By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our
Privacy Statement, and you agree that your use of the website is subject to our
Visitor Agreement.
Comments
...sorry got carried away.
Ken
-mike
Jim
-juice
As many of you know currently I'm working in a rut of a job, that while it pays well, is way too demanding 10-12hr days, overnights Sun-Thurs, oh and in a field that I totally hate! So now that I'm married, I'm thinking that now is a chance to break from the routine work for the man dealio and go for it. Worst case after a year if it doesn't work out, I can always look for an IT job at that point. Oh this would also give me more time to run my Computer Consulting company that I also do on the side.
Thinking of focusing on the following areas:
Carputer/Navigation Installs
Subaru Security Items (which we currently do)
Bolt on installs
Tuning
Auto-x/Race car preping
Let me know your thoughts, ideas, etc. Items to look out for that one might not think of when starting up their own biz.
The good thing is we already have a faily good rep in the Subaru community as we've been doing part-time installs since 2001 when the WRX first hit the streets. We have an unholy following who are always eager to support us. Downside, is of course 90% of small businesses fail in the first year!
Anyway thoughts and ideas needed.
If you have anything you can't share publically e-mail me to paisan@azpinstalls.com
Thanks crew!
-mike
A few suggested ground rules:
Develop a really good business plan, refine and refine it.
Set yourself some key decision points where you analyse whether the business is going well - maybe six months, one year, two years, five years. Make sure you have an exit strategy.
Build a big stash of cash before you commence as you will lose money for at least the first year or more - undercapitalisation is one of the prime causes of business failure
Get a sympathetic domestic partner with a steady income to support you and at least keep baked beans on the table when you lose your shirt
Talk to your accountant, lawyer, insurance broker and banker before making the jump into business. Talk with them regularly.
Develop a basic knowledge of accounting.
Make sure your pricing structure is correct and cross check to competitors. Do not aim to be cheap, rather figure where you want to price the service/product and aim there consistently.
Keep really tight control on the finances, take out monthly accounts and monitor cash flow and profitability continually. If things turn bad, on either count, make the tough decisions fast and bale out before you blow the house.
Keep very tight reins on credit, both given and recieved.
Do not let stocks grow - check them daily and discount anything that is slow moving. Set targets for stock turnover and kill any product lines that do not shift rapidly.
Read about the key operating ratios for your business sector and monitor your performance against them. They might be things like sales per employee, stock turnover, days debtors outstanding or the like. They vary from indusry to industry but will be fairly constant across your business sector
Understand any seasonal factors in your chosen market
Keep some balance in your life with an interest outside the business.
Work the business as you would a day job. Check the hours you are putting in and expect to be doing 65-80 hours per week in the first couple of years to make it work
Join a local business association, attend their functions and trade experiences with other business owners.
See if you can pick up a business mentor locally who can offer advice when you strike new problems.
Pray a lot??
Cheers
Graham
The only other thing I might add is to find a way to separate yourself from your competitors. Why would somebody go to you rather than "company X?" And don't just say because we're better, because everyone says that. Find a unique market niche and/or a special quality that you offer that can exploited better than your competitors.
Also, find out who your main competitors are, what they offer and don't offer, so as you can find ways in which you can position yourself differently from them.
Bob
-mike
Lots of good advice already mentioned here. The one thing I would recommend you think through is the business model.
One aspect is to how to turn your customers into an annuity business. The part and component installations, I'm guessing, tend to be one-time jobs and unless you have customers with deep pockets and fanatic about mods, you'll maybe get only a few touchpoints with each. That means that you are constantly needing to attract new business. You may want to see how you can tap into a specific need that causes a customer to return to you -- tuning, consultancy, etc.
Another is customer segmentation -- ask yourself who your target customers are and what problem of theirs you are trying to solve. Many business fall into the trap of trying to be everything to everyone.
One last one is to find that niche that can't easily be copied by others. By targeting Subarus you've already started down that path, but you need to find that something more that distinguishes you from other Subaru tuners and installers. Using some classic business model analysis, you need to chose what you're going to focus on: customer intimacy (ie. really catering to the needs of a few targeted customers), operational excellence (ie. you can get the job done more efficiently than anyone else) or technology (ie. you develop cutting-edge products or services that can't be copied by anyone else).
Good luck!
Ken
Keep the suggestions coming.
-mike
Save up some money to consistently advertise. Most local businesses that I see fail do not do this. It takes some bucks to get your name out there in front of people, and to have advertisements that stand out, but don't be afraid to spend. If it's done right, you'll get your results.
Sounds exciting. Good luck to you, and GO FOR IT!
-mike
You need to determine if the market out there is really big enough to support you. Figure out what income you would like, break that down to monthly/weekly/daily numbers, add overhead costs. Can you bring in that amount day-in and day-out? It's cool to chew the fat with other auto buffs, but how much will each of them spend annually with YOU? Can you charge enough in hourly labor to make the income you'd like? How many hours per day will be billable? (I.e. You are actually able to charge someone for your time. It's bad if you are there 7 hours but only able to bill for three hours of labor!)
Is your local Subaru community big enough to support you?
Best of Luck!
Jim
-mike
They sort of converted over to regular car maintenance when the Miata aftermarket died down. So he does oil changes and stuff now.
I would offer those services as well. While less sexy, it's one way to get repeat business.
If a guy is happy with his WRX' aftermarket exhaust, then he'll bring his wife's minivan in for service, too. And that type of work is more consistent.
Less sexy, perhaps, but more consistent.
I would also work on some disclaimers, i.e. limit the things you cover to the things you work on, or a full refund. A few blown engines can put you out of business.
Good luck.
-juice
Looking into some other jobs too that would allow me to build it a bit before jumping in full time, but would allow more time than my current position.
-mike
Toboggan
-mike
I don't like musicals, so maybe that's it. Plus my kids couldn't tell most of the characters apart.
Is Flushed Away any better? Anyone seen that?
-juice
A year ago you helped me locate an ethical dealer here in NJ - again I thank you, though I would like to return the favor.
I started my own business a year ago - I am a factory rep for lighting and architectural products. My focus is Hospitality, specifically restaurants. If there is any way I can help you let me know.
Paisan,
Keep the passion, don't be afraid to fail and if the business does fail don't be stubborn and pull out while you still have capital, reorganize and try again. Most successful business today are not the result of first attempts.
I actually remember that!
Mike,
Handle your business buddy (no pun intended). If you're toying with the idea then do it. There's nothing worse than desiring to do something for yourself then regret not doing it. AZP sounds like a great place to start and you already have a clientel.
-mike
John
-Frank
Talk about a flexible platform!
-juice
~Colin
You can reach me at cpp788x@aol.com
Charlie
Thanks.
This morning it was gone - Did Subaru pull this prototype/new car from the show???
Bob
I bet we don't see all the new models until NY.
-mike
Bob
Ken
Every model pretty much just carried over. They added aux inputs, satellite radio, shuffled options packages, and that's about it.
The STI Limited is new and the spec.B changed, but unless you're in the market for one of those there wasn't any news from Subaru at the auto shows.
Next year should be big. 2 new models and a refresh for the Leg.
-juice
They either offer so many combos it costs them too much money ('06 B9 Tribeca), or they offer little choice at all. How 'bout some middle ground here, SOA? And no form of red available at all in any Legacy, Outback or Tribeca? C'mon.
-juice
JDM 3.0R Legacy wagon available in Black, dark gray, dark silver, light silver, white, dark blue or medium blue. Black & gray make up 4 out of 7 colors? Two blues? Basically you've got shades of black, shades of blue, and white.
Looking at that, I worry our color selection will get worse. And I'm a person that likes gray.
-juice
a. Fun car for Juice to commute to work in and to bee bop around town with the family on a sunny day or...
b. Practical transportation that the family can take to the beach and that holds the prodigious amounts of stuff that Mrs. Juice insists on taking. Oh and that has a big hole in the roof :P
-Frank