Mikelly Posted April 12, 2002 Share Posted April 12, 2002 Well guys, Jamie ran me around to a couple of shops he does part time work at in Richmond, Va. and I noticed that both were SLAMMED with work. it got me thinking. There is no "Hi Tech" speed/ race oriented shop in Fredericksburg, which currently has a population explosion of about 250,000 people in the three county region. Donna and I have looked into starting our own business, and because she is a woman, she stands a much better chance of getting a small business loan. Anyway, I'm day dreaming about 3 work bays, and an alignment rack bay, as well as a Dyno bay. I'm also day dreaming about an upstairs for storage, and a "Show room" for small parts samples like shifters, pedals, seat harnesses, wheels, bolt in and weld in cages, brake systems... the usual stuff. Couple of questions here... What would YOU ADD to a business shop, and has anyone tried to get a small business loan before and how hard was it/ successful were you??? Mike who is DAY DREAMING, but possibly gonna make the big leap.... Quote Link to comment Share on other sites More sharing options...
Owen Posted April 12, 2002 Share Posted April 12, 2002 Mike, Sounds good! Especially if you have a dyno. I hope there are other shops nearby, like muffler shops and tire shops, etc. I wouldn't depend heavily on the accessories side of things. You can get clear lights and aluminum pedals almost anywhere like Summit or the huge number of ads in Turbo magazine which all sell the same thing. My friends have been in the business over 10 years and have lost a lot in the past 4 or so because of cheap crap coming from Taiwan, etc. Fake one piece tuner wheels that look cool but are heavy and would probably collapse if you ran over a speed bump too fast! If there's an import crowd, I would suggest going JDM since that seems to be the craze right now. Or go with parts for the newer imports like the WRX and soon to arrive Evolution VII (VIII?). My friend is an importer of ENDLESS brake parts and I'm sure he'd be interested in selling to the East coast. Email me direct cuz I don't check here on the weekends. Owen Quote Link to comment Share on other sites More sharing options...
Z-Gad Posted April 12, 2002 Share Posted April 12, 2002 You know...I've been thinking about performance shops arouind here as well. I think an ideal thing would be to have an area of land where you would be able to have the shop and also have a 1/8 or 1/4 mile strip too. (I imagine land is getting a bit pricey in your area though). Another thing is the appearance and reputation of the shop being important, but ideally the customer service aspect is extremely important to me. I've gone into half a dozen shops down here in Orlando and rarely do I leave with a warm fuzzy feeling. I'd just once like to walk into a performance shop and hear "Hi how are you doing? If you need anything, just let me know and I'll try to help you out." Just my $.02 Quote Link to comment Share on other sites More sharing options...
dsommer Posted April 12, 2002 Share Posted April 12, 2002 Mike fantastic idea but look before you leap. It sounds like there is a market for your services but do your homework. Banks like to see real numbers when proposing ideas. If you've ever done a business plan great, if not go to any local college and they should have a small business center (which is usually funded by the state so the general public can use the services). There you will find a wealth of information on SBA loans (yes it would be easier for your wife to get a loan), business plans it's very likely that someone has done what you're tying to do and published a B-plan on it. Also don't discount using a major parts brand or oil company for advertising help. The Big-Q didn’t get there by mistake and someone will more that likely help out with signage and promo items if you carry and use their product exclusively. All said it’s a long and tedious road but at least explore it and if it looks good GO FOR IT. I have several ideas for business per year the downfall being somebody else always beats me to the punch, don’t let this happen to you. Get on it and stay on it. Good luck, David Quote Link to comment Share on other sites More sharing options...
Sumo Posted April 12, 2002 Share Posted April 12, 2002 About 6 years ago my sister in law and I applied for SBA loan for an Audio Bookstore in Dallas. The process wasnt hard at all but they do want you to do your homework and have good numbers. The fact that a woman was applying and me, of asian descent made it easier to get to qualify for the women and minority part of the loan. But be sure you can prove youre numbers. We were kinda like reaching for numbers. But we got the loan anyway Quote Link to comment Share on other sites More sharing options...
Owen Posted April 12, 2002 Share Posted April 12, 2002 I agree with Z-Gad, so many stores around here have popped up just because of the performance craze. Most are punks that get their technical info from Turbo mag. They don't know anything about customer relations or customer service. I guess it's because most of their customers only want those windshield sprayers with the blue lites in them?! Owen Quote Link to comment Share on other sites More sharing options...
Guest the_dj Posted April 12, 2002 Share Posted April 12, 2002 Mike, you could get some SERIOUS publicity with that dyno if you use it to your advantage. Maybe have 1 free dyno day per month, where people can come in a get a free dyno run. Maybe include free dyno runs on certain performance install. Have a package of intake/exhaust and maybe computer or high flow cats, etc...price it at market prices and throw in a free dyno run afterwards. Stuff like that will draw more people faster than you'd believe. Team up with an 1/8 mile track in the area to offer a free run with performance installs instead of a dyno run, etc. Also, make sure that the people who come in feel welcome. IE, be careful when picking your wrench-heads...they can be mean and grumpy. They'll lose business as fast as your dyno will gain it. If you can find a way to make people welcome just hangin' out at the shop, pretty soon you'll start seeing revenue. Open the shop up for a late night weekend once a month where everybody can come hang out in the parking lot and look at everybodys stuff, run dynos ($$$), or splurge on that new exhaust or intake they wanted. Keep odd parts (seats, gauges, nitrous systems, etc) IN STOCK and people under peer pressure will buy them on the spot. Have some fun, make friends DJSS EDIT: make the kid feel cool even if all he wants is the blue spritzer lights. Even if you hate them, don't pressure him to get anything else, just install them and send him on his way with an enthusiastic enjoy your ride. If the CUSTOMER likes his car, SO DO YOU. Shop owners can't be biased. Quote Link to comment Share on other sites More sharing options...
Guest the_dj Posted April 12, 2002 Share Posted April 12, 2002 Dang it Mike! You done got ME wanting to open a shop... grrrrrr. DJSS Quote Link to comment Share on other sites More sharing options...
Modern Motorsports Ltd Posted April 12, 2002 Share Posted April 12, 2002 Ditto what David and some others said. Business plan is king and paramount. It'll also help you see what is important and what isn't as far as cost/benefit ratio. (ie. does a dyno payoff in a 3bay shop, 4bay shop....they're costly when not running). Quote Link to comment Share on other sites More sharing options...
Guest JAMIE T Posted April 12, 2002 Share Posted April 12, 2002 One of the shops I took Mike to has a Dynojet. During the week, the dyno gets a couple pulls a day, on Saterday, you must wait in line. One of the things they do at the shop is invite clubs for "Dyno days". I've been there on two differant Club dyno days and the guys hangout and shoot the bull and root for there buddy as the car turns the rollers. Its a lot of fun. They also use the dyno to tune the cars they do work to before they leave the shop. This does two things, it insures what you've done is correct, and gives the customer proof that your work/parts are worth the torn rectum. One Friday night a month, they have a open house kind of thing, and hook up a Playstation 2 to play GT3, you can come and test your skills against the employees(real racecar drivers) or your buddies. I haven't had time to get there on those Fridays(I'd kill'm at GT3 anyway) but they say its packed. The dyno runs continuously. I say, if you make it a fun place to hangout, provide a service people want and be nice to the customers(even the ones who don't buy anything), you could have a profitable businuss. Do it Mike!!! I'll work for ya, but you know I'm not cheap Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted April 13, 2002 Share Posted April 13, 2002 Don't want to start trouble about racisim but I was told by an SBA agent the chances of getting a loan for me was slim and none because I was a WASP (white anglo saxon protestant) I swear his exact words. He said he'd deny he said it if I repeated what he was telling me. Then he told me to get a black or hispanic partner and the loan would fly with no problems. Not very encouraging but I started anyway under capitalized and succeeded in spite of not enough money for start up and was eventually sucessful. I never forgot that experience because for the first time in my life I knew what discrimination felt like. Quote Link to comment Share on other sites More sharing options...
stony Posted April 13, 2002 Share Posted April 13, 2002 mike 2 words... import tuning!!!! it has expoded in japan and they are getting serious power from them.... i think the import thing in USA is just getting started. maybe contact HKS ect ect for some sponsorship. A shop on okinawa has a monthly dyno competition to see who has the most horsepower Its half price to enter (25) and the dyno goes all day. A guy in alaska has the only dyno in town and he charges 100 bucks a shot.... im thinking there would be more the 4 people that would pay 25 bucks to dyno before youd get one to pay 100. Just my opinion. I think 50 bucks for 3 runs then an hourly rate for tuning of say 75 would bring alot of business. If taking up a bay is a concern invest in the dyno you bury in the ground that you can put a grate over an the rollers come up when in use good luck. stony Quote Link to comment Share on other sites More sharing options...
Mikelly Posted April 14, 2002 Author Share Posted April 14, 2002 BBowtie, you're correct... Us white guys already make to much money apparantly...Atleast in their eyes.. No, our plan is to put it in DOnna's name and get the loan that way. I'm gonna do a business plan over the summer, and then we will pitch it. I'm hoping we can get $100,000 to start it. I already have close to that I can lay hands on, but it would wipe out my retirement, savings, and investments... If we can use someone's money besides ours, then it makes much more sense! mike Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted April 14, 2002 Share Posted April 14, 2002 You might try a Gov. loan , not sure who you'd contact about it, but her being a woman stands a pretty good chance at scoring some GOV. money to open a business. Just a thought. Regards, Lone Quote Link to comment Share on other sites More sharing options...
Ray Posted April 14, 2002 Share Posted April 14, 2002 Chasis Dyno's are a big insurance liability, you may also want to price the cost of insuring this thing once you get it into your cost's... Remember perception is reality... If they think their car is faster it is... AKA the fart pipe sindrome. It sounds faster so it is..... Good luck... I agree with th others your employees are everything.... Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted April 14, 2002 Share Posted April 14, 2002 Mike, This from a small business owner who has just poured a ton of money into my business. DON"T use your money. Your money is after tax money. That is,you have about half of what you earned. Leave it where it is and let it grow. Use the banks money and use your assets for collateral. I'm not an accoutant so I'm sure that someone else can explain that better than I can but that was the bottom line of the advice that I paid dearly for. Good luck, Mark Quote Link to comment Share on other sites More sharing options...
clint78z Posted April 15, 2002 Share Posted April 15, 2002 Dyno sounds good key thing is too keep the customers happy so they like coming back and don't mind spending time in your shop. A little room for coffee with a big window facing the dyno. Stock it with lots of of car magazines and catalogues of what you are going to order. An older computer with High Speed internet would be a nice touch as well. In order to get some use out of the dyno have some dyno shoot outs for the clubs and offer a small discount on the next purchase to the person who gets the most power. This will add some fuel to the fire of those power hungry people. Mabey plan a couple of little clinics for the car fans, this gets them in your shop and word of mouth goes a long way. What I am saying is don't overlook the service aspect of the business. The running store here where I live is like this, and I go out of my way to buy stuff there. Car people like to be looked after, good luck Mike !! Quote Link to comment Share on other sites More sharing options...
Mikelly Posted April 15, 2002 Author Share Posted April 15, 2002 I hear you guys when you talk CUSTOMER SERVICE.... I also like the idea of getting the Gov't to fund it. Donna told me that she is up to the challenge of it, so as soon as the garage construction is underway, we will start pulling together data and preparing a business plan. We are NOT gonna use our own money for this... We'll exhaust the Gov't grant/ SBL angle and see what happens. Mike Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted April 18, 2002 Share Posted April 18, 2002 I wish some one would open a high performance/speed shop around that area. I live on the northern neck and fredericksburg is the closest city around. you should go for it. Quote Link to comment Share on other sites More sharing options...
Guest Perry Posted April 20, 2002 Share Posted April 20, 2002 I've started on a business plan, picked out a decent location, and got an OK from the wife; but I'm still not sure I'm gonna do it. Maybe with some more research I'll get more confident. If you're looking into doing this check out the SEMA website, lots of market info there. I'm leaning towards specialty equipment manufacture, ie turbo kits etc.. Perry Quote Link to comment Share on other sites More sharing options...
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