Hi, everybody. Does anybody have the experience in joining businesses? I mean making an agreement with another trimmers or detailers to expand by means of united funds, machinery, employers and ideas? I've made an agreement with the biggest detailing company around and moved my business to their premisses. They have abt 2000 square meters and they contacted me offering the space and cheap rent just to get me doing interiors while they provide exterior works.
This seems to work really well. So now i am thinking about making the same thing internationally. What do you think guys? Does this kind of idea sounds acceptable? I am asking because each country have their own vision on how the business works.
Once again, if I am reading this rite, it sounds like we want to start an association, which really isn't a bad idea. But if I had to guess, I would think the majority would not want to be bound financially to something in terms of dues or pooling money. Once you throw in the money factor people get cold feet. We can have all that rite here for free, we are just not organized. Don't get me wrong, I personally would love to belong to an upholstery organization again. By the way, you have a very nice looking shop.
i appreciate your comment on my shop, thank you. i put my soul in it.
i think you got it a bit different even the idea is not bad at all. My english is not as good as i wanted it to be. However, i was talking about joint venture or merging. Like durkopp and adler for example. Now they known as durkopp-adler. There are 3 variants at minimum: 1) merging with another trim shop, 2) merging with a body paint shop 2)merging with exterior detailing company.
Strictly speaking it may not be necessary to merge companies but just work at the same building and sharing the rent, or at least close to each other and present the services of a partner as "our" services.
Speaking about merging trimmers internationally, this in my opinion can bring additional customers and bring both business owners new sources of income.
I think it's a great idea to house different types of automotive businesses in the same complex, as you can refer work to one another and help each other grow. This is pretty common in the U.S., where many landlords build big garages with separate bays or multiple garages on a single property. But this isn't really a merger because all the businesses are still legally and financially independent.
Legal mergers typically happen in one of two ways...
1. One shop buys another shop to expand its operation or make inroads in another territory or market.
2. Two or more businesses combine their assets to create an entirely new company, in which each of the original business owners has a stake.
They both have pros and cons that depend on who you're working with and your ultimate goal.
If you're thinking about expanding internationally, talk to the guys at Carlex Design. From what I can tell, they've developed a unique business model where they share their brandname and expertise with several outstanding shops across Europe.
Thank you, Nadeem i understand this and that is what i was trying to say. Purchasing another business to expand your own requires good money. This is the way for a medium scale businesses. Startupers or independen small shops can as you said combine their assets to compete in the industry on different level.
Thanks for the advice but Carlex design is a different level.We all heard that name:) May be some day i will do something comparable.
At present i could offer only good machinery and successful ideas and myself as a strategic development person if anybody would be interested.
No problem. I love the business side of the industry just as much as the craft itself.
You mentioned that you already entered into an agreement with a detailing shop. What's the scope of that agreement? Are you renting space in their shop, but still operate independently? Or did you combine your businesses entirely -- assets, finances, etc?
thanks for asking. Up to now we work independently at the same premise. Currently i rent it on a half of normal rent which is payed out by services i offer, not cash. They offered 1 larger room which has 106 meters of space.
If everything goes as good as now we think of opening the same type businesses in larger cities. We are also asked to train other teams working in the industry. It seems there is a great interest in us out there. So now we are working on the training curriculum.As the matter of fact i would love to develop a franchise in the future.
My main source of income is car mats production. I sell about 85% of car mats in our local market. Couple of times was asked about distribution for North America but i dont have the means to organize such volumes. Russian banks are crazy. They want 20-34% interest and one must ensure the loan with something. Lets say u want to take 100k. U will have to ensure this sum with something worth 300k. Its insane. Comparing to Western 3% even 20% is absolutely fantastic.
I am sure if i would work the way i do here in lets say US or Canada, i would be rich already,lol
This is our front office and the main room
So our customers are offered full list of interior and exterior services. We also plan, this time, in cooperation, combining our assets, start offering mechanical part as well.
The question is if you want to build your own name and brand or build a joint project tag. I have experience when the joint project has collapsed (not my fault) and all the energy invested in building a common brand was useless and now I have to build my own brand. It's not easy to keep a long-term Brand where you are not the only one owner.
Thanks for sharing. You r right. There are always risks in doing business together with somebody. This however is true for 1 owner-busienss as well. This is the reason not to loose your identity. And keep promoting a brand. I mean we all know durkopp-adler sewing machines. If all of a sudden the become separate and start selling Durkopp on one hand and Adler sewing machines on the other, they might still continue working without a major losses
Wow, that is BIG shop. It seems you've come up with a unique way to grow your business with little capital investment. Good luck with your partnership, and definitely keep us updated on how it develops.
Thank you:) I just have some ideas how to grow quickly which i got from my career as a manager of different levels and in different companies. My employers never gave me the the chance to show initiative and experiment so i decided to quit and started experimenting on my own. I wonder if my approach would work in US and Canada. One day i will probably find out, lol