2 answers
Michael
Student
Reno, Nevada
1
Question
Updated
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How can I successfully open and manage my own business after graduating from college?
My plan for after I graduate from college, I want to open a car performance/mechanic shop with my brother, who is attending school to become a mechanic. This is a passion that we both have and it is our dream to have our own shop in our city that is as successful as we can make it using both my experience in business, more specifically marketing, and his experience with hands on mechanic work.
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2 answers
Larry Myers
1
Answer
Phoenix, Arizona
Updated
Larry’s Answer
Hello Michael,
This is a great question! I've been a motorsports enthusiast for most of my life and have seen many performance shops come and go. Here are some of the greatest challenges for any performance/mechanic shop:
1) One of the biggest challenges is proper money management. There are so many unknowns for a new business owner, such as overhead, estimated quarterly taxes (this is a big one), tools, consumables, cost of goods sold, marketing expenses and determining your own income. Just remember, the money coming in is not your paycheck!
2) Become proficient using Excel spreadsheets and lay out all your costs of doing business, real time income and create basic formulas to help you and your brother visualize the long-term financial position of your company. This will save you from any difficult "money" conversations, as the numbers will be there to facilitate discussions. (Software like QuickBooks can come later, but Excel is a great start)
3) Working capital is a tough one for new businesses. Create a business plan outlining the structure of the company, including a Pro Forma. (ChatGPT can explain this and assist you in document creation) and use it to pursue an SBA Loan or investors.
4) Although your focus is on Marketing and Business Development, take as many financial related courses as you can to clearly understand money management.
Now that I've provided a financial snapshot, the fun begins! Doing something you're passionate about is a dream for many, and it makes it a lot easier to put in the long days, weekends and holidays, at least when you're getting started. The initial sacrifice of time when you're young will pay off a little later in life and will give you the work/life balance we all desire. The last piece of advice and can give you is strong ethics, morals and values are the foundation of everything you do, and customers will keep coming back if they know they were treated fairly. Good luck my friend!
This is a great question! I've been a motorsports enthusiast for most of my life and have seen many performance shops come and go. Here are some of the greatest challenges for any performance/mechanic shop:
1) One of the biggest challenges is proper money management. There are so many unknowns for a new business owner, such as overhead, estimated quarterly taxes (this is a big one), tools, consumables, cost of goods sold, marketing expenses and determining your own income. Just remember, the money coming in is not your paycheck!
2) Become proficient using Excel spreadsheets and lay out all your costs of doing business, real time income and create basic formulas to help you and your brother visualize the long-term financial position of your company. This will save you from any difficult "money" conversations, as the numbers will be there to facilitate discussions. (Software like QuickBooks can come later, but Excel is a great start)
3) Working capital is a tough one for new businesses. Create a business plan outlining the structure of the company, including a Pro Forma. (ChatGPT can explain this and assist you in document creation) and use it to pursue an SBA Loan or investors.
4) Although your focus is on Marketing and Business Development, take as many financial related courses as you can to clearly understand money management.
Now that I've provided a financial snapshot, the fun begins! Doing something you're passionate about is a dream for many, and it makes it a lot easier to put in the long days, weekends and holidays, at least when you're getting started. The initial sacrifice of time when you're young will pay off a little later in life and will give you the work/life balance we all desire. The last piece of advice and can give you is strong ethics, morals and values are the foundation of everything you do, and customers will keep coming back if they know they were treated fairly. Good luck my friend!
Jonathan Zuleta
9
Answers
Heredia, Heredia Province, Costa Rica
Updated
Jonathan’s Answer
You have a great mix for a successful business. You know marketing, and your brother is learning the technical side. This balance is key.
Trust is also crucial. People want a mechanic they can rely on and who is nearby. Offering good service, honesty, and clear communication will help your business grow quickly.
Your marketing skills can attract customers through social media, promotions, reviews, and building a good reputation in the community. Your brother's technical skills will ensure quality service and build credibility.
Once you know who your customers are, focus on promoting your business consistently. Aim to create a reputation that encourages repeat business and word-of-mouth referrals. Combining passion with strategy is a strong approach.
My suggestion is to first analyze the market where you want to open the shop. Look at questions like: * What types of cars are most common in that area? * Are more new cars or older cars being used there? * Is there demand for performance upgrades, repairs, or both? * How many mechanic shops already exist nearby? * What makes customers unhappy with current shops?
Trust is also crucial. People want a mechanic they can rely on and who is nearby. Offering good service, honesty, and clear communication will help your business grow quickly.
Your marketing skills can attract customers through social media, promotions, reviews, and building a good reputation in the community. Your brother's technical skills will ensure quality service and build credibility.
Once you know who your customers are, focus on promoting your business consistently. Aim to create a reputation that encourages repeat business and word-of-mouth referrals. Combining passion with strategy is a strong approach.
Jonathan recommends the following next steps: