Starting a Tune Shop (please help me)

[mixxamike]

Hey,

I haven't been here in a while. But, it's nice to be back. I've been wanting a 240sx for the past 2 years. I'm now 18 and I've just graduated from highschool. My parents are finally letting me spend MY money on MY car. So, i'm buying a 240sx (of course!:aw: )

I'm going to school next year to major in industrial design so I can someday design and develop my own performance parts. My goal is to also have my own tuning/speed shop.

My question for you guys...Is it even possible to start this tune/speed shop now? Obviously I would be working out of my garage at home, but is it within grasp? My main goal is just to get my name out on the streets and develop a reputation so I can have something to work with when I graduate. Maybe develop some friends in the business, connections, etc, etc. (I already have a few).

My main concern right now is how do I go about getting parts at wholsale prices? Do I need a federal tax identification number? If so, how do I get it? Do I need some sort of business license to prove to wholesale distributors that I'm legit?

Any and all responses will be very, very helpful.

[transient]

Well, having been through the experience of running a small business, I would tell you to focus on school right now and not worry about the shop for the moment. There's no reason you can't develop connections without having a shop in your garage, in fact it might be easier because you wouldn't be seen as competition. I think it's definately an achievable goal in the long term, but there's no reason why you need to do it right now.

[mrmephistopheles]

:werd:
Concentrate on school, not money or car crap. It'll pay off more in the long run.

[mixxamike]

I'm mainly wanting to open a shop at this point in time, not to make a stable income, but rather get wholesale prices so I can build a nice, company/display car on a college student's budget and get my name known.

[Dousan_PG]

yeah its possible
just focus on school

tune your own car and build a name that way too! when people see you car, they'll see you and the caliber of work

[mixxamike]

Thanks for the advice mrmephistopheles and transient, but, like it or not...a 240sx is in my VERY near future, and it WILL get some heavy wrench time this summer.

I am very fortunate in the sense that I have parents who will pay for college. Any money I make is either 1) saved for after school, or 2) used to build my car so as to promote my future business plans.

Say what you will, but I'm not using this whole "business thing" as an excuse to get cheap prices on parts so I can build myself a car. This has been and is my dream. I am dedicated to it and will do whatever it takes to make it happen, even if that means starting (small, of course) now.

Peace! Thanks for the replies!!

:D

[CoasTek240]

listen to the elders on this one.. focus on school.

I'm kinda in the same boat. I have obtained a business license from my local city hall. with that i am allowed to operate my services as a business and pay taxes for it as a serperated entity of me. i do oil changes and stuff like that right now. i dont even charge any extra money. mainly just making contacts and stuff. and ocassionally i'll find some parts for a friend. it's straight though. i'm concentrating on school, trying to get my business managment degree and possibly buy a shopping center or strip mall and manage it when i graduate. hope every thing works out.


my advice as an upcoming sophmore in college: have fun with your car, put some money aside. meet people. But devote everythign else towards school. after graduation is where the party begins.

[pruto]

yeah, car and other **** can distract you, college is extremely hard not just because of the classes. but its much harder to focus than in high school. If you want to get distracted, you can, and you will.

learn from my mistakes man!

[TheTimanator]

well, besides focusing on school....you can make design and build stuff for your own car now and then go to car meets or something like that. Shops do the same thing using a demo car. They develope parts for it...and then start selling them. Anyway, good luck with school!! :)

[Jsquared]

I'm going to school next year to major in industrial design so I can someday design and develop my own performance parts.
no. designers do not make parts. engineers make parts. designers make them look pretty.

[scandalcat1]

look, here is the deal. like you said, you can do both (i remember when i was a teenager 6 years ago and thought i could do anything and came to find it was impossible). buy the car if you need to. the business aspect of setting up shop is going to take alot of resources obviously entailing time, money, major concentration.

i went to school for my bachelors in music ed. back in 95, and transferred here in S.A. to a community college, ended up getting A.A.S. in music ed and put music on the back burner for my original business for computer support in 97, but then the market got and is filled with craploads of book smart network techs, admins, and pc techs. got business mgmt. associates (as long as you have taken the basics, the sky is the limit for other degrees, just takes time) then finally got the, tada! A.A.S in 02 automotive tech from one of the ACCD (linked up community college network) schools here. the ase came later...half year later mucho studying.

applying for business loans and business license and qualifying for the business tax break (get rid of everything before the end of the year because the irs wants an inventory count, so sell) competing with other shops prices, watching for theives from within (employees) and outside. warranties, price fluctuations from outlets and warehouses, getting registered as a dealer with all of the big manufacturers, making contacts with misc. suppliers. just remember business law and ethics is important. the ideal mechanic/performance specialist is honest, excellent, prompt, and down to earth. get a good business plan before you apply for ur business license and prepare all of you waivers, exclusions, warranties, etc. / procedural paperwork to cover your a$$.

having an excellent rep is key to success, in other words make yuor customers happy so they can pass info to others. thats all i can think of for now

[mixxamike]

Jsquared...yes, I am aware of that. I stated earlier that I'm interested in performance parts, but I guess that really wasn't what I meant. More along the lines of dress-up parts (body kits, hoods, fenders, interior, etc.) I know I will not be capable of making performance parts or composite pieces with a 4 year degree in I D, but Trust me, I have spent many hours planning my future career and am completely aware of the steps I will have to take to make my dreams my reality. Also, thank you. Thank you for raising your post count, and your attempt at insulting my inteligence.

I appreciate all the help and advice (some i will take to heart, some i will not). You have all been very helpful. However, what I would like to know is how do I get a federal tax I.D. and how do I get a business/resale license. Not that I will run out and do it tomorrow...I would just like to know.

Danke Schoen

[Pudula]

Go to school, get a degree. Use that time to think of a unique idea (those are the ones that go far). After you have that idea, submit a business plan to potential investors, then you have yourself financial backing and your own company. My roommate is in the Entreprenuership Program at U of A, which I will be double majoring in (finance, entreprenuership). This is how the system works...their financials for his sandal company have him at 6 million dollar profit after year 5. Not too shabby.

-Ryan

[Jsquared]

Jsquared...yes, I am aware of that. I stated earlier that I'm interested in performance parts, but I guess that really wasn't what I meant. More along the lines of dress-up parts (body kits, hoods, fenders, interior, etc.) I know I will not be capable of making performance parts or composite pieces with a 4 year degree in I D, but Trust me, I have spent many hours planning my future career and am completely aware of the steps I will have to take to make my dreams my reality. Also, thank you. Thank you for raising your post count, and your attempt at insulting my inteligence.

i wasn't trying to insult your intelligence, i was merely trying to make sure you didn't have the wrong idea. I'm in the mechanical engineering curriculum, and i've seen plenty of design kiddies at my university who think they're gonna make cars or design parts and whatnot, and that's simply not the case. i also did a little with our formula SAE team and know some of the guys heavily involved in that, and there are a few design boys mixed in with the hardcore engineers, and the designers just don't have a damn clue.

[scandalcat1]

mixxamike, don't take their comments personally, they are still in school and are (from what I gathered from their previous tones and posts) undergoing the learning process such as you.

from the experience i have accrued from my actual business and startin up, i have more useful info for you to research in your quest for personal freedom and helping our economy with the prospects of a small business.

some sites of interest:
taking the first step
1) http://www.sba.gov/starting/steps.html

taxing info and so forth
2) http://clickcity.com/index2.htm

more info on the steps
3)http://www.entreworld.org/Channel/SYB.cfm

got any questions? just e-mail me
at my zilvia e-mail.

just remember, quality not quantity and you will be successfull.

[mixxamike]

Jsquared...ok, sorry for the missunderstanding ;)

scandalcat1...hey, thank you soooo much. I haven't had time to look at those sites you posted yet, but it seems as though you understand what i'm after right now. Also, thanks for your e-mail. I'll probably be writing you with some questions if you don't mind.

:bowdown:


Thanks guys!

[91CRXsiR]

opening a shop isnt hard at all, you just need money and lots of it.

about 100K in inventory would be a nice setup and a large list of vendors at decent prices. the important part is selection and service. finding vendors arent hard you can just goto SEMA shows and locate large vendors.

but i strongly don't suggest it for a person who has no business experience.

I would say that you should get a job working at a race shop to learn the ropes and see what you can improve.

also you should have a backup plan go to school and get a degree in something that will be usefull like business management or soemthing like that.

either way congrats if you are serious about this... most people don't know what they want to do nor have any goals and ambitions. Don't listen to people who are negative towards your goals and don't offer a good reason for thier comments ( always consider the source ) the world is full of haters and humans are F'ked up ..


good luck

[mixxamike]

Thanks for your support 91CRXsiR.

I have always understood that I will not be able to make this shop thing work to its full potential until I am out of school and am able to devote all of my time and energy to it.

However...is there any way for me to start small now, as a highschool, well college student now I guess? You know, get my federal tax I.D. and retail license and then buy parts from Wholesale suppliers? Selling parts to the local ricers and racers at a good cost would be great! I know I wouldn't make much, if any, but just networking and finding out how it all works would be great.

What I would end up doing is only buying 1, 2, or 3 of each part at a time. (I obviously don't have a warehouse or the funds to have parts just lying around my house). I would just be buying when I have a customer who wants the product. Do wholesale suppliers go for this sort of thing? I know I would never get products dirctly from the manufacurers this way, but would I be able to buy them from warehouses or some other kind of wholesale distributor? (is it called warehouse direct? I dunno)

Peace.

[nissan slut]

umm, you might but you wouldn't really sell them at much profit. i would think that wholesale distributors wouldn't be interested in non-wholesale sales, meaning they would probably want you to buy 10 or 20.

[mixxamike]

If that is the case, Nissan Slut, then how does my local import parts store (Rush Hour Performance, about an hour away) only get parts when its customers need them. For example, I said I would be needing coilovers for my 240, he said "ok, but it will take 5-7 days because we don't stock parts for 240's. we will order them from our suppliers." So basically, he doesn't buy these parts in bulk, but still is able to buy them for me. How does this work? Obviously, he wouldn't be doing this unless his suppliers let him, and, he must be making at least some profit.

Help please...?