anyone here know about starng a small business?

why do i feel like an ass when i ask that here? maybe because all these companies are relatively small. ok anyways let me get to the point

awhile back i went to tour my college and tour the auto section and had the teacher suggest we do the GE portion for our AA incase we wanted to start a business

well lately its hit me in how all the tire business's were booming. in my area. as we have a concentration of ricers, rodders, offroaders, and "bling bling" 'ers


any info on starting would be greatly appreciated or any websites on this stuff
 
Re: anyone here know about starng a small business

Andrew,

Out of curiosity, where are you going to college? Don't have
to answer if you don't want to.

I'm sure many schools offer small business courses in their
Extended Studies/non-degree programs. Plenty of books out
there, as well as seminars at The Learning Annex. There's
also probably some small business associations locally that
can help. And, as my mother would comment (since that's her
career), check the local library.

You can also probably start out on eBay as well.

Some basics - common sense, a good product line, good
suppliers, good backers/silent partners/capital, and,
most importantly, patience.

I've thought about doing something similar myself some
day, but I'm waiting for the right time and the right
idea.

Ian
 
wow been awhile since i posted this heheheh

anyways im going to a little community college in sacramento Ca. like you its alotta speculation for now. right now im going for auto tech skills so i can make astleast a good living where i could atleast afford a TS40 over time. anyways i plan to look into a business and if it fails, i have a career to fall back on and survive with without ruining my finances

i just figured a tire/wheel business that does minor stuff because they boom pretty easily. especially if you can offer good prices. maybe even look into the whole franchise thing....iv heard thats an easier way to start as you get free advertisement and a name people know
 
Re: anyone here know about starng a small business

So I take it you're in the Los Rios CC District - probably ARC?
Good place to start from what I hear.

The tire/wheel business is interesting right now (actually,
all busineses are having a tough time!). Over the past 3
years I have seen some franchisees come and go, and not
necessarily small ones either.

But, as the economy rebounds, getting a franchise with a
company like Les Schwab (if you want to do more wheel
sales) isn't a bad idea. Or, just hook up with a repair
shop, or even a builder (there are a few good restorers and
custom shops in the Sacto area), build a rep, and then strike
out on your own. You will build some experience, and perhaps
foster some relationships with customers that will come to
you when you start your own place.

Ian
 
Re: anyone here know about starng a small business

wow, didnt think you'd know the college...maybe its all the ferrari/mucilago talk in the fast cars thread that stopped me from saying it(sounded like you all lived in rich towns or sumin) heh

actually im commuting there. but anyways

well hopefully Arnold with bring Ca in normal land seeing as how davi ran this state ino the ground.....cant believe i missed the ability to vote by 6 days....

any ideas on how i might contact Les schwabs or other companies for franchise info?

to me that seems like the better option for something like tire and wheel

aso i was using them as an example, i think id wanna try a big 0 shop. they do tires but maintence as well. whil Les schwabs does tires and lift kits and basically it

thanks for all your help so far. this feels like an obtainable goal in the future
 
Re: anyone here know about starng a small business

Nope, live in Sacto, not too far from Sac State (and not
really one of the wealthier neighborhoods either). Plus,
there are some mighty nice cars rolling around Sacto -
just the other day I saw a real Cobra.

I'll avoid politics since it will all be over soon /ubbthreads/images/graemlins/wink.gif

I'm sure Big O, Les Schwab, Pep Boys, Midas, etc. all
have websites you can check into. Also, just walk into a
shop and ask the manager. They should have at least a
number to call.

The franchise concept works for exactly the reason you
stated, you get the big name backing and advertising.
As I sadi, latching onto a local builder might also
be a good option, especially while you are still in
school. You'll get more hands on, and potential clients.

Rich or poor, owners or dreamers, we all love the same
car.

Ian
 
Re: anyone here know about starng a small business

yeah i was loking around, les schwab has no website. but big 0 had a decently extensive information site

though this may wait as according to their site you need like $150,000 of net worth

which would mean it'd have to wait unt il i was fairly into my career.....maybe ill look around for something else


man i shoulda pay'd attention to that business class that i assisted in during high school heh
for experience i can check 2 places. the im pretty good with the old business teacher at my old HS, i could probably stop in and get some advice on starting a good business. he use to be an advisor for business's.

and a local hoby shop that kicked up. the manager there i think is part owner and is prety good with business. plus we know someone through that shop who owns a resutrant that he made out good with

i have decent connections
 
Re: anyone here know about starng a small business

Andrew, I think the best advice I could give you is; 1 - finish your education. 2 - Work in the business that interests you while you are finishing that education, 3 - Don't get into it if it is only fot the money. You need to like what you are doing.
 
Re: anyone here know about starng a small business

Ian and 40bud have really good advice.

I've started and sold two small businesses. The bad days were bad but the good days were some of my best ever (and all mine). I loved it but after 10+ years, I sold the last and went to grad school (to learn more about business at the next level). After getting out I figured out I'd rather be an entrepeneur in a big company and leverage the resources. Now I'm finishing about 10 years of working for a big corp and getting a little bored. Time to try something new for my own benefit.

One thing you'll see on this board is that you've gotta love whatever it is you do and everything else always seems to fall into place. So many of the guys have such passion for their cars and I'd bet you find many of them have the same passion for their employment (but they might not even consider it a job).

Now to your ideas, it seems the import auto modification scene is crowded right now but... there is always a need for guys who really know what they are doing and there is always a need for products which deliver measurable performance at a price appropriate to the car's total value. There are a few niches there and examples of those guys who comply. There are a good number who are doomed.

Incrementally, I'd try to stay away from a "bling-bling" business as taking people's hard earned cash for income and not giving them much of real value gets to you eventually (unless your a Helmsley relative).

Now if you can get an old hand to let you apprentice let me know and I'm moving! I'd do that again in a second but you should probably jump on it first. If you're thinking "small business" you'll likely envision it while your working there and you'll get the built in guidance of a graduate from the SOHK.

Best of Luck,

Chuck "man its late" Ward
 
Re: anyone here know about starng a small business

wow, great info

well im doing mechanics kind stuff because i love that. personally im a person who really doesnt have a best day unless ive gotten a chance to work on a car. whether it be maintence or just adding some bolt on crap

the whole bling bling thing was thinking like the local Big 0 shops. basically they do alotta mechanical work for maintence, but they also sell alotta that stupid bling bling crap. like most shops....these days i seriously think that the stupid bling bling crap is what makes alotta business's turn easier. as some idiot is always willing to drop 2000+ to put dubs on his suv
 
Re: anyone here know about starng a small business

Andrew - Bud's and Chuck's advice is great. Finish school,
apprentice/volunteer/whatever you can do to get on board
somewhere, and do something you enjoy.

That's what I wound up doing, and I can't complain (well,
5 hours of commuting a day is a PITA, but the benefits,
pay, flexibility, and atmosphere make up for it). And,
if it leads me to building a GT40 some day, all the better!

It sounds like you have some good ideas, and some cxns that
can help you when you have questions. But, unless you really
enjoy hobby shops (I had a close friend close his down
after a bad Xmas time experience with a major supplier - he
now teaches junior high), don't go down that route. That is
one market that is always struggling, good times or bad.

Ian
 
Re: anyone here know about starng a small business

no, no hobby shop. i ment using them as a resource for good advertising the small business and getting attention quickly. as their shop had 500 customers in their first month in a half.

the thing about a hobby shop is that they have a 100% stastistical failure rate. the ones that survive are those rare forms that throw off stastistics

mostly im gonna work in automotive several dealerships have needed grease monkeys. i figure id work there until i got the net worth for a franchise. actually doesnt seem to bad as this calculater i had found online let you type in numbers of things you own, such as a house, where you cant even get on under 200k anymore so who knows...could be easier to get thenet worth and mechanics make decent money to start up the Big 0 thing

i just like the idea of owning a business like that. it feels like what i would be geared to do, as i like to fix things, and help people....then the tires just keep it all going
 
Re: anyone here know about starng a small business

Andrew,

In asking for advice about starting your own business you&'ve caused me to do some soul searching and thinking on this rather intricate subject.

I'm replying under five different headings. The same rules apply whether you're in America, Australia, England, South Africa or any other country in the world!

1) DEDICATION & PASSION
2) THINK FOR YOURSELF
3) FINANCES & PARTNERSHIPS & GROWTH
4) SELF IMPROVEMENT & MOTIVATION
5) MARKETING & ADVERTISING

1) DEDICATION & PASSION

As has been already mentioned in this thread you have to love and be passionate about what you're doing it's the best formula for success.
If you're passionate about a subject, ie car building and motor sport, you automatically absorb all you hear, read and see and then you speak with authority on your beloved subject. Other people will spot the glint in your eye and you positive body language and will have faith in you. If circumstance forces you into a business or job you don't like other people will pick up your negative vibes.

Because of this passion there are so many people who've achieved amazing success. A good example is the late Ayrton Senna who had absolute tunnel vision about being the best Grand Prix driver in the world.

Another example is in my own family. When I was 10 and my first cousin, Francois, aged eight and half he told me he wanted to be an architect. He never wavered from that dream. In 1965 he qualified in architecture at the University of Cape Town and the following year he enrolled at the University of Pennsylvania where he studied for his Master's degree and one of his lecturers was his hero and role model, the famous Prof Louis Khan. Since then his partnership has designed among many buildings, a university in Johannesburg, the Johannesburg Stock Exchange building, Mercedes-Benz and Porsche dealerships and the Michaelangelo Hotel in Johannesburg, now recognised as one of the top 10 hotels in the world. He's also involved in major projects in Dubai, Germany and Nigeria. If I think of dedication and passion I think of my ol'cousin!

A recipe for potential disaster is the following. In recent years in South Africa people have been taking early retirement, ie after working for an oil company for 35 years and quitting at 55 instead of 60 or 65. These people feel they're still too young at 55 to hang about doing nothing. After many comfortable years with an oil company and an automatic salary cheque at the end of the month the prospect of going into the business can be scary. A typical case is buying into a fast food franchise when the person has no feeling or passion for the food business other than thinking it might work. Quick way to lose your pension pay out!

SUMMARY: Be dedicated, motivated and passionate about your business dream. Don't go into a business because someone else thinks it's a good idea.

` 2) THINK FOR YOURSELF

Our world is full of people who don't think for themselves and who are for ever asking other people what they should do. I know of many cases where a young person, like you, needs advice about his or her future or going into business and who do they ask - all the wrong - people, often their own parents, uncles, aunts, their school teachers, their vicars or priests. No disrespect to any of these people but they're generally conservative, see life through their own eyes and haven't got a clue about the big, mean and nasty old business world out there!

I would recommend the Ronald Reagan principle. I gather that he would ask for advice from many of his inner circle and at the end of the day make up his own mind.

Like my cousin many people make up their own minds at a young age about their futures and don't need the opinions of others. Some people are born with vision and some are naturally gifted. One of history's most gifted people must have been Wolfgang Amadeus Mozart who started composing his own music at age five! By the time of his death aged 35 he had composed over 600 works.

There are also many people who still think that unless you have a university degree you don't add up to a row of beans. Wrong. Someone told me that someone in the US has written a book about American self made multi-millionaires and billionaires (I wish I can hold of the book). Some 70% of these people come from so-called blue collar backgrounds often with little formal education and certainly no degrees from Harvard.

In the motor world two 'unqualified' men, who built up famous car companies, come to mind - Enzo Ferrari and Henry Ford.

Enzo Ferrari's father wanted him to attend a technical college but when his father died when he was 18 he drifted from one menial job to the other including a stint with the Modena Fire Department. During WW1 he shoed mules and eventually during the 1930s he set up his own racing team. On March 3, 1947, shortly before his 50th birthday he drove his first prototype Ferrari and the rest of course is history. He ran his company until age 90 not giving a damn about the norm of having to retire at 60/65. Another visionary self-made man.

Henry Ford was a farm boy who was described as a 'tinkerer'. He and his investors had two bankruptcies in quick succession before he founded the Ford Motor Company in 1903. Ford's vision of automobile mass production came from within and not from a university degree. Please don't think I'm belittling university degrees. There's
no doubt that one cannot practice architecture, law, medicine or many other professions without a university degree. It's that it's not a prerequisite for success in the business world.

Another self driven person who has done well for himself is my friend Ron Hickman who has only a matric pass from Greytown High School in the Natal Province of South Africa. In 1955 he moved to England to eventually become production director of Lotus and the designer of the Lotus Elan. He then went on to design and patent the Black
& Decker Workmate of which some 65 million units have been sold to date. Today Ron lives in Jersey and is one of England's wealthier people. He was also awarded an OBE for innovation to industry.

Another success story is South Africa's Jewish community. About 100 years ago most of them arrived here with nothing from Latvia and Lithuania and have since then built up some of South Africa's largest and most successful businesses, chain groups, etc, through sheer determination, guts and hard work. I've a 75 year Jewish partner in a small import/export agency, who built up a successful motor group, farms and properties in a small town and I listen to his advice on business.

I would also like to quote a personal experience. 1n 1965 when I was working for Stirling Moss in London his racing team, SMART, was run by three South Africans, two of whom were brothers who had done many crazy things. I decided to interview them and posted the story back home to a magazine. Not long after I received a copy with the story in the mail together with a cheque. This launched my 'career'as a freelance journalist and for the past 38 years I've written many stories, including for some well-known British publications. I'm a member of the South African Guild of Motoring Journalists and this self chosen hobby has paid me well over the years.

In this regard I've been asked several times by young people about getting into journalism. They ask if they shouldn't first do a degree in journalism. I reply that if English is their home language and they can express themselves well verbally why not start writing. Why wait for others to shape you.

My wife is editorial director of a publishing company specialising in professional trade journals. She started off as a secretary with the Rootes Group in London in the early 1960s and made it to the top in South African publishing through common sense and dedication.




SUMMARY: Think for yourself. Make up your own mind. Go for it.

2) FINANCES, PARTERSHIPS & GROWTH

First of all crawl, walk and run and when you start running keep looking behind your back.

Finance is always the problem. Most of the time the person with the passion, the idea, the design or invention doesn't have the money. He has two options, to borrow money from a bank providing his own collateral or by persuading others to invest in his idea.

Borrowing money from a bank can work preferably by starting small and growing slowly. This could in fact be the ideal way for you would be captain of your own ship and all decisions right or wrong would
be yours. On the other hand if it goes belly up your house and your granny's jewellery would be snatched by the liquidators.

It's often said that partnerships are more difficult than marriage. I've experience of both - elieve me it's true!

The main problem with partnerships is the business being viewed from entirely different angles by the ideas man and by the investors. The ideas man simply wants his business to get rolling so that he can earn an income and hopefully make a few million bucks down the line. The investor and investors have often made their money in other fields of activity and simply want a quick return. Hard earned experience tells me that if you're in the car building business, for example, your investor must understand the industry and once again I mention passion. Your investor must also share the knowledge and the passion.

I quote a recent example. A friend, who is one of the best car builders I know asked a wealthy man, who made his money in the security business, to invest with him. Within three months the partnership blew up. My friend had to make a pattern for a rear upright and have it cast in aluminium. The investor thought the whole job should take a week and when my friend explained that it would take a little longer the investor blew his top and end of partnership!

A word of warning about partners/investors. The ideal partnership is between two people - the ideas man and a wealthy investor who work well together, respect and understand each other.

Be careful of two or more investors or even an investments company. It'll invariably be the ideas man on one side and the others on the other side. To have all parties singing out of the same hymn book, as the saying goes, would be a miracle!

Another route could be to buy into a franchise. This could be expensive initially but could be a recipe for success particularly if it's a well-known and well-established international or national group. The newcomer would have the benefit of an established image, training, advertising and marketing. But as has been mentioned in this thread franchise operators also fail and then take the whole network out.

One of the biggest mistakes I've often seen is getting smart arse too quickly. An example is two partners setting up a new business together and to their surprise the business takes off better than expected. Before you know where you are the partners are flashing about in new BMWs each with a trailer and a Yamaha Waverunner at the back. Yes, leases are easier than paying cash up front but those monthly installments can also be a drain on the company's resources. Rather drive a rusty pick-up for a while longer and one day when your accountant tells you that you cannot afford not to have the new BMW go and get it. Then legally deduct the installments and give the IRS
less! I don't know if this applied to the US, it does here.

To make a success of a business you must understand financial control and management. Don't leave it to the accountants and auditors, be hands on yourself.

About 30 years ago I had a bitter business experience when I trusted a partner with the company's finances. I won't go into the details but after that I quickly learnt all about basic book keeping and financial control having come from a marketing and sales background and believing that money matters should be left to the bean counters.

Financial control requires no more than common sense. It's not rocket science.

In the early days companies had sets of books and in recent years I've run four companies with a hand written cash books with analaysis columns and a journal. Sure, now it's all on computer.

Quite simple! On the left hand side of the cash book your deposits are paid in. On the right side you record cheques paid and bank charges. These days, thanks to computerised transaction coding you print out your month's financial performance within minutes. An example of a journal entry is when you've invoiced a transaction and been paid cash for that transaction and that cash is used for petty cash. The payment has to be recorded and the use thereof by crediting sales and debiting a petty cash in the journal. Thereafter the businessman must have a record of his debtors and creditors. In fact, he must carry those figures with him every day, either in his head or on paper otherwise he'll lose control. This certainly applies to the smaller businessman as it would be impossible for the President of a large corporation to carry these figure about with him.

Also remember; crawl, walk and run. There ain't nothing instant. All the well-known car companies had humble beginnings often from small, tatty workshops and small factories - AC Cars, Ferrari, Lotus, Porsche and many others. Even the mighty Boeing Aircraft Corp started small.
The last guy to try instant was one John De Lorean - he ain't around no more!

3) SELF IMPROVEMENT & MOTIVATION

I believe that to be a successful businessman you have to be well informed about everything both internationally, nationally and in your own backyard. The more you know about the world around you the better you will run your business as wars, financial ups and downs, changing trends and fashions could affect your business. It's a case of fore warned is fore armed.

It's also important to go out there and meet people from other countries, cultures, traditions and religions. Amazing what you can learn. Also the more you expand you mind and knowledge the more interesting you'll become as a person and the better you'll do in the business world.

There are many books on business, marketing and self improvement. Read them. Two good books are 'The power of positive thinking' by Norman Vincent Peale and 'The official guide to success' by Tom Hopkins.

My wife and I belonged to Toastmasters for 18 years until recently. It's a wonderful organisation and apart from helping people overcome their fear of speaking in public it rounds one off in other areas of communication. All speeches are evaluated and the speakers are told in a constructive manner about their shortcomings,ie speaking too softly, poor eye contact, fiddling with one's tie or scratching one's nose all because of nerves. The best thing about Toastmasters is that you get evaluated to your face and not behind your back! I would highly recommend this organisation to anyone who wants to make a success of the business world. If you can't communicate how do you sell yourself or your ideas?

5) MARKETING AND ADVERTISING

In this day and age of information overload people ask how do they make their businesses stand out.

Paying for advertising is one thing and the accepted norm. The one tip I can give, based on my freelance journalism, is to go and make friends with your local newspaper or nearby car magazine if you're in the car business. It's easier than you think to get write ups on your business. Bear in mind that newspaper and magazine editors can only write about people (other than animals) and what they do. If you have a newsworthy story, don't be scared, go and knock on the editor's door and give it to him. If you were to spend $5000 on an advert it won't carry half as much weight as a story with photographs. Believe me, it works, I've done it many times in London, Johannesburg and Cape Town. Go for it. Don't be shy there could be a friendly editor waiting for you!

Andrew, this has taken quite a while to write but I've enjoyed it. If you can take just one tip from this and put it to good use I'll be pleased!

Take care,
Andre 40
 
Re: anyone here know about starng a small business

WOW!, that entire post just blew me away. extremely informative. hard to believe it was hand written, seems like it'd take atleast an hour since it took me almost 30 minutes to read(granted i was doing 2 other things while reading)

anyways, my passion for this mostly stems from the fact that im only good at 3 things and only like 2. driving fast cars, building cars/anything, and computers. and since i dont like computers and racing isnt gonna get me far...even though i do plan to look up the NASA racing club once i get a raceable car

i didnt really think about "big money" im just not fond of bosses and i like helping people. and most of it is thinking of the best way of getting by in life...a small business just seems like what i would wanna do.

for the money management, id probably see if i could get something similar to what that hobby shop has....i practically live there and know the system fairly well...even if i dont work there. Anyways it keeps a record of every transaction and price made. that'd be a big help for figure out the net income that you made for that month/ whenever you would check it

generally i dont let people mold my ideas. especially when its something i love, for example my dream of a GT40 that ive had since junoir year in HS. had plenty of friends say i was full of it, but still today 3 years give or take later im still thinking of them

for marketing id do what the local offroad shop did. seems it did wonders for them. they have probably the worst location possible. its back behind a lube shop. tucked out of the way where you have to go in the lube shop parking lot and around for it. they put their ad in the local car selling magazine....they boomed. practically every truck in our area has their decal on the back window(done alotta trucks) and they even expanded into RC stuff as a side thing.... they got this rep in about 4 months of being open. why? because everyone picks up those car dealer mags. always looking for a steal.

personally i dont like partnerships. i took a quick business class when i started HS. and when we covered partnerships it didnt feel right, because chances are they will wanna go in different directions. for example the LHS i visit. owned by a married couple. one stuck with the lucrative hobby stuff while the other was trying to add kiddy stuff for money. now they are scrambling to put the shop back in order and get rid of the kiddy stuff since it bombed and slowed shipping on the lucrative stuff



thanks for all your info, when i get home tonight ill probably copy that entire post and save it for later on. i figure im gonna take some business classes etc etc just to be on the safe side so i will know the ins and outs of say that tire/mechanic shop before i blindly stumble into it
 
Re: anyone here know about starng a small business

Andre 40's advise I'm saving for my kids. Thanks for the wonderful prose.

Chuck Ward
 
Re: anyone here know about starng a small business

Andre,

Where were you twenty five+ years ago, when I started my first business?
I certainly could have used your sage advice then! /ubbthreads/images/graemlins/smirk.gif /ubbthreads/images/graemlins/grin.gif

Bill
 
Re: anyone here know about starng a small business

man, ive never felt so good about such a, uhmm totally off topic post
 
Re: anyone here know about starng a small business

[ QUOTE ]
why do i feel like an ass when i ask that here?

[/ QUOTE ]

See Andrew, and you were worried about posting the question /ubbthreads/images/graemlins/wink.gif

Andre - your missive is definitely frameable. My only
issue is about staying in college. While it is true, a
college degree is not necessary for success, and the
examples you site are great examples, they are more
exceptions than the rule. My advice is to stay in school,
get a degree (even if it is not related to the business
you wish to get in), since it will give you something
to fall back upon (or something to start off with). And,
even an Associate's Degree in Business could be very
helpful. Of course, this comes from someone who took 6
years to get a BA in Drama, only to wind up as a UNIX
Systems Administrator and a DOE national lab. If anything,
having a degree shows a history of commitment.

But, that aside, your post should be used in some business
courses. It is very sound advice with great supporting
examples!

No offense meant, and as I said before: If you were never
to post again, your contribution to this board would still
be immeasureable.

Ian
 
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