Starting a small scale business in automotive industry

Well said Del.

To be an Entrepreneur you need to have passion to drive your ideas to success.

One key point is to understand the industry you are in and provide a solution to a real need.

Also, you need to build a sound business plan. This is a tool to present your project and sell it to customers, partners, investors...

First hand, no one will believe in your project aside from you and your loved ones.

Then customers will need to be harvested...

I am in Uganda, east africa. there is no much of ride pimp-up here. so my focus would be on maintenance, service and body works.

the problem is that this requires too much start-uup capital, which i cant get my hands on right now.

thanks for the ideas.

Richard

Now that we know where you are, and your situation the suggestions can be "fine tuned" for you.

You could also do some "market research". Go to the local auto places (fuel stations, repair shops and so on) ask the owners what frustrates them and also ask the customers. If there is a potential market there then a theme will start to emerge. Like "I have to wait months to get replacement tyres" or "The engine keeps stopping because my filters are clogged up and I can't get replacements" or "These roads destroy my suspension" or " there's not enough space inside the vehicle" (Build roof racks, or trailers)

Tyres have to be replaced. Simple tools are available to remove and re-fit tyres. (and then balance them so that they will last longer)

Oil and service materials are always in demand. (Things like air filters, fuel filters and so on.) You will quickly recognise the common parts for your local vehicles.

Exhaust systems also need replacement. Years ago "out west" in New South Wales there was a guy who "specialised" in exhaust systems. He had a stock of straight 2" (50mm) pipe and a crate of two types of muffler (Large and huge). He couldn't stock every possible model of vehicle that was coming through town. He custom built replacement exhaust systems to fit the cars/tractors/trucks/busses and so on. Shaping/brazing/welding each one.

Combine your mechanical potential with the local demand. Good luck.

thanks a lot for the idea, let me go ahead with research right now.

Some major parts manufacturers are coming out with a new part, which makes the engine operate more efficient, well one had it's division bought out by a group of investors.

The best way to make a small fortune in the auto industry is to start with a large one. Avoid getting involved in making parts for new cars unless you want to become a bitter old man.

Capitalize on developing a skill no one else has or wants to do. There are a lot of gearheads out there with deep pockets who will pay your way, but you have to be good and in demand.

Up until a few years ago, a common business was to buy and resell surplus parts for USA manufacturing. That whole practice has died and many of those small businesses have gone under. It's due to the industry drastically lowering it's forecasts and no longer buying parts in surplus. The auto industry is is a tough place right now. Margins are so low that suppling to the industry is tough.

Design a custom wrench to adjust the nut behind the wheel.

There are also other places on this site for you to sell your products.

http://cr4.globalspec.com/forum/commercial-space

When a 1st time poster asks an overly broad question.........hyjinks may ensue.

Maybe if the guy would tell us what sort of designs he's been involved with, what his interests, skills are, it would be easier to take him seriously.

hey,, dont u think this is kinda too harsh a comment? remember it all starts weth that 1st step, and I am glad most people are more open minded and are helping me out.

Thanks for your rude opinion though.

He didn't like my lame joke & decided to lash out.

You might consider mobile service. Do oil, filter, belts, hoses... while people work. Fairly low overhead once your truck is set up.

Gee,

I thought I would write something like - "Come to the US and convert all the scrapped SUV's to paperweights." I guess that would be unprofessional so I won't say it.

Hi Richoug,

Just a few thoughts to help.

1. First, find the money:
That is; know where the customer is, and for a large profit.

2. Appreciate profit is in sales, not the manufacture:
That is; consider selling items made by others not by yourself.

3. Conserve cash all the time:
Run out of cash and you're dead! rent, lease, etc. but save cash.

4. Delegate. You cannot be accountant, sales, designer, etc.
Build a team of trusty associates - but keep tabs on progress.

5. No one works as hard as you:
Employing 1 other person will not double your output; 2 might.

6. Seek out opportunities:
Local firms, unused equipment, empty premises, bargain lots, etc.

7. Stick to your target:
Sell the best widgets, competitively; not be distracted into other items.

8. Grab a "sure thing":
Often opportunity favours the brave, - IF it is an opportunity.

9. Treat people fairly:
Customers will return, and good employees appreciate it.

10. Be sincere. (if you can fake sincerity you'll have it made.)

Hope this helps and I wish you....Good luck.

jt.

A free web page for your business - http://www.mfnb.at

Post 11 hit the nail on the head.

With modern auto "quality systems" an individual or even small firm cannot get into the industry of direct supply to the OEMs (Original Equipment Manufacturers) until after they have the systems in place, audited and proven.

Where I work is an OEM and the industry is one tough fight every program that comes forward.

The good news is though that supply of custom GOOD quality accessories can get you into accesory market.

Local guy started building front end bumpers for his Toyota. Polished stainless, with a winch fitted. Looked great. His mates "had to" have one also, then the local rally guys wanted them, then interstate rally guys wanted them, and so on.

The business grew until the local car industry invited him to quote bull-bars for their imported models.

He also makes roof racks and such for them also. (In 20 years that business has grown from his hobby into a 60 employee company.)

There's another local guy who's bread and butter work is smash repair, but his passion is body panel decoration (for drag cars, hot rods and street cars). He loves the ability to express himself in that way.

As Dell suggested, start where your passion lies and work from there.

A hint for the beginner though, don't get so stuck into the issue that it becomes a drudge and destroys what you love. Making one off artistic pieces of your own design is creative and fun, but when you have to "make and deliver" 100 identical replicas of them every week, the passion can soon get diluted.

Hello richoug;

A short list:

A comprehensive heads up display would be excellent.

A pop up video display for rear viewing screen allowing driver to maintain normal driving posture.

A beacon or RF device to alert the sight or hearing challenged of a quiet vehicles presence.

A system allowing law enforcement to electronically stop a vehicle to eliminate high speed pursuits.

I had two independent automobile shops. One in the early to mid 80' and one 95 to 2000. Sold both of them. First one for a nice profit, second one just enough to pay off the equipment.

The reason for my second sale was, the handwriting on the wall, saying the independent was going to be a tough tough row.

The specialized equipment need to diagnose a problem was getting out of hand and very expensive. I can only imagine what it might be now. All manufactures have scanners or computers that operate all systems including all the complicated engine emissions, variable cam timing, and on and on. at the time I had many years working in dealers and had that info to fall back on. I know there are many computer programs that will give you information on all models, but the special equipment will still be needed.

Please, research very carefully. Talk to current independent shop to see how they are handling the technology explosion. They may be depending on older models for work. Remember, a 2003 is now ending the warranty, and the bumper to bumper ended usually after 12 Mo's, I could not be paid enough money to try it now!!!!

Most people are all the same when it comes to the automobile in their life. Once out of warranty, they will search out the best price, and will shop like their looking for a pair of shoes.

Just be careful making your decision, as I said before, research. One source of technical info and tooling will be the local Snap-on or Mac dealer. Talk to them and see what they suggest for testing equipment. You may be in for shock and awe.

Good luck

Pat (ASE Master, 30 years)

PS about being to old at 31. Forget that, at 63, as always, I wish I knew then what I know now. I would probably be in Politics. I hate the direction we are on now.

That brings to mind another situation. Be sure to look into the new health care plans out there. If the universal is passed, I believe business, even small will have to foot part of your employee Insurance, and the Environmental issues with carbon taxes, both the candidate's talking about that, will be a huge issue for all shops, and dealers to deal with.....Never say never regarding this, Even though global warming is a hoax, It is the current wealth redistribution attempt, and seems inevitable this time.

Not to mention (relatively speaking) the pay as an automotive mechanic is not as good as other industries. I worked a few summers in a boat yard 10-12 years ago and the large gas and diesel mechanics made a significantly better living then their auto mechanic counterpart. Most marine mechanics moved from automotive.

Going off topic; I don't see the high fuel prices effecting yachting much either. Those boats are either owned by very wealthy or are owned and expensed as business overhead. Commercial fishing is another story. Fuel prices are killing them and they will need to cut expenses or go out of business. I can see fisherman unions taking increased control of wholesale prices, but that will raise prices to only reduce demand... still putting fisherman out of business.

It seems by my earlier post that I certainly misunderstood what exactly you were proposing to do. A small, med, or large independant service shop was not what you were thinking....Thank God

Being an engineer you must know other engineers. There are thousands of accessory shops, wheel shops, light shops, sound shops, on and on.

Much higher fuel prices and all those accessories will be in the driveway, blasting away and looking GOOOOOD......

I will guarantee that when gas hits 4.50 to 5.00 (which it is where I live, Diesel for my work truck yesterday was 5.13, 93 was 4.79, makes me sick to go on) the one thing EVERYBODY will want and buy is better fuel mileage. I do not really give a rats a.. what the general high tech over educated bunch thinks about my next statement.

Work out how to make an onboard hydrogen generator work as an add on to any car.

Ok, debunker's, you to....why don't you stop with the why it wont work and get on with how to make it work. all you engineer types can figure out how to make it work PERIOD

This is NOT an insurmountable problem!!!!!! Get pissed, damn the torpedoes, full speed ahead to the answer........

P.S. While your at it pass the FAIR TAX so we can all enjoy the fruits of our labors and get the national debt paid off.....