Autonerdz Home Autonerdz FAQ User’s Comments Autonerdz Events Autonerdz Store Contact Autonerdz

Autonerdz forums

 
  Welcome, Guest. Please Login or Register
Autonerdz - Since 2000, North America's Authority on PicoScope
 
  HomeHelpSearch Member Map Event CalendarRegisterLogin  
 
Pages: 1 2 3 
In need of advice in regards to shop ownership (Read 787 times)
PRESTON
LSD Guide
Picogroup
*****
Offline


"Fix like a champion today"

Posts: 4,961

Jensen Beach, Florida, USA
Jensen Beach
Florida
USA

Gender: male
In need of advice in regards to shop ownership
Feb 17th, 2017 at 4:57am
 
  Well guys, there is a very high possibility of my title changing in the near future from technician to owner.  It's been a dream of mine for years, and have spent as many years trying to learn what I can about the front shop operations.  I'm very confident I have a much better foundation than most in regards to running the show, as previous shop foreman roles have exposed me to the other side.  However, an offer was accepted, and now it's only a matter of time, and the lease negotiation between myself and being the boss.
  With so many far more experienced people on this site, with whom I trust more than most other places, I'm hoping to be able to bounce ideas off you all and ask a ton of questions as they arise.  Looking for guidance from anyone willing to share.
  On that note, my fist question would be if an LLC or S corp is the better choice for my situation.  I have asked this question on a FB private group, and the majority said they were S corp.  Many people that provided their answer, also finished with "talk to your accountant".  Thanks for any input, I just want to be a tad more prepared when I go talking with the accountant and lawyer.
Back to top
 

Rogue Nerd in South FL
WWW WWW  
IP Logged
 
Mike Lappert
Freshman Member
Picogroup
*
Offline



Posts: 48

Middlefield, Ohio, USA
Middlefield
Ohio
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #1 - Feb 17th, 2017 at 6:27am
 
Best of luck to you in your next phase of your career.
Back to top
 
mikelappert  
IP Logged
 
richmunch
Super Nerd
Picogroup
*****
Offline


I'm an Autonerd

Posts: 516

Stony Brook, New York, USA
Stony Brook
New York
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #2 - Feb 17th, 2017 at 7:51am
 
Preston, this is good news. I wish you well on your new venture. Smiley

I would recomend getting an accountant. I spoke to lawyer when I first started out, I paid him a 500 dollar retainer and never needed anything form him. So, I would probably hold off unless you feel you need something to discuss with him.

Also since I was starting from scratch there were no transfers of property or real legal agreements needing to be looked over. Just a lease and I was comfortable enough to just jump in and sign it.

The accountant is important, they can usually advise you on S-corps vs LLC. I started as a sole prop. Because I had no employees, it was pretty easy. I find owning a business way easier than a lot of guys make it out to be. It is really a lot of fun.  Smiley

After you get up and running I would also advise a payroll company. I pay myself and the guys all salary, so the payroll is the same every week. If they need a day off I just pay them the day. Noone has abused it enough for me to make any changes. Plus we try and work together and cover each other if time off is needed. Smiley

Back to top
 
 
IP Logged
 
PRESTON
LSD Guide
Picogroup
*****
Offline


"Fix like a champion today"

Posts: 4,961

Jensen Beach, Florida, USA
Jensen Beach
Florida
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #3 - Feb 17th, 2017 at 7:58am
 
  Thanks Rich.  I've always been a fan of salary, or hourly.  I feel it is my job to get the cars in, and to sell the work recommended.  I shouldn't make the tech bear the burden of my potential shortcomings.  Now that's just my attitude, I understand that for some shops the FR system is a good fit. 
  I have the lawyer looking over the contract, that's about all I foresee needing them for.  I've got a couple lead on accountant from good sources, going to make some calls in the next couple hours.
Back to top
 

Rogue Nerd in South FL
WWW WWW  
IP Logged
 
Derreck
LSD Guide
Picogroup
*****
Offline


It's getting better all
the time...

Posts: 2,367

Murray               535 ft, Kentucky, USA
Murray 535 ft
Kentucky
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #4 - Feb 17th, 2017 at 9:13am
 
Congrats Preston.  I'm sure you're gonna thrive as a shop owner.

Can't give you much advice, I'm afraid, since I've never owned a shop. 

When you are ready to hire a diag guy, let me know Wink
Back to top
 
 
IP Logged
 
fisher
Super Nerd
Picogroup
*****
Offline


Deceased

Posts: 2,734

Concord, California, USA
Concord
California
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #5 - Feb 17th, 2017 at 10:26am
 
A friend worked in an aftermarket garage. Their employer went on a long vacation, leaving the shop in the hands of the employees. They earned the shop more money that month than it ever had, they did by not accepting all and any work that that came in; they worked on what they were comfortable with and on whatever they had tools or knowledge for, turning away the other work.
Good luck to you Preston.
Back to top
 
Donald Bruce Gamble  
IP Logged
 
Jamey
Super Nerd
Picogroup
*****
Offline


Learning to Nerd

Posts: 816

Ventura, California, USA
Ventura
California
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #6 - Feb 17th, 2017 at 1:57pm
 
Congrats Preston, Good luck.
I am an S-corp. seems to work well, I pay myself a regular pay check, then about every qtr. I take dividends from corporation.

I think you will do well, just be sure to switch hats from being a technician to a shop owner. All ways remember that there isn't a Red Cross on the sign out front, you are a 'FOR PROFIT" operation. Never be afraid to charge for you services. Anyone can give work away, but it is our lively hood! 

Rule # 1-Treat people like you want to be treated,
          2-Never sell anything that doesn't need selling.
          3-Makes decisions based on what is best for the customer, not your bottom line, because what is best for the customer IS whats best for your bottom line.
          4-This is the most important, so listen up! COLLECT MORE MONEY THAN YOU SPEND! Wink

Good Luck, You will be fine.
Back to top
 
 
IP Logged
 
Tom Roberts
Autonerdz Administrator
Picogroup
*****
Offline


Autonerdz Founder

Posts: 8,598

Olympia, Washington, USA
Olympia
Washington
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #7 - Feb 17th, 2017 at 2:36pm
 

Jamey wrote on Feb 17th, 2017 at 1:57pm:
COLLECT MORE MONEY THAN YOU SPEND



Back to top
 

Tom Roberts
Forums Administrator
 
IP Logged
 
Abndanger
LSD Guide
Picogroup
*****
Offline



Posts: 2,141

Grand Rapids, Mi, Michigan, USA
Grand Rapids, Mi
Michigan
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #8 - Feb 17th, 2017 at 2:48pm
 
Hi Preston,

Congrats brother Smiley

It's a lot of hard work being a owner. You where many different hats as the owner. I have to echo what Jamey stated.

First and foremost if you are not scared everyday of business then you are wrong. Fear keeps the edge and competition at bay.

As for LLC or "S" Corp. Normally the account will guide you there. Depends on your situation but normally the "S" Corp ties everything into your personal taxes.

Now, if you own the building(which I would, I hate paying rent except to myself) you will want to form another identity as a LLC. This way if you get sued they can take the business name but not the property.

If you have questions I will try my best to answer them. You know my number sir Wink
Back to top
 
 
IP Logged
 
PRESTON
LSD Guide
Picogroup
*****
Offline


"Fix like a champion today"

Posts: 4,961

Jensen Beach, Florida, USA
Jensen Beach
Florida
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #9 - Feb 18th, 2017 at 5:16am
 
Derreck wrote on Feb 17th, 2017 at 9:13am:
When you are ready to hire a diag guy, let me know


  Whoa easy buddy, I'm still going to be handling the fun stuff, ha ha.

Thank you so much guys, truly appreciate the encouragement and insight.
Back to top
 

Rogue Nerd in South FL
WWW WWW  
IP Logged
 
StitchB
Super Nerd
Picogroup
*****
Offline



Posts: 1,314

lake stevens, Washington, USA
lake stevens
Washington
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #10 - Feb 18th, 2017 at 6:14am
 
Tom Roberts wrote on Feb 17th, 2017 at 2:36pm:
COLLECT MORE MONEY THAN YOU SPEND

You only have to work half a day now, and it does not matter which 12 hours it is. Grin Shocked
Back to top
 
 
IP Logged
 
Jamey
Super Nerd
Picogroup
*****
Offline


Learning to Nerd

Posts: 816

Ventura, California, USA
Ventura
California
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #11 - Feb 18th, 2017 at 10:17am
 
Back to top
 
 
IP Logged
 
autosparky
Super Nerd
Picogroup
*****
Offline


blind worker

Posts: 2,537

Porirua, New Zealand
Porirua
New Zealand

Gender: male
Re: In need of advice in regards to shop ownership
Reply #12 - Feb 18th, 2017 at 12:49pm
 
Good advice from Jamey

Just wondering, what is the history of this shop? good and bad?
who are the main clients? private, corporate, commercial?
what is the future of the surrounding area? businesses center?
how many staff currently? future?
how much time do you want to spend upfront vs shop?
how much holidays do you want a year.
Got a family/relationship? got to find time for them?

most important, what is it you want from your business?
Back to top
 

can't see, can't hear, can't remember
 
IP Logged
 
PRESTON
LSD Guide
Picogroup
*****
Offline


"Fix like a champion today"

Posts: 4,961

Jensen Beach, Florida, USA
Jensen Beach
Florida
USA

Gender: male
Re: In need of advice in regards to shop ownership
Reply #13 - Feb 18th, 2017 at 2:52pm
 
Jamey wrote on Feb 18th, 2017 at 10:17am:
Preston, Here is a good post from that other forum


  That was a good read, will have to re-read a couple times.  Thanks Jamey.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
Just wondering, what is the history of this shop? good and bad?


  28 years in business the two guys running it now.  As far as sales numbers, effectively flat around 165K a year for the last 5 years, averaging that same number over the last 10, I don't have 4 years and past specifically written out.  They do no marketing.  One of the owners is 70, the other is early 60's, so they aren't pushing hard at all.  Plus, apparently they have done what could be considered a sizeable amount of cash sales.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
who are the main clients? private, corporate, commercial?


  Private as far as I know, will know more hopefully tuesday afternoon when I go over to sift through the paperwork.  I'm sure they have a couple small fleets, and next door is a used car lot that has done business with them in the past.  I'm not a fan of used car lot jobs, but this lot deals with much newer vehicles.  I will definitely be the one setting the guidelines if business is to be done with them.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
what is the future of the surrounding area? businesses center?


  It is a downtown area surrounded by water, with a couple yacht clubs in close proximity.  Farmers markets and weekend festivals are common occurrence just blocks away.  The hospital, which my wife works at, is only a mile down the road.  There are coffee shops and boutique stores and all sorts of things close by.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
how many staff currently? future?


  If the deal goes through there will be no staff left behind.  It's only the two of them.  Personally I see that as a plus, because I have high standards and am fully aware of the caliber of technicians out there.  I will be asking my coworker, who I brought to my current employer from the previous one, to come work with me.  He would be the perfect fit for what I need.  If not, I know that I can truly still run it solo if needed, but that is definitely not to be any sort of normal situation.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
how much time do you want to spend upfront vs shop?


  I've said for years that I don't want to be a service writer.  However, in the last 5 years I've basically been doing just that.  Speaking as a foreman with the other technicians on their findings.  Going over them and writing the estimates.  Checking price and availability with the vendors, and then handing it over to someone else.  Then, when the customer comes to pick up the vehicle, I end up being the one communicating and educating the customer on the services performed.  I'm at the point where I'm fed up with letting someone else talk to the customer, because they keep saying electrical components are shorted, when I clearly write out open circuit!!!  Haha, ok, but that is a real annoyance for me.

autosparky wrote on Feb 18th, 2017 at 12:49pm:
how much holidays do you want a year.


  I plan on a week in the summer.  This is easy down here because it is the slow season, and it's god awful hot a humid so it's ideal to go visit my family in CA.  I also plan on taking legitimate time at Thanksgiving and Christmas.  The day after turkey day is fucking closed, period.  Depending on where Christmas falls, there will be days before or after closed, period.  I have thoughts and ideas on how to train the clientele to understand that family time is necessary, in order to run my business efficiently and to the benefit of the client. 

autosparky wrote on Feb 18th, 2017 at 12:49pm:
Got a family/relationship? got to find time for them?


  Wife, 6 year old, 4 year old, and 6 month old daughters.  School is a half mile from the house, and the shop would be another 3.5 miles from that.  Being close will help significantly.  In this day and age, much of the clerical work can be done from home, and all my women are usually asleep by 8 for the little ones, and 9 to 10 for the big one ( um, in age, not size Smiley)

autosparky wrote on Feb 18th, 2017 at 12:49pm:
most important, what is it you want from your business?


  I want from my business, a platform from which I can educate the motoring public on why services are recommended, the benefit of the services, the quality of the repairs I perform, and how it all benefits them.  I feel that most shops are lacking greatly in educating the client.  I want people to truly understand why what I do, is good for them, and will save them money and frustration.  I want to have an entire customer list of informed and empowered people that sell themselves on my recommendations, because they know of the value.  All the while, putting myself in control of my own destiny and in turn having control over my families livelihood.

Back to top
 

Rogue Nerd in South FL
WWW WWW  
IP Logged
 
autosparky
Super Nerd
Picogroup
*****
Offline


blind worker

Posts: 2,537

Porirua, New Zealand
Porirua
New Zealand

Gender: male
Re: In need of advice in regards to shop ownership
Reply #14 - Feb 18th, 2017 at 11:42pm
 
so far it sounds like you got things under control,

Did you ask the old owners to stay on for a few months to help out?? would be good to help meet and great the old clientele, generally old customer like to see a familiar face when they walk in, even if the old owner does a few hours in the morning it's beneficial

Most importantly, (don't post here, just between you, wife and accountant) got a loan on the house? how much cash do you want from the business? how much toys do you plan on buying? every year-  Smiley
$165k for the history between two partners is a declining sales figure hope you realize, of cause you will never know how much cash is sucked out as cream on top of that


I do wish you all the best for your future, it sounds like a good time to change direction, you got a young family that can only benefit in the long run
Back to top
 

can't see, can't hear, can't remember
 
IP Logged
 
Pages: 1 2 3