Business op

I have noticed there are no 4x4/off road parts/performance shops here in Greenville, or anywhere near here for that matter. I was wondering what kinda start up amount would one need to open a business that deals with parts/service/custom work?

Sell RC, RE, and pretty much any other of the sponsors parts and accessories even do the installation inhouse..

My rig would be the show rig of course..


I wonder how easy it would be to start up a business like that around here because we would be the only one in the area

in college i was thinking about opening up the same type of business, but catering towards drag racing and street racing. In order to even have the chance of being successful, we were looking at $300,000 minimum with the current business model we had come up with, assuming $0 income for 10-12 months (which, in all reality, is how you should set up any business model). And we didn't need near the amount of high dollar fabrication tools that an off-road shop would require. It entails a lot more than the Average Joe thinks about, trust me.

For instance, have you done research into opening distributor accounts with companies like RC, RE, etc.? Typically they require $5,000-$25,000 just for the RIGHT of being a distributor. To get around this, you usually go with a multiple-line distributor. Not sure who does it for offroad, but for the racing community, it would be Arrowspeed or Summit, and for the motorcycle community it's Parts unlimited and Tucker Rocky.

With these companies, you can get pretty much whatever you need for a customer through them, whether it be anything from a headlight, to an axle, to a tub. You don't see the discount you would see by opening an account directly with the manufacturer, but you also don't need the capital required to open an account with the manufacturer. I know when i was talking with Summit and Arrowspeed about starting an account, they require about $1,500 (IIRC) to open an account, but Arrowspeed was going to waive the new account fee if i signed a contract stating I would carry at least $2500 worth of merchandise in the shop at any given time.

Bottom line, if you ever plan on being any more than successful than just having a status-quo shop in Greenville, it's going to require several hundred thousand dollars. I can tell you, having been to A/T Fab and seeing the tools and equipment they have, not to mention the 400 sq ft office/ showroom, and the +-4,000 sq ft shop, they have probably upwards of $750,000-$1 million dollars invested in that place.

Also, do some research on insurance. between Worker's comp, personal liability insurance, and insurance because you are driving and possibly storing customer's vehicles that can be wrecked/stolen/etc., you can expect to pay about $15,000-30,000 a year in insurance alone.

Yep, Twitch is right for once. That's why everybody makes the trip to A/T Fab lol

Well I found out the nearest one to me is a truck accessories place in Terrell

That's not really a fabrication shop. Just a pick it and bolt it kind of thing.

Well it would be easier that way then ordering online for me.

I guess. Choices are not as broad and if you're like me who does a weeks research before I buy, it won't be as easy.

Good responses from a person who has been self employed for most of my life. The bottom line is that now is a crappy time to get into the business. People simply aren't buying. Just look at how many vendors have closed recently and most were already set up and past the start up expense.

goold advice old man. i didn't even factor the economy situation into my response, but that's one that DEFINITELY can't be ignored right now.

I would definately say this is the wrong time, economically. I would suggest maybe rounding up some of the tools and machines you are gonna need and get to practicing on fabbing until the economy turns around.

If you plan to do it in the future, definately take advantage of the economy to find the best deals on your equipment. It really helps if you can start with your equipment paid for. It cuts the monthly "nut" you have to crack to keep the doors open.

I've been putting equipment together for a manufacturing idea I have for over 10 years now. By next year I will have the $80k in equipment all set up and running and not owe a dime on it. I either fabbed it myself or bought it for pennies on the dollar by being patient and never quit looking. I probably only have $10k invested.

Old man is right about this being the time to buy the assets needed. Based on current trends, it is projected that in 2-3 years the dollar will be artificially deflated about 3 times its current value, so, on paper, your equity will be 3 times what it is in today's market (the same goes for real estate folks).