How much should a new person to this business allow for start up cost?
I comment because it is waaaay more than the cost of a machine!
I am thinking somewhere from $10,000 up, this is for equipment and needed inventory. Does not include purchasing real estate.
Machines, quite a number of machine attachments, button machines, foam cutting equipment, specialty hand tools plus standard hand tools. Storage compartments, tables, lighting, endless supplies like threads, an assortment of welting, zipper, glue, foam and other padding and spring hanging/tying supplies and installation equipment. Steamer for sure, and tax preparation requirements, on and on.
Then, advertising, phones, and bookkeeping supplies and depending on the work selected to do, a vehicle usually comes into play with insurance.
Sure makes my $10,000 estimate seem low doesn't it. Actually, we have well over that invested in tools, for sure.
What do others think one realistically should budget for a new business start up, one that will be a means of making a living, not just for a hobby?
This could be interesting,
Doyle
I suppose
When I first went into business I invested a total of $3000.00. Granted that was like 28 years ago, but I think it could still be done for under $6000.00, depending on where you live. In my area everyone either owns a pick up, or knows someone who does, so a delivery vehicle was not a necessity for me. Also, I had out buildings that I converted into shop space, so I saved on rent. I built all my own tables, work benches, and signage.
When I look back on those years I wonder how I ever got any customers, my shop looked like a converted out building and my work tables and signage looked hand made and hand painted, but my work was good and my prices were reasonable, at least by my customers standards and I did get customers, actually I had many customers and soon found myself the employer of three upholsters. As my reputation grew I was able to charge more and improve my image with a delivery truck, professional sings and a professional looking shop. I think many people make the mistake of thinking they have to look like the big guys and go way into debt buying things they dont necessarily have to have.
Today I have all the fancy stuff, new truck and trailer, professional signage, a nice show room and a decedent web site and an ever growing collection of woodworking equipment. I have more invested in the web site alone than my original $3000.00 in start up cost, but my customer base has shrunk and these days its just me with occasional help from my wife or one of my son's. I am not complaining, my customer base has shrunk because I trimmed it down by pricing myself away from those only looking for a bargain towards towards those interested in quality and exclusivity.
So, I think an upholstery shop can still be put together on a shoe string if the owner is willing to work hard and let his, or her workmanship do the advertising. Those early years will be lean and they will have to be willing to put in the 18 to 20 hour days luckily making minimum wage to build a reputation. I think it comes down to the individual wanting to work for the man, the bank, or themselves.
It's a "catch-22". Yeah, if you really want to do it right, you better have 10 grand or more. And factoring in property, you could easily top 100K.
But if I were a young buck looking for a career to dive into, and I had 50 grand in my pocket, I probably wouldn't gamble it on this business.
Most people DO start this type of work on a shoestring. They keep their "day job" during the transition, and re-invest early profits back into the business until they're ready to go at it full-time.
I've always said that if my building burned down tomorrow, I could clear out my garage for a work space, and be up and running again by the end of the week for around $2000. Within 6 months, I'd be back into a commercial space.
With everything that I currently have I could probably start up with less then $ 5,000.
This includes a new machine, tools, basic supplies, marketing materials ( rack cards, business cards, etc. ) and a web site. Of course I would be running it out of my home.
Chris
Well I like to say I started my upholstery business with 20 bucks...that is what I got my first sewing machine for...it wasn't the best machine and did not do everything it should have but it sewed a nice seam and got the work out, over the next year I went from working in my house on a 20 dollar machine to having a 2400 square foot shop, nice walking foot machine and a pile of customers....sometimes things just go the right way and you can start with nothing but a friendly smile, a line of bullshit, and some sucker willing to pay you to do something you dont know how to do, dont have the equipment to do....wow I sound bad dont I!
I did a quick tally of the money I have invested in my business and it is easily in the 10K range. Mind you, I've been at this game for over 30 yrs. now, though many of those years have been in more diverse areas of the needle trades than upholstery/marine canvas.
With that in mind, it would behoove the reader to know that I have considerably more money tied up in specialized machinery than most upholstery shops do! In my personal tally I included the prices of them (the full functions were purchased new, the others were "used"). All industrial machines: 5 thread overlock, blindstitch, button sewing machine, drop feed SN, rotary take up SN, needle feed SN (full function), walking foot SN (full function), dedicated "home machine" for buttonholes only. I have a full array of presser feet and time saving attachments for all of the above machines; many of the attachments were custom made for the specific machine and operation.
I have a fine assortment of thread in a variety of useful basic colors and weights that are suitable for each of the machines. Thread is expensive and achieving a coordinated assortment within useful color requires a not inconsequential outlay of cash. With all due respect to Gene, monomfilament is JUNK. Esp. if you're planning to work in marine/awnings/exterior upholstery work.
My shop is pneumatic. I have piped air from a very modest compressor, but the PVC pipe cost money, and the time I spent grunting it out beside my brother cost money, too. I have a nice stapler and an assortment of staples in different sizes, both galvinized and stainless. Stainless is big money but in the marine game it's the default setting, don't waste your time on galvy.
Punches, dies, and the requisite stock for marine fittings and grommets all cost money. You have to have a good pad/table and a mallet. Hand tools only add more to the price of the basic tool kit. I don't own any, they're too hard on my hands to operate. Snap tool! and the requisite hardware and the set tools you should have on your bench. How about the button making machine and the different "blanks" for a nice variety of covered button options?! I have put a lot of money into this entire department in the past year.
A laptop/tablet and the necessary book keeping software. A book keeper if you aren't comfortable with the book keeping program (I recommend this!). We haven't even touched on insurance, have we? and most of all, we haven't mentioned the necessary "open to buy" required to have open billing with suppliers.
Marketing? a website?? ($500 from a "pro.", minimum)
I still "work for the man". I hate it, but the practical reality is that I have to! I'm nicely "set up" to push away from the dock, but until the "outisde jobs" are more reliable than they are at present I don't have a lot of choice. At least not if I wish to remain on the same keel I presently enjoy.
10K? easy!
Furniture upholstery: (Not exactly what I did, but what I think anyone could do.)
Sewing machine: $500
air compressor: $ 75
staple gun: $75
hand tools: $100 (staple puller, pliers, mallet, glue gun, etc.)
cutting table: $100
Buy the inventory as you need it: $???
Under $2000 easy.
This is not the type of business that someone would want to make a big investment in. The plus is that there aren't many new upholsterers coming into the business. The negative is that there is a decreasing demand for re-upholstery.
I would be amiss if I didn't say this for people who are starting out. Pay cash. Do not get a loan for equipment.
Your early years are going to leave you starving and loan payments could end up killing you. So unlike other businesses save your pennies and pay cash for your startup. It will be one less headache you have to worry about.
Chris
I think that most people who dive off into this business do pay cash. Mainly because I don't know of any bank that is going to loan 10's of thousands for someone to start up an upholstery business.
While Doyle's estimate might be ideal, I think that Gene's is realistically the norm.
Like Gene said about order what you need when you need it...
I always have customers pay for material costs up front, I order what they need after they pay for it so that I don't risk footing the bill if they back out...I figure lost labor can be made up for by selling the item if they don't pick it up within 60 days, but selling it for material plus labor seems less likely...you can start up with nothing, as long as you already have basic hand tools that most people have in their garage and a compressor/staple gun...just have the customers pay in advance so you have no out of pocket expenses
I stock alot of fabric. Just got another new roll in today from Miami. I buy half ( 30 yards ) or full rolls ( 65 yds ) at a time in Sattler acrylic. I use certain colors constantly and Miami gives price breaks when buying in large quantities. But for the most part I buy bulk because I want the fabric on hand and ready to go when I get an order. I do get breaks on shipping costs by ordering in large quantities. My shipments cost me $ 10 regardless of the weight when it is shipped out of Jacksonville by courier. That savings helps my margins.
I stock standard vinyl colors as well but in very small quantities. I use very little of that and most of it I use for mirror covers. I always keep a back up spool of Solarfix on hand as well. I have a roll of Textilene on hand as well for solar screen orders and keep 100 yards of acrylic binding on hand for the solar screens. I have several rolls of binding in other colors for when I
am making Omega awnings.
Of course I keep snaps, screw studs, etc. on hand as well. Other then that I order as I go. I am sure it is hard for furniture guys and others to stock large quantities of fabric like I do since the fabric colors and choices are changing with each job. I typically use 5 color combinations and the OEM color Heather Beige is my big seller. Probably 70 % of my orders are in this color which is why I am always buying full rolls of this color fabric. Miami is very good about keeping their Jacksonville warehouse stocked with the fabric colors I need.
Do marine people stock acrylics or canvas ? Isn't it impossible for you furniture or auto trim guys to stock any fabrics ?
Chris
There are so many vinyl choices it is hard to just stock them....even whites/blacks have variations so one customer might want white, another off white, another arctic frost or snow white, I could not afford to have it just lying around the shop unused...I could see in your line of work stocking popular colors, helps with bottom line and faster turn around times!
Quote from: Mojo on September 11, 2012, 05:53:28 pm
Isn't it impossible for you furniture or auto trim guys to stock any fabrics ?
I used to buy a few close-outs. But they only attract budget customers, so I would end up not making any more money than I would off of a COM customer. Now, I only stock a few basic color vinyls for beauty shops, restaurant booths, etc.
You're right. It would be impossible to stock a wide selection of furniture fabrics.
I'm more into stocking foam. Foam replacement is a big part of my business.
In auto trim work, it makes good business to stock original materials for the most popular selling cars. It is good marketing to have on hand what is needed, plus the availability of original auto fabrics is a problem over a short time. Actually, to insure availability, a shop almost has to buy ahead of he market. We have had near new cars needing original fabric for repairs but none available. Generally speaking, once it is all sold, there usually will not be anymore.
In marine seating, we stock materials for that market. Generally, customers wait
to have it done but want it for the weekend.
If I have it, easier to sell and get the price the shop needs.
Doyle
Speaking of stocking foam, I need to cut back on that portion of my inventory. I am out of storage space. So I am going to take some of the scraps I have around of fabric and make some dog beds for the local SPCA.
Miami had a big sale with free shipping a while back so I bought some foam. Now it looks like I wont be using it after all so I would like to put it to good use.
I have gotten stupid with stocking some inventory. :)
Chris
Chris,
Google, I believe SMS and see their prices on OEM automotive seating material. I believe they are located on the west coast in Oregon?
I have currently, in work a 1968 2 dr. hardtop Olds 98. Seat work that is, he layed two yards on my bench and said that was around $300 bucks. He also had the original vinyl (madrid). I think it was around $45?
There is a market for this if you are into that nitch. If a prospective customer asked a price, I tell them they are starting out asking the wrong question. I have two customers who never ask the price. All they want is the job done as close as possible. They will send a nurse out to keep you healthy while you work on their cars. Wink.
One of my customers has won the Mopar nationals two or three years in a row. Then, he takes the cars and stores them in a controlled environment.
I don't know exactly how these guys handle the issue of original labels on parts (mechanical parts like exhause), but I understand they are careful about running the engines because it might damage the OEM original exhaust labels.
Every folk has their own stroke, I suppose. I am just a dummy who does their grunt work. A future project is a 4 door Mopar, smaller than a charger. I didn't even know they made a 4 door and he said yes there were only a handfull (Challenger perhaps?).
Doyle
Olds 98 ? Oh boy, your getting into my territory now. I served on the Board of Directors for the Olds museum. My Aunt was Olds official historian and wrote several books about Olds history. Ask your customer if he has ever heard of Helen Earley. My grandfather was the comptroller of Olds back in the 60's. My other grandfather, my Dad and my Uncle were drivers for Old's. My Dad and Uncle used to do testing for them at Milford proving grounds and Pikes Peak. All together my family ( aunts, uncles, Grandfathers and cousins ) had over 415 years of service at Old's. I was the first defector and didn't go to work there ( though I was called and offered a job ).
In regards to some of these show cars. Some of these shows that these guys attend their cars are judged based on originality. Every single sticker and label has to be in an exact location. The batteries have to be OEM from that period. It is amazing just how far they go on judging these cars. In a nutshell they have to look like they just rolled off the factory floor.
But I have never heard of stitch lengths coming into the picture but it makes sense. Some of these guys are more OCD then I am and that Dear Sir is bad. I am a poster child for Anal retensive / OCD people and I admit to driving even myself nuts..........:)
As a footnote, one of my favorite cars ( right underneath Old's ) are Mopars. I loved their hemi's, max wedge engines and their older Furys, Roadrunners, Cuda's, etc.
Remember the old Daytona Superbirds ? if you have an original that is in perfect shape it is worth $ 250 K today from what I heard.
Chris
As a furniture guy I stock the foundation type fabrics like burlap, denim and cambric, usually I buy 100 yard rolls. I also stock cotton by the bail and keep a couple rolls of Dacron on hand. But as far as the cover fabric goes, no way, there are just to many choices and variations, often I may only use one type of fabric once and never see it again. I used to stock basic black and white vinyl back when I was still doing auto trim, but have stopped that now that I only do furniture 90% of the time.
Their used to be an upholster in town who stocked 1 type of fabric in 5 different colors. This was back when you could reupholster for less than buying new. He sold a lot of that stuff and was regularly booked up two years ahead.
Mike:
I do not keep up on material costs that are outside my area of expertise so forgive me.
Hasn't cotton gone through the roof ? I know foam has been increasing steadily for several years. But I thought I read an article that said cotton prices went nuts. Maybe I am thinking of something else.
Chris
I just paid $30 for my last roll of cotton. That is my supplier's "per roll" price. 25 years ago, I used to drive 50 miles into Dallas, and buy 12 rolls at a time for $17 each. So really, cotton hasn't gone up any more than anything else over the years.
BTW I should mention that the last roll that I bought was "economy grade". But I swear I can't tell any difference between the economy, and premimum grades. The premium is whiter, but that's about it.
Back in the day, Greenville was home to the second largest gin in the country. My Grandmother bought stolen cotton from one of the workers there. It was felted, but usually in 1-2 yard pieces.
Good input, but it was pretty much all over the wall. Most responses were from a different reference point. What I mean is, the question to what kind of business would have to be specified.
For example, if the question was auto restoration building projects that competed in national competition where the item was authenticity at its best in terms of materials and workmanship, the answers would have been different I am sure.
For example to reproduce sun visors in the 50's automobiles just the way the manufacturers did with original reproduced materials would probably take three or four thousand bucks to just get set up to do. But, if one merely wrapped the visors and sewed an alternate way, non original, that is, the cost of start up would be much less. But, without the OEM reproduction capability, the best money to be made from that selected activity would be made by investing the serious bucks in equipment and materials. This fact has been and is being demonstrated today.
But, a respondent to the question with only furniture recovering or maybe some marine recovering experience would visualize that it doesn't take really take that much of an investment to be in business. We all speak from a different reference point sometimes, understandably so.
Bobbin, in her valued response, is an example of this, in reading, it is obvious her exposure to equipment used in certain sewing activities is more extensive than mine. She has probably used a large variety of equipments and run a lot of yards of thread through them, much more than the average.
I marvel at the equipments and attachments the garment industry encompasses. It actually gets very interesting and this review goes as far back as 70 years in that industry. Hence, her response shows that background perhaps compared to mine which is different.
Good input,
Thanks,
Doyle