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New Shop Location
Posted by Craig Gorshe
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New Shop Location November 19, 2003 08:48PM |
Registered: 17 years ago Posts: 8 |
<HTML>I've been detailing for several years now on the side out of my home. I'm finally ready to go in with a friend on a shop. I was just wondering if anyone could give some pointers on what to look out for when looking for a shop to rent. I've found one place already. The guy says he used to rent it to some people who detailed cars, but they went under for whatever reason. The price is reasonable. It's location is ideal, it's heated, and he says that he pays the utilities. Including water! So obviously, that's a huge bonus for me. I guess I'm just wondering what you all ran into. Maybe some "wish I had" and "wish I hadn't" What about the legal side? I'm sure I'll find places that will rent to me knowing what I'll be using it for, but what about stuff like water/chemical collection and such? Who's responsible for making sure that is all in place and not just going down the city sewer? I guess it's more the legal/tax side of starting a small bussiness that scares me and is probably why I haven't done this already. Thanks in advance.</HTML>
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Re: New Shop Location November 20, 2003 07:43AM |
Registered: 17 years ago Posts: 3,550 |
<HTML>You are very smart in asking all these questions before going into business in a leased location.
If I may let me suggest some things to consider:
1. Who is your target customer?
2. Is this location near by your target customer base?
3. Is it in an area they would come to? Would women come there?
You know that women purchase 58% of auto services and over 51% of
drivers in the USA are women.
4. How long can you lease the building for? You need a minimum of 5 years
with options to renew for another 5 years, at least.
5. What is the monthly rent? Is it triple net or gross? Ask the landlord
6. Is there a oil/water separator and is it connected to the sanitary sewer.
You cannot discharge water into the storm drain only the sanitary sewer
and then only when it goes thru an oil water separator.
If the building does not have this and the landlord will not put it in then
you might not want to rent the place because you could get in trouble
with the government.
7. If all is OK with the building and you decide to lease it then you need to
do the following:
a. Get a garage owners insurance policy and have the agent explain
what you need in terms of liability.
b. You need to set up a business structure. I would not do a partner-
ship as you would be responsible for anything your partner did.
The best company structure today is an LLC.
c. You need to do both a Federal Trademark/Servicemark Search and
State one to insure no one else anywhere in the USA or your state
is using the name you decide on.
d. You need to contact the electric company and get that out of the
way.
e. Contact the phone company for a business line.
f. Contact the gas company for your gas service
g. What about an identification sign? I can help you there give me
a call.
h. Contact your state labor commission to find out what you need to
do with regard to Workers Compensation Insurance. Even if you
do not have employees you need to opt out of having it for yourself
i. Operational forms
j. Bookkeeping system and association with a CPA to take care of
paying your quarterly taxes, etc.
k. What about advertising
l. How much money do you have to sustain you; your partner and
promote the business until it takes off.
m. You must have a business plan, a simple one, but you must have
one.
n. You must know what it is going to cost you per month to operate the
business and how much money you will need to generate a month
to breakeven.
That is a good start when setting up a business to insure you do not fail and you make a good living. Too many people in this business have a bad paying job. They have no health insurance; sick leave; vacation; retirement and they make a bad wage because they do not plan for these things in their pricing. You need to have the CPA help you determine your hourly shop rate and you should never sell below that hourly rate.
If you need anything more let me know.
Bud Abraham
buda@detailplus.com</HTML>
buda
If I may let me suggest some things to consider:
1. Who is your target customer?
2. Is this location near by your target customer base?
3. Is it in an area they would come to? Would women come there?
You know that women purchase 58% of auto services and over 51% of
drivers in the USA are women.
4. How long can you lease the building for? You need a minimum of 5 years
with options to renew for another 5 years, at least.
5. What is the monthly rent? Is it triple net or gross? Ask the landlord
6. Is there a oil/water separator and is it connected to the sanitary sewer.
You cannot discharge water into the storm drain only the sanitary sewer
and then only when it goes thru an oil water separator.
If the building does not have this and the landlord will not put it in then
you might not want to rent the place because you could get in trouble
with the government.
7. If all is OK with the building and you decide to lease it then you need to
do the following:
a. Get a garage owners insurance policy and have the agent explain
what you need in terms of liability.
b. You need to set up a business structure. I would not do a partner-
ship as you would be responsible for anything your partner did.
The best company structure today is an LLC.
c. You need to do both a Federal Trademark/Servicemark Search and
State one to insure no one else anywhere in the USA or your state
is using the name you decide on.
d. You need to contact the electric company and get that out of the
way.
e. Contact the phone company for a business line.
f. Contact the gas company for your gas service
g. What about an identification sign? I can help you there give me
a call.
h. Contact your state labor commission to find out what you need to
do with regard to Workers Compensation Insurance. Even if you
do not have employees you need to opt out of having it for yourself
i. Operational forms
j. Bookkeeping system and association with a CPA to take care of
paying your quarterly taxes, etc.
k. What about advertising
l. How much money do you have to sustain you; your partner and
promote the business until it takes off.
m. You must have a business plan, a simple one, but you must have
one.
n. You must know what it is going to cost you per month to operate the
business and how much money you will need to generate a month
to breakeven.
That is a good start when setting up a business to insure you do not fail and you make a good living. Too many people in this business have a bad paying job. They have no health insurance; sick leave; vacation; retirement and they make a bad wage because they do not plan for these things in their pricing. You need to have the CPA help you determine your hourly shop rate and you should never sell below that hourly rate.
If you need anything more let me know.
Bud Abraham
buda@detailplus.com</HTML>
buda
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