is this the right time for this business

[nigel79]

hi all.
ive been reading the business section for a while and i have been taking alot of interest in what people have to say about the economy and sales i currently own a welding and fabrication business, (sole trader) and do alot of work on cars, making alloy rads, intercoolers ect, as well as general welding. a friend who is a very skilled mechanic is thinking of joining up with me, to become more of a motorsport engineering car business,
problem is with all this talk of recession, plus there already being so many tuners out there, would now be a good time for this sort of company, or would i be better off moving to a different sector.
for those who remember the last recession, how did companies like myself servive, and what with fuel and car tax going up all the time, do people still think there is a future in this industry, or is it just a matter of time before this industry suffers. any coments would be appriciated thanks. (from any tuners as well)

[sparkyb999]

Engineering is very strong in motorsport, We own 2 companies, one which does CNC milling, and the other doing CNC turning and we only really deal with Motorsport. Do a little other comercial work, but we like the car stuff!.

Sub contract is very strong, as long as you can deliver a decent service, we have to sub out work alot out ourselves and some of the rubbish we see come through our doors makes us proud of the quality we produce.

If you could get into Oil and gas, and more stable contracts it would be better, as we are involed in F1, Nascar, BTCC and its a real cut throat place!.

[ukvoyager.info]

I wouldn't fear a recession. If you have a good sound well run business you will succeed while other more established businesses will fail.

[nigel79]

thanks for the replies. i suppose its a case of keeping overheads low and trying to offer customers something new. i think another problem would be trying to raise funds from banks, when most seem to be cutting back in the public market.

[blackcab]

recession only comes if everyone gives up and accepts it

[boycieboy]

nigel79 said:

i think another problem would be trying to raise funds from banks, when most seem to be cutting back in the public market.

Unfortunately, this could be a problem. A lot of banks are cutting back on commercial lending for 'non' customers. If you do get one to look at a lending proposition, they will go through the details with a fine tooth comb as the lending criteria has got much harder in the last few weeks.

My advice to you is to do a very in depth business plan which will give you an edge over others and install confidence with the underwriter looking at your proposition. Making sure you include your previous experience as that is very important

[singlecoil]

Businesses are all about customers. You need a steady supply of customers who will buy enough stuff at prices that make you the necessary profit.

The question to ask yourselves is, are we going to get enough of that type of customer?

Personaly I think that motorsport has got as good or as bad a chance of surviving unscathed as any other industry, so if you feel lucky, go for it.

[sjc]

I always think,with any trade, recession or not, there's always room for one more good-un.

[JustinP1]

coyft said:

ukvoyager.info said:

I wouldn't fear a recession. If you have a good sound well run business you will succeed while other more established businesses will fail.

sjc said:

I always think,with any trade, recession or not, there's always room for one more good-un.

I think that's about the size of it. Just take a look around, there are loads of badly run businesses, they will fail first and leave room for new entrants.

Indeed.

You often find in a recession that the older and bigger suppliers are hardest hit.

Its like survival of the fittest when a famine comes.

For example they may have grown to a large company and have large overheads. Thats fine when turnover is X but when X is halved then they are screwed.

For a new company coming into the market when X is halved, that is all they know and can build their business accordingly.