Im planning to start up business.

[steveh]

Well, im planning to start up my own little motorcycle business, basically servicing and repairs, and dyno testing. (ive basically got the dyno sat there waiting for me)

After working for a moto guzzi dealer, and it all going abit pear shaped, the boss has offered me the old workshop to rent for a while, probably a short lease, then if i like it ill find elsewere.
Im basically using it to test the water, because its all ive ever wanted to do.

I already have most of the gear, some from the boss on the cheap, and some from home, its just all a little bit of a scary prospect so im looking for some advice really, im going on 20, ive been told im a great mechanic, ive got a confident head on me and i do like a little challenge, ill be trying to get some backing from Furness enterprise, and maybe the princes trust, but ive also got my dad behind me to help out if i really do get stuck.

So has anyone started up on there own before, any first time tips, do's and donts?


anything will be very greatfull,

cheers, Steve.
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Current : 06 Zx10r, 07 Wr450f SM, 74 850 norton commando, 63 bsa b40, 1962 Triton 650, 67 Triumph Tr6r, 1955 Triton 750, 1978 TY250E.

[Itchy]

An important thing to remember is to register yourself self employed and start paying class 2 NIC, which is like erm £2.20 a week, you have 3 months from the commencement of your biz else face a £100 fine.

In my general experience from running a shop a long time ago and from looking at my own portfolio of clients its being curtous and friendly to clients that gets biz more than anything else.

Pete G is a fantastic mechanic and everybody recommends him but he whines complains and goes on about things like an old woman alot of people are put off by this.
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Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[mr jamez]

[NickD]

Slightly redundant I suppose, but as it's not my field and I've never tried to run a bike related business I have no real advice to offer. I would, however, suggest that (from a frequent customer point of view) the people I keep going back to are the people who are fair, honest and friendly, and don't try to make me feel inferior and grateful for whatever service they provide. There are many businesses I can take my bike to, none particularly cheaper than the rest (not counting proper dealers, who are always extortionate and incompetent in my experience), and at the end of the day it's social skills that keep me coming back.

Other than that I can only wish you the best of luck....... Go for it!
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I was only doing what it said on my licence officer....
Tear along the dotted line!

[MarJay]

[faddius]

As said above, age will be a factor. Working in a bike shop at 18 alot of people did look down on me to start with, but I eventually built up their trust till they would prefere to be served by me than the other older staff.

Its hard work, and even then you will still get some people look down on you.

Bear in mind, if you want funding you need a thorough business plan. Im setting one up my self for E-Commerce, im already on 30 pages and still got a bit left to do, and its alot of work involved.

Main thing they will want from the business plan is to be able to show you have thought through all your finances, start up, day to day running, personal income, what coming in, what going out to where etc .etc.

Thats easy, the bit you may find difficult is proving to potential investors is that theres a market in your area for your services, if you cant prove you have a market they will put down your business plan there. So it involves going out and doing your own research, and obviously they wont accept questionaires done by a handful of mates down the pub on a cold wet sunday afternoon.

Also, in particular, you need to be able to show that you can definately pay back any monies you borrow.





Alot of hard work just to get it going, but theres big rewards if you pull it off.

[phil2alp]

I'm self employed but not in any kind of service industry.

Getting yourself a good accountant is a good idea. He/ She can save you a lot of money when it comes to filing your end of year tax return and the tax liability you will incur based on your tax return.

Go and see him/her after you've started up your business if you're not very business savvy so that he/she can tell you what your position is concerning paperwork/bookwork/accounts/taxation/receipts/invoices etc which you need to start keeping as soon as you start the business. Don't leave it too long after you've started up and it looks like it will be a success. If possible, try to get one on recommendations from other self employed people who you know.

[steveh]

thank you for your advice, and it is all helpful, i can see were people are coming from about the age ect, im thinking i will carry on the company name (phill cottons motorcycles) but under new management (poss, Cottons Cycles) as that names been in the business for 30 years.
Phill (my boss) is passing all the customers onto me, ive dealt with the customers myself and are on first name terms with most of them, i dont mean to sound big headed but i am well known.

My father will be in the shop helping out, so he may well be "the face" for a while.

my main pitch is the dyno center, as there isnt anyone around here that does it, and being a well known "biker/mechanic" it could well be a good move.

again, its just scary taking the first few steps, thanks for your help, and its still more than welcome.


Steve.
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Current : 06 Zx10r, 07 Wr450f SM, 74 850 norton commando, 63 bsa b40, 1962 Triton 650, 67 Triumph Tr6r, 1955 Triton 750, 1978 TY250E.

[MattEMulsion]

After reading this thread two questions have struck me:

1, Why has the business gone 'a bit pear shaped' and if you are basically taking over the customers and the workshop, possibly even trading under the same name how can you be sure that it won't go pear shaped for you too?

2, You say that your main pitch will be the dyno, but are you sure that you are going to be able to pull in enough custom via this to keep you in business. A dyno is only any good if there is a decent operator to go with it who can tune a bike to its optimum performance.

I'm not doubting your skills at all, but at 19 years of age even you have got to admit that you aren't the most experienced mechanic around. Intensive knowledge of bikes (and indeed most things) is gained through years and years of personal experience. Don't forget that at the end of the day the buck stops with you and with very little to fall back on you might find yourself in over your head.

Just my worth.
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Yamaha YZF-R6

[veeeffarr]

I always make sure my bike's being serviced by an older person, no offence like but I do find older bikers much more pleasent to deal with professionally.

T

[steveh]

The business went bust due to some person not following through with a deal worth over 300,000.
My boss is nearly 62 and is now retiring from the bike business.

its still very early days, if i find out it would be the best move i wont go ahead with it right now, but it will happen at some point.



Steve.
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Current : 06 Zx10r, 07 Wr450f SM, 74 850 norton commando, 63 bsa b40, 1962 Triton 650, 67 Triumph Tr6r, 1955 Triton 750, 1978 TY250E.

[trevoriv]

Your motor trade insurance won't be cheap I can tell you that now

But i'll pop up and use your dyno
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Past: '96 Thundercat, '02 ZX636R (A1P), '58 KTM 690 SM LC4 Current: '06 ZX636R (C6F)
Mudskipper wrote: Someone just has to sig that...

[Kal]

Best and worst thing about being your own Boss is no one stood over you shouting at you if you slack off, so you have to have your own Boss in your head.

Maintain proper hours regardless of how you feel, including your lunchs. Sad to say it but keeping a timesheet can help with this.

If friends stop by don't slack off unless you really have nothing to do or it is your lunch break.

Pay yourself a realistic salary and don't dip into Business cash or take parts without paying the business for them

Be wary of things that are too good to be true or gymics, talk new stuff over with someone like your Dad.

Buy into suitable advertising - local is best. Our clients in the Birmigham area have had a lot of success with a booklet called look local, same clients aren't breaking even on their Yellow Pages advertising and are dropping that and Thompson.

Make sure the phone is always answered. A lot of people will not leave messages on answer phones. If you don't want to be answering the phone all the time get an answering service who will act as your office staff when people call in, retaining business and allowing you to filter out spam advertising calls.

Respect the paperwork. It takes a little time to document things at the time, but a shit load of time and stress if you have to reconstruct it later.


Lastly Good Luck.

If it works it will be excellent, if it dosn't work then it will still be a good experience for you. Enjoy.
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Kal...
I Like To Hoon It Hoon It I Like To Hoon It Hoon It I Like To Hoon It Hoon It Ya Like To (HOON IT!).
1984 GB250 Clubman,1983 CB250N Superdream, 1999 GPZ500S

[Stalk]

[cestrian]

Don't spend a penny more than you have to and live like a pauper for a while.
Use the free version of Cashbook Complete for your book-keeping, it's really easy to use and produces a summary thats easy to understand.

Good luck

[hmmmnz]

dont let the age thing be a barrier, the best mech i have ever met was 20 odd completly untrained but could fix anything,
you may have to proove yourself abit more than the oldies but if you get a good name it should be easy'ish sailing from there
good luck
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the humans are dead
I kick arse for the lord
Wiring Diagrams BIDNIP it bitches

[tintin]

As somebody who started his own business at 35 I have a huge respect for you starting up at your age, well done.

Having your own business is really scary! That said it's also one of the best feeling in the world!

Taking over an existing business is a great move, you will automatically inherit a bunch of existing customers rather than have to rush out and find new ones. You need to have a 'granny speech' ready explaining why the business has changed, something like, "I've been working for Phil for the last 3 years and he said he wanted to retire and offered me this great opportunity to run the business myself".

Find out everything you can about the running costs; rates, rent, utility bills, and make a budget, that way nothing will surprise you. You seem to know why things went wrong but talk to Phil about his turnover and profit margins to get a feel for the business.

To start with don't spend any money you don't have to, it's easier to fall into a trap of changing everything (50% of start up businesses fail in the first 3 years). Keep a close track on your costs and don't take on a partner/investor unless you really have to. In 5 years time when the business is a success and you want to buy their shares off them you will realise how much £5,000 will really cost you! Try and borrow money from family and friends to get you started. Talk to all the banks, have a good business plan to take with you and know what you are looking for. You might just want a simple overdraft facility, or a business loan. Try and avoid giving your parents house as security and avoid options like invoice factoring (waste of money).

Arrange good credit terms with your suppliers, ask Phil to help with this. They will initially be nervous about extending credit so try and reassure them by not over ordering and pay your invoices promptly. Never give credit to your customers, make them pay for the work before they take the bike away.

Don't get carried away with advertising, I have found that 75% of business comes from personal recommendation. Stick to fairly basic ads in Yellow pages, Thompson etc. Maybe a simple ad in the local paper, but wait until Spring when everyone gets their bikes out. A simple descriptive website (tip, add lots of 'free' advice on bike tuning, parts etc, it will help with searches). Think carefully before you take on additional staff, it's a big commitment.

Apply for any loans or grants you can find, many councils offer business start up loans, but you need a good business plan before you apply.

If you want any further advice then feel free to send me a message. GOOD LUCK!
Here are some links that might help you:

Business link offer free help and advice, you can sometimes get an advisor to help you for free.
https://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805

Shell offer free help and support for young people starting up:
https://www.shell-livewire.org/furtherinformation/?category=55&PHPSESSID=1964ba230412f22334957da1fa7e2863

https://www.startups.co.uk/
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The older I get the better I was