Monthly Archives: January 2017

Construction of a new body shop

The purpose of this article and the subsequent follow up will be writing it is to share with our customers what they hope to be valuable information not only to start but to perform a successful repair facility collision.

When someone decides that they will start a business in general it comes from the idea that “Hey … I can not do that … but I can do better than the other …. And I Can make a little make money “. As such, entrepreneurship is in us. We implement a business plan, we reflect on the cost / benefit options versus the loss and decided to roll the dice, so to speak, because we know we can build a better trap. It is this spirit that drives us all into business.

When starting a collision repair facility, there are essentially two schools of thought. The first is the “corporate” path in which it seeks to build on a large scale, borrowing heavily from banks or investors to finance the design, construction, staffing and management of a larger facility. The second and most common is the “mom and pop” approach. Now the arguments can be made to what is best for the return on investment of the investment, but they tend to believe that the smaller store is a better long-term investment for the property. I recently spoke with a longtime customer of me about your thoughts in a full-length store from the beginning. He had managed to grow and maintained a very large one during the installation of the last 20 years. Its annual gross figures are well over 2 million. When I asked her about the best place to start a body shop, I was surprised to learn that their views are very similar to me considering who chose the “corporate” approach and did very well to him.

When my friend Robert went to the bank 8 years ago, I borrowed about a million dollars to build a new store. He sought to increase the size of his operation for more than four times his current state. Expanding its operation from a 4200 square foot facility to a more than 22,000 square feet building was a huge undertaking. He rolled the dice, borrowed heavily and has since made a very good life for himself and his employees. However, when asked if he would initially recommend “business”, he said no and that the “mom and pop” approach was a much better decision for a new store owner. When we discussed the issue through a few phone calls, these are some of the key points we agreed upon.