Garage business

[Fcalderwood]

hi I am looking for a bit of advice on starting up my own repair workshop. I am a master technician with a large well known Korean car manufacturer and have considerable knowledge of Japanese cars and would be specialising in such marques.
I am looking for a rough estimate on what the start up costs for a workshop with two lifts ( renting a unit ) working by myself and providing a quality service in repair and diagnostics. Looking to speak to someone with experience in doing this type of start up themselves and answer my queries with regards to cost, hidden dangers and how long to turn a profit etc.
Thanks , Frazer

 

[Mark T Jones]

Hi Frazer. I'm not experienced in the trade but as funder, have assisted many such start ups over the years

I'm afraid much of the answer will be 'it depends'. The biggest deal will be premises - costs will vary hugely depending on where in the country you are located and what type of premise you are looking for. Several of my clients operate successfully from very basic premises ( the strangest being home- based from what appears to be a modest semi with single garage - which accesses a sizeable workshop

On the other hand, a small industrial unit will provide better access and parking and greater credibility. Many landlords will require a rent deposit - plus you should enquire about business rates

I don't know much about second hand equipment but I would suggest you start with a single lift and the minimum necessary equipment and build from there

Get insurance quotes!

mOT facilities/ accreditation will also help

I'm sure you are aware that the big challenge will be acquiring a good customer base. Which is a separate thread - possibly in the marketing section

 

[Gecko001]

With starting most businesses you have to do research, research and more research. You cannot expect someone to tell you all this stuff, you have to go out there and find it. Research Ebay, Gumtree, trade magazine classified ads, go to specialist auctions for bankrupt stock and that is just to learn how much you might expect to pay. I suspect that you will be competing with people who know all this information. They will know exactly how much a good secondhand lift costs. They will know how much it costs to dispose of commercial waste etc. etc. They will not tell you this information, so it is up to you to find out for yourself by research.

 

[soundengineeruk]

I don't work in the industry, but looking from the outside I thought I would throw in my 2 pennies.

1. What is your customer base - is there is enough people driving particular cars that you specialise in to be sustainable

2. A mobile mechanic in the first instance - A potential way to test the water to see what level of business is out there; even better if you could rent space or lift on ad-hoc/short-term basis rather than a long term commitment.

3. Marketing Plan -
- How will you promote your services?
- What makes you difference than Joe blogs?
- Is Joe Blogs doing it cheaper or more expensive?
- I know nothing about quality mechanic, how would you fill me with confidence to use your services..

As I said my 2 pennies looking from outside in..

 

[alasdair1982]

Hi Frazer
I had a workshop from 2005 until i sold it in 2012, Having worked in the commercial vehicle industry since leaving school i took the plunge and started my own business so can speak with the relevant experience

Are you planning on going straight into a premises instead of mobile? How are you going to get custom. Are you planning to advertise?

I started my business by being mobile for about a year and built up a customer base so the transition to a fixed unit was not as difficult as it would be going straight into premises. I had about £10k in the bank when i started and this quickly ran low.. I was fortunate that i found a premises that already had a compressor and a working pit in it so i could crack on with the work pretty quickly without too much expense

You will need to budget for the following before you even earn a penny
Lifts x 2 - dont buy cheap or you will buy twice trust me on this so buy decent ones (snap on/rav/bradbury) £3000 each
Compressor £1000
Insurance £ ????? My insurance was £7k per year - for commercials tho so cars may be a little cheaper
Rent and Rates plus rent deposits £ ???? only you can answer this
Diagnostics - Buy the best you can afford £5-7k
Mot Facilities £30k if you chose that option

The costs to start a successful workshop are not cheap, £20k min i would suggest and even then you may be cutting it fine. You can open cheaper than this and start slowly by only take on jobs you know you can do so you don't let customers down.

I plan to open another commercial workshop soon and plan to start with min £30 k to give it the best possible start plus i already have 40 ft container full of equipment from previous workshop

As someone else said you also need to plan how you are going to get work "build it and they will come only ever worked in the field of dreams" What makes you different to the next garage.

If i can give you one piece of advice is Be smart, look smart, work smart and be presentable. Keep your workshop clean, your tools well presented, reception clean and tidy. Perception in this trade is critical if you are to be successful. Your not a scruffy mechanic anymore your now a business owner so you need to act like it.

This is my views on running a workshop, i started a workshop in 2005 and successfully sold it on in 2012 as a going concern so i could concentrate on something else for a few years..

 

[The Byre]

If i can give you one piece of advice is Be smart, look smart, work smart and be presentable. Keep your workshop clean, your tools well presented, reception clean and tidy. Perception in this trade is critical if you are to be successful. Your not a scruffy mechanic anymore your now a business owner so you need to act like it.

This!

Two friends of mine started each their own workshop and they both made the same mistakes of being underfunded, so old and inferior tools, scruffy building, unable to take on certain types of work through lack of specialist equipment, putting people off by having an untidy workshop, not having a nice reception area, etc.

It took them both a long time to get things straight and tidy up their acts.