How to buy or start an Auto Painting Business

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How to buy or start an Auto Painting Business

1/28/2008 - by: Acquireo Team - Director of Marketing, Acquireo.com

Painting vehicles is a business that can be part of a franchise chain, started from scratch or purchased as a going business that is either private or part of a chain. The vehicles can be family size cars or trucks to big rigs and motor homes. The house specialties will probably determine the type of work the business takes on in its daily operation. Even the categories stated above can be broken into smaller sub categories. For example the cars that are family size could also be cars that are built especially for classic design or for sport. These cars could be a racing vehicle or a newly designed specialty car. The trucks could be regular pickups or older classic models that the owner wishes to make sparkle again. The customers of these painting shops are willing to spend the money for a quality job that makes their vehicle, whatever it is, look like new again. This comes at a price and that is why these businesses are very good cash cows.

Look at the big rig trucks if you do not think these owners are willing to spend money to make their rigs look like they were just driven off of the show room floor. The same is true for some of the mobile homes that you see driven down the interstate. Whatever clients you want to go after, there is a business for them and their desires to see their vehicle look great to the eye. This opens a door to the automobile painting business that is filled with opportunity for those that are willing to cease it. If you have the experience and the money this could be your dream of owning a very successful business in a field you like.

Finding a business that is up for sale or could be started

The franchise businesses are set up to do cars or pickups, another words they are set up to run them through as fast as they can at as low a price as they can and still make money. The advantage to a franchise is they will heavily advertise and you will get business from their ads. This is not the business for a perfectionist who wants to do special work for people who will appreciate the detail that goes into such work. Expensive paint jobs are the work usually of specialty shops. If you could find one of these that is up for sale and also successful it may be a good buy if the price is right. The other way to get into the high-end market is to start a business from the ground up. Of course this is a slow start, as no one knows of your business when you first start it up. You will not have the advantage of the franchise or the successful business that is bought outright.

You can find auto painting businesses for sale at http://acquireo.com/tag/auto-painting.aspx and also from business brokers who able to assist you in many ways. These professionals can answer many questions and may have private listings that you may not be able to find any other way.

If you find a business that is for sale and the deal sounds solid then the hard part begins. Negotiating with an existing owner and finding out all of the important information is what buying a business is all about. Questions like how big a staff does it take to continue the success and still grow. Will the people who are there stay with the business and a new owner Can a deal be made with the owner that is fair to both parties? This is where a good broker can answer a lot of questions or get the answers you would like to know. They know that a deal can be made or busted on little things as well as big things.

The grease of any deal is the money

You have found the right business that is for sale. Now the money part of the deal becomes critical to making it happen for both the old owner and the buyer. If the buyer has all of the money needed to make the buy then there is no problem. If the buyer is short and needs to raise the difference between what he has and the selling price, sometimes some creative dealing must be put in play. This shortfall can be alleviated by several means. The money can be obtained from family or friends, a business-buying lender who specializes in making deals happen. Bringing in a short-term partner may raise the money. The solution used most often is the old owner will accept some of the purchase price in payments. If this is the way it comes down the purchase price is raised a little over what a cash deal may have been. The active business broker is very good in these situations and may bring the deal to completion.

Conclusions

The vehicle painting business takes skill and experience to do right. A person with this knowledge would be a good candidate to own this type of business. It will take some doing to find a business that can be purchased right. This business would be more difficult to start from the ground up as it may take to much time to build up a following. A franchise may work if that is the type of business you wish to own. At least you would have an established name and advertising.

The best plan of all in this case is to find a successful operation that you can purchase under favorable terms. It may take a while, but the deal has to be okay or it will be too difficult to pull off in the long run. This is a business that could grow to an even bigger enterprise, as there are so many types of vehicles that need to be painted. You could expand to cover more of the possible market.


author: Acquireo Team

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