After the starup.

[PBking82]

Whatsup, as a long-term goal I would like to open my own shop (mainly collision and refinishing but possible custom work and mechanical. way too early to say "what i'm gonna do") I have investments that hopefully will have generated some substantial capital by the time I can put this plan into motion. So after you startup and being running the biz, what are some realistic cost's i'm looking to pay. I.E. insurance, payroll, utilites, etc... If someone would be willing to give an actual break-down of what their business is, how many employees, how long they've been open, and give a basic breakdown of their general operating costs. I'd be greatly appreciative of this and that way it can in some way get me closer to that all mighty $figure that is needed to be stored away under the mattress. I'll give you a dollar for you hard work. Thanks, Peace-

[TheSilentChamber]

This is going to very tremendusly from area to area.

[PBking82]

Yes it will because things cost more in different area's around the world. But, i didn't say "how much is it gonna cost?" I am speaking in generalalites. I would just like to get an idea of what the general operating costs are for automotive related businesses. And by someone answearing my questions that can be achieved. But, thank you anyway for stating the obvious, you seem to have no clue what i'm talking about, so again thank you. Peace-

[Cyprus106]

First off, You can't really do a mechainic and body repair and custom shop. Specialize in something and stick with it.

Expense number one: You need your initial tangible tools. This is often where 'credit' comes in handy, because this can get costly. Compressor, full set of tools, impact wrench, torque wrench, metric and standard tools, air tools, spring compressor, dual action, grinder, etc. Of course if you want to do body repair work that's another whole set of tools. Figure out what you want to do now and stick with it. The tools themselves could cost several thousand. Compressor: $400-750. Basic 200+ tool set: $150-200. Air Tools: $400-1000. Tool box: $300. That's just the basic. That's not including other little amenities such as the Engine hoists, frame machine, LIFTS ($600-3000+) paint guns, etc. The paint booth alone, assuming you want to go into custom or auto repair could cost $10,000 for a good one. $1000 bottom end of the line if you make even a half-decent one yourself.
Now for the location. Could cost anywhere between $300 to $10,000+, dependant on size, location, bays, exhaust, etc.
Renovations to said complex. Depends so largely on you it's not even funny. You need to be presentable. So you need at least the basics: Paint and a floor. For a tile floor, you could be hitting $300 for a 500 sq. foot cheap .67 cents a tile vinyl floor. Drywalls coudl be a few hundred and so could paint. Especially if you want to paint your garage floor, which you ought to do. I spent thousands renovating my showroom alone.
Advertizing. A secondhand thing, but a thing nonetheless. If you want to advertize, even with a backlit sign, you could be paying $1000-$3000 for an 8x3 foot sign. Phone book: $50-750. Flyers: $500. TV: $1200/mo. Radio $600-2000+/mo, etc. That's if you want to advertize at all. It may or may not be effective depending on what you want to open.
Payrolls depend so much on you. A decent mechanic/body man might want anywhere from $350 a week to $750 a week. Whatever. You may want to think about being your own employee for a while; at least a few months.
Phone ($100), water ($40), electric ($100-350)... That's monthly, mind you.
Insurance, depending on what you do, could be from $2500-$3000+ a year. That's $250 a month at 3 grand a year.
Legal fees of setting up the business could be a few hundred. If you want to go Limited Liability, which I would STRONGLY suggest, a lawyer would often charge $1000 just to set that up.
Figure out your estimated running costs, figure out your hourly labor rate, and figure out exactly how much business you need to break even every month and gauge if you think it's viable or not. I have friends who have running costs of $10,000 a month and hardly come out with two grand profit a month. And before you think two grand profit woudl be awesome, remember how much you have to save in case of a problem and how much needs ot be reinvested into your business. That's not an expense, not really, but it needs to be done for the shop to succeed.

[PBking82]

Thank you very much for your reply, That was exactly what I was looking for. This is not something that is going to happen anytime in the near future, but if it is ever going to happen I need to start planning now. I will deifinatly be going into collision/refinishing because that is what i know and possible custom body/paint work. As for the mechanical side, I don't want to limit myself because there is always time to learn. As for the equipment I have been slowly been building up quite an arsenal (too fucking expensive when you can't get them at wholesale) and as for the location, only time will tell. This is seriously something like 20+years down the road(not trying to discourage myself, but I like to think realistically) but, in order to make that happen even then, need to get the ball rolling now. And that you have helped me with. So I thank you very much. Peace-

[Cyprus106]

my pleasure