Buying A Repair Shop-How To Find Financial Backing

[Ronr3914]

Over the past couple of years I have become comfortable working my job day in and day out. Something snapped and now I realized again that I cannot work for somebody. I am an auto technician and have decided to buy an established auto repair shop. I understand that this isn't exactly fast lane but I have a 5 year plan for financial independence. Does anybody have any suggestions for finding financial backing? Any advice will be much appreciated. Thanks again.

P.S. I reside in Rhode Island.

 

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[kkompoti]

Congrats on your new effort! Fastlane is first of all a mendality! make a good business plan! avoid financial help from banks as long as you can!

 

[IGP]

Over the past couple of years I have become comfortable working my job day in and day out. Something snapped and now I realized again that I cannot work for somebody. I am an auto technician and have decided to buy an established auto repair shop. I understand that this isn't exactly fast lane but I have a 5 year plan for financial independence. Does anybody have any suggestions for finding financial backing? Any advice will be much appreciated. Thanks again.

P.S. I reside in Rhode Island.

If you want "outside" investors to take you seriously, you need a business plan. A pro forma that details expected growth at different levels of success would also go a long way.

Just think about it from an investors perspective. What do they want to know?

Where is my money going to be spent? - Business Plan
How soon can I expect my money back? - Pro forma
What's the ROI on my investment? - Pro forma

etc.etc.

Good luck!

 

[ZCP]

Flip it the other way, if I came to you to invest in my new business, what would you want to see? Multiply that by 10 and you will be ready to chase hard money. Multiply by 100 and do not actually need the money and you can go to the bank.

Watch an episode of shark's tank or dragon's den. It shows about 10% of the transaction. @IGP made some good suggestions!

 

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[Jon L]

What is your end goal?


I'm not experienced in this industry, but from what I've seen:

• there are very few multi-location garages
• the vast majority seem like the owner 'owns his job'

unless you want to 'own your job,' you need to think through how you are going to do things differently.

 

[OldFaithful]

I see only two options:

1) Get a business loan from a bank, using the business as collateral.

2) Choose to start small instead. Work out of your own garage for cash and once you've banked some $, expand to a proper location.

I say only 2 options, because I'd flee from the idea of partners or investors. I'd also never take a loan from friends or family, because it can only stress the most important relationships in one's life.

That's my 0.02 and it's probably worth what you paid for it.

 

[Goldman snacks]

I dont know much about financial backing but let us know how it goes, my dad is in the commercial repair industry, he was a mechanic at the age of 40 ish when his boss died, took a loan of 7k from my grandma on my mothers side of the family and he hired his co workers and contacted the customers the old company had and won some of them over, he rented out a shabby air hanger looking garage, then he grew his customer base sending his busty admin out to prospect, (theres alot of horny old dudes that own a fleet of vehicles so I feel she had a decent close ratio), nevertheless he grew his business the old fashioned way and expanded and built this huge garage, this one is more like the military base instead of the hanger, now he has slacked off because hes an old man and wont even let me prospect new people for him hes stuck in his ways, so dont tell yourself its not fastlane, if you are successfull, you can double the garage output by running it 24hrs and get a faster turnover, then you can increase the size, then you can open new locations.

how much are you asking for aswell? i see garage businesses on bizbuysell for 300k+, sure theres less risk of failure, but you can start your own for less, if you cant get the support you can always fight in the trenches, if my 40year old dad did it im sure anyone can that has that background, he cant even use a smartphone.

I hope the story helps, I dont know how much your looking for it could be 10k-1 mill depending on what kind of garage it is

 

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[Ronr3914]

I appreciate all of the responses and feedback. I am leaning towards a bank loan because it may be the easiest way for me to get my hands on capital. I plan on using this business model as a stepping stone into financial independence. The replies that I have gotten have been very helpful, thanks again.

 

[Get Right]

Buy a business that will owner finance.

 

[Andy Black]

Get more cash from more customers?

Increase the number of customers you have, and you'll need less cash from investors, and they'll also be more likely to lend to you.

 

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