I'm toying with the idea of actually trying to sort out a small business loan so I can start up a motor shop and garage.

Ever since that guy mucked me about with the second hand vehicles bit, I've been thinking more and more of doing it on my own and actually going for something I have been wanting to do for years.

Even found a prime bit of real estate right off a main road that would be ideal.

But to be quite honest, not to sure where to start looking. Am planning to take a trip to the CAB and see if they can offer any advice and I know I have to draw up a business plan. But of course, getting advice from people who have actually started up garages and shops would be prefered than from a guy at a CAB.

Things like, how much does it cost to fully equp a garage with things like an MOT station, (maybe a rolling road?) to buy all the tools, how much trained staff cost, whats the insurance costs like for the shop, all these sort of things I need to consider.

Can anyone offer any adivce on what route to go?

 

yup,first raise some cash!

 

I've got no useful advice other than to say that I think the cost will be immense and you're gonna have to be doing something pretty special to make enough money to comfortably pay off a loan the size of which you will likely need IMO.

Hope somebody can help get you going though mate, best of luck.

 

Starting a shop wouldnt be a problem money wise. To fully equip a garage would cost a fortune and a shit load of hassle. Look towards a shop and see how you go. Just remember though, its all been done before.

 

how about trying to start something from home. get your name about a bit and a decent customer list!
then you can go to the bank with some experience.

buy the tools as you need them and write them into each job. i know it means you will be earning a but less as you will need to charge less for labour as some money will be going on tools. but then a while down the line when u have a good few people booked up start looking into getting a garage. you will have some tools to get started.

just an idea, maybe better than jumping in at the deep end.

good luck what ever you decide to do!

 

if you start a shop you still need stock, and then you never know if you'll sell the parts. Its a big risk but do your planning and research you should be ok. just be prepared for the long hours!!

 

like cowboi said start to build a name for yourself just now if you have your own tools then, do some work that way...

How old are you if you dont mind me asking? theres a business gateway place up here that help you out teach you how to wright a business plan an give you a few night lectures free of charge, might be worth trying to get in touch with them,

Best of luck,

MB.

 

mot setups are a nightmare now, rules are a lot stricter, you need a lot more room around ramps etc, you now have to take around 45 mins on each car aswell.
you would be better off sticking to servicing & repairs to start with.

 

Stu - i you don't know what you're doing, then you haven't got a chance.

It's possibly the most cuthroat business to be in, and the overheads can be astronomical!

The bills, insurance, wages, VAT, tax, plus you don't have any start up capital, any employees that are vehicle technician qualified in any way etc etc

Sorry to be a realist, but i's possibly the worst idea I've heard this decade.

 

If your gonna sell parts try starting up a business on Ebay. A greater number of people will look at stock etc throught that than you would ever see through the doors of a small business.

Its all about having a suitable and readily availible customer base.

Have you thought about tryin to find out about becoming a franchise?? I know it may sound shit but i know Powerflow and Longlife are always looking to franchise and you will also be able to do your MOT idea as you ll need a Ramp etc

 

stu the main issue with a new car business is finding a landlord that will allow car work to take place,,,,,,,, i know that the small arches in hackney are around 25k per anum for the smaller ones,,,,,,,,,, the larger ones are more money and they STILL are funny about mechanics renting em out

THEN you have to pay VAT on the rents now too

you are gonna need a deposit for the business plan too, theres alot of stuff to consider and MOT places wont just "open" the ministry want proof of the garage cause of all the stuff they give out and need to know its not fly by night


the BEST thing to get into would POSSABLY be bodywork,,,,,,, that requires the LEAST financial set up costs to a garage and also its easier to get permission from landlords due to no waste products that need to be properly disposed of as such


THE FIRST THING you need to do is see a business advisor,,,, i asked a while ago and someone on here gave me a link and i made a appointment and got all the infomation i needed,,,,,,,,, the business plan was a COOOONT to write and took me a few weeks and i had to keep tweeking it and get more advice ect as im not good with " paper work"

anyway i done it all and got adviced to approach a bank and basically they said to find a site i wanted and get a start date then come back,,,,,,,, i DID exactly that and then they turned it down and classed it as too high a risk unless i had 50% up front

the business advice place then offered me to contact princes trust i think and shell too,,,,,,,,,, i wrote of to all of them and i was granted with a 800 quid loan to help me with advertising ect and help me get started, was soooo coool,,,,,,,, 800 quid to help me,,,,,,,,,,,,, i just needed to find the further 9200k and then i could get the 20k loan

moral of the story is to graft and get as much as you can before and just get a loan the 3 months rent deposit ect and have no money worrys

good luck and hope you go through with it

 

MOT's are an hour, you can only do 1 an hour and with the new computerisation you have to physically log on and off for every hourly mot, so long gone are the days of writing out your mates 5 tickets at the end of the day!

my advice would be to steer clear of the motor trade if opening a business from scratch.

hth

Tricky

 

Yeah like has been said above don't.

 

sometimes it nice too dream isnt it!

 

Stu I have a mate who has been in motorsport for over 20 years, between us we have virtually every tool needed to run a garage, he has built pukka Rally and Rallycross cars in his garage for years, he has a vast knowledge on things like Suspension geometry, Engine building virtually anything Motorsport related, he has already a good name and customer base, I'm more than able to carry out servicing and more menial jobs that would bring in a regular Income, we have spent hours talking, doing the maths... and we have both come to the same conclusion, that to set up a business would be suiside, thats with us not having to pay wages etc...

For you to go in blind, with only a basic knowledge of mechanics, no customer base, and have to pay wages... sorry mate thats insane

 

i set up my garage in july 2003, kept my job at ford and worked everynight for 9 months to buy the tools and equipment i needed.In 9 months i took 84 pound from my business in wages the rest went back in

insurance is a fortune i have 150k of tools and equipment 3 staff plus myself,new alarm just cost me 1k shutters on workshop 2 k

my tool kit has 30k in toolbox alone

in all fairness mate its well worth doing but it is very hard ...but if its your dream go and give it a go..

 

Where ya from richie?

 

Remeber when I was..... Steve@RSX????

Well RSX cost £60,000 to setup and pay wages (2 people) etc etc for 12 months... when the doors closed as it wasn't viable to keep it going that was £60k up in smoke. We were the only garage on the entire industrial estate and that didn't even help us


Steve

 

cumbria
gtech

 

Ahh right, I thought I knew your car, mistaken

 

cheers

 

sorry i fucked this post right up

 

anyone any other good ideas as its obvious by many recent posts stu is after a break from the norm and is trying to think up that life plan?

I can only think of hard work for a living and its getting tiring at the moment!

so interested in peoples ideas...

I had three ideas on making money when I was in my teens..
getting a degree and becoming a fantastic design engineer or artist got part A but count design a new spoon and have even forgot how to paint a picture of one.
using credit cards to pay off credit cards and get free money! - think they call it interest free balance transers and thats going cracking at the moment
and then pic and mix vending machines...... thats gotta be a winner!

 

this is one of many websites to help you on your way,

www.businesslink.gov.uk

 

Just buy a Snap On Franchise. Once you make it past 2 years. You'll be OK forever You'll never see a poor Snap On man

http://www.snapon.com/uk/franchise/a...e_business.asp

 

i didnt think your mechanichal knowlega/skills wasnt exactly huge? well, doesnt seem to be.
if so, why a garage?

i wouldnt dream of starting up a airline, as i cant fly, so will crash and die

 

start a sex shop get a few polish girls then ur sorted

 

that actually works. you apply for a credit card that is interest free. max it out by writing a cash cheque to a savings account.

then set up a direct debit to pay the minimum payment each month.
then your earning 5% on the money and not paying any interest on the money you borrowed.

once the interest free period is over. draw the money out of the savings account. pay off how much is left on the credit card and all the interest youve made is yours!

 

Why draw it out tho mate? transfer it too another IFC card, and carry on

 

You dont really need an encyclopedia brain full of motoring knowledge to start a business its the business idea and plan which will help you suceed.

Cost of starting a business depends on how big you want to start the location/competition. Say starting a garage in London the rent is going to be a killer, but say out in the sticks it be cheaper with possiblity of getting a better location for your money.

A estimate a decent set of basic tools and equipment will cost £60,000, say £30,000 for rent and proberly another £25,000 a year ontop for other bits like insurane, tax, costs, say £150,000 to start up a 1 man band.

Getting investment aint easy most businesses start by putting thier own money into it, investing it and after a substantial amount banks and that are more likey to help you as your putting in your own risk.

Personally i would start of as a specialist in a hand full of areas, build a rep in that arena an then branch out instead of going all in trying to offer everything it can eassily turn out too much for you to manage.