Setting up a car garage

[lvlasked]

hello, me and a friend looking to set up a garage in or area in northamptonshire, and we was wonding what things we need to look into to start a company up so far we have this list below but would like everyone input in helping us out please

registering a company name in ltd ?
business bank account
motor trade planning permission - dont know anything about this so any help be greatfull
public liabily cover
buildings cover
employers liabilty
register with the council ??

this is what we have so far

 

[AllUpHere]

So essentially, you want to set up a garage but don't know the first thing about running or owning a garage? I think you are in for a long hard slog.

What makes you think this is a good idea?

 

[lvlasked]

i have repaired cars for a liven for past 11 years and so has my mate we both done repairs on the side also and we would like to give it ago

 

[Scalloway]

If you are going into business with a mate I would strongly recommend getting a shareholders agreement drawn up by a lawyer. There are umpteen posts on this form from people who have gone into business with friends and family, fall out over something and can't resolve it.

 

[lvlasked]

ok thanks i still look into that one also

 

[estwig]

Where do you plan to run this car repair business from?

Dedicated premises I hope!

 

[lvlasked]

we found some where to rent in a great location and there willing to rent cheap for the first year but i wanna make sure i know everything i need to look into and price up ect

 

[AllUpHere]

i have repaired cars for a liven for past 11 years and so has my mate we both done repairs on the side also and we would like to give it ago

Fair enough.

Before you deal with the technicalities you should really be thinking about how you are going to get people to use your services. Anyone can rent a workshop, form a LTD Co and call it a business, but it's knowing how to get work coming in that will see your business succeed.

 

[Chris Ashdown]

Why will the punters come to you rather than established garages?

What sort of sales experience do you have and how much for advertising the new venture

Are you well known enough to be able to get the motor factors to give you credit to get the spare parts the same day?

Diagnostic tools, Ramps and tools etc

Computerised account software and computer system

Money for when you screw up a car repair and need to replace it or pay repair costs to another garage plus recovery costs, if you cant then the word soon gets around as bodgit & Scarper

 

[Paul Norman]

First, a second reminder of the absolute importance of a partnership/shareholders agreement, properly prepared by a solicitor, as mentioned above.

Secondly, a question, meant kindly enough. You have a lot of experience fixing cars, which is, of course, necessary in what you are proposing. But equally necessary are business running skills, such as understanding the finances, the marketing, the customer care and so on. Of course, you can buy some of these in, and that is fine. But do not assume that being good at fixing cars is even close to enough to make this work.

Setting up a garage, of course, requires some tools - you may have many of these. But you may need to get some finance to get them in place.

You will definitely need public indemnity insurance, in case a customer tries to sue you for poor workmanship. The fact that you wont be doing any does not alter the fact that customers do that kind of thing, potentially.

Of course, we may be talking below the level you are already at - if so, apologies for that.

 

[ethical PR]

You haven't mentioned money on your list. Have you put together a budget and do you have funding to cover set up and operational and running costs (for the first 6-12 months), including the costs of marketing your new venture.

 

[lvlasked]

Why will the punters come to you rather than established garages?
well we have work that both of us turn down atm due to are bosses only allowing us to use the workshop on a saturday only, so i feel we have the customers there.

What sort of sales experience do you have and how much for advertising the new venture
was going to set up a website (use to do web design in my spare time) also have a friend that works at a printers and hes willing to get me some free busniess cards and flyers and give me discount on my shop sign and board to put near the road side. also posting on facebook groups and word of mouth

Are you well known enough to be able to get the motor factors to give you credit to get the spare parts the same day?
i already get 10% of car parts from (motor direct parts ) and (euro carparts) all same day delivery if ring before 12pm also get 5% discount off allen ford motors and can pick up from them same day

Diagnostic tools, Ramps and tools etc
already have 2x 2 poster ramps , 1x air compressor and air holding tank, both have snap tools, mate has a snap on diagnostics scanner,

Computerised account software and computer system
this is somthing i need to look into but should be hard im sure ill find a free program out there that do almost the same as one you buy im pretty good on pc so i will work this one out shortly after i worked the rest out.

Money for when you screw up a car repair and need to replace it or pay repair costs to another garage plus recovery costs, if you cant then the word soon gets around as bodgit & Scarper
ofcourse we not planning to screw up as you put it, but before we actly set up we putting 3-4k aside in a bank account just incase we screw up somthing i know its not alot but we shall add to it as time go's on

Have you put together a budget and do you have funding to cover set up and operational and running costs (for the first 6-12 months), including the costs of marketing your new venture.
we looking into a business plans atm to see if we can get funds for this if not then we going to buy cars fix them up and sell on for a profit and start saving money this way also



hope this answers all your questions so far

 

[Mr A P Davies]

You know as well as I do, there are some truly awful garages about, that keep going somehow. (I trained as a mechanic, but haven't been employed as one for a good many years)

It's running the business that will make or break you, doesn't matter how good you are on the tools.
And it's a fiddly old job to get it right, but you'll probably only learn through experience.
There's no doubting there is plenty of places left for good, well run garages.
Good luck, hope it goes well for you.

 

[lvlasked]

im just stuck on the paper work side of things atm but should get there if people point me in the right way

 

[Mr A P Davies]

I've never managed to take anyones good advice, do everything the wrong way, and have shot myself in the foot so many times I should be walking around on my knees, so I'm not really in a great position to give advise.
The one thing I will say, some of the wealthiest self made people that I know personally, are some of the dumbest, to put it bluntly.
The five wealthiest, that I have worked for, are painfully stupid.
What they all share in common, is that they are very, very good, at one thing, be it digging holes in the road, or selling animal feed.
If there is something they cannot do, and there are many things that they cannot do, they get someone to do it for them, and focus their efforts upon what they are exceptional at.
I see that they have an advantage over the mildly intelligent, in that they have no hope whatsoever in figuring something out themselves, so never entertain trying.
Not suggesting for one moment that you fall into the dumb category, but getting someone else to do what you struggle with, does seem to be the way to go. What seems like a nightmare, is a stroll in the park to a professional.

 

[lvlasked]

yeah would be but its our company so we need to learn what to register ect going to e-mail the council also and see what they say about things i need to do hopfully the shed some light on it

 

[alasdair1982]

Hi Ivlasked

I speak here from 8 years experience of running my own workshop and employing mechanics.

I don't know your skill level so please don't take offense. If your going to open a work shop, do things properly every time. Never cut corners at all. They will not only bite you in the backside and it can open up all sorts of issues. Do every job you get in properly the 1st time. The first time you see someone that works for you cut corners - replace them. I'm hoping you agree with me on this. Its vital to a successful garage.

Whatever you think it is going to cost you to open - double it. The garage industry is not an industry to enter if you have no reserve funds. I wouldn't even entertain opening another workshop with less than £10k spare funds. In this industry your dealing with disposing of contaminated items, filters, batteries, tyres, oil scrap etc.. This all costs money.. price it up, you may be shocked

You will need traders insurance so you can store customers vehicles and drive them on road test etc. for your ref my insurance was £7k per year.

ofcourse we not planning to screw up as you put it, but before we actly set up we putting 3-4k aside in a bank account just incase we screw up somthing i know its not alot but we shall add to it as time go's on

Take my word, there will be screw ups. If you believe there will not be then you are deluded.

 

[alasdair1982]

Oh and don't use Euro's for anything electrical. That too will bite in the backside.

 

[Joe Walsh]

Hi Ivlasked, I think a Mobile Mechanic Garage will be cool, register your business and operate your mobile mechanic from anywhere convenient. I'm working on launching an app for Mobile Mechanics for UK, I got a beta version running in Australia.

 

[Ideasfactory]

Consider using a local book-keeper once a week to keep the paperwork up to date. If they come in every Tuesday etc, they can logs all sales/invoices etc.

Think about a cheap courtesy car.

The question above that was asked about cerdit with parts suppliers wasn't about discount. Will they give you a trade credit account so you can pay for the parts at month end etc.

Good luck, just make sure you have ££££££ in place. Cashflow is vital in all new startups