SHOP OWNERS: What the best advice you would give someone?

[chopshopcustoms]

As I am well into my 4th year as a shop owner, I am reflecting on my past 4 years and realizing I may have some insight for other guys to know about running and starting up a shop .

As a shop owner- what would be the best advice you would give someone just starting out or thinking about owning their own shop?

 

[Old Gold]

Use to own a shop for many years(non auto related). Definatley triple(if not more) the figure you think it will take to get started. Make sure to check with your local municipalities on permits and licensing(state as well). And MOST IMPORTANT, get any and all insurances to protect yourself. As a final, in the event the worst happens and you have to go out of business, try to set yourself up as an LLC(not very expensive). If you just operate as a DBA all your personal assets are part of your business and vice versa. An LLC will protect your personal assets from your business assets. Hope this helps.

 

[chopshopcustoms]

I Agree on the permiting and licensing 100%.
Not worth losing your business (although without being legal- it Isnt a business)
over paperwork. Do it right -like the rest of us -save your self the problems later on.

 

[Willowbilly3]

I did it twice, started small just on my own and found it almost impossible to make the jump into hiring a tech. Both times I was soon all too occupied with administrative things and wound up working way late to get the revenue producing work out. Then you have to make the leap to hire a good tech so you now both need to make a living. I tried hiring a low end helper but none of my spoiled customers want him touching their car and I tried hiring a girl to answer the phones but none of my spoiled customers wanted to talk to her. Then I started doing favors for the divorced waitress crowd by basically charging them what they could afford and I turned into the broke single mom welfare shop by word of mouth.
So, I would suggest to specialize and be the best at what you do, treat customers with indifference because you are the best and they need you. Be honest and don't blow smoke to cover stupid mistakes that we all make, bite the bullit when that happens and never ever make your customer pay for your education (or lack there of).
I also used to think I needed to talk everything to death, explaining everything and the processes involved. Do not get into that rut unless they are on the clock. The customer doesn't need to have an auto-tech 101 class to get a repair done, let them educate themselves on their own time. Don't even offer half baked work as a possible option, if you can't bring the whole system back to factory specs then you can't stand behind it and they need to go down the road. Be very careful with aftermatket parts and try to use OEM as much as possible, and remember reman=junk and come backs.

And on comebacks, drop whatever it is that you are doing and address a comeback IMMEDIATLY. You already have that customers money and they deserve immediate attention. Send a wrecker and pay for it if you have to. I cultivate my best customers by how I handled comebacks. Admit you are human and don't try to cover your mistakes with BS.
Hey, I could write a book here so I better stop now. Oh, one other thing, there isn't any money under the hood in a car, don't get into drivability stuff, doesn't pay to be smart here. All the money is under the car, that is why there are so many whore shops raking the cream off the shocks/struts/brake work.

 

[IAM-LDS-2]

Taxes=dont pay more than you have to

Use to own a shop for many years(non auto related). Definatley triple(if not more) the figure you think it will take to get started. Make sure to check with your local municipalities on permits and licensing(state as well). And MOST IMPORTANT, get any and all insurances to protect yourself. As a final, in the event the worst happens and you have to go out of business, try to set yourself up as an LLC(not very expensive). If you just operate as a DBA all your personal assets are part of your business and vice versa. An LLC will protect your personal assets from your business assets. Hope this helps.

A sub chapter S corp give you the same legal protection as a LLC ,and also gives you tax advantages that can be substantional.

 

[chopshopcustoms]

another few suggestions I have:

Let your customers become your friends. Do not let your friends become your customers. There will always be a line blurred when it comes time for invoicing.... and no true friendship is worth an invoice. Develop a relationship as time goes by.

Shops DONT need to have a storefront location unless they rely on drive bys. A resto shop can be in the back of a building (and sometimes better that way because you dont get guys just srolling by) and it can save you some $$ because it isnt 'prime' space.

Surround yourself with people better than you. Support staff,business consultants, accountants,attorneys- all of them should be better in dealing with the job than you- they should be experts in their field and be willing to pay for their knowledge.

Accept criticism. Somoen b*tchng and moaning isnt someone you need to hear from , but someone with years of experience or 'has been there' may offer a world of good advice. Listen ,comment and then listen some more.

Reevaluate your business strageties every few months. See what is working- what isnt and build on the positives.

Dont be afraid to fire someone. If they arent working to make you money- (which is their job and your goal) then find someone who is- never let an employee take over your business.


Dont be afraid to 'fire' a customer. If they are more hassle than they are worht for the check- have them pay up and let them go. No one deserves to be treated in any other manner than polite and professional. Dont accept a rude and demeaning customer- they will bite you in the a** in the long run.
I'd rather be known as a shop that means business than a guy who is known to be able to walk all over for 'free' work.

Say No. If you cant do something -say so.Know your limitations. I hear of so many people out there who have brought their work somewhere and its sat for months on end (the shop 's fault) or soemthing is done wrong. at least 25% of my work comes from other shoips that 'thought' they could handle the metalwork on a job and were wrong.

Communicate. Id rather have a customer say' I dont need to hear from you on progess every week/two weeks (whatever) than say' How come I dont know whats going on with my car?'


OK thats enough for now- gotta go get back to work- I want to get out of here before 9pm tonight.

 

[chop509]

#1 - Customer service!
Expect to put in a lot of long hours.
Have a bank roll set aside to get you thru any slow times you will probably encounter.
If the business is successful and needs to expand, don’t try to grow to fast.
Don’t be afraid to let go of some of the responsibilities and trust someone else to handle them (you can't expect to do everything).
The more people you hire, the more headaches you’re going to have.
Defiantly setup an LLC.
Get an accountant to help make sure you don’t get in trouble with the IRS.

 

[Tripper]

Shrink!

Er... find a good shrink!!! ; - >

 

[chopshopcustoms]

Er... find a good shrink!!! ; - >

I HEAR ya on that one...LOL

 

[cycledog]

I had a detail shop for a number of years. One thing I found out was that there are alot of people that want a job but not too many that want to work.

 

[Old Gold]

I had a detail shop for a number of years. One thing I found out was that there are alot of people that want a job but not too many that want to work.

And they wanted top wages not to do it.

Been there!

 

[harleyboy]

I went into a shop one time and ask the owner how many people work here and he said "Oh, about half of them". HB

 

[Willowbilly3]

I HEAR ya on that one...LOL

I think you need to be one.

 

[chopshopcustoms]

Ive found one of the hardest things is to let people go.

Especially when they are long term employees.YOU develop a good relationship with them because you spend more time with them than your spouse and then when you have to make a business decision to save your own a** , its hard. I hate that part.

Its taken me almost 4 years to find a staff that works as a team.

 

[hot rod surplus]

you need to build cars that you like , i think the freinds thing is right on the dot .and be able to do it all chop, weld. body work. paint. motors the more you can do the more you will make always stay open to ideas and never never be too proud to ask a question or for help . one it makes you learn and two and you might just learn something . tim need parts give me a ring ......

757 254 2493 hot rod surplus

 

[chopshopcustoms]

Anyone else? There is some REALLY good info here and I think other people out there have lots more to tell us- I bet what you have learned -even if it wasnt a shop- can be translated into some words of wisdom for all of us.

Small business owners definately have it the hardest but I think its the most personally rewarding.

 

[chopshopcustoms]

thought I d bump this back up- a few months have passed and I bet we have more words of wisdom out there.

I have yet another:

Hire more than what you need/want at the current time. Getting me a new front office staff and she is more than what I need out there now BUT in a year or two, she will be able to handle what comes at her...

Good for me.

 

[satanherself]

Keep it simple,,don't get cocky,,do NOT over extend yourself,,don't take on more than you can handle thinking that is how to get business,,as everything will suffer if you do...close for at least 1 month a year ,,<---therapy

 

[Twisted Minis]

This is a great thread. I am in the middle of opening my own shop right now.

 

[loadedcustoms]

hey, my name is will. been lurking for a while but this is my first post. Recently opened up a shop(not so much hotrods yet) and i agree with everything here. with the economy sucking so bad right now its tough but were trying to stick it out. i can say the startup cost of even a small shop can go through the roof quick, so be prepared. if anyone else has some advice please chime in, im still new at this too!