Thinking of actually opening up shop...

I have a couple questions/concerns.

I've been interested in doing this for a while, just never saw it really being a possibility. But this month two places about 5 minutes from my house opened up in a small industrial park. One is 1000 SF at $.90 a SF monthly. The other, is 1200, but has an office for the front, and is $1 per SF. I think I'd rather have the one without an office, I don't see myself needing one at this point.

Theres another one, about 15 miles from me, 1100 SF and $1200 a month. Its a little better location, right off the main strip, a little easier to find, but it has a pretty big office. Its not right on the strip though, so it might not make a difference.

My biggest concern, is being able to afford it month to month for the first 6-12 months. I don't know how steady of a flow I can keep coming in. And I imagine the first few months would be the most difficult to really get anything in. I have a part time job right now, making okay money. But I don't think I could afford the rent, plus my schooling, and all my other bills if I did not pull any income from the shop.

I'm also wondering about utilities. What do other guys utility bills look like? I will running my welder, air compressor, band saw, and grinders/drills/sawzall for the most part. I pay half the electrical bill here at home, but it doesn't really compare since there are so many other things going on here.

I also need to factor in the cost of building a large work bench, and before too long, a frame table.

Advertising is another concern. I don't know the most effective way to get your name out there. My first thought was radio ads, but they want a $10k one year contract to run up to two different ads. I definitely can't swing that. I know I can put a stack of cards/flyers up in the local performance auto store for free, as long as my friend is working there, and also at the JC. My truck is like a rolling billboard, but I need to get contact info on it. I need to find a good way to get a steady flow of customers.

Sorry for the essay like post. I just have a lot of questions and concerns. So any suggestions, ideas, first hand experience, etc is welcomed.

I pay about $0.30 a sf but im in a big city. Personaly i think anything $0.50 a sf is too high for shop space but i dont know what the market in your area is. As for advertising word of mouth and a number in the yellow pages is your only way to go.

Work your normal job first and formost. Get the cheapest yet biggest and closest shop to your house. Whichever that would be. Before you get into the shop go to some shows hand out flyers let people check out your work. Get a few people wanten work done. Then when you get a few people wanten work done, get into a shop. Do the first few trucks then don't let them leave without a shop sticker in the back (free advertising for you) Give them an incentive on referring buisiness. Like if they send a friend in for a bodydrop give the guy a discount the next time he comes in (the guy who sent his friend in). Other then that do quality work (Which obviously comes natural for you) and be fair on price. If your good work will show up. As long as you do like 1-3 bag jobs a month that would make your bills and rent easily i'd assume. Then just get a friend to help work on vehicles when your not there. And once you get 4-5 a month just work there full time. Shit i'd drive to cali to get a b/d from your shop if i could afford it. Good luck man.

I would have to recommend you staying out of garage until you get the customer base built up. Never count the people that ask for a quote as business until they have the vehicle in the shop. You might have many asking but until the contract signed and deposit done it is not business.
Good luck and I wish you the best.

My advise would be ,don't open one too soon. I made that mistake years ago!
I would make sure you have enough cash saved to carry you for at least 6 months. If it is an attached unit, you may have to get an insurance plan (umbrella) for $1000000 to cover any damage to the joined units (in case of fire,etc)
That alone may add another $100 a month.
Once we rented a unit and paid all of the utilities, we were flat broke! With no savings, it only took a few months before I was looking for a full time job! Also if you get with a partner, make sure he doesn't turn out to be a deadbeat and never come to work or return customer phone calls!
I would think word of mouth at local car shows and cruise nights along with your truck would be a great start for advertising. Word of mouth and recommendations are the best resource. Also don't get in the habit of trying to be the cheapest guy out there, even if you are desperate for business. Give them a fair price for the work and stick to it! If you give one guy a deal, he will tell his buddy and want the same deal and so on.. You do quality work and should charge for it! Maybe throw the guy a bone if he agrees to sport your shop sticker in his window or pass out your card at the next show.
Good luck with whatever you decide!
t

1000 sqft isnt enough space, i would say min 3000 sq ft so you could have a couple vehicles apart, and still have room for an office and bathroom, and tools...

save up for sure......my homeboy went into foreclosure trying to open a paint shop

Edited: 9/5/2007 4:45:54 PM by fkntukn1

work out of your garage for a while... need to get some more rides built to showcase your work... and from experince every tom ,dick ,and hairy from yer town will come get an estament and 1 will prolly get work.... good luck bro

Thats expensive as fuck. Here in Florida you can get a 20'x60' for around $600 a month with utilities.

i cant say nothing bout the goin rate for square foot but personally seth i find that the best advertisement in this industry is simply just hear say and buildin killer rides and showin em. maybe do a few tech artiles for a mag guy here and there just so everyone will read it...good luck with it, u do nice work