Could use some feedback on my basic business plan.
The idea/plan:
Buy/build hobby-level powder coating equipment (~$1,500 max) and start learning to powder coat in my garage.
Buy aluminum wheels from wrecked BMWs, Mercedes and other luxury cars, strip and powder coat them, then re-sell on eBay or locally.
After I get decent at it, start offering powder coating to local car, motorcycle and truck service shops, local machine shops, smaller manufacturers.
There is also training for $500-900 about 5hrs away.
If there is enough work, lease a small shop (found a couple for ~$600-800/mo rent) and save up (or get a loan?) for professional-grade batch equipment (large enough booth and oven, professional gun, blasting cabinet, tubs for acid etching, permits, licenses, etc., ~$15,000 if I buy used).
Once I have enough business to support myself, quit, go full-time. Build up business until I'm coating 14 hours a day, then hire someone to help blast, coat and bake, start focusing my time on getting small production runs from local manufacturers.
Once enough production business on this scale is coming in, I can hire more people, lease a bigger shop, and eventually buy an automated system for large-batch production work, and/or buy larger blasting rooms, cabinets and ovens to service large cumbersome parts smaller coaters don't do.
I'm interested in this business because I have experience in manufacturing, I know I can figure out the processes, there is a definite need because there are powder coating shops all over the country already doing this, and the start-up costs are not too bad. It also makes CENTS in my view, if you disagree let me know.
Control: About as much as you can ask for.
Entry: May require permits, equipment, training, practice, etc. It isn't as easy as say, pool cleaning or lawn care.
Need: As above, there are shops all over the country offering this service, a lot of them badly. Could use advice on better ways to validate this, I will be calling around asking for quotes.
Time: Large up-front investment in learning, building enough business, etc. (3+ years?), but can be taught to employees and eventually remove myself from the business, or sell it.
Scale: As above, more business can lead to automated systems for auto manufacturers as an example. There is a company that does powder and other coatings in my new city that has over 200 employees.
Do you guys see any major pitfalls with my basic plan here? I think it's pretty straightforward and do-able, and more appealing to me than a regular service business that more people might start like pressure washing or lawn care. I want to join a resurgence of American manufacturing, down the road I can use the powder coating business profits to buy a manufacturer in trouble, and turn it around after learning the ropes with this service business.
Thanks for reading.
The idea/plan:
Buy/build hobby-level powder coating equipment (~$1,500 max) and start learning to powder coat in my garage.
Buy aluminum wheels from wrecked BMWs, Mercedes and other luxury cars, strip and powder coat them, then re-sell on eBay or locally.
After I get decent at it, start offering powder coating to local car, motorcycle and truck service shops, local machine shops, smaller manufacturers.
There is also training for $500-900 about 5hrs away.
If there is enough work, lease a small shop (found a couple for ~$600-800/mo rent) and save up (or get a loan?) for professional-grade batch equipment (large enough booth and oven, professional gun, blasting cabinet, tubs for acid etching, permits, licenses, etc., ~$15,000 if I buy used).
Once I have enough business to support myself, quit, go full-time. Build up business until I'm coating 14 hours a day, then hire someone to help blast, coat and bake, start focusing my time on getting small production runs from local manufacturers.
Once enough production business on this scale is coming in, I can hire more people, lease a bigger shop, and eventually buy an automated system for large-batch production work, and/or buy larger blasting rooms, cabinets and ovens to service large cumbersome parts smaller coaters don't do.
I'm interested in this business because I have experience in manufacturing, I know I can figure out the processes, there is a definite need because there are powder coating shops all over the country already doing this, and the start-up costs are not too bad. It also makes CENTS in my view, if you disagree let me know.
Control: About as much as you can ask for.
Entry: May require permits, equipment, training, practice, etc. It isn't as easy as say, pool cleaning or lawn care.
Need: As above, there are shops all over the country offering this service, a lot of them badly. Could use advice on better ways to validate this, I will be calling around asking for quotes.
Time: Large up-front investment in learning, building enough business, etc. (3+ years?), but can be taught to employees and eventually remove myself from the business, or sell it.
Scale: As above, more business can lead to automated systems for auto manufacturers as an example. There is a company that does powder and other coatings in my new city that has over 200 employees.
Do you guys see any major pitfalls with my basic plan here? I think it's pretty straightforward and do-able, and more appealing to me than a regular service business that more people might start like pressure washing or lawn care. I want to join a resurgence of American manufacturing, down the road I can use the powder coating business profits to buy a manufacturer in trouble, and turn it around after learning the ropes with this service business.
Thanks for reading.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
