What does it take to start a Hotrod Shop?

[arue333]

Originally Posted by Beegs

Balls

That i know!..... Still... I'm wondering if someone might have some more tips! Obviously you need talent, customers, guts, and a family that shares your passion or at least understands why they don't see you every evening after 5 like normal.

But how did you guys go about it? Did you take out a loan and get a space to work and bring on a couple of talented guys, or did you operate out of your garage until you had more work than space to put it? Is it better to start in small jobs and custom parts or take on complete buildups? How do you keep the doors open and the shop warm when it takes 18mo to build a quality car?

Thanks for all of your input, You guys are great!
Merry Christmas!
Thomas

[Dieseltorkin]

I recently accomplished what you are wanting to do in a short amount of time even with the economy. Here is how i went about it.

Start with as low of Overhead as you can in the beginning, If you have a garage and basic tools, start there. Of course you will have to get a few speciality tools depending on what your wanting to do exactly. Talent is the main thing you need, I am somewhat of a wiz with diesels, mechanical, design and fabrication, and a friend is amazing with body/frame machine work and paint. We started out getting some mid level ($4-8K) finished price totaled vehicles through an insurance auction and shot to get them into the market at 50-60% of retail value. We started with just 3 cars initially and 2 guys working in my 30x40 shop. In just 8 months we now complete 2-3 cars a week which are pre orders and pre paid by the customer. We do all work auto under one roof and people seem to really like that idea. We also now control our own overhead supply wise as i am now an authorized dealer for every supplier we use. I could go on and on with the details, if you have any questions or anything feel free to pm or email me, i would be glad to help.

The key points are to provide Quality work at a quality price

Start with as small of initial investment that allows you to complete the above yet minimize risk should things not pan out.

Customer service is key, you treat them right, they will come back and bring friends. Word of mouth is a priceless means of advertising, especially with the internet now days.

Hope this helps and feel free to ask any questions you may have, i could type for hrs on this subject. All in all, good luck with your venture should you try! Best wishes! Jared

[thedude327]

Originally Posted by arue333

I am trying to figure out what is the best way to go about starting up a business.

I have a the basic home shop tools and a 6 axis mill, and a lathe.

The big plus is my day job will be supporting most of this venture so I don't need to make a ton of money,

Fishing for good advice,

Thomas

Here's my take on your post. First you have steady employment and access to tools. Second your day job is currently allowing you freedom to play with branching out and doing something different. Instead of trying to start up your own HOTROD shop, how about joining the aftermarket and using that 6 axis mill and lathe to create some custom parts. You could start by machining some custom pieces for your own car and showing them off at various shows/events. If you get positive feedback, you could start mass producing the parts and marketing them yourself. (Behold the power of the internet) You could also become an additional build shop for an existing company looking to increase production of custom parts. Contact various companies and show them some examples of your work to see if they would use you as a build house for their products.

Good Luck with whatever you decide !!

Paul

[coolwelder62]

Rodger form ironworks is right.If you try to give them a discount so you both can get started you end cutting your own throat.Because they will come back and want even more of a discount the next time.They will ask you to just work with them one more time.He will tell you he needs one more job from you to get that car built.Its funny the guys you give the deepest deals to is the one that will hardly ever tell his customers about who really does the work.Open your shop slowly.Do one job at a time do the very best work you can do.Charge what you think the job is worth.Stick to your guns.If the customer wants a discount or thinks your price is to high tell him thanks but no thanks and move on to the next customer.When a customer wants you to work cheaper that means he also cheap.Cheap and quaitly only work when its your car and you are working for fun. Good Luck.Scott

[tellyv]

I would say if your making good money at your day job keep it and do this as a hobby or side buisness. good luck!

[youthpastor]

Originally Posted by Dieseltorkin

I recently accomplished what you are wanting to do in a short amount of time even with the economy. Here is how i went about it.

Start with as low of Overhead as you can in the beginning, If you have a garage and basic tools, start there. Of course you will have to get a few speciality tools depending on what your wanting to do exactly. Talent is the main thing you need, I am somewhat of a wiz with diesels, mechanical, design and fabrication, and a friend is amazing with body/frame machine work and paint. We started out getting some mid level ($4-8K) finished price totaled vehicles through an insurance auction and shot to get them into the market at 50-60% of retail value. We started with just 3 cars initially and 2 guys working in my 30x40 shop. In just 8 months we now complete 2-3 cars a week which are pre orders and pre paid by the customer. We do all work auto under one roof and people seem to really like that idea. We also now control our own overhead supply wise as i am now an authorized dealer for every supplier we use. I could go on and on with the details, if you have any questions or anything feel free to pm or email me, i would be glad to help.

The key points are to provide Quality work at a quality price

Start with as small of initial investment that allows you to complete the above yet minimize risk should things not pan out.

Customer service is key, you treat them right, they will come back and bring friends. Word of mouth is a priceless means of advertising, especially with the internet now days.

Hope this helps and feel free to ask any questions you may have, i could type for hrs on this subject. All in all, good luck with your venture should you try! Best wishes! Jared

Great First Post! lots of nuggets of wisdom here. others have given good feedback too.

My plan is simple- and I think Frank at Prodigy and Jason Rushforth gave me most of this advice. Your first build is going to be on your dime. Show people what you can do. Market the heck out of it and then sell it. I built my first car in our attached garage. I still remember spraying clear on it a week before SEMA when the furnace kicked on and sucked all that smell into the house at 3AM!

I am in the second step. A complete build for a customer in a small 24 x30 shop. Keep expenses low! Low risk...somebody mentioned that. In one year I have a legit business license, bank account, etc. Does it pay the bills...hardly...but the proceeds from this build bought an enclosed trailer and more shop tools....and money to put into my 69 Camaro...which I will market promote...and then sell...you get the idea.

Customer service. quality work at a fair price. and do deliver the car when you say you will.

Have I arrived...not even close....I'm I on the path to having a business doing something I enjoy? I think so.

baby steps..meet the right people at the right time and see how far the rabbit hole goes! - Chris

[Rybar]

Originally Posted by youthpastor

Great First Post! lots of nuggets of wisdom here. others have given good feedback too.

My plan is simple- and I think Frank at Prodigy and Jason Rushforth gave me most of this advice. Your first build is going to be on your dime. Show people what you can do. Market the heck out of it and then sell it. I built my first car in our attached garage. I still remember spraying clear on it a week before SEMA when the furnace kicked on and sucked all that smell into the house at 3AM!

I am in the second step. A complete build for a customer in a small 24 x30 shop. Keep expenses low! Low risk...somebody mentioned that. In one year I have a legit business license, bank account, etc. Does it pay the bills...hardly...but the proceeds from this build bought an enclosed trailer and more shop tools....and money to put into my 69 Camaro...which I will market promote...and then sell...you get the idea.

Customer service. quality work at a fair price. and do deliver the car when you say you will.

Have I arrived...not even close....I'm I on the path to having a business doing something I enjoy? I think so.

baby steps..meet the right people at the right time and see how far the rabbit hole goes! - Chris

Chris and Jared, I agree with both of your posts. I am not in the auto industry but I own a retail/custom Furniture store. www.furnitura.ca

The main things I would suggest:

- Low Overhead and expenses at first. As low as possible.

- Don't be stupid with the money you make in the beginning, save it and re-invest it into the company. If you can break even and pay for equipment or inventory in the beginning you should be on your way to success. You may even have to forget about a paycheque for sometime.

- Self Promote yourself and the business. Get out there and talk to people and hand out business cards. sending out e-mails and sitting on your ass don't do much. People like to deal with people. So get out there and start doing some talking and face to face promoting.

- Offer discounts or promotions to previous customers to tell thier friends and family. Word of mouth advertising is THE BEST form of advertising out there. make sure people talk about you and your shop, and recommend your excellent service, prices and work.

- In the very beginning most of your business will depend on low prices and undercutting the next guy. You will have to bend over backwards for people. Some will appreciate it, and some some wont.

- You will make and lose money, make sure you learn from your mistakes.

- Get ready to spend almost all of your time working at your business, and to lose alot of your personal time. It will be hard in the beginning but will pay off years down the road.

- Lastly, try to find a niche in the market in your area. Try to be different. Pick a business model that you want to go after but change it up and make it your own. Have a reason why people want to deal with you rather then the bigger guy.

Hope that helps,

Ryan

[deuce_454]

My grandfarther who was very succesfull in buisness said "There are always somone willing to do it alittle cheaper, at little worse quality and alittle uglier" dont be that guy... and "its always cheaper to do it right the first time"...

[youthpastor]

Originally Posted by Rybar

Chris and Jared, I agree with both of your posts. I am not in the auto industry but I own a retail/custom Furniture store. www.furnitura.ca

The main things I would suggest:

- Low Overhead and expenses at first. As low as possible.

- Don't be stupid with the money you make in the beginning, save it and re-invest it into the company. If you can break even and pay for equipment or inventory in the beginning you should be on your way to success. You may even have to forget about a paycheque for sometime.

- Self Promote yourself and the business. Get out there and talk to people and hand out business cards. sending out e-mails and sitting on your ass don't do much. People like to deal with people. So get out there and start doing some talking and face to face promoting.

- Offer discounts or promotions to previous customers to tell thier friends and family. Word of mouth advertising is THE BEST form of advertising out there. make sure people talk about you and your shop, and recommend your excellent service, prices and work.

- In the very beginning most of your business will depend on low prices and undercutting the next guy. You will have to bend over backwards for people. Some will appreciate it, and some some wont.

- You will make and lose money, make sure you learn from your mistakes.

- Get ready to spend almost all of your time working at your business, and to lose alot of your personal time. It will be hard in the beginning but will pay off years down the road.

- Lastly, try to find a niche in the market in your area. Try to be different. Pick a business model that you want to go after but change it up and make it your own. Have a reason why people want to deal with you rather then the bigger guy.

Hope that helps,

Ryan

great advice Ryan.

[Vegas69]

Like Ryan, I agree that business is business. Here are a few things that matter to me and won't cost you much if anything.

Professional Website: You can be building your first car but look like you have your **** together. It's very important.

A clean shop: Who wants to deal with someone that can't even clean up after themself?

Stand behind your word. The referrals will come if you take care of people.

Start a database today. Every reasonable customer or contact should be recorded. You can then keep them in the loop with emails or mail. Later you may add parts, etc. It's called touches. The more people see your business the more apt they are to call you.

Last but certainly not least. Do quality work and stand behind it.