I just wanted to make a few inquiries as to how people started their business, and steps they have taken to make it successful. I definitely do not own my own business, I'm just curious as to what makes shops such as Buscher, Magnus, etc, so successful? Sometimes I think about starting one, but have no idea where I would begin if I was to do so.

In today's world, capital.

We've all seen the opening credits for West Coast Customs where the owner says "this all started with a $5000 loan from my grandfather" which any sane person knows is bullshit.

5 grand doesn't even buy you a nice toolbox, let alone some bad ass shop in Southern California. It was probably a 5 million dollar loan but they like to glorify things for TV.

So basically, you need a solid business plan, a good product/service to offer that people want, and unfortunately, lots of startup capital.

Pretty simple....do good work- don't be a hack, treat your customers right even if it means losing money, and don't make claims that you can't back up. Everything else will fall into place if you follow that policy.

Education - A great base pay - expendable income

Sex.

Thanks for the info guys.

Justin, from what I've read and seen on these forums you run an awesome shop, and I hope to have you rebuild one of my turbos some day. How did you start out? Was it from the ground up, or is running a shop something you knew you wanted to do, and you just saved for and progressed towards?

I really don't think it's that far out there to say they started their business with a $5000 loan from a grandfather. I started my business with the money I saved by living at home, and working at Midas Mufflers for a year. For what it's worth, most people already have tools before they decide to open a shop, so startup fees usually go to first and last months rent, a business certificate, a DBA, things like that. Chances are they didn't just go out and buy a bad ass shop on the first day. Sometimes people just use hard work, and put in the time.

I wouldn't call myself a successful business owner but I do know a thing or two about making money, and without a college degree at that although i am not against obtaining one. I've tried my hand at multiple technology related startups and I was the 5th employee (2nd developer) of a venture backed startup company Doggyloot, laugh all you want at its target market the company generated $1.7 million in sales within its first year. I started with them just 5 months after incorporation. Yes it startup capital (a lot to be honest) which allowed for expensive marketing campaigns, our investors knew a lot of tech bloggers and publishers that would write articles on the new company.

Right now I am in the middle of working on a new site in the automotive performance category. I don't expect to spend more than $2000(if that) to make it profitable. Honestly the end goal is much more than just making money as a website but ill not go into that just yet as plans may change.

If you know how to program, then you can start a business in virtually any industry for under $5000 for sure, in most cases you wont spend more than $500, but it can be a rough treacherous road.

Colt4G63 also said:

I really don't think it's that far out there to say they started their business with a $5000 loan from a grandfather. I started my business with the money I saved by living at home, and working at Midas Mufflers for a year. For what it's worth, most people already have tools before they decide to open a shop, so startup fees usually go to first and last months rent, a business certificate, a DBA, things like that. Chances are they didn't just go out and buy a bad ass shop on the first day. Sometimes people just use hard work, and put in the time.

Click to expand...

That's a beautiful fairy tale, but nowhere near realistic (in the case of west coast customs).

The cost of rent, paying employees, equipment, insurance, there are a million expenses, and opening an automotive shop is probably one of the most expensive startup businesses you could get into. Computers, software, lifts, machine tools,the list goes on.

There is no way in hell that you or anyone else is going to convince me he started that shop with 5 grand, any more than you are going to convince me that a 600 year old dude got several hundred thousand species of animals on to one boat.

It's the typical made for TV "you can be anything you want to be" lie that is perpetuated in America to keep the wage slave dedicated enough to think that one day that could be them. If you have a 90 IQ, no matter how much sunshine is blown up your ass, you are never going to be an astrophysicist.

If all you have is 5 grand, it will buy you a plane ticket and a hotel stay in California, but it ain't buying you no race shop.

Post of the year right there ^^^

Damn! And I was thinking about taking out a loan on a tube bender and a chassis dyno to finish out my race shop that I've been building over the last 17 years. Now you shattered my dreams. Where can I find a sugar moma to make everything happen instantly like it appears on TV?

Paul Sr. is no spring chicken. He's probably been building bikes for 30-40 years, growing and hiring employees along the way. (wrong TV show maybe)


Ninga EDIT:
I wouldn't call my business super successful, but it pays the bills, pays for my house, and pays for my hobbies, and I started it with nothing but my craftsman roll around.
I would probably do way better if I was nice to people, and if I could trust another human to work in my shop, but I wouldn't call that a factor dependent on start up capitol.

By the way it is an automotive repair shop, so I guess I'm living the fairy tale.

Ps. I don't believe in the guy with the animal boat either.

Not necessarily. Its like Justin said. You can start a garage at home if you want. When people find out that you've got skill, won't rape them, and will back up your work, you will grow. And with growth comes expansion( better tools, bigger shop, lifts, etc).

Post of the year right there^^^!

Yea and after 20 years of kissing ass and bending over backwards for people who dont deserve it, then maybe you'll make more then a simple two year degree could have got you.

Dont forget the big payoff, no health insurance and no retirement to look forward to when your too old and broken to turn a wrench.

Colt4G63 also said:

Damn! And I was thinking about taking out a loan on a tube bender and a chassis dyno to finish out my race shop that I've been building over the last 17 years. Now you shattered my dreams. Where can I find a sugar moma to make everything happen instantly like it appears on TV?

Paul Sr. is no spring chicken. He's probably been building bikes for 30-40 years, growing and hiring employees along the way. (wrong TV show maybe)


Ninga EDIT:
I wouldn't call my business super successful, but it pays the bills, pays for my house, and pays for my hobbies, and I started it with nothing but my craftsman roll around.
I would probably do way better if I was nice to people, and if I could trust another human to work in my shop, but I wouldn't call that a factor dependent on start up capitol.

By the way it is an automotive repair shop, so I guess I'm living the fairy tale.

Ps. I don't believe in the guy with the animal boat either.

Click to expand...

Dude, you are seriously confusing my point. I'm not suggesting you can't start a viable business with little capital, and work your way up. I'm suggesting with my specific example that you are being lied to by the TV if you believe that he started that shop with 5 grand.

If it was that easy, why aren't you a multi-millionaire with your own TV show? I will personally give you 5 grand, and you go start a race shop in Southern California. We'll see how far that 5 g's takes you...

Edit: I'm going to preface this with "my statement is not a stab at you, it's evidentiary of how hard it is, in reality, to build a successful automotive shop."

You have been building your shop for 17 years, and you are just now in a position to take out a loan on a tube bender and chassis dyno. That is my point. You can absolutely build a successful business over time with a lot of hard work, but there is a lot of f*ckery in the world that gives people the illusion that anyone can do it, and it's easy.

Cdc1221 said:

Not necessarily. Its like Justin said. You can start a garage at home if you want. When people find out that you've got skill, won't rape them, and will back up your work, you will grow. And with growth comes expansion( better tools, bigger shop, lifts, etc).

Click to expand...

Nobody is disputing that one bit. But pick a large shop, I mean a real large shop, like Lingenfelter, or Hennessy...shops like that take a lot of start up capital. Nobody is going to drop their $250k dollar car off to you just because they like your Colgate smile. That was my specific example.

I'm not arguing that you can't build a successful business with minimal capital and hard work, you just can't build West Coast Customs, or anything close to it, starting with 5 grand

Btw, you are thinking about the motorcycle shop.

West Coast Customs is an automotive shop started by an 18 year old kid with 5 grand in Southern California. So at 18, apparently he had amassed enough tools to start a shop, already had enough knowledge to work on exotic cars of all makes and models (cause let's be honest, you aren't going to attract Lamborghini owners to do business with you by showing them the Civic you swapped Integra seats into), was able to do all his own work, cause I'm not sure how many employees he was able to pay with his 5 grand, was able to afford the liability insurance required to work on said exotic cars, apparently at 18 his credit was so well established that he could get unlimited financing to purchase the top dollar machinery that shop requires to churn out the type of work they do...shall I go on?

I'll leave you with this. " Occam's razor."

At 91stocker, no I personally wouldn't, but I know of a few who do, and some that are fairly successful and quite happy with their life.

And true Asian. I couldn't see someone dropping off their '12 BMW under the shade tree .

I'm not sure when exactly the shop in question was started, but 20+ years ago, $5k would get you e hell of a lot more than now. Now you MIGHT cover 1 month's shop rent and a ratty ass lift

Double post

Awesome posts guys, thank you .

How do you define a "Successful" business? Is it the one that brings millions of $$$ per year? Is it the one that brings just enough to support the family? Or is it the one that is breaking even so it's not loosing nor gaining money?

Gotta say though, trying to start a shop (or any business really) will be quite dissapointing at first. Everyone will be so happy to bring their cars in so you can work on them. But as soon as you mention payment of ANY kind (even just buying the supplies or parts) they will leave and not speak to you any more. Important thing there is to not give up and NOT buy supplies yourself hoping that they will pay "as soon as they see the amazing, quality work". Parts/supplies + $10/hour is a good price for starting out. Don't let them talk you down.

Well im in no way saying not to try your own thing. But say it takes 10 to 20 years realistically to get established starting from your garage, or a very limited budget like being discussed here.

You could go to school for 5 years get your bachelors and make 50-70k average. Now your already 15 years ahead of where you would have been otherwise. Plus if your good with money, you now have a godd deal of expendable income to invest in your end goal. Also that income and job security is a more import factor then credit when applying for a loan. You just increased your line of credit 100 times over.

From personal experience never start up with family or friends. I attempted to start an app/game design with a good friend as a partner. We had everything drawn up and had the legal aspect taken care of luckily. Even though we were making money and there was potential, we just couldn't make it work. We had too different views on which direction to head in. Point of the story, i lost a childhood friend and wasted several years on the project.

I since started another small side project on my own in an entirely different area now. I still wish i would have waited until me and my wife were both finished with school to start this venture. Originally I thought the extra cash would help while we're in school, but its more trouble then its worth honestly. It may make 23k this year if all holds steady, but the time required has far out done that. If i would have waited til after we were finished with school, i could have invested more on start up. The pay off would have been well worth the wait.

Sorry for so much story, but since i dont own or have never owned what i would consider to be a successful business i thought it was required in a thread on such.

As well as the fact that my father has owned and ran a motorcycle business that he's been building up since 1990. And a good friend of mine who is in the process of taking over his dad's transmission shop. I've experienced and seen first hand the good and the bad of being self employed.

From my own personal experience I started out with a 3 drawer Craftsman tool box at local GMC dealership starting out just doing oil changes. Bullshited my way in by telling them i knew how to do all kinds of stuff. Within 4 yrs I had collected more than 15k in tools and was the dealerships top earner. I since moved on but it was a learning experience. I know a few people that started with nothing and made it and others with masters degrees that work at mcee D's. It's how hungry you are and the willingness to take risks and not give up and except failure as a learning tool. Balls and determination will get you wherever you want to go.

Seriph said:

Justin, from what I've read and seen on these forums you run an awesome shop, and I hope to have you rebuild one of my turbos some day. How did you start out? Was it from the ground up, or is running a shop something you knew you wanted to do, and you just saved for and progressed towards?

Click to expand...

It's not a shop per se, I still view it as a hobby that I enjoy doing that generates a small amount of income. I have no operating costs as it's me working out of a large garage that was bought and paid for in 1994, so no employees and no rent. Allows me to keep pricing lower than many of the larger-scale shops out there. I still have a day job- this is just something for me to do otherwise instead of sitting around playing video games and wasting time. I HATE wasting time when there's money to be made.


A bit part of it is pricing- price your services low enough and everyone will come running your way. That leads to problems like you seem to get always the junk that everyone else won't repair, and as a result you end up getting backed up working on said junk which often requires more work than what it's worth.

Think about it- the cheap places to eat are always loaded with people no matter how shitty their food and/or service may be while the more-expensive places who cater to your every need and have delicious food may charge a bit more...but you're always guaranteed to get a great-tasting meal, service with a smile, and the ability to walk in and sit down with no wait. Another example would be how people constantly bi*** about how shitty the parts and service from places like Advance or AutoZone are, yet that's the first place anyone goes because they're $10 cheaper on an alternator than a local parts store that may know more about your car than you do. By the 5th alternator, you're probably wishing you went somewhere else. It's all a matter of what you're looking for- but good service almost always comes with a price.

Pricing is a delicate balance of no work at all, staying busy, and being swamped. I'm actually getting to the point where I'm so busy all the time that I'm considering a price increase, which doesn't bother me one bit...let the cut-rate guys scoop up all the retards that want to spend nothing and get everything in return.

My favorite is when guys ask if I price-match because so-and-so is $50 cheaper my reply is always no....but I'd be glad to have their business after so-and-so screws their turbo up entirely and refuses to stand behind their work. Normally works in my favor by the customer choosing me instead.

Very insightful, thanks again everyone .