How do you open your own business?

Question

My husband would like to open his own automotive business. Can anyone tell us where to begin or what we need to do to get started? We are researching now, just seeing if anyone out there could give us some information they might have. Thanks!

Also do you have to have good credit to get financed? How hard is it to get money to open a business and start up costs?

Serious people who actually know what they are talking about only please!!!

Answer 1

1) Have a product or skill to sell 2) Advertise 3) Sell and collect money.

You want specific details, pick up a book. But, really, it's a lot of on the job learning. There are a lot of good books available. For example, "Small business for dummies". Go to Amazon.com, pick it up for $20. It'll give you info on financing options, for example, and where to look for small business loans.

But it's the small details that'll hurt as you learn. Ten thousand little things.

By the way, for all the answers you'll get that say "schooling": Don't waste your time. You want to run an automotive shop, not sell widgets to the world.

I totally forgot (it's not at all what I do now) I managed an automotive shop, and worked at another, in the early 90's for a few years. Wow. I guess I could try to think of things more practical for your situation.... I'll get back to you.

The first thing to do is determine how much you need to make to live. Decide how much in sales to generate this income. Decide whether or not you can generate those sales figures. If not, how long will it take to get figures to that number?

Next, how will you create a customer base? If advertising, how much money will that cost, and what type is most effective for your market and occupation?

How much money will you need for supplies and tools? I'm sure you have the tools, but office expenses can be thousands of dollars each year too, tens of thousands.

Automotive work is like Beauty Salons: It takes a long time to build up a customer base. Whatever your loan amount, you must account for years to grow to the number you earlier choose as a sales figure.

A horror story: My guys forgot to put oil back in an engine after an oil change. We bought a $6,000 engine a few hours later. Can you afford your businesses liabilities? You'll need to work that into your loan request, a liability fund/contingency fund.

I give up. You'll have to learn so much on the job. But don't let that deter you. You can't fail if you never try.

Get the "Dummies" book, that'll give you a good start. And if you want specific advice, email me. I'll help as much as I can.

Answer 2

Step 1. Look to see where you live. If you live in California then I strongly suggest you move before starting any kind of business that requires any kind of equipment, tools, real estate, or other property. I tried to start a vineyard in CA and the first thing they did was send me a form so that I could pay 1.3%/year on anything I own (no matter how long I've owned it) that could be used for the business. If your husband uses a screwdriver that he received as a christmas gift when he was 12, California will add that to your property tax bill. The same goes for your computer, desk, chair, printer, and anything else you have even if you only use it one time for the business it is taxable for forever with no limitation on re-assessment. The federal government will allow you zero deductions until you sell to your first customer. If you take nothing else from this, take that fact. For me, I had to close down or be taxed to death. It takes about 5 years to produce a crop you can sell with grape vines. Yes, they also take income taxes from anything you have left (if you do).

Step 2. find an enrolled agent (tax expert) or CPA to review your business plan with you BEFORE you file to start a business. This person can help you predict what your expenses will be and help you evaluate your plan.

Try to avoid legal services like legalzoom that take your money to file forms for you. You have to give them all the information needed to file the forms. You might as well mail them yourself because mailing is about the only thing you are getting for those big dollars they charge.

Answer 3

Well like the others it's hard for anyone not experianced in business law to give you specific advise. Basically, you need to apply for a business taxpayer identification number both with the Federal Government and the state you live in, as well as register any business name you plan on using. At this point, you must come up with capital to start the business... either through a loan (you will need a detailed business plan and very good credit to even be considered for a business loan from a bank) or from investors... which can be friends and family that are willing to share the risk with you for a return at a later time (you'll be risking your relationships at this point too). Don't try to start too complicated of a business with no education... take courses at the local junior college to learn more about business and tax law, as well as managment practices.

Answer 4

For starting out, you have two ways to go. First, check out an established franchises. They have a proven business model that works and you have someone who can coach you through, those first few years. Follow up with other franchisees though and most franchisers welcome you to talk to the others. If not, forget em, move on. The second way to go is to check out web sites for business brokers, they will usually have a listing of what is for sell, and you may be able to work out a deal where your husband can maybe work with the business owner for a period of time. Alot of owners have their heart & soul into their business & welcome training a young man who wants make something of himself. Both of these may cost a little more than a fresh startup, but you are putting the odds in your corner for a successful career. Remember, someone is always going to come along that wants a piece of your action, get use to it, its part of the game. They usually go as quickly as they come. Good Luck.

Answer 5

Careful planning is fundamental to success. The Small Business Planner includes information and resources that will help you at any stage of the business lifecycle: http://www.sba.gov/starting/

Most businesses start out small. As a new business owner you need to know your federal tax responsibilities. This page provides links to basic federal tax information for people who are starting a business. It also provides information to assist in making basic business decisions. The list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business: http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

Answer 6

go to school and find out.