3 answers
Carson
Student
Herndon, Virginia
1
Question
Updated
740 views
How hard is it to start your own business and what are the first steps of starting a business ?
I'm a senior is high school looking to go into college for auto repair and business management in order to one day in the future open my own Restoration shop.
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3 answers
Doc Frick
Career Coach and Mentor
1870
Answers
California, CA
Updated
Doc’s Answer
Starting a mechanic shop is an exciting venture Carson. However, before you begin fixing engines and tuning up cars, you must ask yourself, How much does it cost to open a Restoration Shop? There are considerable financial commitments you’ll need to make. Let’s be honest: opening an auto repair shop is a huge financial decision. Once the WHEELS are in motion and you put significant money down, you will have a hard time changing course.
STEP 1️⃣ CREATE A BUSINESS PLAN
Create a comprehensive business plan, integrating your cost calculations and including clear explanations and justifications for each cost item. Use your cost calculations to develop realistic financial projections for your business. These projections should include income statements, cash flow statements, and balance sheets—showcasing how your Restoration Shop will generate revenue and become profitable over time. Lenders are more concerned about your ability to repay the loan. Emphasize your creditworthiness, financial stability, and ability to generate consistent cash flow. Use your cost calculations to show that you have a solid plan for managing expenses and repaying the loan on time.
STEP 2️⃣ RESTORATION SHOP LOCATION
Your business location is one of the most important decisions you’ll make. Choose wisely, because your business location determines how much you’ll pay in taxes, what federal and state licenses you will need, as well as permits and regulations that will apply to your business. Associated fees will vary based on the nature of your business. The SBA provides a list of general federal licenses and permits. Begin checking if any aspect of your business activity is listed here, then check with the federal agency to see how you should apply. Use your state’s business website to search for related licenses. Business activities that are commonly regulated at a state level include auctions, construction, dry cleaning, farming, plumbing, restaurants, retail and vending machines.
STEP 3️⃣ DETERMINE LEGAL STRUCTURE
Before you register your business you will need to determine the most appropriate legal entity structure, which may be sole proprietorship, general partnership or a limited liability company:
• SOLE PROPRIETORSHIPS: are the simplest and least expensive, requiring no formal filing, but they make the owner liable for the business’s debts and other liabilities.
• GENERAL PARTNERSHIPS: allow two or more people to share profits, losses and liabilities for the operation, with each partner responsible for filing their own taxes on the revenue they receive from the business. They typically involve a formal partnership agreement.
• LIMITED LIABILITY COMPANY (LLC): must be registered with the state in which the business operates. They protect owners from some of the company’s debts and other liabilities. LLC annual filing requirements are less onerous than those for corporations.
CONCLUSION
Sometimes the fastest way to succeed in business is by not starting from scratch, but to start shopping for an existing business to take over, think about the reasons the current owner is selling. It could be that they simply have achieved the goal they set when they started out.
Good luck Carson
STEP 1️⃣ CREATE A BUSINESS PLAN
Create a comprehensive business plan, integrating your cost calculations and including clear explanations and justifications for each cost item. Use your cost calculations to develop realistic financial projections for your business. These projections should include income statements, cash flow statements, and balance sheets—showcasing how your Restoration Shop will generate revenue and become profitable over time. Lenders are more concerned about your ability to repay the loan. Emphasize your creditworthiness, financial stability, and ability to generate consistent cash flow. Use your cost calculations to show that you have a solid plan for managing expenses and repaying the loan on time.
STEP 2️⃣ RESTORATION SHOP LOCATION
Your business location is one of the most important decisions you’ll make. Choose wisely, because your business location determines how much you’ll pay in taxes, what federal and state licenses you will need, as well as permits and regulations that will apply to your business. Associated fees will vary based on the nature of your business. The SBA provides a list of general federal licenses and permits. Begin checking if any aspect of your business activity is listed here, then check with the federal agency to see how you should apply. Use your state’s business website to search for related licenses. Business activities that are commonly regulated at a state level include auctions, construction, dry cleaning, farming, plumbing, restaurants, retail and vending machines.
STEP 3️⃣ DETERMINE LEGAL STRUCTURE
Before you register your business you will need to determine the most appropriate legal entity structure, which may be sole proprietorship, general partnership or a limited liability company:
• SOLE PROPRIETORSHIPS: are the simplest and least expensive, requiring no formal filing, but they make the owner liable for the business’s debts and other liabilities.
• GENERAL PARTNERSHIPS: allow two or more people to share profits, losses and liabilities for the operation, with each partner responsible for filing their own taxes on the revenue they receive from the business. They typically involve a formal partnership agreement.
• LIMITED LIABILITY COMPANY (LLC): must be registered with the state in which the business operates. They protect owners from some of the company’s debts and other liabilities. LLC annual filing requirements are less onerous than those for corporations.
CONCLUSION
Sometimes the fastest way to succeed in business is by not starting from scratch, but to start shopping for an existing business to take over, think about the reasons the current owner is selling. It could be that they simply have achieved the goal they set when they started out.
Good luck Carson
Thank you for giving me advice.
Carson
Rebecca Tang
Banking
2062
Answers
Hong Kong
Updated
Rebecca’s Answer
Thank you for your question. I am glad to know you want to be an entrepreneur. Have you thought about what industry you want to start your business?
Below are my suggestions:
1. Think about what industry you have interest or strength
2. Do some analysis on the industry eg entry criteria, competition status, any alternative or substitute,etc
3. Attend industry related courses and management courses
4. Work in the industry some to understand the business model and establish people network
5. Start the business online first if possible
Hope this helps! Good luck!
May Almighty God you!
Below are my suggestions:
1. Think about what industry you have interest or strength
2. Do some analysis on the industry eg entry criteria, competition status, any alternative or substitute,etc
3. Attend industry related courses and management courses
4. Work in the industry some to understand the business model and establish people network
5. Start the business online first if possible
Hope this helps! Good luck!
May Almighty God you!
Bob Burton
Consultant
82
Answers
Austin, Texas
Updated
Bob’s Answer
Doc and Rebecca have excellent advice as they share the structural steps and analysis process for starting your own restoration business.
While in college, during the summers, you might first want to work for a successful repair and restoration business. Hands on experience, working for a recognized leader in your chosen field, is paramount to success. It also offers you the opportunity to test, for yourself, how your academic business studies apply to experiential hands on learning.
Should there be an industry conference and show, you should attend and ask questions of presenters as well as those manning booths. You will learn about how they view their success in this business. Also, investigate should there be an industry magazine booth and spend time with the reporters covering the show.
Work with your professors to have them suggest reports, publications, magazines, franchise opportunities they can mentor for you. See if you can tap into their network of successful entrepreneurs who started their own businesses. Interview these folks.
As you progress, in your learning, you will be in a better position to follow the structured approaches offered by Doc and Rebecca.
While in college, during the summers, you might first want to work for a successful repair and restoration business. Hands on experience, working for a recognized leader in your chosen field, is paramount to success. It also offers you the opportunity to test, for yourself, how your academic business studies apply to experiential hands on learning.
Should there be an industry conference and show, you should attend and ask questions of presenters as well as those manning booths. You will learn about how they view their success in this business. Also, investigate should there be an industry magazine booth and spend time with the reporters covering the show.
Work with your professors to have them suggest reports, publications, magazines, franchise opportunities they can mentor for you. See if you can tap into their network of successful entrepreneurs who started their own businesses. Interview these folks.
As you progress, in your learning, you will be in a better position to follow the structured approaches offered by Doc and Rebecca.