OK, this is going to sound odd. I know it does to me. Lets start with I meet this guy who was doing work for the company I work for. We got to talking and I told him I am looking for a space to do side work in. He says he has space and that we will talk later. We exchanged info. Well I found out yesterday I was being laid off. And today I get a call from the guy asking if I was stilling looking for space? I say yes, and he tells me to come and look at it. Well I go check it out, and find a full shop. Press break, 2 lathes, 3 drill presses, and a 3ton over head crane. He also says he is bringing in a Mig and a Miller AC Tig from his other shop. Plus a portable welder on a trailer. I will have access to all for $400.00 a month. Heat and Elec. included. The part that makes me feel weird is that the guy is going through some bad times with his now-ex firing him from his own company ( he put everything in her name) and taking everything. But from the sounds he gets to keep the the house and the shop. I have a weird feeling in my gut about this. You know the to good to be true feeling. But it is the chance of a life time for me to get something started.What should I do??????
Reply:You're getting laid off - it's a no brainer.Might suggest you put any agreement in writing though. It's just good business.MM200 w/Spoolmatic 1Syncrowave 180SDBobcat 225G Plus - LP/NGMUTT Suitcase WirefeederWC-1S/Spoolmatic 1HF-251D-1PakMaster 100XL '68 Red Face Code #6633 projectStar Jet 21-110Save Second Base!
Reply:I am in kinda of the same situation. I managed to get someone to take me under my wing, ever since my mentor passed over a year ago. Been kind of going in circles since. He wants to retire, but doesn't want to leave his customers hanging. So he was looking for some to sell his company too. But since I don't have the cash needed, I am trying working out a deal to use his shop and move my equipment in there too. I could only wise I had to pay $400 a month. I am looking probably $4000 a month with all his equipment (enough brakes, shears, ironworker, welders, service trucks to make you head spin). I would jump on that deal, but get it all in writing.Lincoln 300 Vantage 2008300 Commander 1999SA250 1999SA200 1968Miller Syncrowave 200XMT350MPA/S-52E/xr-15Xtreme 12vs Millermatic 251 w/30A Millermatic 251 Dialarc 250 Hypertherm 1250 GEKA & Bantom Ironwokers
Reply:Yeah we talked about that also. I like to cover my a$$.
Reply:I pay about that for rent in a space smaller with no equipment. Its going to be hard to start out like that but if you can swing it, its a steal.This person's life is in total caos right now, so it may not stick.DavidReal world weldin. When I grow up I want to be a tig weldor.
Reply:Well I agree with the other folks about the written agreement. If things work out for the two of you perhaps it will become a full partnership. But having someone using the shop could be a plus for this guy since it will hopefully bring in more business.Co-Own CNC shop:Miller :1251 plasma cutter, MaxStar 700 TIG/Stick, & XMT 456 Multiprocess Welder.& 2 Hypertherm HPR260's Plasma CutterSorry I had a bad stroke but now I am back.
Reply:He may just be a good guy...how many machines could you tie up at once, working by yourself? He may be trying to keep a little money flowing in the right direction (HIS) while he gets his sh** straight. On the other hand, make sure you cover yourself. Don't get much equipment in HIS shop that can be lost. Is he expecting a share of your work/profits? Get something in writing. Is there a time limit that he's willing to do this? I assume you will be supplying you own consumables, will they be separate? Oh yeah, GET SOMETHING IN WRITING.
Reply:Only from my past experience, a partner is not always the best, including a wife.David Real world weldin. When I grow up I want to be a tig weldor.
Reply
ersonally, I don't like it.Too cheap, and too many possibilities to go wrong.You may wind up being a "hand" in the shop. I suppose it's ok if it doesn't infringe on your own work, and you can keep it to a reasonable amount of time working for him instead of yourself. Balance the rent with the time spent.Not knowing whether he actually owns the shop would bother me. Could be you're money will go up in smoke.A written contract is sometimes about worth the paper it's written on. Courts seldom order specific performance as a remedy. They allow the parties to reach a solution that works out the best. Sometimes it isn't in your "best" interest. A lot of contracts are nullified to allow the parties to go on their seperate ways. You could be out some serious bucks if your equipment gets "lost" in the shuffle.If he goes bankrupt, it's a can of worms. You'll just have to stand in line with the rest of the creditors.IF ON THE OTHER HAND, HE'S JUST TRYING TO GET SOME CASH FLOW TO PAY THE RENT ON HIS END, IT MIGHT BE BENEFICIAL TO THE BOTH OF YOU. Hell, it's a crapshoot.I'm sorry to hear about your upcoming layoff. It's like an epidemic these days. Just be careful not to grab at straws to keep from sinkin'."Any day above ground is a good day"http://www.farmersamm.com/
Reply:90% of partners are good for 2 things, dancin and screwin. It could be that the both of you are each other's salvation. looks like both parties need each other. Beware however desperation can bring out the worst side of a person. But somethimes it can help both parties make ends meet.Tough as nails and damn near as smart
Reply:Have you considered that the reason you got laid off is because you told the guy you wanted a space for side work and HE told the company? It could be he sold you out in order to get you to his shop on his terms. I'm usually an optimistic person, but co-incidence and something too good to be true makes me suspicious.Burt _____________________Miller Syncrowave 250Millermatic 211Miller 375 Plasma Cutter Hobart Handler 12010FtDrillBit.com
Reply:Originally Posted by partagas...Well I found out yesterday I was being laid off. And today I get a call from the guy asking if I was stilling looking for space? I say yes, and he tells me to come and look at it. Well I go check it out, and find a full shop. Press break, 2 lathes, 3 drill presses, and a 3ton over head crane. He also says he is bringing in a Mig and a Miller AC Tig from his other shop. Plus a portable welder on a trailer. I will have access to all for $400.00 a month. Heat and Elec. included....
Reply:Originally Posted by wb4rtHave you considered that the reason you got laid off is because you told the guy you wanted a space for side work and HE told the company? It could be he sold you out in order to get you to his shop on his terms. I'm usually an optimistic person, but co-incidence and something too good to be true makes me suspicious.
Reply
ook at it this way,You need cash to survive, you just got laid off with little opportunity for employment in the near future.You are planning to go out on your own in a shop of your own.Buddy has space that needs filled & used on a daily basisBuddy has offered you "a deal you can hardly refuse"If it were me (and I just went through getting fired for no reason) if you can swing the paying customers to pay the rent & give enough money to cover consumables & some cash for food & a roof over your head, go for it on a limited basis. Say for a year or so. This gets you through a rough spot, gets your buddy through a rough spot and both benefit in that year.At the end of the year, look to see what needs modified & modify the contract or walk away. Either way, you both have gotten the benefit of shop space, building of a customer base, food & clothing for a year.Opportunities don't just drop out of the sky, sometimes they may not seem quite right, but if worked correctly they are excellent learning opportunities for when you do strike out on your own. Who knows, this may be the start of a partnership that benefits both of you more than either realize.MarkI haven't always been a nurse........Craftsman 12"x36" LatheEnco G-30B MillHobart Handler 175Lincoln WeldandPower 225 AC/DC G-7 CV/CCAdd a Foot Pedal to a Harbor Freight Chicago Electric 165A DC TIG PapaLion's Gate Build
Reply
o it!If nothing else your learn a lot, partnerships go **** up, BUT you can learn from this. And what else are you going to do????I'd rather be hunting........USE ENOUGH HEAT.......Drifting around Aussie welding more pipe up, for something different.....wanting to get home.
Reply:How much does it cost to set up a legitimate business, including all the paperwork, taxes, fees etc?It seems I hear a lot of bitching about fly-by-night operations undercutting legitimate welding shops by avoiding all those expenses, and you sure don't want to become identified with that group.Personally I believe the $400 shop rent will only be a small part of the finances you will need for that first couple years, and if that part goes belly-up all the rest is wasted.
Reply:You will need to contact IRS for a Federal ID number to identify you as a business. Sole Proprioters means you are in business for yourself & are responsible for all liabilities. A Limited Liability Corporation would limit your exposure to anything that would go wrong (and it will, believe me). An S corporation protects you even further, as well as a regular corporation.For the other entities (LLC's, S Corp, reg Corp) you need an attorney. Make a choice on one of these before you start as it is very difficult to change once you are started.Business insurance - if no employee's, all you will need is liability. 5 million would be about a minimum if working on structural or vehicles (trailers, hitches). Fee's will be about what ever the lawyers can get away with charging.The fly-by-night operations are usually the ones that do crappy work, then never return calls if there is a complaint. You need to be responsive to all the requests, even if the call/contact is complaining about what you did before. If you make it right for them - even if it costs you a little bit - you become more legitimate. It will take time for others to recognize you as a legitimate business and there will be lean times. Just do the best you can & the business will find you.Find out what other shops charge for shop rates, material rates & try to get close to what they charge. For instance, if the shop down the street charges $60.00 for shop time, $80.00 for onsite repairs, you charge $55.00 shop time, $75.00 service call........but add in a service call fee of $10-$25.00 to help offset fuel costs. Being close to what other established shops charge helps build your reputation & will allow you to be a bit more flexible in your bids.Get in touch with an accountant or get QuickBooks & have an accountant set the program up. Spend a bit of money with that & you will be better off with tax liabilities.MarkI haven't always been a nurse........Craftsman 12"x36" LatheEnco G-30B MillHobart Handler 175Lincoln WeldandPower 225 AC/DC G-7 CV/CCAdd a Foot Pedal to a Harbor Freight Chicago Electric 165A DC TIG PapaLion's Gate Build
Reply:Thanks for the help. I am going to go with the flow for a while and see where it goes. As for all the legal stuff, I am talking with my dad and having him take care of it. He has a S Corp, which is the best to have. The problem with it is now S Corps are almost impossible to get due to the benefits they afford the owners. So by having him put me ( my company) under his Company I will be able to have it also.
Reply
aint all your stuff the same color and put your name on it.A butterfly without wings, is just an ugly bug
Reply:Originally Posted by Magnetic MechanicPaint all your stuff the same color and put your name on it.
