This thread is mainly geared towards all small business owners in the auto performance industry but all are welcome to contribute any input they may have. Moderators, please sticky this!

I am in the process of opening my own performance shop in Southern California. I don't have much experience in running a performance shop, but my partner does. I would be mainly running the back end of the business, while he would run the day to day operations. We do have some initial investments to put towards the business, but will need additional financing.

This industry is saturated with shops all over the place, especially Southern California. Lenders view performance shops as high risk loans. My biggest concern is being able to get approved for a loan through a financial institution. I don't have a proven track record as this would be my first shop. My other concerns are related to my lack of experience specifically in the performance shop industry. I have a background in marketing and finance, so i would be able to utilize my knowledge in those fields for my business.

With that in mind, please share your thoughts and opinions with me. Both good and bad.

My questions to you are:

1.What % (rough estimate) of performance shops are struggling?
2.What areas are performance shops struggling in the most? (i.e. marketing, finance, management)
3.Are their shops currently utilizing some type of 3rd party service to assist them with the operations of their business? If so, what types of firms are helping them?
4.To the best of your knowledge, are there any 3rd party companies that specialize offering services in the performance shop industry? If so, what services do they offer? (i.e. marketing, management, finance, accounting?)
5.In your opinion, why do some shops struggle more than others?
6.For the performance shops that are successful, what are they doing that others aren't?
7.Have any of you business owners used some type of 3rd party service to aid in the success of your business?
8. What are the benefits and drawbacks of utilizing a 3rd party firm to help me get the business on its feet?
9. Are their other options to help me with the core functions of the business? (i.e. management, accounting, finance)
10. For those that own their own peformance related business, how long have you been in business? What weaknesses did you have when you first started? Do you still find room for improvement? if so, in what areas?

I want to make sure things are done right, while covering all areas of the operations so that i can maximize the success rate of the company. It's better to plan everything out from the beginning so i know what it will take to make this business a success.

All feedback is welcome and greatly appreciated!

 

I run a junkyard/salvage yard and just recently went into sellin aftermarket performance parts...Its all about who your target audience is and then advertising. Know how to sell