On occasion, there are posts on here asking about starting a small engine repair business. I’ve learned a lot from this forum, and the PERR forum that preceded it, and I want to write about my experience with my own business. I hope I can help a few folks out.
After first speaking with my accountant, I opened a business checking account and registered with the state. I had to research any possible permits, licenses, etc. that were required by my state and local municipalities where I planned to do business. It’s been 7 years, so I may be forgetting something.
I spoke with my insurance broker and he was very helpful as to how to insure myself. I have business insurance on my truck, including contents, and liability insurance should something go wrong.
Basically, make sure you cover your bases. This write up is no way intended to be a guaranteed start up process.
I started with very little capital (CASH). I didn’t need to draw a check from the business. All revenues where deposited in the checking account. When I ran low, I borrowed from the “family” account. I paid everything back.
I advertised in the local papers and placed an ad in the Yellow Pages. My intent was to create a customer base, and adjust my advertising as I gained experience as to what worked. I ordered business cards.
My business is mobile. I went that route because I didn’t want to get involved with renting a shop, and the area where I live is not zoned commercially. I am a believer in keeping overhead low. If you can run a shop legally on the property where you already live, go for it!
Being mobile and having a “brick and mortar” shop (BMS) are two different things. I always hear from customers how great it is that they don’t have to haul their stuff to a shop. (I mention this in my ads, too.) The main drawback is that If a repair isn’t practical to complete at a customers location, I have to take it back to my garage to complete it, and then return it. These occasions will get fewer and farther between as you gain experience.
There are always times when I don’t have a part that needs to be ordered. When I get it, I schedule the customer with other work in that area to avoid travel time wasted. One plus is, I don’t have to sit in a shop when the business is slow.
In my opinion, a BMS would be good when thorough testing is required. “It does it after it runs for a 1/2 hour”, etc. Also, customers are less likely to be standing there watching you.
Income is always a big question. How much you make is very dependent on how well you treat people. You may be a world class small engine mechanic. If you do not treat people as you would want to be treated, you’re going to have a tough time of it. The old adage, “The customer is always right”, is very true. I always make sure a job is done to the best of my ability. I’ve spent days on a unit, learning what’s what, and most people will appreciate work like that, and as a result, you become highly recommended.
I have always read that you won’t get rich with a small shop. I think it depends on your intent. I work very hard during the “season”. I really don’t have a choice. People have caught on to me and- “be careful what you wish for, you might get it”! It’s my choice that I don’t push too hard the rest of the year. My income has taken a few years. I can tell I’m doing better because my accountant tells me to put more in my IRA’s! It would be very easy to call customers and see if they need anything, advertise more specifically, and what ever else comes to mind as you go. I will say that, I couldn’t live off what it throws off. That’s strictly my doing. My life has evolved as such that I can make a little less than I used to without pressure. If you don’t enjoy it, you won’t like it. I wouldn’t even figure out how much you’re making at first. You don’t want to know!
Speaking of income, I have a shop rate that I try to work by. I never did this kind of work in a shop for anyone else, so I have no idea what is charged at a shop. I’ve never taken anything to a shop, because I always fix my own stuff. I have learned by experience what to charge and when. I can’t generally afford to just sharpen a blade. The cost of going to the customers house would exceed what I can charge to do it. I will, however, tell him or her that I’ll call when I’m in the area. I also will do a small job for a nominal charge if I smell more work at a later date. I’m not good at it (I think I under charge), but I try to charge according to good old supply and demand. If someone complains, I’m maybe getting too high. If they say nothing, I may be too cheap. One thing to remember is; you’re providing a service. The customer doesn’t have to get off his or her butt.
I have several customers that I’ve never met. I work by cell phone, leave them a bill, and they mail me a check.
I also accept payment by credit card on my smart phone. It costs me a percentage, but it adds legitimacy to “a guy that shows up in a truck”.
As a business owner, the last thing you’ll do is the actual repairs. You have to manage everything:
-Order and maintain inventory.
-Maintain shop supplies. (Oil, chemicals, hardware, etc.)
-Maintain truck and equipment, (generator, air compressor, trash cans, waste oil, etc. Keep tool batteries charged.)
-Keep the books up to date.
-Special order parts, keep track of delivery dates, back orders.
-Return calls, promptly and politely.
-Schedule work. It can take two hours in the busy season. (Ever do any dispatching?)
-Call delinquent customers.
-Repair stuff!
Of course, there are people you don’t want to work for. As I mentioned, my business is mobile. People call me and I set up an appointment with them. Experience has taught me that there are people that just ain’t worth it! Most I catch on the phone and politely decline, others I realize when I show up that it was a mistake. Again, a polite decline. I used to think I had to fix everything. It ain’t worth it!
I mentioned parts above. Experience is what will tell you what to stock. Gaskets don’t take up much space and can save a return trip because something leaks. Experience will also teach you what to carry to avoid return trips. The area in which you live will have it’s own type of equipment. I see mostly Craftsman (AYP, MTD) and anything that a big box store sells. Because that’s what’s out there. I’d say I carry mainly belts, air cleaners, spark plugs, carb parts, fuel lines, fuel pumps, fuel filters, and inner tubes. Oh, also blades. I sharpen with a hand held angle grinder, but new ones are easy to sell. People love new blades and spark plugs. Craftsman tractors are very common around here. I carry lots of the deck parts. People are good at breaking that stuff! I also carry one or two of several small, inexpensive items that can save me a special order and a return trip. -All parts I carry are determined by experience. If you order stuff just because it’s cheap and small (doesn’t take up much space), next thing you know, you have truck load of small worthless items!
In my case, the first year, I picked up and delivered equipment and repaired it in my garage, because frankly, I didn’t know what I was doing and didn’t want customers seeing that!
Getting a wholesale account for parts depends on where you go. Being small time, I have found Jack’s and Stens to be two that will help out the little guy. I have to pay shipping, but I pass that on to the customer when I special order. I order my stock items along with a special order when I can. The shipping is the same for any size order, so the customer pays the shipping and I get my stock with “free shipping”. Brian, our forum owner, is also a good parts source. Hit him up!
I mentioned return trips; get in the habit of collecting all of your tools when you’re done! I’ve only lost a couple. One was an expensive multimeter that taught me not to be casual. Ninety-nine percent of the people I deal with are fantastic! I left a mechanic’s mirror at a one place. After calling him to see if he found it (which he hadn’t), I told him not to worry, it wasn’t expensive and was pretty well beat up any way. He called me a week later and said he found it with the tire of his car in the grass. He offered to buy ME a new one! I had to explain that it was my fault for leaving it there.
In addition to hand tools, I carry several small engine specific tools. I bought them as they became relevant. I also carry an impact gun, drills, taps, easy outs. You never know what you’ll have to do to get something working. I will do minor welding, but that has to come home. Mostly patching rusted mower decks.
Two stroke stuff can be a pain. A big part of that for me is the fact that I have worked on four stroke stuff most of my life. Also, a lot of it isn’t worth fixing. You can replace that cheap “weeder” (as my neighbor calls them) for $80. How much can you spend fixing them?
I’ll spend the minimum time on one if I’m already at a customers house working on something else. When I’m slow, I’ll look at one that’s worth fixing, but I need time to learn. I tell the customer this up front.
DOGS! I love dogs. The problem is that some people think that THEIR dog is the friendliest in the world. I know otherwise. I tell them that I will not take any chance of getting chewed up just to fix your __________ (fill in the blank). It ain’t worth it!
I was talking to a customer about his mower. The dog was there, eyeing up my ankles . (He was built close to the ground.) The customer went in the house. I looked at the dog, he looked at me. He realized that it was just him and me in HIS yard! I walked calmly to the gate, he just nipped my pant leg on the way out!
Another guy told me that his Shepard was fine as long as he didn’t think I was bothering his wife. How do I know when your dog will think I’m bothering your wife? Will it be before or after I’m lying on the ground, underneath your lawn tractor?
There’s more. I’ll try to add it as I think of it. This is a good time for me to write this, as I’m laid up recovering from rotator cuff surgery. And that reminds me, get disability insurance! My business is closed for about six months while I recuperate.