If you’ve got a passion for motoring, and the mechanical skills and aptitude, then you might have dreamed of opening up your own body shop. These establishments play a vital role in the modern automotive industry – since every car in the country comes with bodywork that needs to be occasionally repaired, improved or upgraded.
To make a success of this kind of business, however, you’ll also need some entrepreneurial skills. You’ll need to ensure that your operation is legally sound, that you’re investing in the right equipment, and that you’ve done your market research.
Let’s run through some key things to consider.
Registration
You’ll need to decide what sort of business you’re opening, and then make the appropriate registrations. A sole trader will need to pay tax through self-assessment. You might also want to open a business bank account, in order to simplify the financial side of things. Take payments from customers into the business account, and then pay yourself a wage from your takings.
You’ll need to register an original name. Do some Googling to find out just how original your name is. You might also search with Companies House and the Intellectual Property Office.
If you’re going to be setting up a limited company, then you’ll want to also appoint a director, register an address, register for corporation tax, and get a SIC code. The benefits of going limited can be tempting, even if your operation is very small.
Licenses
If you’re going to be working with vehicles that will be driven on the road, then you’ll need to ensure that you’re appropriately qualified. MOT testing needs to be conducted by qualified personnel. You might also need to apply for a pollution control licence.
There’s also employment legislation to consider. This will cover everything from contracts to holiday pay. Do some reading and make sure that you’re on the right side of the law – because if you’re not, you could be vulnerable.
Tools and equipment
The quality of your work in a body shop will depend largely on the quality of your equipment. Superior tools will produce superior results. Not only that, they will tend to last longer, hold their value better, and reduce the risk of a sudden failure causing an injury. If you’re making lots of cross-cuts, for example, then it makes sense to invest in a Milwaukee mitre saw – even if you’re cutting through metal rather than timber.
Services
If you have the skills required to provide a service that’s in strong demand in your area, then it makes sense to provide it. There are benefits to specialisation, if there’s demand for it. If you’re known for doing just one thing very well, then customers who need that one thing will come to you immediately.
