Got some ideas for starting my own business need advice.

[medicineman843]

I am a young guy 25 years old. I'm already sick and tired of all the time i spend making someone else alot of money. Had an idea or two and needed some feedback from you all.

I want to move to north carolina ( maybe asheville area) and start a small do it yourself motorcycle shop at the base of the blue ridge parkway. ( really try to give the BEST service possible for riders before you ride the parkway. If something happeans to the bike (ie blown tire, electrical issue, just anything going wrong) on the parkway your shit out of luck. I would have a couple lifts,Paint booth, dyno machine. I would be the stopping point before getting on the parkway. I am a chef and wanted to have a taco truck or stand in the shop parking lot so while you wait or work they can get a cheap meal before a long ride. was thinking easy special tacos, gyros, quesadillas. Simple food just to give you energy before you ride. I would really try to give the best customer service because sometimes after you leave a shop you don't feel that the service was TOP notch.

Advice would be appreciated.

 

[FootNote]

Presentation. A lot of people pass this up.

 

[Buster Hymen]

I didn`t know what the blue ridge parkway was until I googled it and wow! talk about amazing roads. I think your idea is feasible as there are some bike focused businesses at or near the Tail of the Dragon that do okay. How many bike businesses are around that area right now

 

[FootNote]

Advertisement, people need to know your there. If you do it right, people will start planning to have meet ups at your place or make it a planned stop.

 

[Rollie]

Great idea .

Might want to check the average weather reports for Nov. - Feb. as the fair weather bikers will hibernate during the cold season. You'll need some diversified income when travelers stay home.

I've heard tow services can make some $ with a special type truck & a winch for bikes that leap over the edge .

Speed limits are enforced & set low on the Parkway , 45 - 55 mph , I think.

unk:

 

[MaxMidnight]

Have you had any formal business training? If not read books, look on the web and start to appreciate what is involved.
Find out about organisations who can provide advice about staring new businesses - do they have models that you can adapt; do they provide mentor-ship; what can they do for you.

Once you have assimilated as much as you can then the next thing to do would be to create a basic business plan - ideas are cheap, it's making them happen that costs money.
As you develop the plan you will need to factor in additional items to make sure the business is viable.

You will need to factor in ALL of the fixed and variable costs i.e. Equipment - lifts, tools manuals etc., Buildings - rental, refurbishment, maintenance, Utilities - electricity, water, gas, telephone, Insurance - buildings, personal liability, Taxes - whatever is applied by local and national government, Employee costs - wages, insurance, Loan repayments, Professional services - legal, accountancy etc. etc. There will be much more than that but that will do for starters.

You will also need to factor in the return on your investment. You will have to get sufficient income to allow you to live!

To offset the costs you will need to generate income - this is where it becomes tricky to predict.

The key questions would be:
How many people would be prepared to pay for the services you offer?
How much would they be prepared to pay?

This need to be more than you costs.

I suspect that most start-up businesses fail because they either under estimate their costs or over estimate their revenue.

On that basis you should take the worst case scenarios of both - if having done that you still have a surplice then the business will be viable, if not.....

So is your proposition realistic?

Find someone who is already providing a similar service and speak to them - they will be able to tell you what the pit-falls are and all sorts of other things that you will have failed to build into your business plan. Factor these in and look at the numbers again.

Do some market research for the area. Go to where the local bikers hang out and speak to them - they will be the experts on what the local area needs.
Would they be prepared to pay? Are they aware of passing traffic that need such a service?
Whatever they say half it and use that figure in your business plan.

Has anyone in the area tried anything similar? If not why not?

You finally have a plan that shows that there is a viable business?
Show it to other people and ask them to pick holes in it (they will) and don't try to defend any assumptions you have built it - the point of this part of the exercise is to listen and you can't do that with your mouth. Take notes of ALL points made.
Take on board what has been said - some of it may be unpalatable (i.e. not what you want to hear) but could be relevant.



How will you furnace it? You may be an eccentric millionaire so it isn't an issue, or you may be like the rest of us who need to borrow to make our dreams happen.
Take your business plan to potential lenders - leave your preferred lender till last. These people will probably tell you why your plan won't work and pick holes in it.
Use thees critiques to refine your plan and modify your arguments.
By the time you get you preferred lender it will be so bullet proof and your presentation will be so polished you will probably be asked to run for president.

Over the years I have dealt with a lot of small businesses.
Some are very professional and run good, tight and efficient businesses. However, a significant number are at best, talented amateurs, and it is by the grace of god and good fortune that they are able to scrape a living.
They get by but will never be rich - being their own boss may be reward enough and that is fine.

But does your opening statement of "making someone else a lot of money" imply that you want to do that yourself.
If so you need to be focused on the intricacies of running a business - what that business is is irrelevant.
Only when you understand that should you consider doing it for yourself.

Anyone who is prepared to put their head above the parapet has my admiration, it's not something I had the balls to do.

But, please, please, please do your sums before committing any of your money.

I wish you lots of luck and vast profits in the future for your venture. :clapping:

 

[naughtyG]

Great write-up Steve, thanks for that. I am looking at starting a couple of businesses myself, and while it is quite a daunting process, it's gotta be worth it in the end. Nothing risked, nothing gained, right?

 

[PDWeyand]

Steve makes a lot of great points. Ideals are free, but you will never know till you spend sometime getting your ideas set up. One point Steve pointed out is your monthly over head or fixed bills, ie, lights, water, power, insurance, repair shop keepers insurance and building cost. These items will break you in the slower times. Then are you going to be the owner / operator doing everything solo, if not then you add labour cost to hire out someone to work with you, and you said 'making someone else money'. Personally I can see your idea working, I know on the Tennessee side there are bike repair shops but not on the North Carolina side. But you will suffer the slower months, the weather in the late fall till mid spring will be slower, the upper passes get snow and ice that is a deal breaker for most motorcyclist. I would start smaller with plans to grow as the business is found and grows. Tire repair is a major issue there is no where to 'buy' a tire in that area, do not forget about car tire repair there are just as many car rallies in the area as there are bikes, towing is another problem for that area, there is not many services around and what there cost a lot. I love the idea of a food wagon, that could be a draw for people to stop. I know there are many older gas stations that are closed down in the area and you could lease one or may be able to buy it out right. I wish you the best of luck and remember you will never work as hard till you own your business, at the end of the day you are the one everything hangs on. Boldly go forward and stake your claim.

 

[deekjx]

Wow, that's a beautiful place. One of the things I like about your business plan is that you will sell food. I think Asheville is a great spot but the population is low. Definitely follow up on all of MaxMidnight's write up. I don't know how long the riding season is up there but having restaurant section going year round could keep you out trouble when the bike business dries up.

Billboard's, Billboard's, Billboard's. When I travel, I often stop at places that have tons of billboards along the way. I drove an hour out of my way to eat at Lambert's Cafe because they had a ton of billboard's. I had my wife Google them in the car and they had great reviews so I took a 3 hour detour from our travel plans. (Hour there, Hour Diner. Hour to get back on track). Awesome place by the way with great food.

 

[Barry barker]

+1 to Steve for his thoughts, sounds like he has been there. Have lots of money or cheap access to lots of it. If you follow through on half of what Steve suggested while working a full time job, you can make a business work. It takes many hours a day of planning and thinking and changing plans after thinking. We ran out of money for about 2 months, and my previous boss loaned us enough to get by until our home in Houston sold.

Not knowing you please take this as a humble suggestion, everyday that you walk into work, become a partner to that business. Regardless what business it is. Consider everything you do for that business as if it were your own business. Dealing with customers, the owners, and especially other employees. Since you want to be in business for your self there is no better time to start!!! You might be suprised at what happens.

 

[VMax-Mike]

I have went into business for myself two time's now. One time with a partner and one time just myself. Both time's i made money. Having a partner is like being married only worst because you have three wive's so to say. It's 50/50 with four people. I lost a good friend and had to file chapter 11 1yr after i left the business and i had a parnership split agreement that releaved me of all payment's. But if your partner dont pay the law says the equitment can be repossessed without telling anyone. He let them take it and i never new. I tried to make him pay in full but the law dont work that way. When i went into business for myself i bought a semi truck and found myself doing almost everything (sometime's anybody is better than nobody) I was working so many hour's that my wife ended up with a part time job doing the book's on top of her great career with U of M. At the end of one year i made $110.000 and put $47000 in my pocket. Some would say not bad but i made more for me per year making someone else money. In less hour's. But i think everyone should go into business just to find out what you want out of life. I now know that i dont want to own a business and i now run a semi at the vary top of the pay scale working 50 hour's a week. Do to what i experienced as a owner operator i now know what im worth. Hat's off to the people that own and run businesses. If everyone owned a business and most became employee's again we would have a lot better employee market. The employee would care alot more than most do.

 

[Putt Putt]

Steve, wow nice write-up. Many good points from several people. I do own a business, my 5th one and finally successful. Believe it or not the first thing to work out is an exit strategy. If the business is successful how do you sell or give it away without triggering large tax burdens , and if it is not how do you close it without losing the things you have amidst potentially massive debt? If your goal is to simply be your own boss you can start a service oriented business with lower capital investment than one that needs high inventory for shoppers. You can also keep costs down by being the only "employee". The long term problem with that business model is that your revenue is limited to what you can accomplish in a given amount of time and you don't have a business you can sell if needed. That is a job you own and is for many people an ideal lifestyle. Although your revenue is limited so are your problems and costs.

You will eliminate the government related expenses associated with employees if you wear all the
hats. You also have complete control over the quality of the work. Some people like to deal with a shop like that because they know the guy performing the work cares and if there is a problem they can deal directly with the owner and not have to peel away layers of people insulating the responsible party. In any case, I wish you the best of luck in whatever direction you take. Evan.

 

[Fire-medic]

Local colleges and universities often have retired executives mentorship groups where you can get info, pro. info, about your business plan.

This also serves as an outlet for the students to get experience in operations. You may appreciate the time someone can give you to do books, develop marketing plans within your budget, get your site ready for business, etc.

One thing you need to pay attention to is the rules of local government about your chosen business. Is that business allowed to exist in the location or locations you tentatively found? (zoning). What is the cost to get necessary licenses to open & operate? You may be required to have haz-mat, sanitation, EPA, licensed operators trained & certified in the type of work you want to do; occupational licensing, etc. All this needs to be thoroughly investigated before you spend any $$$ for a site, equipment, or other costs you will incur!!

I can't stress enough about the importance of this. I worked as a planner after the fire service and it was sometimes necessary to tell people that while the landlord was very willing to rent them space, the location on which they signed a lease is not suitable under local ordinances for that type of operation! Also, operaring a paint booth is very expensive, as there are numerous regulations to be followed, involving approved, licensed equipment being required, approved fire extinguishment systems required, materials storage, haz-mat licenses, MSDS files, training of operators, etc. Any work you need to do to the chosen site is likely going to require approved building plans and inspections, which will affect your timeframe to open and your dwindling cash reserves.

During this time I met a gentleman named Jordan Ginsburg, who owned a company called 'Clear Channel,' which I believe is the largest operator of outdoor advertising. Billboards are very expensive! He also owned XM Radio. He surrounded himself w/great knowlegable people to advise him. Any time I met him for doing zoning business, he already knew the answer to the question he was going to ask me, due to these people, but he needed the letter from the 'authority having jurisdiction,' namely, me, as to his allowed scope of operations.

Do your due diligence before committing your $! Sometimes the best $ spent is that the current plan is unfeasable, and needs modifications to allow you the best chance of success. Good luck.

 

[PDWeyand]

Is that business allowed to exist in the location or locations you tentatively found? (zoning). What is the cost to get necessary licenses to open & operate? You may be required to have haz-mat, sanitation, EPA, licensed operators trained & certified in the type of work you want to do; occupational licensing, etc. All this needs to be thoroughly investigated before you spend any $$$ for a site, equipment, or other costs you will incur!!

I that is why I said an old gas station, first off it will be in a correct zones and since it was a former gas station it would have been seen by EPA people for the storage of fuel and oils. So that would help in those area's, but it still would have all the licenses but would be easier than a 'new' place that has not had that type of business there before. And to be able to sale food items from the same place a mobile wagon would be best, they fall under the health dept. and inspection of a mobile unit is a little different than a store front. But everyone is saying to check all the corners of the business to make sure your 'I' are dotted and 'T' are crossed.

Local colleges and universities often have retired executives mentorship groups where you can get info, pro. info, about your business plan.

Getting help and advise from program like that would be invaluable, and help to place you on the correct course. If you plan on a partnership they can also help with that, you want to protect what you place into the business. There are a lot of different things that will come into play as your plan comes to life, that you may not think of and the help from people that have been there before can help you see.
I hope you can build your dream. Stake you claim, have successful business. I still think it is a great idea. Cover all the bases and have a plan in place will go a long way.

 

[MaxMidnight]

...your monthly over head or fixed bills, ie, lights, water, power, insurance, repair shop keepers insurance and building cost. These items will break you in the slower times.

Yes, I should have mentioned that once you have a viable business plan then you will need to do a cash flow projection to ensure that you have liquidity.
Remember that many business fold not because it isn't sound but because they run out of cash.

You must also realise that to start with you will be the sole proprietor and (assuming the law is similar to the States as in the UK) you would be personally liable for any debt which means you would loose all of your assets should it go tits up!

 

[Fire-medic]

Just because there was once a gas station there does not mean the business you want to open is allowed. You need to ask the local authority having jurisdiction for a zoning determination letter. That will be an official answer to your request about your proposed business being allowed. You need to be extremely specific about what you intend to do, now and in the future.

Business sites are sometimes labelled as "legal, non-conforming." These usually have finite timeframes attached to them. A similar business can open in the site until a window of time passes, and then the site loses its "legal non-conforming" status. After that, that type of business is excluded if the zoning restrictions have changed since the original business opened where the original business or one having a similar classification is now not permitted.

As far as a gas station site, contact the state and federal EPA agencies, which may have some similar name, such-as Dep't of Environmental Resource Management, or something similar. Ask for any clean-up or enforcement actions against the property owner or businesses at that location. Be very careful in signing a lease, as it may commit you to being responsible for mitigation costs for a prior tenant! A prior polluter moved out, leaving the site contaminated, and an unscrupulous property owner has you sign a contract stating, "the tenant is responsible for all costs incurred in preparing the site for the business he proposes to operate." That may entail hundreds of thousands of $$ to restore a contaminated site, such as removing underground gas & diesel storage tanks which have been leaking for years!

It's not as-simple as "move-in your toolchests, a lift & tire machine, and paint your name on the front of the building." The way to cover yourself is to request letters describing these questions to your landlord or to the local authorities having jurisdiction, and having them in-hand before spending any other $$!

 

[TURBOVMAX]

Having had the experience of owning a motorcycle shop. I'll give you this advice... it may be a mistake to mix your avocation with your vocation. Your hobby is something you enjoy because you never have enough time to get all of the things you want to do done... you look forward to that time and enjoy it.

Once you do it for a living, it can grow old very quickly especially if your dealing with someone else's hobby. The one thing I can guarantee is that you will have lots of friends... that owe you money.

Just my 2 cents

 

[Putt Putt]

The retired executive groups are a great free resource for input. Local schools can offer students looking to apprentice. A good accounting firm can do 2 things initially. They can help you identify all the local zoning and government related costs because they have dealt with them with other businesses. They can help put you together with potential investors so you can present your business model. If it's a sound idea or not they will tell you before they risk their money. If you do go the route of finding investors they may want to have input as to the operation in order to protect their money. Although this is not necessarily a bad thing it may conflict with your vision and could lead to strife, legal or physical ( or both). The accounting firm or a lawyer can help with the contract format to protect you. One question you should expect from potential investors is "what are you willing to risk of the things you now have( car, bike, house, tools, bank account etc.). The correct answer is "EVERYTHING". They want to know that you believe in this idea and are willing to go to the mat for it. Without a perceived 100% commitment from you they will go on to the next person with an idea. I realize that paying for this help in the beginning may seem out of your budget, but a relatively small expenditure now could save a ton later, particularly with government requirements. The people you talk to for free or paid will know things you may not even be aware of. Information is power and you want all you can get to start. In lieu of paying for this initial info you can spend time on the web and at the local courthouse gathering what you need. Starting a seasonal type business out of season can be a problem- like little to no income-considering the summer is upon us you have a ton of time to figure this out before 2013. If you just can't wait that long ( I've been there myself) be extra careful. Again, all the best luck in your decision. Evan.

 

[CaptainKyle]

Having had the experience of owning a motorcycle shop. I'll give you this advice... it may be a mistake to mix your avocation with your vocation. Your hobby is something you enjoy because you never have enough time to get all of the things you want to do done... you look forward to that time and enjoy it.

Once you do it for a living, it can grow old very quickly especially if your dealing with someone else's hobby. The one thing I can guarantee is that you will have lots of friends... that owe you money.

Just my 2 cents

+ 1 all fun & games untill you do it every day then its just like any other job

 

[dannymax]

Just to play the devil's advocate....The taco wagon will do a whopping business....the bike wrenching, maybe not. Bike readiness is part of the planning process when putting together a ride. I don't believe the location you are thinking about will provide the additional customer flow you're planning on as most of the bikes passing by will already be serviced for the trip.

Stop for a couple tacos?....absolutely! Oil, filter & tires?....doubtful. :confused2:

Couple tips....avoid abandoned gas stations, there's usually a damn good reason why they're abandoned!

....You don't have to make a great deal of money providing you can keep most of it for yourself. Set up an operation that you can also live in....you get all kinds of write-offs.

....Be prepared to pay your fair share of taxes....my rule of thumb....I was more than willing to pay the same percentage as J Paul Getty, David Rockefeller and people like that....what'd they pay, something like 5%? So gladly pay your 5%, the other 35% they want from you......get a little 'creative' with!



Oh, and that old wives tale about there only being 24 hours in a day....not true! There's 26, 28....sometimes even 30 hours in a day.....be prepared to work all of them!