How to open a shop?

[trdjce10]

I'm trying to my cousin out, who is thinking about opening a automotive shop here in Calgary.

Anyone here have information I can pass on to him? Like location (zones), budget, etc...pretty much where to start.

[MIWYFSHOTTER]

You need a lot of money for startup costs. It is what rapes you in the beinging. Also 80% of business fail within 2 years so make sure you know what you are doing. Also don't take out any loans because the last thing you want is to owe money.

A decent place will run you anywhere from 3-4k a month and most of the time you have to sign a lease and pay upfront a few months.

[trdjce10]

Thanks for the tips. He doesn't plan to get a loan, so he will have to use his savings.

Beside the actual work, I guess he doesn't know the management part of the business. I should tell him to do a business plan or something.

Any other tips will be great.

[max_boost]

Enroll in small business courses/seminars/certificate programs etc. SAIT and Mt.Royal both offer them.

[SLR]

I would be careful... maybe throw him a bit of caution. All the people I know that own their own shops made their contacts while working somewhere else. They also know the business inside and out down to the penny.

In a business like that, connections are probably 95% of his success. From the sounds of it (the unfamiliarity of the Calgary market) maybe he should get some work with a place and build a rep for a few years.

It's probably been your cousins dream for quite some time and I would hate to see him drop the ball.

Good practice would be to be able to handle a year of costs. Have the capital available with a minimal amount of debt. 12 months at 3k/Month, good advertising, tools if not already owned... hoists, computers, phones, etc. There is a lot of up front... good luck sir.

My .02

[JAYMEZ]

I honestly dont think he should be opening a shop if you have to ask questions. Like what was said up above , take a business course at MRC/Sait/U of C...


And there is absolutely nothing wrong with taking out a loan , alot of business' do.