if it's going to work. Good luck!

 

I think you have more on the ball and have figured out a good plan!! Just fishing for opinions? I say go for it!!! (I'm Chicken) Good luck!! Pete

 

Bob, I hear and see what your trying to do and I commend you as well as wish you luck. If your dead set on doing this my thought is go small and possibly grow. Your in Oswego and the only thing we have going for us is alcan, even OSU attendance projections are dropping. OSU's ratings have dwindled and it has become one of the nations drug collages. Entegy is bailing over dirty politics. And our teenage mayor appears uncertain. Just don't go too deep, I believe JJ would understand what its like to have the rug pulled out. Sorry if you feel im a jerk. It is an opinion and yo know how they are.

 

Could you open a shop so people come in and use your provided the lift, heat etc. and maybe tools to work on their own vehicles. They pay and hourly rate and get your buddies to come in and give technical support to the customer at an hourly rate and you get a cut. Similar to a gym membership with fitness coaches. You work on your stuff in the down time for additional revenue. Open up at nights and weekends, when customers are not at their regular job???

GDG

 

I'm about your age and it sounds to me like you''re about to take good hobby and fuck it up by turning it into a full time job.. Taking on any sort of partner and/or employee means you cant ever get up in the morning and say "I'm retired, I dont feel like playing today, I think I'll read a book or play on the HAMB." I'd say just keep piddling along with what you're doing on the side now, put a little more effort into when you have the time and decide if you really want another job. Good Luck to you!

 

Good to hear you've got a dealer license, sounds like you've been in the business for a while.
Glad to hear you have a receptive county/ city for expansion. Look at post frame metal buildings, 2x6 wall set on slab, sheeted in metal. You can build 1 or 2 bays at a time. Pour your slab, leave rebar stubs out the end wall and bury them, frame a door opening into your end wall with a header. Put your plumbing in the first addition. No electric in the end wall. When you want to expand, dig up your rebar and butt your slab up to it, pull the sheets off the end wall and build another 1-2 stalls.

I still stand by keep it paid off, don't mortgage your house, if you want to take time off, or something happens healthwise, just lock the door and go home. The only overhead is taxes.

I wish you the best either way, and would like to hear how it goes and the cars you've got in process.

 

- yikes!!

 

You mention racing: How many people have said that to make a small fortune in racing is to start with a large one! If you want to pursue your dream after retirement, then GO for it! Start small, low overhead, and rely on word of mouth. IMO!

 

This thread has to set a record for the most long winded responses.

 

Aye, Blue!
The fella asked the Maine boat builder what he'd do, if he won the state lottery:
"Well...reckon I'd just keep buildin' boats, till the money ran out!"

 

Number one, don't do a partnership. One person in charge. You can still split the money 50/50 but you want to be able to kick the other guy out if he is a jerk.

Working on other peoples stuff is a huge pain, much less headache to really do the Rawlins model (Ignoring that all his money is from the show, not the car business) and buy, fix and sell for the profits. You don't get your name slapped on some horror design that a Daddy Big bucks thinks is cool.

 

Remember: It is TV show...............And not a very good one. Although a reality TV show, I doubt if it is indicative of reality!

 

Not to split hairs. But his money is from a successfull advertising agency that he sold for stupid amount of money about 15 years back.

Sent from my SM-G900T using H.A.M.B. mobile app

 

Sounds like to me you already have the perfect set up. You have a shop, dealers license and buy/sell old cars without having to work on someone else's junk with a retirement check about to start rolling in. Man you are living the dream, don't screw it up!

 

Had a partner back in the 70's.... He nearly BROKE me. Never had another partner, and all has worked out well.....Everything else being equal, the only thing about your plan that worries me is about a partner, and as someone suggested above, there are plenty of older, honest, old school, hard working and very talented older guys who would love to put in 10 or 20 hours a week to help out in any way they can.........I would...........hahah