Small business startup

[Robby05]

Have a few questions for you guys that own & have started small businesses.

A little background on my situation. I've worked in the RV industry for 12 years now, worked my way up from washing RV's as a summer job to a master certified tech. Kinda maxed out in pay + or - a few bucks from dealership to dealership or I take a step into management & run someone else's business. All the service facilities are linked with big dealership's & charge $120+ an hour. There's no independent service shops in the area & in our area there's a huge market for RV's. The dealership I currently work for's sales numbers are in the thousands. My idea is to open a shop that is independent from a dealership & offer a more reasonable labor rate.

My questions are about the initial startup of a business. Did you get a loan, how was the process, any advice or things you would do differently. What kind of business did you start LLC, CORP? What kind of insurance are needed. How long did it take to get rolling

Just starting to get serious about this. Hopefully we can get going by spring when the RV season takes off.

Thanks for any input,
Luke

 

[NinjaMax]

Just went through this with a rig moving business. We started an llc but were taxed as an s-corp for our company. Get with a good CPA and they'll head you in the right direction. As for startup capital, right up a good business plan with any contracts or relevant info, figure all your expenses and find out what your burn rate will be. Once you have those numbers, start looking into investment banks or groups.

There's a lot more to it but that's a rough idea what I went through

 

[A. Stock Lbz]

sounds like a really good idea in the Spokane, post falls, cda area. the rv dealers are outrageous out here, I just bought a brand new 2014 from blue dog in august and I wont take it to them for anything because they are so expensive. are you thinking about doing a collision repair part of it for dings and dents and stuff? I think there would be a good market for the aluminum sided stuff that dents easy.

 

[Hernpj01]

I would get a good cpa also. It is very important to build a business plan that would meet a 5 year goal. The first 3-5 years will be hard, and will probably work a lot extra trying to get the business off the ground. It sounds like you are really good at working on them and troubleshooting them, and in some circumstances it may be better off for you to find a business partner who can manage the company and finances, while you keep working on them. Just a couple things to consider.

 

[ALLY Fox]

The RV service place I have all my RV work done started out as a guy with a truck, a phone and some tools & knowledge. He started by servicing RVs in the different parks, grew a large following by "word of mouth" and flyers in RV parks and now has a large shop and 2-3 guys working for him. He also spent several years working in the RV mfg industry and has a lot of metal fab experience.

 

[RitzBlitz]

Definitely sounds like a great idea for the area.

I agree on all parts setting up as an LLC. While its a little more involved to set up than a corp (iirc), all it takes is one bad situation to get you into trouble, and if the corporate veil is broken you, personally, are responsible.

As stated, a good CPA will lead you down the right track.

Let me know when you get set up and I'll be sure to let those in my area know.

 

[Robby05]

Thanks for the input guys. I have a CPA in the family on the wife's side. I'll be meeting with him here shortly. Going to form a LLC from the info that I've gathered. Next step is working on a business plan. I'm planning on leasing a shop to start & then down the road purchase something if this all works out. I'll be doing some body work probably limited to metal jobs on trailers & small fiberglass / gelcoat repairs. For you local guys I'll keep ya updated when things start to fall into place

Cheers,
Luke

 

[NinjaMax]

Good deal, owning your own business is the most rewarding things I've done, let me know if you need any help with any of the plan/burn planning:thumb:

Good luck to you

 

[Max Attitude]

Go for it man! I can't wait to own my own business as well. Here's some info on company setup.
http://youtu.be/WNTF3Xx254k?list=FLRMia8jgjZrEhpleklvnF_A

http://youtu.be/Y6UNHyD9GSw

Mark Cuban's take on startup loans… may be controversial lol - http://youtu.be/KYneLGRTgy8

 

[yellowchevy]

The best thing you can do is start it on the side and grow it organically. That way you don't have a building lease/rent, business insurance(liability for what you're working on as well), property taxes, business taxes, and health insurance all needing to be paid out of the business which can dwindle a loan quicker than you think.

I would have like to get my business more established before I quite my full time job but sometimes things don't work out like you planned, haha. Doing this will also elevate some stress in trying to get every job to keep your lights on. This also helps in figuring out for sure what you're business is going to be about/do, gives you time to develop a business road map in where you want to be in 5 years, helps get the business started in making sure all the paperwork is done, etc.

MARKETING MARKETING MARKETING!!!! This is the MOST important tool I've seen and read for a good business to succeed. Where it's newspaper adds, a website, craigslist, sunday fliers, etc. What every you pick BE CONSISTENT. Things don't happen over night. Read book called "Gorilla Marketing" by Jay Levinson. I struggle with this myself; I still don't have a website. Talked to older business men that are successful; ask them all kinds of questions, what worked for you, how did you attract customers, how did you grow your business, etc.

Look into what kind or insurance and price it would be for doing the work. My insurance agent said to stay away from fixing or building trailers due to the high liability you face. Just something to bring up in prepping for cost.

I'd start out as an LLC then do an S Corp when it gets bigger and brings in more money. If your CPA is good they'll know when to do so and explain it to you. That there is the MOST IMPORTANT THING!!!! Make sure you're CPA can explain everything to you in a way you'll understand and has a heart of a teacher, not a sales person. It will make your business much easier.

Get setup first thing with good accounting software. Wether it's quickbooks or peach tree, get it right off the back and keep it up to date/track everything thing. You'll spend 75% + of you time doing book keeping. Bidding jobs, tracking jobs, keeping track of how much you made, how much uncle sam getsmad, sales tax, consumers usage tax, etc.

Have an excel spreadsheet or something else to track all the parts/tools you buy being some things you buy on line you don't pay taxes for but you'll have to show that when you file your quarterly(depending on the state) taxes. There also the different taxes. Theres sales tax, consumers usage tax, single state tax, multiple state tax if you do a lot of work in a neighboring state, you may have to file taxes in another state if you deliver anything, and the list can go on and on, haha.

Use excel to track EVERYTHING!!! haha. Keep track of each job so you can do a profit/loss statement for each one to make sure you're making enough money for it to make sense. Keep track of each estimate, that way if someone comes back and decides to do a project, you're not having to start over again.

Keep track of your time. One really good thing I do is keep track of everything I do in a day. This way I'm very unlikely to miss something important on job or things I need to order.

Sorry to write a novel . Just thought of all the things I've learned from others, books, and my experience so far. As others have said, it's a great feeling to own your business, but don't let that dream/vision be a nightmare in not doing the leg work.

Good luck and I know it will work out.

Yellowchevy

 

[Grizz3500]

I hope your able to start up your business Luke. I would definitely look you up if i had any RV needs. Keep us updated.

 

[AKlowriderZ71]

Do you have somebody planned for your business manager? If you are the person doing the work, you will not have time to be the manager. Between phone calls and walk ins, you'll never get anything done. You'll need 12 hours to complete 4-6 hours of billable labor, and that is death for your business.

I owned an auto repair shop, and have 23 years experience in the industry. You can PM me with questions and I will try to help you any way I can. It's a big step, and a huge commitment. Being a small business owner can easily overtake your life before you know it. Suddenly you lose all your free nights & weekends, and vacations. It's important to figure all of these things ahead of time.