The Reality Of Opening Your Own Automotive Repair Shop

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  • Опубликовано: 17 ноя 2024

Комментарии • 114

  • @darinjohnson7280
    @darinjohnson7280 2 года назад +40

    I’m basically a one man shop, have one part time guy. I usually work about 80 hours a week, 7 days a week for the last several years. On a good week, I bill about 30 hours. Phone rings all day, people come in all day wanting you to “come look at this real quick, or can you check my engine light”, after several of those, your day is half gone! I’m in a small town, and take pride in customer service, but being the “Good ol boy” wears you out! I’ve been in business for about 12 years and have been busy since day 1, been really blessed to busy, and have made a good living, while treating people fairly, but the stresses of doing it are really getting to me lately!

    • @kurtkennedy5370
      @kurtkennedy5370 2 года назад +8

      Solid process and procedures set up and training your customers will change your life. I was like you when I started out, but quickly realized I got burnt out and had to make a change, found some mentors and totally changed my life and my shop.

    • @eurowerx4267
      @eurowerx4267 2 года назад +6

      Props, but you need to scale down and eliminate inefficiency’s !
      I work 4 days a week, goal of 32 hours billed each week. Average 30-50 hours a week by myself. I specialize in bmw and Mercedes’, rarely touch anything else. I don’t answer my phone. Reply by text message in the afternoons. I pick and choose all my clients! I always have work because I run lean and efficiently

    • @kurtkennedy5370
      @kurtkennedy5370 2 года назад +3

      @@eurowerx4267 There is absolutely nothing wrong with that at all,. However some of us want to grow, be able to service our community more and make more money. I was a one man shop for the first year, I can take home now what I grossed all month as a one man shop.
      Everyone has their own dreams and goals, Sounds like you got a solid reputation and workload, Keep it up!

    • @melvingibson4525
      @melvingibson4525 2 года назад +3

      People love to take advantage of mechanics. Sounds like they're doing that to you

    • @DavidRomanKC
      @DavidRomanKC 2 года назад +3

      You're too busy because you're likely too cheap.
      Set good margins and you'll lose half your customers while making the same amount of money.

  • @tedvandell
    @tedvandell 2 года назад +27

    Mobile mechanic for a couple years now. Keep limited hours, turn the phone off at 5pm, closed Sunday. Don't take a lot of jobs. Just say I can't get to it anytime soon. Started part time while I was still working in a shop and got enough clients to go full time. I am definitely busier than I want, but again I limit the amount of work I accept. I also am very picky about who I take as a client. I fire clients regularly if they are a problem at all. I'm a sole proprietor so taxes and managing cash flow is easier. I make at least what I made at the shop, but work way less and pick the jobs I'll take on. Life is way better this way.

    • @wyattoneable
      @wyattoneable 2 года назад +1

      Hey neighbor. Best of luck to you.

    • @quinns3414
      @quinns3414 2 года назад +2

      Started this recently too and its been amazing.

    • @shak180
      @shak180 2 года назад +2

      You should consider an LLC or S-Corp for you business. As a sole proprietor your personal assets can be at risk in a law suit that involves your business. With a properly setup LLC or S-Corp your personal assets are much more shielded.

    • @quinns3414
      @quinns3414 2 года назад +2

      @@shak180 I went LLC to start. Think I’m going to confer to S corp next year

    • @eurowerx4267
      @eurowerx4267 2 года назад

      @@quinns3414 S Corp, no better decision could be made!!

  • @jbaltimorec
    @jbaltimorec 2 года назад +11

    Currently a shop owner of 7 years. I am former dealership technician. Unfortunately I've learned a great deal from lots of mistakes and from other successful owners. I will tell you that it extremely hard mentally to not know when or where your next paycheck is coming. For the really good weeks I reinvest into the business purchasing or replacing equipment. You just have to be aware that with the really good weeks there will be really bad ones too! Save save save instead of spending. My little two cents lol.

  • @Eastahtata
    @Eastahtata 2 года назад +10

    A lot of your side gig customers that you expect to retain can also disappear when you have to charge them the typical industry labor rate.

  • @eurowerx4267
    @eurowerx4267 2 года назад +3

    I work 4 days a week, goal of 32 hours billed each week. Average 30-50 hours a week by myself. I specialize in bmw and Mercedes’, rarely touch anything else. I don’t answer my phone. Reply by text message in the afternoons. I pick and choose all my clients! I always have work because I run lean and efficiently.
    Shop rate is $115 an hour, after all expenses I make about $60 an hour.
    I made more than that as a flat rate bmw mechanic!! But I’m Much happier and working a lot less!!

  • @wyattoneable
    @wyattoneable 2 года назад +5

    I have a friend who is very talented in automotive repair and he's thinking of owning his own shop. I need to send him this video. Thanks Mike.,

  • @jonnylong7927
    @jonnylong7927 2 года назад +7

    I didn't really have a choice, I kept getting fired so I kinda had to open my own shop.

  • @ericjswindle
    @ericjswindle 2 года назад +7

    I think a lot of people make the mistake of thinking “I’m good at x, therefore I should start my own business doing x.” People don’t realize or underestimate the importance of what Mike is saying here. Owning s business is an entirely different skill set. I made this mistake myself. Luckily it only took me about 2 years to figure it out and I was able to get out before I caused too much long term damage to my life.

  • @YouAllKnowBob
    @YouAllKnowBob 2 года назад +5

    Excellent video. The grass isn't always really greener on the other side of the fence. Sometimes it's been spray painted! 👍👍

    • @JOMaMa..
      @JOMaMa.. 2 года назад

      The grass isn’t always brown when you first look at it..

  • @Joensm0826
    @Joensm0826 10 месяцев назад +1

    Started my shop with 5k over a year ago 1 man shop all depends on your mind set

  • @carterthiessen2664
    @carterthiessen2664 2 года назад +4

    My dad and his brother were both techs for about 15 or 20 years before they bought a shop together and started their business in 2001. Luckily my mom was already a proficient accountant from her previous job, so together along with my aunt they were fairly successful and the business is still going strong. However in a small family shop, paying a tech flat rate just isn't feasible. Probably 25 percent of the work I do isn't working on cars, it's doing those "efficiency killers" you talk about. Thanks to my dad and uncles hard work and good business practice, the business has been successful. But I remember growing up when the shop had started how late my parents would get home from work, and many weekends where they had to work.

  • @scaracci24
    @scaracci24 2 года назад +3

    Thank you for mentioning this. It's very hard. I've aged years since opening my shop. It's a constant grind unless you surround yourself with A players who want to see you succeed. Thanks FRM

    • @WrenchsAndAnime
      @WrenchsAndAnime Год назад +1

      My goal is to open a shop. What were some of the challenges in the beginning that u faced?

  • @KCDW83
    @KCDW83 Год назад

    His added edit is definitely the most important part of the video. There will be days you don't collect any money, days all you do is send money out and days you don't even work on a customer's car. One thing you definitely have to learn is not to just take on everything that gets thrown at you. If the work you do actually do is quality and your customers are happy there will always be more work.

  • @ianloyd6384
    @ianloyd6384 2 года назад +3

    Damn... FRM with that full head of salt & pepper locks. 🙌🏻 Lol.
    Totally different without a hat on.. 👦🏻
    Nice change sir!
    Great input on this btw.

  • @tracydiller9378
    @tracydiller9378 2 года назад +1

    My hat off to people starting there own shops the stress level has got to be over the top.Great video Mike as always have a great rest of the week everyone and stay safe.

  • @bobkyllo578
    @bobkyllo578 2 года назад +1

    In April I decided to buy my own shop. I've worked with my father for the last 15 years and we were renting. I could see that going no place very fast. You are right about the managing part and I think Eric o put it best in one of his latest shows when he said he gets more done in the hour or two that he puts in after hours versus the normal open hours.
    As far as our shop making money, I try to sit down every few months and add up my fixed bills lights, heat, insurance, mortgage, etc. I then take that amount and divide it between the working days of the month. That way I have a idea what I need to do per day just to make expenses. Anything over that then I start making money. It has worked very well for me.

  • @iamtheoffenderofall
    @iamtheoffenderofall Год назад +1

    Never touched on sue happy customers. Was sued as a tech. No protections afforded to me as a tech, I know there will be none as a business either. The shop I worked for.....LLC.....was sued and lost as well. Thats why I will never own a shop. One customer can put you in debt worse than the IRS.

  • @amaturetechnician8405
    @amaturetechnician8405 2 года назад +4

    My tech school instructor told me when you open your own shop you trade 1 boss for 1000 bosses. Everything you said confirms that. I may want something on the side for friends and family or RUclips, but not a full blown business.

  • @qualityautorepairtireautosales
    @qualityautorepairtireautosales 2 года назад +1

    Great Video! I got my business started “I bought a garage with a house in the front yard”. I love how you talked about financials that’s so important. I got my financial education from SCORE free mentorship program via SBA. I wouldn’t have the businesses I do (I own 2) without SCORES help
    I tell anyone who wants to start a business. Learn accounting or don’t do it.

  • @bryanbeane7328
    @bryanbeane7328 2 года назад +12

    Definitely not wrong and there are day I wish I could burn that darn phone. For me I’ve always liked business now I’ve got a tech working with me. I started part time at my shop in 2018 paid everything off before I went full time so when I did make the big jump I had a client base and very few expenses.

  • @jaredalaska907
    @jaredalaska907 Год назад

    The way myself and my business partner opened our shop was we worked our full time shop and wrenched at ours on our off time. It took a lot of effort but we have been full time for almost four years now and lucky enough are doing pretty good. Point being you dont have tl have massive over head. In my opinion start small and work your way up and the biggest one. Becareful what you wish for!

  • @devonmccown1110
    @devonmccown1110 2 года назад +2

    I dig the guest appearance from creator hardware, he is a great editor. Great topic to cover

  • @normanmiley2442
    @normanmiley2442 2 года назад

    You are so right. 40 years ASE only worked 4 jobs. You have WISDOM keep sharing it. I always thought I needed $ 200.000 to even THINK about it. I broke my back really bad, I am blessed I can walk. Being paid well is a good thing. 18 hr days is not.

  • @joekoehler6759
    @joekoehler6759 2 года назад +2

    He is not wrong, I own my shop, started it March 2020. It is alot of work getting proper lisences, insurance, location, having capital to buy parts and pay bills. It's scary as hell, its been worth it for me but had to build it and sacrifice till it grew.

    • @drew5992
      @drew5992 2 года назад +1

      It’s scary not impossible keep up the good work

    • @joekoehler6759
      @joekoehler6759 2 года назад +2

      @@drew5992 definitely not impossible, but not as easy as most think it is!!

  • @MrBeefsnorkel
    @MrBeefsnorkel 2 года назад +1

    This video is packed full of really important information for anyone seeking to do this. You should really listen to FRM here. I would also add - and this goes for ANY business being started - I HIGHLY ADVISE AGAINST GOING INTO TENS OF THOUSANDS OF DEBT TO GET THE CAPITAL TO FUND YOUR NEW BUSINESS. New businesses fail far more than they succeed. After I've tried running multiple (and failing) only now do I have the street and business smarts to know how to use a loan like that. Or if to even get one in the first place. Every business owner needs to get initiated. Initiated = getting knocked up side your head, knocked on your ass and starting back at square one. Even if you put 80 hour weeks in and did everything you could, sometimes there's just more to learn. Are you ok with continuing to try after failure? If not, owning a business is NOT FOR YOU

  • @willb3018
    @willb3018 2 года назад

    This is a valuable video for anyone who wants to start any business. Change the word shop to bakery, book store, hardware store, eyc., and listen.

  • @jwilkers1
    @jwilkers1 2 года назад +2

    I was offered a shop (that I'd worked at previously) last year but after looking at his financials and realizing it would all be on me with zero days off, zero vacation, zero sick days and 100% of the responsibility I did a hard pass.

    • @Adam-kk7nw
      @Adam-kk7nw 2 года назад

      U could open a jiffy lube

  • @mramseyISU
    @mramseyISU 2 года назад +1

    My dad had his own shop in the 90’s. His biggest problem was getting paid by the customers. Too many bounced checks and he wouldn’t make people he knew pay before giving them their keys back. After 5 or 6 years of that he had enough and went to work at Ruan as a fleet mechanic.

  • @johnburgett5040
    @johnburgett5040 2 года назад +1

    I'm starting my business as a mobile service working on medium and heavy trucks, heavy equipment. I decided to go mobile because of where I live its more convenient for my customers if I come to them.

  • @eurowerx4267
    @eurowerx4267 2 года назад

    Just gotta be ready to do it on your own!! You can always count on you, not anyone else. Love it, wouldn’t have it any other way!

  • @donniebagwell9536
    @donniebagwell9536 Год назад

    I've been a tech for 25 years on flat rate except for the first 2 years thank God I got a job with the local telecom company and I have never been happier, I have a company truck, credit card, tools and I get paid just to show my pretty face 😅

  • @ToolDemos
    @ToolDemos 2 года назад +1

    I like the idea of growing a side business into a full-time shop. Seems like a lot of pitfalls can be avoided that way.

  • @mt1885
    @mt1885 2 года назад +1

    Efficiency and picking what hours of the day to work as it will be 12 hours of the day. Also, one needs to be a self-starter if one is in a more rural area you can have the shop at your house.

  • @itruck96
    @itruck96 9 месяцев назад

    I'm not even a mechanic, I don't agree with many mechanics. Why do I enjoy watching these videos?😂

  • @detailedautodiagnostics
    @detailedautodiagnostics 2 года назад +1

    If you do it correctly, you will struggle.....if you do it wrong, you will fail.....
    Don't expect to make any money the first 2 or 3 years....just when you have a good week, that money goes to NEEDED equipment or to pay a vendor who carried you the past 2 months....
    You will get VERY LITTLE repairs done during business hours...once you lock the door, you can finally fix cars.....you no longer have free time....your done.....#facts

  • @fumanpoo4725
    @fumanpoo4725 2 года назад +1

    I run my Brazilian Bootylift/plumbing/law office out of my garage in Hialeah...

  • @guillermojara3645
    @guillermojara3645 2 года назад +1

    One main key is to organize yourself, with quick books and a schedule time and money will stay longer

    • @willb3018
      @willb3018 2 года назад

      And maybe a wife (or your choice of some form of domestic partner) who will work for nothing to to the books/admin. 😂

  • @mg8718
    @mg8718 7 месяцев назад +1

    Put up a steel garage in your back yard by US steel.

  • @dannytam9046
    @dannytam9046 2 года назад +1

    That's is so ture people don't understand the business side of auto industry or any other business is the same thing

  • @biastv1234
    @biastv1234 2 года назад

    The cost of rent in Australia is about 4K to 15K per month depending on size

    • @biastv1234
      @biastv1234 2 года назад

      In Australia, you hourly rate should be wages times 3 . So if you pay your mechanic $40 per hour, the shop rate needs to be $120 per hour

  • @bensanders7392
    @bensanders7392 9 месяцев назад

    Another factor consider is what state or area is it. How bad is the taxation ....and permits, and zoning restrictions? Is your state...or city hostile to small business startups? Over- regulation.

  • @Troy_Built
    @Troy_Built 2 года назад +1

    Some have mentioned it here but you really didn't touch on the amount of hours it requires. Then for most I know the health insurance was a big hurdle if they didn't have a spouse that could cover them.

  • @WrenchsAndAnime
    @WrenchsAndAnime 2 года назад

    I think you should become an advisor & work your way up to a manger ( after you’ve become a master technician) that way you can learn the business side and still get payed and you’re not losing anything. Once you’ve learned how to manage, the money you saved ( a years salary as you suggested or more) then open your own business because now you understand both sides of the spectrum.

  • @mg8718
    @mg8718 7 месяцев назад

    You can start off if you have a garage. At home service is the norm today.

  • @mikeske9777
    @mikeske9777 2 года назад

    Yeah so true. I personally avoided opening my own automotive shop as I did not want the problems. I eventually went into aviation and worked for a major aviation company for good reason. I go to work and the end of the pay period I was paid. After I retired I just do simple repairs on my personal vehicles but that's it.

  • @markj7519
    @markj7519 2 года назад

    Another thing people need to look at is how saturated is the area with the same type of business you want to open.

  • @wr3ncher
    @wr3ncher 2 года назад

    One man shop sux because you are shifting gears more than gaining rpm. Its not impossible but the efficiency shows in numbers months later

  • @adamjackson4525
    @adamjackson4525 2 года назад

    What about being a mobile mechanic? Less overhead costs.

  • @Ken-wu6hr
    @Ken-wu6hr 2 года назад

    No Joke. I’m a one man shop. My wife answers the phone from home. I stay behind. I’ve been open for 20 years. I had employees. What a pain. I just do what I can.
    My recommendation if you want to open a shop, get a Business degree. My shop poorly run

  • @PhillyDee215
    @PhillyDee215 2 года назад

    👉I THOUGHT ABOUT OPENING A MECHANIC SHOP A FEW TIMES BUT WHEN COVID-19 HAPPENED AND I SAW ALL THOSE MECHANIC SHOPS CLOSE DOWN I CHOOSE TO AT LEAST WAIT BUT ITS A BIG RISK DURING THESE TIMES🤦‍♂️

  • @kurtkennedy5370
    @kurtkennedy5370 2 года назад +3

    You really think you are undervalued and treated like crap as a tech at a shop? Wait til you open your own shop, youll really feel undervalued and beat up all the time from customers, vendors, staff, etc.
    I would not even THINK about opening a shop without 100k in the bank. simple as that.
    Just bc you are a very good tech, doesnt make you a good business man... There is a reason an insane amount of shops fail every single year.
    I started out as a one man shop, you are the mechanic, writer, manager, accountant, parts guy, gopher, IT guy, Janitor, etc. etc.
    Now I have staff, If I don't see a single car, all month I still owe anywhere from 43-48k a month to vendors, rent, payroll, subscriptions, etc. etc. etc.
    Owning your own shop is NOT for the faint of heart at all. You've never lived till you have put your staffs payroll on an AMEX card before.

  • @speedy_pit_stop
    @speedy_pit_stop 2 года назад

    FRM maybe for another video, but you didn't mention about all of the regulatory hurdles, the licensing requirements, certifications and permits, etc, etc at the local, state and federal levels. It never ends. Some states are probably easier than others, it also varies from counties and cities, but if you take into account all of the things you have to learn, do and get just to have the RIGHT to change a spark plug for a customer, it's insane.

  • @MrBdogg90
    @MrBdogg90 4 месяца назад

    Is it more stress then trying to support 2 households on 2 grand a month?

  • @austinwyatt5004
    @austinwyatt5004 2 года назад +1

    First here this time! Been waiting on this subject from you

  • @vincegayle3664
    @vincegayle3664 2 года назад

    What about a mobile mechanic with his own van

  • @terryharvey4811
    @terryharvey4811 2 года назад

    A one man shop, owner/mechanic, will be lucky to get 4 hours billable out of an 8 hour day, and yet you won't have a spare minute in that 8 hours. You'll have to eat lunch on the go. THERE'S A REASON ONE MAN OPERATIONS WORK 12 TO 18 HOUR DAYS, 6 TO 7 DAY WEEKS......

  • @bensanders7392
    @bensanders7392 9 месяцев назад

    Oh don't forget customer want everything for free. They want a 6 hour job done for 3 hours time.

  • @gregmcbee2585
    @gregmcbee2585 2 года назад

    Great advice. Thank you

  • @samuelw.3992
    @samuelw.3992 2 года назад +2

    Don’t ever 1099. You damn right. I worked 2 yrs for a small time contractor an I was 1099’d an that sucked

  • @High_Tech_Mountain
    @High_Tech_Mountain 2 года назад

    Thank you for making this video

  • @nitrous07me
    @nitrous07me 2 года назад

    Nope not for me I hate dealing with people I don’t know

  • @charliemagoo7943
    @charliemagoo7943 2 года назад

    And the Karen kustomers that have been run out of every other shop will come running to your new shop . Get a burner phone number for the shop so you don't have to answer during the rare time off.

  • @t.daviswoodworks
    @t.daviswoodworks 2 года назад

    Holy shit, your not bald!😂

  • @andrewgonyou9903
    @andrewgonyou9903 2 года назад

    When are you gonna be on the ASOG podcast? 🙃

    • @flatratemaster
      @flatratemaster  2 года назад +1

      Lucas has offered it is a tine issue for me i have none to spare

    • @andrewgonyou9903
      @andrewgonyou9903 2 года назад

      @@flatratemaster are you gonna be at ASTE this year? First time for me

  • @mt1885
    @mt1885 2 года назад

    Key take away - it does not work that way in the 'real' world.

  • @stevenfarley6909
    @stevenfarley6909 2 года назад

    Can anyone recommend a management training course for automotive repair?

  • @jncn1490
    @jncn1490 2 года назад

    If your happy making 40-100k a year work for someone else. If you actually want to make real money, 1000$ a day to 500k a year , then work for yourself

    • @markm0000
      @markm0000 Год назад

      This is a fools errand. If you want to be blissfully happy then always be a tech. If you want serious money then make your money work for you. There’s a whole lot more opportunity out there. Being a one man shop is a very bad idea unless you are satisfying a strong demand for only one manufacture or type of machinery. The more specialized the better. Still, you’re trading your time on this earth for the next paycheck. It’s still not worth trying. If you’re smart money will come to you.

  • @ocdauto8794
    @ocdauto8794 2 года назад

    WHY NOT A 1099 ??

    • @flatratemaster
      @flatratemaster  2 года назад +1

      Your an independent contractor and they can screw you over hard and there is no legal protection

  • @aleskyfinis1025
    @aleskyfinis1025 2 года назад

    Yeah it is expensive

  • @ezeeduzzit
    @ezeeduzzit 2 года назад +3

    Been 1099 before. Scam

    • @detailedautodiagnostics
      @detailedautodiagnostics 2 года назад +4

      The 1099 ONLY works if you are a independent contractor .....if you show up to the same job, same time, same days, then you are not a 1099 employee...an example of a true 1099 sub is a contractor who works for whatever developer is available to do construction and goes to multiple job sites a week and receives checks and compensation from various billed companies....

    • @MrTmenzo
      @MrTmenzo 2 года назад

      And some dumb shops still risk it by 1099-ning mechanics when they could easily go to the labor board.

  • @kevinminor2558
    @kevinminor2558 2 года назад +1

    I stated in my driveway 8 yrs ago, Went to a 1 bay then to a 3 bay. And now own a 6500 sq ft Shop 3 lift shop with two offices. I have one tech. It can be done, I did it and do not regret it. We Work 5-6 days a week and we rang 400k in gross income last yr. I will say that I have a really good sense for business and that helps a lot.
    If you don't think you could run a ice cream stand then don't open a business
    Don't let this fat ass discourage you work hard and succeed.

    • @DavidRomanKC
      @DavidRomanKC 2 года назад

      You made 400k after COGS?
      Or, you made 400k EBITA?
      Or, you made 400k in gross revenue?

    • @kevinminor2558
      @kevinminor2558 2 года назад

      @@DavidRomanKC Google Gross income.

    • @kevinminor2558
      @kevinminor2558 2 года назад

      All these punks complaining saying its hard probably cant fix there own breakfast.

    • @DavidRomanKC
      @DavidRomanKC 2 года назад

      @@kevinminor2558 you're not structuring your P&L properly if you're looking at a number as "gross income" and then referring to it as though it were in any way significant.

    • @kevinminor2558
      @kevinminor2558 2 года назад

      @@DavidRomanKC I understand p&L Lets pretend lost 200k And I didn't. So My profit was 200k. For some reason my comments strike a nerve in you. Why is this? I am only trying to motivate others. Did you try this and fail?? Or are you contemplating starting your own business, scared looking for reasons not to? Seems like you're on the side of working for the man. Why is it so hard to believe I am successful What's your deal? You are more than welcome to come visit me at my shop so you can see.

  • @honda_doc6826
    @honda_doc6826 2 года назад

    Thanks.

  • @alenmihelcic8267
    @alenmihelcic8267 2 года назад +1

    All correct.
    I am owner, but las 15 years work alone. And now is end. Burn out. Like this video say, you have about 15 duty.
    Not sliping, dream Irs, tools, fire, ahh...

  • @jeffl1944
    @jeffl1944 2 года назад

    No way

  • @chrischiampo7647
    @chrischiampo7647 2 года назад +3

    😀👍🏼👍🏼👍🏼🥵🥵🥵🥵 You are Soo Right FRM 🫠🫠🫠The Struggle Is Real

    • @fumanpoo4725
      @fumanpoo4725 2 года назад

      Just give The Man your belly and let him work you into your grave. It's the American Scream...