I hate my job...

[Morris]

... I feel like I have peaked and am on the downward spiral in my current career. What I really want to do is to design and build parts for LBCs and other euro and sport cars. But I am having a hard time keeping things moving in that direction.

I have a front suspension kit that is very close to being ready for market, a rear suspension kit that only needs a little more work and research to roll out, and I have a solid proof of concept for a fuel injection kit that could be eventually adapted to most LBCs. And I also have a few ideas for a 5 speed kit. I am also fairly web savvy. To supplement the income of my products, I figure I could set up a website/webstore and become a Moss discounter, kinda like Tony.

But I am stuck. Do you guys have any wisdom to offer me?

 

[Trevor Jessie]

If you are looking to launch a new business you need to be prepared to pay yourself only a the bare minimum to survive and invest the rest into the business.

Obviously you need a solid business plan and be sure you a serving a need that has a sustainable market.

I'm not 100% sure you are headed in the correct direction.

You may want to look at exploiting people that "mod" modern cars. I see many of those guys parting with a bunch of money for trivial parts that are cheap and do little to nothing to enhance performance. A few years ago you could make a killing on throttle body spacers. Now the market is saturated and prices are low enough that it is not worth the effort to produce/market them. But for a short time some people were making a killing.

I'm not suggesting that you scam people. I'm just saying ... make and sell what people are wanting to buy (even if it is crap).

 

[Trevor Jessie]

OH, And do set up a limited liability corporation to protect yourself and family.

 

[Morris]

Thanks Trevor.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:]I'm not 100% sure you are headed in the correct direction. [/QUOTE]

Can you elaborate on this more?

 

[Trevor Jessie]

I'm just saying that offering "kits" for old British cars is a pretty small market and will not likely generate enough profit to replace a normal full time job. If you want to make money, then you need to look for a product with a good profit margin and potential sales high enough for production runs from the local engineering/fab shop.

Once you demonstrate that you can successfully market items (yours or others) and generate business/sales then you can start approaching other manufacturers/distributors about reselling their products.

 

[Trevor Jessie]

And... stay away from manufacturing products that will have high product liability issues.

 

[JodyFKerr]

I've been involved in a number of garage ventures over the years (everything from software to cars) and been self-employed in a number of other areas. Much like you, I'm facing a similar situation right now, and while I don't necessarily hate my job, I am certainly not elated by it. I also spend my spare time on my own small venture (for me, it's mostly education, web content & the like).

My first bit of advice is keep your day job. Yes, it may not be the greatest but it means steady income. It also provides bits of capital to get the company running. As someone else mentioned, form an LLC and then get a business license. The latter gives you the ability to get accounts at distributors, which helps a lot when buying bits. Also get a business checking account. I don't recommend a business credit card because managing a "cash" business is much simpler.

At this point tax law becomes your next friend (believe it or not!). For the first five years your fledgling company gets to take a loss every year. This is a good thing. Use whatever spare cash you have as investment capital in the company. Take as big a loss every year as you can afford (it'll drop your taxes = bigger refund). And properly maintain your accounting. It's lame and boring but critical!

From year 5 onward you need to be earning enough income from the garage business to generate a net revenue, whether it's $.01 or 1 million. If everything works you'll eventually bring in enough to offset the loss of your primary income and benefits. Then you can quit your job!

Jody

 

[mightymidget]

I would agree with Trevor, The Midget market is limited. they have only so many left to bring back from destiny. They don't have any big value. Which is great! So many are being left to rust away,

Some people are restoring these cars to their formal glory then parking them in a garage. They want them orignal. then there are a few racers.

All that is left are people who use them for hobby cars (like me)

Soon the supply of theses cars will dry up from the few restores and race people using them. the ones left will be nice drivers or parts cars. The drivers will be left alone a few people will want to mod but most won't

look on this board and notice most peole leave the suspension alone. They don't want to spend 2-3 thousand on suspension mods on a car thats worth 3 thousand

 

[Trevor Jessie]

Good advice Jody. Most all of us would like to be our own boss, but the reality of the situation is often eye-opening.

 

[vagt6]

I owned a small business for 12 years, it's not easy. You must be prepared, you need capitalization to weather the storms, and you must do your market research.

IMHO, the idea of selling such components to a very limited market that contains a fair amount of good competition is not necessarily the best business model.

My advice, FWIW:

1) Definitely keep your day job while developing products and testing sales markets;

2) Incorporate, or form a business entity that will protect your family's assets before you sell anything;

3) Purchase liability insurance. Manufacturing and selling automotive components is fraught with liability: protect yourself and those who purchase your products;

I'm sure you've considered all of this. Don't proceed without doing all of it. It's not worth losing everything you own if you don't.

Good luck, let us know . . .

 

[Morris]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:]I also spend my spare time on my own small venture (for me, it's mostly education, web content & the like).[/QUOTE]

Are you talking about theymightberacing.com? If so, how much income does it generate?

 

[JodyFKerr]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:]I also spend my spare time on my own small venture (for me, it's mostly education, web content & the like).

Are you talking about theymightberacing.com? If so, how much income does it generate? [/QUOTE]

Well, presently I'm 1/2 way through year 3. So, I'm still in my "net loss years." I'm also not as active with it as I'd like. I was silly and got married and started having kids.

That being said, were I to do nothing with it, but maintain the site as is, it would provide what I would call an "allowance." So, definitely not enough to live on. But the site also presently has a fairly limited audience as the predominance of articles relate to my Jensen Healey restoration. I'm also making use of YouTube, which generates a suprising amount of revenue but is invitiation only. I believe that my videos have to reach a threshold of something like 15K views to be eligible for their ad program.

If I wanted to boost traffic to the site I'd simply have to pick a really common car to restore (say a Chevy Belair or Mustang). The nice bit about it though is each time I fix or restore anything (which I would do regardless) it's a little more content for the site. And when it comes to websites, content is king.

You'll know when I've made the big bucks because I'll be writing about restoring Aston Martins or other such super expensive cars.

If nothing else it simply reinforces to me what I learn because I turn about and write about it, gives me a little money to buy parts, and is fun to do.

Jody

 

[Gundy]

I've been self employed for a few decades now.
It is quite alarming to not know where tomorrow's
bill money is coming from.
That said....I'd hate to go to work for another now.
I think many don't try self employment out of fear.
It takes time to build up clients. Customer service
is what keeps 'em coming through the door.
I LOVE self employment. Keeping overhead down is a big help.
Like someone pined, an LLC in the area of work you intend
is a WISE route.
Good luck. The rewards are well worth the hassles.
Small business made America.
I'm pulling for ya Pal!

 

[Guest]

Bro, are you crazy....quit your job ?!?!?!?!

You know how hard it is to find a job right now ?!?!?!?

Dude, you are blessed ~BELIEVE~ me !!!!

Self employed and haven't been able to get a job for three years.

The good news is, looks like I'll have the full shop back full time and folks are lining up.

 

[Guest]

Latest "job" I've had is helping Kelly set up her new pottery studio that's supposed to kick off Sept 1. teaching studio)

No matter how much I sleep with the boss I aint got paid a dime yet...

 

[Morris]

I have seen pictures of Kelly. You were well paid in my opinion. :wink:

 

[smaceng]

Having been self-employed for 15 years, I found an interesting feeling about the amount of work. In my job, the work amount varied tramaticly. Sometimes there was so much work, I couldn't think straight, and started to figure out how to hire another me. Other times it was so slow, the only people interaction I got was talking to the mailman.
So in both cases one worries, too much work, too little. Initially I told myself that I shouldn't worry, as I do a good job and people like working with me. And also not to worry when it is slow, but that is just a sign to take a mini-vacation or do some marketing. Well it didn't work; I still worried. I finally came to terms with it when I realized that it was only natural to worry when one is self-employed about the amount of work and would be un-natural not to. I thought I would never trade being self-employed for working for the man, but I did 3 1/2 years ago and it is OK.
Scott in CA

 

[JPSmit]

given the age of your kids etc etc it is probably not realistic nor prudent to quit your job. However, there is nothing preventing you starting a business (Spridget parts etc) on the side. It may not pay the bills but it may give you a focus that on the one hand makes work bearable and on the other hand builds for the future. Who knows maybe one day you can go on your own.

I love my work and yes, will always work for someone else, :angel: but, there are still days when driving truck looks pretty enticing. In other words, somedays you love, other days it pays the bills. The trick is not to walk away from it too quickly. That is likely a permanent solution to a temporary problem. Just vent on these boards, go for a long drive, hug your wife and play with the kids and that will help everything get in the right order again.

 

[Gundy]

JP...Glad ya reminded me of who my Boss is.
I try not to forget to whom I owe my good fortune.
I once told a Preacher when discussing my wonderful marriage that I just got dealt a good hand. He said "Ya know David you aren't giving God enough credit there."
I replied " Well...Guess who was the dealer."
:angel:

 

[mightymidget]

JP...Glad ya reminded me of who my Boss is.
I try not to forget to whom I owe my good fortune.
I once told a Preacher when discussing my wonderful marriage that I just got dealt a good hand. He said "Ya know David you aren't giving God enough credit there."
I replied " Well...Guess who was the dealer."
:angel:

I like that, Might use that one myself