jump to navigation

Opening the toolbox. 5/27/2005

Still no news, this morning, of the new project. I guess I really have to now start planning for the worst. I’m considering several options, some of which I discussed with various parties over the weekend. None of which actually involve living under a bridge.

I’ve done some research, and apparently one of my plans, while being good in theory, unfortunately means that I will be involved in a high competition, low margin industry. The servicing and repair of motor vehicles. I’ve been into engines for a long time, since my very first job, when I was a teenager. You can check “The Atomic Cockroach” for details. At the back of my mind, I had always wanted to run my own shop, using the setup James had, as a model.

But building a reputation for quality is not easy, and only comes after many years of effort. I was also informed that labour, specifically skilled labour, is either not easy to get, or not cheap. I was thinking of doing the wrenching myself, it being something I enjoy doing, but that would mean I could really only entertain one customer at a time, something like what W. is doing in his bike shop.

It means that, for certain types of customers who insist the gaffer does the work, you can charge premium prices, but the income level would be low. An old and good friend informed me that when he was running his workshop for 6 years, his monthly income never got above the $5,000 level. He told me that no one ever got rich from owning a workshop, unless you set up a chain of them. Then you have the advantage of bulk purchase discounts, and preferential treatment from suppliers.

The capital required isn’t too intensive, provided you don’t mind renting the premises. Basic tools, a hoist, a lift, various other bits and bobs, and you’re in business. I know that I can count on the support of many close friends, most of them bikers. Several have actually asked me to apply all the biking history and technical knowledge contained in my head and open a bike shop, but after some research, the big bike population in this city is not enough to support an operation like the one I envision.

If I wanted to confine myself to basic oil changing and servicing, it would be no problem, but the margins in that are very low indeed. The big money lies in modifications, and performance upgrades, something I happen to know a little about. But doing that means having lots of starting capital, because machines these days are very sophisticated, and if you don’t know how to use a dynanometer, and read the software on the laptop, you’re screwed. The old days of fixing bikes with a B.F.H. and a screwdriver are gone.

But I certainly will have to commit myself to something.

Comments»

no comments yet - be the first?