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Am looking to invest in an Independent Auto Repair shop. I'll be the passive investor and the other person will be actively running the business. We will be taking over an existing shop that's not doing well so in a sense starting from scratch.
What would be the average revenue per month for say, 4 bay repair shop with a small office and on a main road with decent traffic? I already know monthly rent will be between 3000-4000 dollars.
The return will be a percentage of the monthly revenue and to make the numbers work I have to make some estimates(assumption) and appreciate your help.
Am looking to invest in an Independent Auto Repair shop. I'll be the passive investor and the other person will be actively running the business. We will be taking over an existing shop that's not doing well so in a sense starting from scratch.
What would be the average revenue per month for say, 4 bay repair shop with a small office and on a main road with decent traffic? I already know monthly rent will be between 3000-4000 dollars.
The return will be a percentage of the monthly revenue and to make the numbers work I have to make some estimates(assumption) and appreciate your help.
We don't know what city you're in or how much competition there is, among other things.
There are just too darn many variables involved to throw this out on an internet forum and expect to get any useful responses. Better to find the owner of a shop similar to what you want to run in a similarly-sized city in your part of the country (not close enough to be a competitor, of course) who is willing to act as a mentor and ask him or her these questions.
Only thing I can say is you better find out why the former business is not making money. You can have the best mechanics in the world working there and if no one shows up wanting work you and they both dont make squat.
Only thing I can say is you better find out why the former business is not making money. You can have the best mechanics in the world working there and if no one shows up wanting work you and they both dont make squat.
Buying a failing shop is a huge risk. There is a reason that shop failed, and if it has a bad reputation, its going to take a lot more then a new owner to change that perception
Honestly - and seriously - if you don't know any more than this about the business of a repair shop, I'd strongly suggest you decline. I don't want to be insulting, but there are just too many obstacles on this one.
Honestly - and seriously - if you don't know any more than this about the business of a repair shop, I'd strongly suggest you decline. I don't want to be insulting, but there are just too many obstacles on this one.
Again, no one is born with the knowledge of running a business. You seem to make a generic comment and what is it based on? your experience running businesses? Am not trying to be insulting but trying to understand how you arrived at the conclusion.
Quote:
Originally Posted by duster1979
We don't know what city you're in or how much competition there is, among other things.
This is in Orlando, FL. The most I have from an information stand-point is the for sale listings online.
Quote:
Originally Posted by crestliner
Only thing I can say is you better find out why the former business is not making money.
From what I can gather, the former owner of the business wasn't or hasn't been spending money on marketing or actively pushing to gain visibility in the community and plus, the current lease runs out in the next few months so he maybe looking to get out of it even with small losses. The new owner(or the one seeking the business) has been in the auto repair business for 25+ years and thinks he can turn the ship around.
Again, no one is born with the knowledge of running a business. You seem to make a generic comment and what is it based on? your experience running businesses? Am not trying to be insulting but trying to understand how you arrived at the conclusion.
Many years of owning/operating just such a shop.
Let me ask you several questions, that might help us clarify if this could be a good jump for you?
1. Do you have experience running a business? If "yes" you're at first base, if "no" this isn't a good sign.
2. Are you a mechanic? If "no," you're going to be speaking a foreign language to almost everybody.
3. Do you have deep, deep pockets? It's going to take a LOT of money to get this business going - and it will take far longer to start turning a profit than you'd think.
If this were a successfully running business, and you were simply infusing capital as an investment, that'd be one thing. But starting from "worse than scratch" is going to be really tough. Not impossible, but not easy. Do you think you're up for the adventure?
Let me ask you several questions, that might help us clarify if this could be a good jump for you?
1. Do you have experience running a business? If "yes" you're at first base, if "no" this isn't a good sign.
2. Are you a mechanic? If "no," you're going to be speaking a foreign language to almost everybody.
3. Do you have deep, deep pockets? It's going to take a LOT of money to get this business going - and it will take far longer to start turning a profit than you'd think.
If this were a successfully running business, and you were simply infusing capital as an investment, that'd be one thing. But starting from "worse than scratch" is going to be really tough. Not impossible, but not easy. Do you think you're up for the adventure?
Thanks for asking me these questions.
1. Yes but not in the automotive field.
2. No. however, am not looking to work in the shop, will be a passive investor.
3. I know the MAX amount that I can invest and will be a one-time investment and not on-going and can wait upto 2 years for payback.
What I want to know is - a ballpark average monthly revenue for a 4 bay repair shop.
1. Yes but not in the automotive field.
2. No. however, am not looking to work in the shop, will be a passive investor.
3. I know the MAX amount that I can invest and will be a one-time investment and not on-going and can wait upto 2 years for payback.
What I want to know is - a ballpark average monthly revenue for a 4 bay repair shop.
I simply cannot give you that kind of a number. There are too many variables - both with income, and expenditures. Sorry.
I guess one main question you need to answer is, "Can you afford to lose the entirety of your investment?" This is a high-risk investment. The majority of business ventures fail within 2 years. But if you can live without the money, and can wait 5 years for return, you might be alright.
What marketing strategy do you plan to use. ? If you dont have an answer you are totally unprepared to take the gamble. You need to do your home work first .
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