Retirement business - small engine repairs

Retirement business - small engine repairs

Author
Discussion

w1bbles

Original Poster:

1,055 posts

143 months

Saturday 2nd November
quotequote all
This may or may not be interesting for other PHers but I thought I'd post it and give it a whirl. I've got a reasonably serious day job but it eats at least 12 hours a day and while it pays well, it's very full-on. I have very little flexibility in what I do with my days and evenings due to work so as the kids have left home I've decided to work with Mrs w1bbles with an eye to building up a retirement business. We've worked together before so hopefully this won't result in divorce... she's great with customers and Xero (and process - she scary with process) whereas I quite like listening to podcasts and working on my own.

We've decided to start up a small engine repair and servicing business focused on garden machinery. The ambition is to do this in (late) evenings and weekends and if it works, to build up to a retail and servicing/repair business, eventually - perhaps - becoming a dealer for more interesting kit like quad bikes or light agri machinery. I have no idea where it will go but it might be an amusing ride. I'm also reasonably comfortable with setting up robot mowers so that might also be an angle. We're based in rural Scotland about 40-50 miles north of the Central Belt.

I'm fairly handy on the tools and although I happen to be a Chartered Mechanical Engineer (1) I largely gave that up about 25 years ago; (2) I was a pretty mediocre professional engineer; and (3) on the whole professional engineers make poor mechanics!

She has set up a sole trader business and I will work for free for the time being. In due course we'll move to a more structured business such as a limited company or partnership but baby steps for now.

What have we done so far?

> Told our home insurers
> Set up Xero for accounts and Square for taking payments
> Set up a bank account
> Done some jobs for a couple of local commercial businesses (garden maintenance and farmers)
> Set up an account for OEM spares supply
> Placed an ad in the local newsletter (which will go live in December - the worst possible timing)
> We'll need to tell HMRC when sales hit £1,000 (which is fairly close now)
>... some other stuff I've forgotten about

I've cleared out the garage and made a small workshop with all the tools I think I need (basically all the normal stuff, plus pressure and vac testing kit, 2 stroke carb alignment tools, compressor etc). Mrs w has sorted out job cards and sticky labels to match kit to customers. We've made a website, Insta account, Facebook page and all that good stuff.

We have a couple of local competitors within a 3.5 mile radius but demand seems to be high so I'm not too bothered. Particularly as I only want to do it part time for now.

Is it a crap idea? Probably. Will it make us a fortune? No. Could it provide the pathway to retirement? Probably.

I ran three different businesses as owner or co-owner from 2005-21 with varying degrees of success but this one appeals because the overheads are very low and I think there is enough demand to ramp it up/down accordingly and take on employees as required.

If anyone's interested I'll update this thread with progress and with jobs on the bench at the same time. The aim is to make a decision at Christmas 2026 on whether to carry on with the day job or jump ship to do this full time (2 years from now). I'll be taking a massive pay cut but should get some of my life back.

Consider this to be a diary of how it goes - and whether it goes at all!

miniman

26,302 posts

269 months

Saturday 2nd November
quotequote all
Watching with interest as I really need to take a similar brave pill. Good luck to you!

Babber101

99 posts

125 months

Saturday 2nd November
quotequote all
Fair play

That sounds really sensible and forward looking to build a side hustle that can gradually become your full time income

That takes a huge amount of energy and discipline when your working long hours in a demanding job

chapeau!

You deserve all the luck in the world

If it was me, given it sounds like you earn a good salary and are in a good financial position I would maybe look to find a semi retired mechanic who could help out on the tools to take the pressure off you - even if you run it as a loss maker with paid labour until you can properly devote your time to it. The main thing is build some clients and a reputation locally - the rest will follow

w1bbles

Original Poster:

1,055 posts

143 months

Saturday 2nd November
quotequote all
Babber101 said:
Fair play

That sounds really sensible and forward looking to build a side hustle that can gradually become your full time income

That takes a huge amount of energy and discipline when your working long hours in a demanding job

chapeau!

You deserve all the luck in the world

If it was me, given it sounds like you earn a good salary and are in a good financial position I would maybe look to find a semi retired mechanic who could help out on the tools to take the pressure off you - even if you run it as a loss maker with paid labour until you can properly devote your time to it. The main thing is build some clients and a reputation locally - the rest will follow
Thanks. I think you’re probably right on the employing someone front, but we did that for a business we ran from 2015-18 and we were left high and dry when the key qualified employee left for more lucrative work. Everything we had built up disappeared overnight (we needed an NICEIC electrician to do much of the work) and we learned from that. This time we’re going to test the waters without employees - yet. Thankfully I like playing around on tools as a complete contrast to the day job so it’s a stress reliever rather than a chore. I know that will change in time but by then we’ll know where we’re heading.

yakka

69 posts

111 months

Saturday 2nd November
quotequote all
Best of luck with your new venture. Keeping overheads low is a good idea.
You may well find that once you get underway that opportunities you never thought of spring up. I am in year 16 of running my own business and in a different field from the original concept. Best thing I have ever done.

clockworks

6,125 posts

152 months

Sunday 3rd November
quotequote all
I started out the same way, about 25 years ago, running alongside a full time job.
As the business grew, I cut my paid hours, then changed to a part time job, finally stopping PAYE about 6 years ago.

The only "advertising" I do is a free Google Business listing. This brings in about 30% of my work.
Another 30% comes from the trade - either subbed out to me, or direct recommendation.
I don't reduce my rates for trade work, they just stick their markup on top.


Don't forget proper business insurance - public liability, goods in transit, stock/tools.
You'll also need class 1 business use on your car insurance if you deliver/collect.

I've never bothered with a business bank account, but my payments volume is pretty low (high value, low volume business). I just make sure to keep my "books" up to date.
Business account would make this easier if doing a lot of small transactions.

I use my own vehicle, just claiming the mileage allowance. Keeps it simple.

The hardest part for me was getting my pricing "right". I was seriously underpriced for years. Find out what any competitors are charging, and most importantly, how good their work is.
I was pricing myself a little below the cheapest, but I eventually found out they were cowboys/bodgers, most of them failed. I now price myself about 25% below the most expensive - the guys who have a shop front and much higher overheads.

I've also learned, over the years, which jobs to refuse. Mostly stuff that was badly designed, and prone to repeat failures.

w1bbles

Original Poster:

1,055 posts

143 months

Sunday 3rd November
quotequote all
clockworks said:
...lots of good stuff
Thank you

w1bbles

Original Poster:

1,055 posts

143 months

Sunday 3rd November
quotequote all
I have not been great at keeping detailed photos of what I've done but I'm going to change that. So forgive the scant detail below...

My first paid job was a Stihl MS251C chainsaw that was not cutting properly. If anyone's interested this is a robust 'homeowner' spec saw suitable for general use and light to medium tree felling. The 'C' denotes comfort features such as easy chain tensioning.

I inspected it and could see that the chain and bar were badly worn (i.e., beyond just dressing the bar and sharpening the chain). I took the bar off and established that the bar wasn't getting oil. Removing the clutch revealed this delightful mess:





I replaced the chain oil pump and worm gear (Stihl part nos 1143 640 3201 and 1123 640 7102), re-assembled, put on a new bar and chain (18" bar and 18" Rapid Micro Chain Loop .325" Pitch 1.6mm 68 Links), cleaned it all up and sent it back to its owner. One of the things I've had to get my head round is how to match chains and bars to saws. Luckily there are some good guides on the Stihl and Husqvarna websites for the hard of understanding like me!

I've tried to adopt a methodical approach to inspecting and fixing machinery, which generally goes something like this:

1. Get as much info as possible from the owner
2. Run it and see how it performs
3. Pour out the fuel and inspect the fuel and tank for dirt, water and age of fuel. Picture below of the worst fuel I've encountered so far.
4. Check the spark plug, air and fuel filters - and the condition of the fuel lines
5. Depending on machine type and problem(s), inspect other items such as the chain, bar, clutch, brake
6. If there are running problems, whip off the carb and check the fuel pump and metering diaphragms. Ethanol-based fuel makes these crunchy and unable to perform properly
7. Check the height of the metering lever - I've been amazed how often these are not adjusted properly
8. If there are other running problems there are other tests we can do on the piston, cylinder and crank seals using a pressure/vac test, compression test and others
9. Fix the problem(s) and then tune the carb for idle, low speed and high speed

I've committed to using only OEM parts so there comes a point where repairs are not economical but I'm aiming to keep standards high and not resort to cheap rebuild solutions using Chinese pattern parts.



If these posts are interesting I'll upload some more as they arise.

clockworks

6,125 posts

152 months

Sunday 3rd November
quotequote all
Have you worked out the economics of this type of repair job?

Cost of parts, how long it takes, how much you charge, your hourly income?

Since that chainsaw can be bought brand new for around £550, presumably customers would be willing to pay around half that for a repair with a decent guarantee?

After buying the parts, what would you be making per hour?
Can you be at least 90% sure that it will last for at least another year or two?
Are you able to properly test repaired machines " in service" to have confidence in your warranty?

I started out as a hobbyist, just looking to improve my skills and cover costs. Making a profit wasn't important, as I was working full time.

By the time it became my main source of income, I was confident that I could make a fair living (the volume of work was out there), that my pricing model was acceptable (enough profit per hour, customers willing to pay), that my returns rate was low enough so I wasn't overwhelmed with warranty repairs, and that I could resolve the majority of any post-repair issues with a phone call rather than a home visit.
I can also give a very accurate estimate over the phone, without even seeing the job. That saves a lot of wasted time!

I've seen a few in this business fail, normally because they get overwhelmed with work and start cutting corners to try and keep up. This increases warranty returns to an unacceptable level, more backlog, dissatisfied customers.

Newc

2,006 posts

189 months

Sunday 3rd November
quotequote all
I don't know your business area at all, but a couple of generic thoughts about your type of service offering:

- there is an astonishing amount of business that can be pulled in purely on good service levels and consistency: rapid responses to enquiries, reliable quotes and turnarounds, accurate invoicing, general no-aggro interactions. You said Mrs Wibble is good at that, but make it a real differentiating factor.

- if you intend to offer service to small business as well as just retail, then above x 2

- is rapid turnaround of jobs a valuable thing in your target market ? If so maybe hold some stock of common items if you're not cashflow constrained

- is there a preferred brand or item for your local business clients ? You have the Stihl photos above - could you become something like 'oh yeah, you need to send that to the Stihl guy, Wibble, he'll sort you out' for local businesses ?

Best of luck with it!

w1bbles

Original Poster:

1,055 posts

143 months

Sunday 3rd November
quotequote all
clockworks said:
Have you worked out the economics of this type of repair job?

Cost of parts, how long it takes, how much you charge, your hourly income?

Since that chainsaw can be bought brand new for around £550, presumably customers would be willing to pay around half that for a repair with a decent guarantee?

After buying the parts, what would you be making per hour?
Can you be at least 90% sure that it will last for at least another year or two?
Are you able to properly test repaired machines " in service" to have confidence in your warranty?

I started out as a hobbyist, just looking to improve my skills and cover costs. Making a profit wasn't important, as I was working full time.

By the time it became my main source of income, I was confident that I could make a fair living (the volume of work was out there), that my pricing model was acceptable (enough profit per hour, customers willing to pay), that my returns rate was low enough so I wasn't overwhelmed with warranty repairs, and that I could resolve the majority of any post-repair issues with a phone call rather than a home visit.
I can also give a very accurate estimate over the phone, without even seeing the job. That saves a lot of wasted time!

I've seen a few in this business fail, normally because they get overwhelmed with work and start cutting corners to try and keep up. This increases warranty returns to an unacceptable level, more backlog, dissatisfied customers.
All good points and I guess I will find out.

Let's take that saw as an example. Bars and chains are consumable parts (and replaceable by most competent users) so my rationale is that the repair cost is the chain oiler. That part of the invoice cost the customer £120 so well less than the cost of a new machine. The hourly labour rate is in line with competitors and provides a sensible £amount per hour, covering labour cost and overheads (such as Xero, insurance, tools, oil, petrol etc).

I'm pretty confident that fitting OEM parts properly - with a test at the end - provides me with the confidence that they'll last for a sensible time period.

I've also got a borescope for checking cylinders; I've already had one customer send in a piece of kit that I could have repaired but had bad bore scoring so I sent it back. I did actually end up rebuilding it but that's a different story.

But I'll update this every week or two and I guess you can find out how it goes!

w1bbles

Original Poster:

1,055 posts

143 months

Sunday 3rd November
quotequote all
Newc said:
I don't know your business area at all, but a couple of generic thoughts about your type of service offering:

- there is an astonishing amount of business that can be pulled in purely on good service levels and consistency: rapid responses to enquiries, reliable quotes and turnarounds, accurate invoicing, general no-aggro interactions. You said Mrs Wibble is good at that, but make it a real differentiating factor.

- if you intend to offer service to small business as well as just retail, then above x 2

- is rapid turnaround of jobs a valuable thing in your target market ? If so maybe hold some stock of common items if you're not cashflow constrained

- is there a preferred brand or item for your local business clients ? You have the Stihl photos above - could you become something like 'oh yeah, you need to send that to the Stihl guy, Wibble, he'll sort you out' for local businesses ?

Best of luck with it!
Thanks. Stihl and Husqvarna are my preferred pieces of kit as they're well put together and yes, I am going to get some service items for stock such as filter, plugs, carb rebuild kits and clutch springs. The supply chain is very efficient so most spares can be delivered next working day. The slight challenge is for more modern kit. For example the Stihl M Tronic engine management system where as an independent you can't get the diagnostic kit. What I can do is replace items such as fuel solenoids and perform the reset function (which differs by the age of the machine and the version of M Tronic it has). To be a Stihl dealer you need retail premises, which is where we will probably end up if things go to plan.

trickywoo

12,294 posts

237 months

Sunday 3rd November
quotequote all
Do you watch Steve’s small engine saloon on YouTube?

w1bbles

Original Poster:

1,055 posts

143 months