Whats your opinion?

[Randy Harris]

If you are willing to pay the premiums, there absolutely is insurance coverage literally for everything, including this very cool idea. I mean, I live 400 yards from the center of the Hayward Fault, the most dangerous earthquake fault in California (which is predicted to produce the Big One any day now) and yes I have excellent earthquake insurance. There are high liability exposures and fortunately there are high risk carriers that love to cover them. The legal issues are straight forward, mostly related to corporate structure and personal owner's liabity. They can easily be handled by a competent business attorney.

If you have the money and the desire I say go for it. I would gladly pay a hefty monthly fee to store my cars in such a facility. #1 it would free up my garage and #2 it would provide endless hours of social interaction with other car-guys/gals. I am especially interested in the idea of a shared space for maintenance lifts, specialty tools and learning opportunities. Do it!
Randy
'66 BJ8
'68 E-type OTS

 

[Dave Richards]

I think there is a big difference between a club type set-up and having it open to the public. I think one open to the public might be more ripe for the problems being discussed.

Those with a vested interest, say, having a classic car stored there, would be much more protective of the premises.

Consider identifying those you want to target, I suspect, once word got around, it would be successful. Of course, you'll need a manager, so you can stay "retired".

 

[BOBBYR]

Hi Guys,
Thank you for all your input.I realize,this is not going to be easy.Being in the repair business for all these years,I think,will get me through.In my career,I have taught many young guys and a few women, the how do's and the not how to do's and that has been the reward of this trade for me.I still really get excited when a fresh motor comes to life.It's great to see the look on the face of the student,when it first fires up.Anyway,I'm looking into this and I appreciate all your veiws.I hope this post will continue.I feel that this is really helping me with my decision. Thank you all,
Bobby R

 

[Cutlass]

Bobby, I am an attorney, and have been watching this thread with interest. I can't give you legal advice in this format, for lots of reasons, but do have a couple of thoughts.

First, I agree with Andy that you should not let fear of liability dash your dreams. Yes, potential for liability exists in this venture, as it does in almost every business. Risks need to be anticipated, minimized and insured.

Next, I haven't seen mention of the need for a business plan. It's a good idea to start putting your ideas onto paper, and apply dollar values to all anticipated revunes and expenses. Project these items over a five year period, and have your plan critiqued by folks experienced in law, finance, taxes and insurance. If you haven't put together a formal business plan before, find someone who has. The plan should be constructed as if you were applying for a business loan, but be realistic in your projections. Remember Murphy's law.

Consult with the local governmental jurisdiction regarding zoning and environmental issues. Zoning, if applicable, will limit your available locations. Environmental laws, such as ventilation required for certain activities, such as welding and painting, as well as waste disposal, will affect the costs of doing business.

Consider a market survey. Intuition regarding the potential for your venture is fine, but understand that a large part of what you are considering is for now driven by passion and emotion. Find someone who can help you craft and execute a market survey, even in a rudimentary way, that will help you forecast your potential revenue, and help refine your business plan to meet what the true market really wants.

All of the above is just prudent planning. Step aside from the passion for a while, and approach the idea objectively. The Small Business Administration may be of help, as might your local Chamber of Commerce. There is a great deal of free advice out there for persons entering a small business venture. Find it and take advantage. You will be better off.

Back to liability for a minute. I've practiced plaintiff's trial law for over 28 years, and have seen lots of ways folks and their property can be hurt. I could envision hundreds more. Sure there is risk. But don't let overblown notions of shark infested liability waters keep you from taking a swim. Be prudent, do your homework, manage your business with the safety of others a priority, and protect yourself with proper corporate structure and adequate insurance. Then enjoy your enterprise.

 

[Dave Richards]

I reiterate my advice, you need a lawyer, and accountant and a bookkeeper.

Each will have dealt with (hopefully) dozens of small businesses, their advice is invaluable, as you see with what Cutlass has offered.

 

[TomFromStLouis]

...Next, I haven't seen mention of the need for a business plan. It's a good idea to start putting your ideas onto paper, and apply dollar values to all anticipated revunes and expenses. Project these items over a five year period, and have your plan critiqued by folks experienced in law, finance, taxes and insurance. If you haven't put together a formal business plan before, find someone who has. The plan should be constructed as if you were applying for a business loan, but be realistic in your projections. Remember Murphy's law....

I started a unique business idea from scratch and this was the best advise I got. Allow me to expand Cutlass' thought: the part about projecting revenues and expenses is key. And do not allow yourself to make up any numbers; you MUST research them. Rent expense? Call around and find actual available locations. All that legal and insurance stuff is just another expense. Find out how much from the person you would use. But for your idea, I think it will be critical to talk to your potential customers and gauge interest. Go to local club meetings and ask. You are asking people to pay for something in a way that they are not used to. If you will not be competing with the similar idea linked above, call or visit the owner.

As a result of my efforts in my situation, my business evolved much more rationally and I avoided some costly mistakes.

One other thought: don't forget about working capital. However much you expect to invest up front, expect to burn through a similar amount in the startup phase. Inventory, receivables and dozens of smaller items all need to be financed by you. Good luck!

 

[jjbank]

Bobby,

What I have seen here in SW Ohio are garages that cater to LBC's where the owner arranges Tech sessions with clubs and has the people over on Saturdays to cover a particular aspect of restoration or repair. You could do something like this and do the work yourself and possibly have the car owner assist and help without the car owner engaging in any activity that could endanger himself. You could also include storage in say garage bays along side the main area that would include an upstairs for meetings and socializing. You could have a kitchen as a side room upstairs. I would also recommend that the only work that can be done can only happen in the main area so that you or someone you trust is present. I would suggest making these bay storages of such a size that work could not be done on the cars inside the bay storage. Part of the storage contract would be a statement that you are not liable for any injuries that may arise form renters working on cars.
Bob, I would say that your idea of allowing people to work on their cars on your property unless you are sure of their competence is not a good one. I think having you do the work with their assistance perhaps is a better option. Every area needs a reliable LBC mechanic that can be trusted. You will be retired and you do not want any liability issues from some dumb## sawing off a finger or God Forbid electrocuting himself. I think your idea is a good one but perhaps stressing the social aspects of the facility is a better avenue and having a select competent few do the work is a better approach.

John B

 

[anthony7777]

bobby, i love your idea, i have a friend that tried this here in Stamford ct. once he got through all the insurance and legal issues things went well for about 8 months when he realized hed become a full time janitor, he found that the members with the nicest most expensive cars would not clean up after themselves leaving old parts, packaging, oil spills and the like just everywhere, so he imposed a fine for such offenses these slobs figured what the heck its worth $25.00 bucks to have someone clean up after me, if i was to attempt what your trying to do id also figure in the expense of a full time clean up guy, other considerations might also include an approved fire sprinkler system requiring d.c. and a.c. back up wiring, hand held extinguishers in specified areas, approved ventilation, fire rated insulation between certain areas i.e the shop proper and storage areas, combustion resistant storage for chemicals, degreasers, etc., 220 volt wiring, they may even insist on a "cage" to surround the area that is used to work on tires in case of explosion, slip resistant floor material, strategic location and size of windows and doorways, specified chemical disposal containers, the limit on noise levels you can emit, etc. these are but a few considerations there's probably more or less depending on the area you live, none of these issues are insurmountable its just a matter of expense and your willingness to overcome the requirements, im wishing you the best of luck with your idea.

 

[zblu]

been there, done that re the clean up stuff anthony7777, you dont charge them $25/hr, you charge trade rates!, they either wise up, or make you a happy nursemaid!

 

[BOBBYR]

Hi Guys,
Thank you all for your insight.I have read every comment and I really appreciate all of them.I have made a list of each point you bring up and it is really helping with the game plan.Although,I do not agree with every suggestion,there is a peice of each that must be considered.Again,Thank you all.
Bobby R