If you are thinking of owning a repair shop, you should consider the financial implications alongside the personal ones. The financial rewards of owning your own business can be tempting and there is no doubt that most people would rather run their own business than work for somebody else, however, running your own business involves working long hours, dealing with troublesome staff and customers alike and wading through a monthly mountain of paperwork thanks to governmental legislation. Be prepared for a constant barrage from the authorities concerned with everything from pensions, maternity pay, income tax payments as well as health and safety regulations.
Freedom versus Affiliation
If you are not blessed with millions to start up your repair shop business from scratch, you may be tempted to become affiliated to one of the nationwide chains of repair shops.
For a comparatively small initial capital outlay, you’ll get the expertise, training and backing from their head office. They will advise you on marketing matters, how to run a business with regard to essential financials and they will generally support you through the first couple of years. However, depending on the contract, your repair shop mother hen might determine what services you are allowed to perform, which suppliers you are permitted to use and what prices you are allowed to charge. This will severely curtail your profit margin and take most of the fun out of running a business.
The disadvantage of staying independent is that you are totally thrown to the wolves in your first year. You may be a first rate mechanic, but if you haven’t got the faintest idea about cash flow, monthly profit and loss, forecasting and balance sheets, you will soon go under. Most independent businesses fail within the first three years of trading and the area mostly responsible for this is lack of business and total absence of accountancy skills.
Going Back to School
Before setting up in any business, you should make a list of all the skills and expertise you and anyone connected to you would bring to the business. Be self-critical and realistic. Most people cannot possibly know everything and unless you have a brain the size of a minor solar system you are unlikely to be knowledgeable in every aspect of running a business.
It is most likely that you will have to go back to college to do a course on basic bookkeeping, marketing and company law as well as learning about Human Resources and employment law. In your first year you are unlikely to be able to afford hiring the right people for these important sectors of your business, so your family and friends are likely sources of help, but beware, if you ask too many favours, their patience will run out and you are facing running a demanding business totally on your own.
Reference: Auto Transport > Used Cars > The Ups and Downs of a Used Car Business
