Stock - Tips
If you're starting small, consider buying materials and products from authorized distributors on an as-needed basis. You won't get the discounts available from being a dealer, but you wouldn't have to purchase thousands of dollars worth of products each quarter. As your business grows, consider becoming a dealer of smaller lines, which usually are more flexible, especially where credit is concerned.
Tools - Fact
The cost of tools depends on how much custom work you'd like to do. If you're an enthusiast, you probably have everything you need to start off. "I would say about $4,000 will get you the majority of the tools," Becerril says. (But, at his shop, he has at least $40,000 worth.)
The Barebones Approach
Feel like starting a shop is too much of a financial burden? How about starting gradually in your garage? Many businesses have found success by starting modestly and growing as business demanded. Becerril's previous business, 310 Motoring, evolved this way. Others like to keep their business small. Mario Escamilia of Escamilia Design Concepts in Murrieta, CA, has been building custom installations 11 years out of his garage with no intention of renting out a retail space ("Keep it simple," he says).
"I had been doing this on the side, and it progressed to the point where the clientele were willing to pay a lot more to get me to work on their cars," Escamilia explains. So he quit his job and does custom installations almost full time. His garage can handle only two cars at a time, which is perfect for him since he does all the work himself.
Saving money on rent means you can splurge more on the tools of the trade. Escamilia estimates that he has spent somewhere between $150,000 to $200,000 on equipment. That isn't so bad, since a good installer can make between $80,000 and $150,000 a year with this setup. His best advice to someone who wants to follow in his footsteps is "don't try to be swayed by the market." He explains, "There's too much competition. Do your best and stick to your guns. Keep your pricing at what it is. The clients start to respect what you charge."
The Professional Setup
Bryan Schmitt owns Mobile Solutions, a company that helps the specialty retailer with training, tools and consulting. "Improving efficiency is done by training and also setting up the work area," he says. What I like to do is sit down and discuss with our clients what their needs are, what their business model requires." For consultations, he'll take dimensions from clients, analyze what equipment they'll need and come up with an ideal layout of their workshop. Basically, it's a solution for the serious specialist who wants to do things right. Schmitt can charge by the hour for a phone consultation and design work, or fly to your site for $1,200 a day.
"We have a recommended list of tooling that most specialists in our industry we feel should have," Schmitt says, "Routers, table saws, fiberglass area..." If you're starting with nothing you probably could minimally outfit a shop for $7,000, he says. Go to www.mobilesolutions-usa.com for more info on classes, products and consultation.