The Reality Of Opening Your Own Automotive Repair Shop
The Reality Of Opening Your Own Automotive Repair Shop
Amazon Affiliate link below
https://www.amazon.com/shop/influencer-16c863d5?ref=ac_inf_hm_vp
http://www.milwaukeetool.com/
#flatratemaster
Instagram
https://www.instagram.com/flatratemaster/
flatratemaster@gmail.com
He is not wrong, I own my shop, started it March 2020. It is alot of work getting proper lisences, insurance, location, having capital to buy parts and pay bills. It’s scary as hell, its been worth it for me but had to build it and sacrifice till it grew.
Thanks.
A lot of your side gig customers that you expect to retain can also disappear when you have to charge them the typical industry labor rate.
Yeah it is expensive
If your happy making 40-100k a year work for someone else. If you actually want to make real money, 1000$ a day to 500k a year , then work for yourself
This is a valuable video for anyone who wants to start any business. Change the word shop to bakery, book store, hardware store, eyc., and listen.
My dad and his brother were both techs for about 15 or 20 years before they bought a shop together and started their business in 2001. Luckily my mom was already a proficient accountant from her previous job, so together along with my aunt they were fairly successful and the business is still going strong. However in a small family shop, paying a tech flat rate just isn’t feasible. Probably 25 percent of the work I do isn’t working on cars, it’s doing those "efficiency killers" you talk about. Thanks to my dad and uncles hard work and good business practice, the business has been successful. But I remember growing up when the shop had started how late my parents would get home from work, and many weekends where they had to work.
FRM maybe for another video, but you didn’t mention about all of the regulatory hurdles, the licensing requirements, certifications and permits, etc, etc at the local, state and federal levels. It never ends. Some states are probably easier than others, it also varies from counties and cities, but if you take into account all of the things you have to learn, do and get just to have the RIGHT to change a spark plug for a customer, it’s insane.
I’m starting my business as a mobile service working on medium and heavy trucks, heavy equipment. I decided to go mobile because of where I live its more convenient for my customers if I come to them.
When are you gonna be on the ASOG podcast? đ
WHY NOT A 1099 ??
Never touched on sue happy customers. Was sued as a tech. No protections afforded to me as a tech, I know there will be none as a business either. The shop I worked for…..LLC…..was sued and lost as well. Thats why I will never own a shop. One customer can put you in debt worse than the IRS.
You are so right. 40 years ASE only worked 4 jobs. You have WISDOM keep sharing it. I always thought I needed $ 200.000 to even THINK about it. I broke my back really bad, I am blessed I can walk. Being paid well is a good thing. 18 hr days is not.
The cost of rent in Australia is about 4K to 15K per month depending on size
I stated in my driveway 8 yrs ago, Went to a 1 bay then to a 3 bay. And now own a 6500 sq ft Shop 3 lift shop with two offices. I have one tech. It can be done, I did it and do not regret it. We Work 5-6 days a week and we rang 400k in gross income last yr. I will say that I have a really good sense for business and that helps a lot.
If you don’t think you could run a ice cream stand then don’t open a business
Don’t let this fat ass discourage you work hard and succeed.
Donât ever 1099. You damn right. I worked 2 yrs for a small time contractor an I was 1099âd an that sucked
His added edit is definitely the most important part of the video. There will be days you don’t collect any money, days all you do is send money out and days you don’t even work on a customer’s car. One thing you definitely have to learn is not to just take on everything that gets thrown at you. If the work you do actually do is quality and your customers are happy there will always be more work.
Nope not for me I hate dealing with people I donât know
Great advice. Thank you
A one man shop, owner/mechanic, will be lucky to get 4 hours billable out of an 8 hour day, and yet you won’t have a spare minute in that 8 hours. You’ll have to eat lunch on the go. THERE’S A REASON ONE MAN OPERATIONS WORK 12 TO 18 HOUR DAYS, 6 TO 7 DAY WEEKS……
In April I decided to buy my own shop. I’ve worked with my father for the last 15 years and we were renting. I could see that going no place very fast. You are right about the managing part and I think Eric o put it best in one of his latest shows when he said he gets more done in the hour or two that he puts in after hours versus the normal open hours.
As far as our shop making money, I try to sit down every few months and add up my fixed bills lights, heat, insurance, mortgage, etc. I then take that amount and divide it between the working days of the month. That way I have a idea what I need to do per day just to make expenses. Anything over that then I start making money. It has worked very well for me.
I have a friend who is very talented in automotive repair and he’s thinking of owning his own shop. I need to send him this video. Thanks Mike.,
suddenly your time becomes your most valuable thing … especially pertaining to efficiency .this is pretty much on the mark.after reading all the other comments ,I found out im not the only one working 7days a week..especillaly with the" can you just look at this?" guy who comes by on a Sunday …then has somebody else fix it learning to say no to those people was tough and it didnt cost me a whole lot….
Keeping the government out of your business is crucial. Pay the employees 1099. The employees will be happier because they keep,everything. Fuck the government. Do not do the governments job for them. The government to a business is like sand is to a wheel bearing. It a recipe for disaster.
Great Video! I got my business started âI bought a garage with a house in the front yardâ. I love how you talked about financials thatâs so important. I got my financial education from SCORE free mentorship program via SBA. I wouldnât have the businesses I do (I own 2) without SCORES help
I tell anyone who wants to start a business. Learn accounting or donât do it.
I didn’t really have a choice, I kept getting fired so I kinda had to open my own shop.
Thank you for mentioning this. It’s very hard. I’ve aged years since opening my shop. It’s a constant grind unless you surround yourself with A players who want to see you succeed. Thanks FRM
This video is packed full of really important information for anyone seeking to do this. You should really listen to FRM here. I would also add – and this goes for ANY business being started – I HIGHLY ADVISE AGAINST GOING INTO TENS OF THOUSANDS OF DEBT TO GET THE CAPITAL TO FUND YOUR NEW BUSINESS. New businesses fail far more than they succeed. After I’ve tried running multiple (and failing) only now do I have the street and business smarts to know how to use a loan like that. Or if to even get one in the first place. Every business owner needs to get initiated. Initiated = getting knocked up side your head, knocked on your ass and starting back at square one. Even if you put 80 hour weeks in and did everything you could, sometimes there’s just more to learn. Are you ok with continuing to try after failure? If not, owning a business is NOT FOR YOU
No Joke. Iâm a one man shop. My wife answers the phone from home. I stay behind. Iâve been open for 20 years. I had employees. What a pain. I just do what I can.
My recommendation if you want to open a shop, get a Business degree. My shop poorly run
Holy shit, your not bald!đ
No way
And the Karen kustomers that have been run out of every other shop will come running to your new shop . Get a burner phone number for the shop so you don’t have to answer during the rare time off.
One man shop sux because you are shifting gears more than gaining rpm. Its not impossible but the efficiency shows in numbers months later
I work 4 days a week, goal of 32 hours billed each week. Average 30-50 hours a week by myself. I specialize in bmw and Mercedesâ, rarely touch anything else. I donât answer my phone. Reply by text message in the afternoons. I pick and choose all my clients! I always have work because I run lean and efficiently.
Shop rate is $115 an hour, after all expenses I make about $60 an hour.
I made more than that as a flat rate bmw mechanic!! But Iâm Much happier and working a lot less!!
I’ve been a tech for 25 years on flat rate except for the first 2 years thank God I got a job with the local telecom company and I have never been happier, I have a company truck, credit card, tools and I get paid just to show my pretty face đ
What about a mobile mechanic with his own van
Thank you for making this video
You really think you are undervalued and treated like crap as a tech at a shop? Wait til you open your own shop, youll really feel undervalued and beat up all the time from customers, vendors, staff, etc.
I would not even THINK about opening a shop without 100k in the bank. simple as that.
Just bc you are a very good tech, doesnt make you a good business man… There is a reason an insane amount of shops fail every single year.
I started out as a one man shop, you are the mechanic, writer, manager, accountant, parts guy, gopher, IT guy, Janitor, etc. etc.
Now I have staff, If I don’t see a single car, all month I still owe anywhere from 43-48k a month to vendors, rent, payroll, subscriptions, etc. etc. etc.
Owning your own shop is NOT for the faint of heart at all. You’ve never lived till you have put your staffs payroll on an AMEX card before.
My hat off to people starting there own shops the stress level has got to be over the top.Great video Mike as always have a great rest of the week everyone and stay safe.
I think you should become an advisor & work your way up to a manger ( after youâve become a master technician) that way you can learn the business side and still get payed and youâre not losing anything. Once youâve learned how to manage, the money you saved ( a years salary as you suggested or more) then open your own business because now you understand both sides of the spectrum.
Efficiency and picking what hours of the day to work as it will be 12 hours of the day. Also, one needs to be a self-starter if one is in a more rural area you can have the shop at your house.
I think a lot of people make the mistake of thinking âIâm good at x, therefore I should start my own business doing x.â People donât realize or underestimate the importance of what Mike is saying here. Owning s business is an entirely different skill set. I made this mistake myself. Luckily it only took me about 2 years to figure it out and I was able to get out before I caused too much long term damage to my life.
Just gotta be ready to do it on your own!! You can always count on you, not anyone else. Love it, wouldnât have it any other way!
Key take away – it does not work that way in the ‘real’ world.
What about being a mobile mechanic? Less overhead costs.
I like the idea of growing a side business into a full-time shop. Seems like a lot of pitfalls can be avoided that way.
Currently a shop owner of 7 years. I am former dealership technician. Unfortunately I’ve learned a great deal from lots of mistakes and from other successful owners. I will tell you that it extremely hard mentally to not know when or where your next paycheck is coming. For the really good weeks I reinvest into the business purchasing or replacing equipment. You just have to be aware that with the really good weeks there will be really bad ones too! Save save save instead of spending. My little two cents lol.
One main key is to organize yourself, with quick books and a schedule time and money will stay longer
Another thing people need to look at is how saturated is the area with the same type of business you want to open.
The way myself and my business partner opened our shop was we worked our full time shop and wrenched at ours on our off time. It took a lot of effort but we have been full time for almost four years now and lucky enough are doing pretty good. Point being you dont have tl have massive over head. In my opinion start small and work your way up and the biggest one. Becareful what you wish for!