I consider myself fortunate enough to be in this position. Likely within the next 3 months the ball will get rolling and the business will, at the very latest, be in operation for the beginning of 2018.
I will be servicing local equipment used in both residential and commercial applications. Below are some things I need to get in line and was hoping for some feedback.
- I've talked to a few big brands and by attending a short training on the product and a small stock order of parts (about $2k total), I will be listed as a service channel on their official website, mind you there are many companies already listed. This will also open me to be used by them for warranty work which they will pay out on.
- I will need a service vehicle, I am thinking a Ford Transit Connect. Option 1 is buy a new vehicle with a $10k deposit and pay about $250-$300 per month, sale price estimates around $17k to $20k. Second option is buy a used vehicle for around $10k to $12k. Upside to buying a new one is I can take care of it from day 1, with downsides of the higher cost and the fact that I have to add the shelving for my tools. Upside to buying a new one is the lower cost and the fact that I can find cars with the shelving I want already installed, but the downside is the mileage and the unknown service component.
- Decals/ car wraps?
- When it comes to tools, I will get a decent mechanics tool set and some key electrical tools. Specialty tools I'll buy on an as need basis.
- I will need to get a million dollar liability insurance as minimum for the commercial customers. Last quote I got was around $220 a month for this.
- Starting budget of $200 a month for Adwords to push specifically the emergency repair side of the business. I admit this is new to me but one service call will cover the cost.
- It's contemplated that my first 3-4 months will be focused on reaching out to businesses in my market and offering my services with some revenue coming in from emergency repair calls.
- Once things get a little stable, revenue will be coming in from various sources.
- Emergency repairs
- Maintenance contracts
- Corrective maintenance
- Sales of product / parts
- Up selling of some additional higher cost / higher margin services
Is there anything I should take into account? Any advice on the points mentioned above? Do you have any questions so you can offer better Advice?
Thanks to all that take the time to read this.
Note: I had posted this late last night but decided to erase it and repost to try and get more visibility from the day crowd.