Thinking about starting my own business..........

Well, since I lost my job yet again, I'm thinking about starting my own business. I know the economy is in the crapper and Michigan is beyond the crapper, so hear me out. I am thinking about starting a business as a mobile installater for Webasto heating systems. I was a trainer there for years and was let go 6 months ago. I know the product like nobody's business so that'd be a snap. In a nutshell, here's the plan. I will outfit my truck to be a mobile installation truck, really just need to add a tool box in the bed and buy some cordless tools (drill, dremel, flashlight). My over-head should be low as I won't have to keep much inventory (the North American headquarters is 1 mile from my house!) and I won't be buying a shop. But here's some info on the product. They make a line of fuel-fired heaters ranging from 7,000btu to 140,000btu, both air and coolant heaters. I think my core business would be the heavy truck market (class 8) and school busses. For the heavy truck market a driver typically idles his truck all night for heat. Besides becoming illegal in many states it burns about 1 gallon of fuel per hour. Therefore, 12 hours equals over $25 per night at today's prices. The heater on the other hand will burn 3/4 of a gallon during a 12 hour period, saving at least $20 per night at today's prices. The school bus industry is a bit different. Today's diesel engines aren't producing enough waste heat to keep the driver warm, let alone defrost a windshield. Many buss manufacturers are offering Webasto heaters as optional equipment for this reason. Quite a few school districts opted not to install them because they didn't think it was needed, now they want them installed. Many other districts have them installed after-market because it's cheaper. The other side of the school bus business is keeping the kids warm. There's another heater for that purpose, it's an 80K BTU heater.

Anyway, I'll quite babbling on about it. Am I crazy for starting a business in this economy??? I'm looking for a way to maybe keep my family in this god-forsaken state.

All of the economic whizzes say a slow economy is the best time to start a business. I say go for it. Your overhead should be REALLY low, so there's not a huge risk. Do people buy heaters in the spring and summer though? (Seriously. I don't know.)

hows the competition?

Seasonablity?(as poopie said)

Market size?(can it support you and competition)..

projected profit per install? (You'll need it for break even/ROI calcs)

What is your advantage over the others doing this service( Do you do it in truckstop parking lots? or what)...

Just a couple real quick thoughts.. Maybe get in with small truck firms or owner/operators and do the installs at their convenience. Offer discounts for buying in the summer. I need more coffee.

edit: one more thing.. Look at complementary products you can install quick and easy.. You can do the research for this while installing your products probably.. Just ask drivers what needs they have that are not being met.

What's one of these heaters cost, installed? Just wondering, at roughly $20 a day savings how long it takes to recoup the cost.

Your main advantage is your extensive knowledge of the business; this is important. I've had 2 businesses in my life; the 1st was a miserable failure because I knew nothing about that line of work (medical uniforms), and the 2nd was an unqualified success because I knew what I was doing (locksmithing). It's all about doing what you know, and networking contacts in that area.

Get a good CPA, and study CYA 101 well, so you don't have any suprises later on.

You'll do fine, but get used to ramen noodles and balogna for a while; as owner, you are the last one to get paid. People don't always realize that, but it's the truth.

Tim Baxter wrote: What's one of these heaters cost, installed? Just wondering, at roughly $20 a day savings how long it takes to recoup the cost.

With anti-Idle laws in most states now its either get one of these heaters or find a truck stop with idle aire.

http://www.idleaire.com/ <-- pretty cool.

Sounds like a good plan, but yeah, you need to look at your advantage, and also, how will you market yourself. Do you still have any contacts in your customer base from your time as a trainer? Are there any spin off opportunities for adding additional consumers to your client base? (maybe cooling as well as heating). Also, do you have a plan to expand your business...do you plan to do this long term or is it a bridge till times get better?

I do like the idea of not having to rent a shop, and the proximity to the supply source is an excellent advantage, however, are you going to pay extra since you will only be buying per job versus buying a surplus which generally nets better discounts?

I will say, there are definite advantages to being your own boss, and also woking in a field where youre comfortable with both the product and its installation. Good luck man, Im glad youre able to keep your options open like this!

I am assuming that when you left the company you did not leave as an enemy.
I am also asuming that your leaving was a result of slowed sales or economic times for the company.

With that said can you gain any help from the company who wants to sell more units but does not have an instalation program in place. Could you become their prefered or authorized installer?

Are you still able to tap into the funds allotted in the 2006 transportation act? Schools were given access to grants/funds to eliminate emissions by reducing idling, etc.

Look for other government funding, and sell that to the installer first.

Sounds like a decent idea, and even if it fails you shouldn't lose much.

ignorant wrote: http://www.idleaire.com/ <-- pretty cool.

Wow, stuff that cool usually doesn't make it to production! You better hope not too many places have that DrBoost, that's some stiff competition!

I think this is an excellent time to start a business (I'm starting one), though start up capital can be an issue.

I'll echo what most others have said on doing your homework.

It can be summarized like this: Don't start a business offering something you think is a good product, hoping people will buy. Start a business KNOWING what people want (know your market), and deliver it.

It doesn't really matter what YOU think is a good idea...it matters what your customers are looking for.

SVreX wrote: It can be summarized like this: Don't start a business offering something you think is a good product, hoping people will buy. Start a business KNOWING what people want (know your market), and deliver it.

super good advice

Meh. There are two schools of thought there as well. Effective marketing can allow you to TELL the people what they want, rather than "giving the people what they want."

I'm guessing 'sham-wow' is doing okay...selling berkeleying towels...in a slow economy...at $19.95 a pop.

I am, by no means a business expert, but I'm guessing for this particular business, you'll have to do a LOT of cold-calling. If you're not motivated to network, or can't handle getting doors slammed in your face, this could be an issue.

the idle air is a geat idea.

I used to drive trucks.. and the company I worked for was cheap and we did not have aircon (not that I use it)

I remember trying to catch a nap (I was short haul, was not under the 10 in 11 rule) in a truck stop and being gassed out by all the diesel exhaust.

Personally, I say go for it. While you may not make much money now, you will be putting yourself into position later to take advantage of any economic turnaround

Well, thanks all for the input. I'll try to answer some of the questions/concerns you brought up. I left on good terms. My position was eliminated. The works is still there, just on others shoulders. There is no real competition in Michigan. There is one Webasto dealer in Detroit, but he's a dealer in name only. He only became a dealer to get the discount for his fleet, now if you want a heater, he'll have one dropp-shipped to you and you either install it yourself or find someone (like me) to do it.
As far as sasonability, I'm sure it will slow down during the summer, or for me, stay slow since I'll start up real slow I'm sure. But fleets still buy all year 'round becaues it spreads the cost out. As far as market size, I think there's enough market, but I'm meeting with the RSM (regional sales manager) tomorrow to pick his brain. As far as pricing, I know the MSRP (installed) is $1300 and I think I would pay less than $500 each. Once I get into the truck and get his nasty clothes and spank-towels out of the way, I should be looking at 2 hours or so. One huge advantage I'll offer is the mobility. I can do it while you take a longer lunch as opposed the driver scheduling 1/2 a day or so at a shop to have it put in. The other advantage is my knowledge of the product. When I wasn't out traning I was manning the tech line. If diesel is $2.00 per gallon, it would take 65 days for the heater to pay for itself. As far as idleair, the special going on right now is daytime only, and it's still $1.99 per hour. The heaters will keep you warm (warm only) for the whole night for not much more than that. I plan to market myself first to fleets and repair shops. Fleet owners would get a discount and most repair shops have no experience with these heaters and don't want to be bothered. They would just call me. As far as marketing to the OTR driver, I don't have that figured out, except for just going to truck stops, passing out flyers and getting on the CB. Now, as far as paying extra because of lower quantities, I don't think that'll be an issue. See, I helped the RSM many, many times with his customers whle I worked there. I also know that most dealers don't order in volume either. See, I have an inside peek that others don't have. I'll use this to my advantage all the way!

Now for those folks with your own business, talk to me about insurance costs, both liability and health (for your family)....

Oh yeah, they do also have a no-idle A/C solution but it's not ready yet. It's been released (for 5 years) but it's NOT very reliable yet. I'll wait till the bugs are worked out before I think about that. But it's in my long(ish)-term plan.

DrBoost wrote: Once I get into the truck and get his nasty clothes and spank-towels out of the way

Wow! You really do know this business.

Seriously, some of my customers do VERY WELL owning their own business's.

Plan on living lean the first few years.

Plan on your own social security, health insurance, and retirement.

It is good you are in an industry you know well. God's Blessings upon your endeavor.

The most important thing is to know your product and your market. I started a new business last April, exporting CCTV equipment to the Caribbean islands. 40 years of experience in the business means good contacts for good products. Chose the islands because I knew that American companies thought they were all a bunch of fools, but I knew a lot of them were quite bright and wanted good product. End result is that I am doing quite well. Know your product, know your product, work your ass off, make a cubic butt load of cold calls, things will work. If you're lazy, no chance.

How do you plan on handling the purchase of the units? Will you purchase and "re-sell" to the drivers (and possibly be responsible for warranty issues) or will the driver purchase directly and you just do the install?

If you purchase and re-sell, how do you plan on handling no-shows and cancellations? Sounds like that could be big money out of pocket for you depending on the mfg's return policy.

Can you cross market the units to RV owners, mobile homes or back-woods survivalist cabins?

Does your skill-set extend to repairing these units or other mobile heating/cooling solutions?

Just some random thoughts, Good Luck.

I have been self employed for the past 7 years, I struggled to make the basic bills for 6 then after some regulatory changes I realigned out service and the past 12 months has been wonderful.

To survive in business

1 to 99. Minimal overheads, no debt. 100. Buying excess stock may save some $ but the stock sitting around costs you storage, can become last years model overnight. ties up $, do not buy in bulk unless it is a stupid cheap deal. 101. Pay your bills first, then the business, then you...seriously do not go out a spend up after one good sale the next one could be a long way away. 102. Prepare for your taxes, no more returns.

History shows that when the economy tanks and jobs dry up, this is the time to start a business, now you can't compete with Walmart so it has to be a service business....without inside knowledge and going by what you have said, this sounds like a solid deal.

That said, "You are a service business" be the best, most thorough and back your product with enthusiasm. Make sure the word of mouth is excellent, every time.

The best thing is, no more idiot supervisors/bosses, the only idiot you have to deal with now is yourself. Of course this can be the worst thing also.

You will make mistakes, learn from everything.

Yes, as they have said, you will work you tukas off. BUT, if you keep your promises, do whay you say you are going to do, when you say you are going to do it, you will be a freaking hero to your customers, and they will ask you to do all kinds of weird things. It is so miserably difficult to find anybody in business that just takes care of the customer, that if you really do it, it's hero time!! And, if you do screw up, and you tell them that you screwed up before they know it, you will be even more of a hero!! Hard to believe, but from personal experience, I know it.

become friedly with your local camber of commerace also. check out your local college and see if they have a small buiness offeice or offer small buiness classes, any one newtworing and adverinzing is a good thing. my local college has a great list of classes and a good office to talk to for advice.... i really should talk to them myself since i am trying to do pictures part time for some money to pay for my racing addiction....

aussiesmg wrote: I have been self employed for the past 7 years, I struggled to make the basic bills for 6 then after some regulatory changes I realigned out service and the past 12 months has been wonderful. To survive in business 1 to 99. Minimal overheads, no debt. 100. Buying excess stock may save some $ but the stock sitting around costs you storage, can become last years model overnight. ties up $, do not buy in bulk unless it is a stupid cheap deal. 101. Pay your bills first, then the business, then you...seriously do not go out a spend up after one good sale the next one could be a long way away. 102. Prepare for your taxes, no more returns. History shows that when the economy tanks and jobs dry up, this is the time to start a business, now you can't compete with Walmart so it has to be a service business....without inside knowledge and going by what you have said, this sounds like a solid deal. That said, "You are a service business" be the best, most thorough and back your product with enthusiasm. Make sure the word of mouth is excellent, every time. The best thing is, no more idiot supervisors/bosses, the only idiot you have to deal with now is yourself. Of course this can be the worst thing also. You will make mistakes, learn from everything.

+1

DO IT!!!

I started a business 3 years ago and haven't regretted it. The only other suggestion I would make is expand the idea. Do your heat, but add to that generators and A/C. Offer the complete package. If you have the skills to do one, you can figure out the other. That will give you year round business. Don't get stuck in the rut of what you know. If a trucker wants a CB installed, what are you going to tell him? I used to work for a man (owned a hobby shop) whose motto was "if three people come in wanting to buy dog crap, that's what we'll sell."

Be very realistic about your market. VERY realistic, even pesimistic. You've been let go from the company that makes these things, presumably because they can't sell enough to keep you. But you think you can sell enough to support yourself?

You say your market, as you see it is heavy trucks and school busses. OK.

School busses are purchased equipped as the owners want them equipped. I don't think you're going to get many, if any, to add additional heaters to a school bus. They're argument will be the kids generate enough heat to warm the bus, and they do.

Heavy trucks, those drivers like idling. We've got those stations where you can pull in and use the window mounted ac/heater/computer thingie. We've even got a few stations that are fully subsidized, so the trucker can use them for free. You see them empty, idling trucks all around it. #1 reason given is they don't want to shut the engines off and deal with trying to restart them, especially if it's cold outside.

What other markets could you find/establish for these devises though. Marine? Warehouse? Residential? Home shop? RV? Tractors? Snowmobiles?

Sounds interesting. Can you do it while still actively looking for full time employment? Start ups usually take a while to get rolling and you have to eat while you're building your business. Plus, it always helps to have a back-up plan in case this doesn't get going fast enough.