dannyzabolotny
dannyzabolotny Reader
7/1/18 2:03 a.m.

Hey all, thought I'd share my journey with starting a BMW shop, thought it might be interesting to see somebody starting a shop from scratch. As a bit of background, I've been working on BMW's for quite a while, along with my business partner who has been working on them for over 10 years. I've owned a pretty large collection of BMW's, and my current stable includes a 2000 540it, a 1997 M3, and a 1992 525it/5. My partner has two Z3 Coupes (one has an S52, the other has an S54), a 2003 X5 4.6is, a 1998 328i, and two 1972 Bavarias. It's safe to say we're both a little crazy for the roundel, so that's why we decided to start this venture. We've been working on various BMW's over the past few months in our driveways (through a funny turn of events, neither of us have a usable garage at either of our houses, unless you count the leaky shack in my backyard).

Unsurprisingly, when you work on BMW's and do so at reasonable rates, people take note. That's why at this point we've decided to go a little more legitimate and rent a space for our little venture. Believe it or not, the hardest part is just finding a place! You'd be surprised at how many otherwise promising locations hung up on us the minute we mentioned that we were a car repair shop. A combination of picky landlords and zoning makes it quite difficult to find a shop location that isn't stupidly overpriced, in middle of the ghetto, and/or on the edge of civilization. Sure, we could *technically* rent a nondescript warehouse space and just work on the down low, but that's no way to run a legitimate business, plus the threat of eviction would loom overhead constantly.

A few days back, my partner sent me a very promising Craigslist ad that he had found one night in his nightly Craigslist browsing (we all do that, don't lie). The rent was very reasonable, the zoning was right, it had electricity, running water, and fluid/trash disposal services. Perfect! We looked at the place and fell in love with it almost instantly.

Now the catch... there's always a catch, isn't there? This place is mostly outdoors, with a room and office in the back for storage. Thankfully in Phoenix we don't have winters, so no frostbite-inducing wrenching sessions, but we do have pretty brutal summers. That being said, the spot has a good amount of shade at all times of the day, and swamp coolers are cheap. So we'll deal with the heat, we've been doing it in our driveways already. No pain, no gain, am I right?

There's a lot to like about this spot thought, like the aforementioned rent and utilities. It also fits like 10 cars in the work bay, along with 6 extra spots in the general parking lot. There are other mechanics in adjacent bays, but none of them are BMW-oriented, preferring to deal with American trucks all day long; that's fine with us. There's no lift there at the moment, but the bay is wired for one and has the correct grade of concrete floor to handle one (the previous tenant had a lift).

This is what the place looked like in the ad:

It has this nifty room/space in the back behind the rollup door— this is most likely where we'll store all our tools. I have a big rolling toolbox, an air compressor, and a workbench that I'll be bringing there very soon. I love the exposed wiring in the breaker box... that's something we'll get taken care of before we fully move in.

Off to the side in that space, there's a dingy little office. In the picture it has the AC unit, but the previous tenant took it with them. I figure we'll source an AC from Craigslist or Walmart so we can make the office into a nice little lounge for us to relax and escape the heat. The window is also missing half of the glass, which is highly amusing.

This is how the place looked when we visited it earlier today. All the trash had been picked up and the place got a nice fresh coat of white paint, which is nice because it's one less thing for us to do. (Featuring a 98 328i and a 97 M3, E36 ftw!)

Tomorrow is our official first day of the lease, so we'll be going in nice and early to sweep the floors and hose down the dust everywhere. Then we're going to paint the office room so it looks more like an office and less like an amateur crack den. Then we'll start the tedious process of moving in our tools and project cars. Eventually we'll source a used lift and figure out how to install it (hilarity will ensue). Neither of us have run a shop before, so we're just taking it one step at a time, haha.

The landlord said we can do pretty much anything we want with the space, as long as we pay rent and don't do anything obviously illegal.

NOHOME
NOHOME UltimaDork
7/1/18 6:02 a.m.

I hear you on the difficulty of finding space to wrench on cars. The concern around here is environmental in that any kind of oil or antifreeze spillage is going to leave the landlord with the responsibility for environmental clean-up.  Unless the space is already being used as a shop, nobody will take the risk. When they do, they want a huge bond and a high rent.

I actually looked at buying a shop at one point, but it was then explained that if and when I sold it, it would require an environmental a$$esment that it would probably fail, and make it impossible to sell without remediation. If you buy a going concern, you assume their environmental liability. 

 

Good luck with your venture. Having participated in three start-ups so far, what I found looking back is that your first one is what teaches you what to do next time.

 

Pete

 

 

Slippery
Slippery SuperDork
7/1/18 8:27 a.m.

Subscribed

SVreX
SVreX MegaDork
7/1/18 1:07 p.m.

The open bays are fine. Paint them in a famous BMW livery. wink

Stampie
Stampie UltraDork
7/1/18 1:28 p.m.

I'm sure y'all've thought about it but I'd be worried about securing cars left over night. 

Dirtydog
Dirtydog HalfDork
7/1/18 1:33 p.m.

Best of luck in your new endeavor.    Hope you get flooded with work.  Start ups aren't easy, be patient.   Hook up with someone who can help with the books, takes away a headache.  Also expect other foreign car owners calling up.

a_florida_man
a_florida_man Reader
7/1/18 4:22 p.m.

I don't know how AZ works, but be aware of NPDES permitting:

https://www.epa.gov/npdes

and of the general need for things such as a Stormwater Pollution Prevention Plan:

https://www.epa.gov/npdes/developing-stormwater-pollution-prevention-plan-swppp

Depending on the way the landlord is set up he MIGHT (but probably not) have addressed these things.

If there are other shops on the property, talk to them.

Also ask your safety kleen or similar local vendor about offered services.

https://www.safety-kleen.com

If you have not applied for a business license yet, you may not have begun the process of identifying your local regulatory compliance processes.

There are, generally speaking; environmental compliance,  licensing, inspection and and permitting issues at the local, state, and federal level. 

Be careful that you don't invest too much before you find that you have an expensive compliance issue that shuts you down,    ...or worse.

If you have covered the due diligence here, my apologies, and carry on with great success!!!!!

 

 

 

 

 

a_florida_man
a_florida_man Reader
7/1/18 4:28 p.m.

 

Looking at the Safety Kleen site I see:

https://www.safety-kleen.com/products-services/compliance-services

Specifically:

  • Facility Audits to determine all applicable OSHA and EPA regulations that govern your business.

That might be money well spent.

stuart in mn
stuart in mn UltimaDork
7/1/18 6:30 p.m.

To what A Florida Man said, I'd add I hope you have a solid business plan in place.  Good luck with your endeavor. 

AWSX1686
AWSX1686 Dork
7/2/18 12:05 p.m.

Following along. Should be a fun thread to watch! Good luck!

Indy-Barely Functional-Guy
Indy-Barely Functional-Guy UltraDork
7/2/18 1:48 p.m.

I'll be following along too. I've often wondered what it would take to do what you guys are embarking on.

stylngle2003
stylngle2003 Reader
7/3/18 10:57 a.m.

keep records from day 1.  you'll owe sales tax on anything you sell, even stuff you put on your own cars purchased through the shop account at a discount.  consider asking friends/family if anyone knows accounting/quickbooks to help you get started bookkeeping from day 1.  it never gets easier than the beginning. 

 

don't buy anything from the snap on man that you can't pay cash for.  if either you or your partner are of minority descent, look into SBA Loans, which are often granted more favorably to women and minority business owners.  but you need an actual business plan for that.

 

wireless/networked security cams are ubiquitous and cheap nowadays, a 4 camera system would allow your projects and tools to stay yours.

 

don't forget to pay yourselves.  btdt.  don't offer discounts if you can help it, and don't sell yourselves short.

consider an entry level alldata (or similar) license, and get a distributor account with IMC or Worldpac and possibly even Turn14.  It doesn't take much, but the cost savings can be significant.  

thestig99
thestig99 Dork
7/3/18 8:35 p.m.
Stampie said:

I'm sure y'all've thought about it but I'd be worried about securing cars left over night. 

I'd be more concerned about tools than cars. 

OP, best of luck. A friend bought a shop maybe two years ago, his biggest struggle has been keeping reliable and talented help. 

ClemSparks
ClemSparks UltimaDork
7/3/18 9:21 p.m.
stylngle2003 said:

... don't sell yourselves short.

 

I want to reiterate this.  From a guy who visits shops all day long, I've learned that you don't want to be a "discount" shop.  You don't want to have customers who's primary thought when they contact you is "how much is this going to cost (and can I afford it)?"

If you do good work keeping a customer's car in top condition...you'll attract the kind of customer you want.    I would expect/hope that this will be a little bit easier with BMW owners than more run-of-the-mill makes...but I think it's worth mentioning.  

Ransom
Ransom PowerDork
7/3/18 9:25 p.m.

Following with great interest! Hope this goes awesomely for you guys!

dannyzabolotny
dannyzabolotny Reader
7/4/18 8:40 p.m.
Stampie said:

I'm sure y'all've thought about it but I'd be worried about securing cars left over night. 

The complex has two gates on it, both of which we have keys to. There are other mechanics that are there most of the time, as well as a 24/7 security guard at the dealership next door, so I think we'll be okay for now. We do plan on installing cameras as well.

dannyzabolotny
dannyzabolotny Reader
7/4/18 8:42 p.m.
a_florida_man said:

I don't know how AZ works, but be aware of NPDES permitting:

https://www.epa.gov/npdes

and of the general need for things such as a Stormwater Pollution Prevention Plan:

https://www.epa.gov/npdes/developing-stormwater-pollution-prevention-plan-swppp

Depending on the way the landlord is set up he MIGHT (but probably not) have addressed these things.

If there are other shops on the property, talk to them.

Also ask your safety kleen or similar local vendor about offered services.

https://www.safety-kleen.com

If you have not applied for a business license yet, you may not have begun the process of identifying your local regulatory compliance processes.

There are, generally speaking; environmental compliance,  licensing, inspection and and permitting issues at the local, state, and federal level. 

Be careful that you don't invest too much before you find that you have an expensive compliance issue that shuts you down,    ...or worse.

If you have covered the due diligence here, my apologies, and carry on with great success!!!!!

We're taking care of the legal aspects for sure, and it's been an interesting learning process so far. I'll post exactly what it took to do all that once it's done.

dannyzabolotny
dannyzabolotny Reader
7/4/18 8:46 p.m.
stylngle2003 said:

keep records from day 1.  you'll owe sales tax on anything you sell, even stuff you put on your own cars purchased through the shop account at a discount.  consider asking friends/family if anyone knows accounting/quickbooks to help you get started bookkeeping from day 1.  it never gets easier than the beginning. 

 

don't buy anything from the snap on man that you can't pay cash for.  if either you or your partner are of minority descent, look into SBA Loans, which are often granted more favorably to women and minority business owners.  but you need an actual business plan for that.

 

wireless/networked security cams are ubiquitous and cheap nowadays, a 4 camera system would allow your projects and tools to stay yours.

 

don't forget to pay yourselves.  btdt.  don't offer discounts if you can help it, and don't sell yourselves short.

consider an entry level alldata (or similar) license, and get a distributor account with IMC or Worldpac and possibly even Turn14.  It doesn't take much, but the cost savings can be significant.  

Yep, we have records of everything. My dad runs his own business so I learned a lot from him about bookkeeping and taxes. Definitely don't want to be blindsided by that. We don't plan on purchasing anything from Snap-On for now... we have a decent collection of Craftsman/Harbor Freight tools and those will be fine for now. Most people don't care what tools a shop uses as long as the job gets done.

Our tools are locked up nicely and our neighbors seem pretty trustworthy, but I do have a camera system on the list of things to buy, just in case.

We have a couple of local parts distributors, particularly SSF. Will definitely be setting up an account with them soon, so we can get parts quickly and sell them at a nice markup.

a_florida_man
a_florida_man Reader
7/4/18 9:26 p.m.
dannyzabolotny said:
a_florida_man said:

I don't know how AZ works, but be aware of NPDES permitting:

https://www.epa.gov/npdes

and of the general need for things such as a Stormwater Pollution Prevention Plan:

https://www.epa.gov/npdes/developing-stormwater-pollution-prevention-plan-swppp

Depending on the way the landlord is set up he MIGHT (but probably not) have addressed these things.

If there are other shops on the property, talk to them.

Also ask your safety kleen or similar local vendor about offered services.

https://www.safety-kleen.com

If you have not applied for a business license yet, you may not have begun the process of identifying your local regulatory compliance processes.

There are, generally speaking; environmental compliance,  licensing, inspection and and permitting issues at the local, state, and federal level. 

Be careful that you don't invest too much before you find that you have an expensive compliance issue that shuts you down,    ...or worse.

If you have covered the due diligence here, my apologies, and carry on with great success!!!!!

We're taking care of the legal aspects for sure, and it's been an interesting learning process so far. I'll post exactly what it took to do all that once it's done.

Awesome! Great news that none of this is news to you.

I was hoping that it wasn't too negative sounding, I just know of too many stories that did not end well.

Congrats on the start up.

onemanarmy
onemanarmy Reader
7/5/18 10:08 a.m.

will be following along.

 

hope its a great success!

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