Have your own parts/repair shop? (LONG POST)

[DixiePlowboy]

I've been contemplating starting my own ATV/cycle shop for years, and I've come to realize that it's never going to get started if I don't take another step in that direction. I have done service work for several people over the last year and a half out of my carport. Those customers were either people I already knew, or found me by word-of-mouth. All felt that my work was well worth the money I charged them and I haven't had to re-do anything for them because of a failure of my own.
I need advice concerning start-up.

My specific ideas at this point:

1. Location: On my property in a rural community at least 25 miles from the nearest dealership or established shop. I won't have to rent, lease, or buy land.

2. Physical shop description/details: Modest but attractive and sound. Concrete pad floor. I have metal workers (like myself), carpenters, etc..friends that will help with construction for a modest labor price. Dirt work will be minimal and for fuel costs +minimal operator fee since I work for an excavator(in his shop) and have operators for friends.

I'm guessing that my total site preperation and construction costs are going to fall between $10K and $15K since I have many good connections and several building-type options. Building permits and beaurocratic(sp?) crap aren't an issue here.

I'm looking to start off solo until business grows to the point that I can expand the parts stock, so labor costs will be nil in the beginning.

Inventory will be limited at the start and grow with the service portion of the business, which will be the foundation of growth.

I have a deal worked out with another shop for specialized service requiring tools/equipment that I can't afford right of the bat. Cylinder boring and a few other things will be done at a friend's shop at a reduced rate in exchange for my bringing/sending him those jobs requiring machine work for which I am not equipped.

Parts that I do not stock in the beginning will be sold to me(by him) at a reduced enough rate that I can make a bit on them, or else I order what he doesn't have in stock with only a fractional mark-up....until my business and stock grows.


There are countless numbers of wheelers and dirt bikes in this area, but the closest places to get service and parts are far enough away that I know that a local shop(such as the one I propose) that becomes well established and regarded will be very viable. It is no small benefit that it would be something I wouldn't dread doing everyday, nor have to go back to school for at 36-years old.



I do not have the credit or the funds to start this without some sort of grant, and my personal credit isn't good enough these days. I'm not going to put a second mortgage on my home, though I believe I can get a personal loan from a relative.


So, in ending this boring novel, anyone think I'm off my rocker, or on to something? Any suggestions or constructive critisism from shop owners or comparatively small owners would be VERY appreciated.


I'm too old and distracted by life with 5 children to go back to school for something I'm not already experienced in, and I'd like to leave something for one or all of them.

[Dirtcrasher]

I think it's a great idea!

To me, it's all about the demand..... In my graduation my goal is listed as "Steve's Honda" but tunfortunately that won't happen.

In my area, it's all about "not ridding" and not allowing us anywhere legal to ride. So, although there are quite a few offroaders in my area, it's not like it was 20 years ago and seems to continue to decline rapidly.

My local dealer charges double what Service Honda does and won't lift a finger for less than 87$ an hour. But they do have huge overhead also.

And, a concrete pad and a building built with the combined efforts of friends is a great way to start!!

[DixiePlowboy]

I can get a real good sized metal building with a roll-up door and a regular door for around $5000 installed(although I have installed many of them myself when I had a contract with the supplier), a concrete pad for about $1500 -$1800, and finish/insulate it myself.

The closest shops here charge between $65 and $75 an hour. I've been charging $25 and hour out of my carport with no overhead to worry about. With the shop I'm thinking of starting(cheap I think), I could charge $40 or so and still do well on all but those that go way up the road for warranty work. The closest Honda/Suzuki/Kawi, Yamaha dealer/shop to me is 25+ miles away and won't even work on 80's and some early 90's machines.

If I keep oil, oil filters, (some)air filters, and brakes shoes/pads for the popular models around here, I know I'll get a steady client base on the easy jobs, while getting some repair jobs(like top-end builds (etc...) to do.

Just a couple light-service jobs a day would keep the lights burning in the shop with my low-initial overhead, and a couple of guys I know that either still do this(35 miles away) or have retired recently ALWAYS had work backed up and waiting on them.

There's no telling how many $35 simple carb cleanings I've done in the last 2-years. Just on word of mouth.

I appreciate the vote of confidence DC! I think this is the best shot I've got of having something of my own.

[Dirtcrasher]

I figured you were thinking a steel building, best usable square footage for your bucks!!

You seem like an intelligent guy and thats what people look for. I'd choose the backyard guy over my local dealer any given day.... They have time to talk to you, listen to your concerns, teach you something you never knew and save you some bucks in the end.

I DO have a shop, but it doesn't make me much My problem is that I care about my friends or fellow trikers and I just feel awkward charging them. I'm just as happy getting beer or parts in lieu of payment. But, I certainly could use the cash

Sometimes I do charge people but it amounts to about 30$ an hour which I feel is more than fair because I care, I'm gonna do the best I can and if anything happens I'm gonna take care of it.

This has however backfired on me.... I had a bud with a KX125, I rebuilt that whole motor top to bottom and it ran 2 years with him beating the snot out of it without a hitch. ALL I asked for was a friggin 30 pack of Bud!! He showed up with a 12 pack of Bud light that he drank most of!!!!!!!!!!!!!!!!!!!!!!

I'll never make any money at it, but I will make friends which are tough to find as you get older. I've met some great people through this board!! I'm perfectly happy trading parts and favors especially if that person is willing to clean all the parts etc etc but if it gets dropped off, I have to charge something.

I guess I'd never make a good buisness man :LOL:

[DixiePlowboy]

I've helped out friends for beer or nothing too, but if you set up a business, charge folks a great price(saving them money), do good work, and treat them right, customers can become friends as well.

[brapp]

i ahve been doign servic ework for myself and other peopel for a few tyears now bought abotu every perts bike quad and triek from local junk yards for parts and have a conection with a local part ssuplier. if you ahve the means do it . start simpel and do it one step at atime.

[Mrs.Mosh]

I /we will tell you this...

1) Get a vendors license and set up accounts with distributors for your parts.This way you get your parts at about dealer cost.
I dont know what rules are needed in your area for the vendor license,you will have to find that out on your own.Through your local state and govt laws.
2) Under no circumsatnces do you want to "trade" service or parts.
You will find yourself sinking fast!
3) GET MONEY FOR PARTS UP FRONT.
I cant count how many times we have been stiffed for seats and parts from people."Yeah get me those brake pads and bearings"Then they never buy them.
Only buy popular parts that sell well,to keep in stock.
4) You will find it tempting to "help a friend out" Be real cautious of that one.
Set your prices and stick to them.
5) As soon as you collect payment for parts, replace the parts you used out of stock,save 30-40% of your profit for your pay,and dump the rest back into your.
business.(Always remeber, it takes money to make money)
The more you put back into your business,the more you will make.
6) You will hopefully learn to read, "the customers that are a PITA"
Once you learn who they are,avoid them...
7) It isn't no picnic, be ready for roadblocks at every turn.
You cant make everyone happy,and some people just cant be satisified,no matter how hard you try.

We have been in the powersports business for quite a few years now.
it is a tough economy now,and may only get harder.

Keep your overhead low.
I might suggest building a large storage/work shed.
People will have work done,and if they can get to the bike during the night hours before they pay the bill,It will be gone!
Not to mention, you will need to store quads in shelter while the engines are opened up,and to keep the elements off them,and cats from clawing up the seats.

And ....DONT FORGET UNCLE SAM !

Sorry if I sound negative, but 10% of the business you do, will have problems.

And most important...

I would highly suggest you set your busines up OFF your property...Or gate the property you have..


Running the business off the property stops people from rolling up your driveway at 8pm, and asking for stuff...
IT WILL HAPPEN...It does to us.
Think about that...
Sitting on your couch relaxing with your family and a Knock at the door,with some guy wanting his engine rebuilt, or tires changed.....

Lastly, run a shop only phone number!
Some people just cant read what hours you are open.Your home phone will be ringing until 11pm...

Most important.

It isn't a charity, it's a business.

[DixiePlowboy]

Sorry if I sound negative,

.

Nothing to apologize for. Good stuff in your post, 10-4 on the seperate number, the gate, the enclosed building(already the plan), and all the advice.

Truely appreciated!

[WIkid500]

Mrs. Mosh has it covered very well. I would say if you can swing it try getting things going on weekends and evenings. Get your shop built, start taking on jobs and get a steady business rolling. Once you have that covered then you could quit your job and begin working for your self full time. I say that because as you know the economy isn't in the greatest of shape right now, it's hard times for everyone. Toys come after bills and your relying on peoples disposable income to make a living. Not to discourage you at all in any way though. I guess I would start it as a cash on the side type of thing then move it over to a small business.

Maybe I'm cracked lol I'm no business owner.


Best of luck if you give it a go though!

[Howdy]

You will need a good insurance policy as well. We started our shop as a Hobby and only advertized by word of mouth.
We lived by this theory:
You treat a person good and they will tell 3-4 of their friends.
Treat someone bad and they will tell the world.

In Febuary ( 2009 ) it will be 20 years. We took it big and then scaled it back to a Hobby ( couldn't find dependable help ). We are now working towards a whole new direction in the shop ( sorta less time consuming ).

Yes, we have made a lot of mistakes in buying / selling stuff. But through it all we have been able to keep things going. Personally if I was to start something else I would do it the same way ( start it as a Hobby and let it grow from there ). We do use the same phone for the house as the shop, how ever we did get caller ID so after hours people get the answering machine. This option works good for starting out because you don't have as many monthly bills to pay starting out. Once the buisness gets going good you always add a new line to the house ( to get some privatecy ) and not miss a step in the buisness.

One of the most important things to remember is to stay organized. Example: We got overwelmned at the shop and became majorly dis-organized ( just the 2 of us had 20+ machines to be worked on for other people at one time ). We put the work before and cleaning / organization and we are paying for it. DustyW can tell you how bad it was. lol We are working on a complete organization now. With the amount of stuff we have now it will take a long time to get everything done. Doing all this organization we found out that we have at least 2 5 gallon buckets of bolts, nuts, and washers alone.
Our new motto for the shop will be: A place for everything, and everything in it's place.

I hope that some of this advice helps.
Howdy

[Eric250R]

I had the same idea about a year ago, been open for about 9 months now. I live in a rural area where at least 80% of the population owns an atv, and it is going horribly. If it weren't for the fact that I own the building and land I would have went under months ago. I know so many people here and thought for sure I would already have an established clientel. But the way the economy killed everyone there just isn't any spare money going around. I'm doing the same thing, parts, accessories, and repair. And alot of times I price stuff so cheap just to stay afloat, that by the time I pay for shipping I"m making like 5 bucks from a sell. I would be very cautious if you're going to invest money into this.