Taking a Step Towards Buisness

[Aexion]

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"Originally Posted on: Mon Aug 02, 2010 1:29 pm"

Now that all my wiring procects have consistant neat/solid joins, and basic repairs are becoming second nature, Im thinking of starting a small guitar repair/supply home buisness.

I have a few really good ideas to start up, but i thought id ask you guys if you have any advice/tips/contacts on starting a successful shop?
Feel free to PM me, your input is EXTREMELY important to me as a dedicate guitar modder/repairer taking his first step towards buisness.

Thankyou for reading

PS I am an Aussie, would love to work under a good luthier! But how to find them and contact?

Keep rocking!

[rocket]

Hi Tim, as far as starting up a small business, check out the gov. funded [new enerprise incentive scheme], gives you funding for 12 months and a business skills course. Hope something works out for you, Cheers Rod

[Hesh1956]

Tim doing an apprenticeship if you can find that kind of an opportunity for yourself is invaluable, humbling, fun, not-so-fun, and will benefit you and your clients going forward.

This is a craft where it's easy to breath one's own air so-to-speak and without real honest critique on every level from a Master Luthier it's difficult to improve.

My suggestion would be to get to know the local Luthiers in person and let it be known that you are more interested in learning the craft at nearly any personal cost than being a proud amateur. Take along some of your work to show too.

Remember too that guitars are not always all that important when it comes to folks personal budgets. Sure there are pros who have to spend money on maintaining their ax but for most hobby players paying us to repair their guitar is something that has to be done with disposable income. My point is that this business is very subject to the ups and downs of the local economy and as such the Luthier can struggle if times are difficult.

But if it's your passion, what you think about day and night, what you have wanted to do for many years - go for it and the best of luck to you!

[Aexion]

Thats great, thankyou guys!

I wake up, play, solder, play, research, practise, practise, research, sleep!
Every day! I love it Smile I cant see myself doing anything else to be honest.

Problem is, where i live at the moment, Batemans Bay, well we dont even have a CD shop let alone a luthier, quite a few players though!

All the work i have done over the past 2-3 years evolved by using the internet and just getting into it.

I met a few tech's at the Les Paul Forum. A really top Vendor/Luthier named Jonsey from the US, being my idol in the geetar scene, , has been helping me over the years when i get stuck,

I would love to meet some Luthiers/Guitar Techs here, but im not sure where to start? Mabe just find some numbers and say hello:D

Until then i plan to start a home buisness to keep me busy and in the know, god i love these slabs of wood

[Allen]

Your not far from Canberra and there are several members on the forum that live up the hill. Also another down in Bega. If you ask nice you may get a shed tour.

[Aexion]

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Allen wrote:
Your not far from Canberra and there are several members on the forum that live up the hill. Also another down in Bega. If you ask nice you may get a shed tour.

Ok, Thankyou Allen. I will hunt down some contact details and see if i cant say hi

Im new here, so it'd be silly of me not to ask, do you have any contact details to kick start my search?

[peter.coombe]

Starting a home business - first find an accountant. They will tell you what paperwork you will need to do before you start and what paperwork you need to maintain to keep the tax man happy. I'm lucky, the other half is an accountant, so that bit is easy. There is a lot more to a small business than the shop stuff, that is the easy part because that is what we enjoy doing. The paperwork is a real PITA. Also, one thing that many underestimate when starting out is the marketing aspect. This is vitally important if you want to survive, and will take up a significant amount of your time.

Most Luthiers start out as a part time home based business, a "real"job pays the bills, until the business builds up enough to consider making it full time, or you retire from the real job. That can take a considerable number of years, or it may never happen. It ain't easy making a living from Lutherie. You will probably make a loss for a while, there is a certain amount of work you need to do just to cover all the overheads. Something like 80% of small businesses fail in Australia, so build it up slowly and don't get into debt.

I am the bloke from Bega, and you are welcome to drop in for a chat any time, but I make mandolins not guitars. I was made redundant from the real job last year, so took the opportunity to built my dream workshop and have gone full time. Best thing I ever did, but the real job made it all possible.

Good luck.

[Aexion]

Wow thanks Peter! I will definately come say hi, id love to come and see what you are doing (and show you some of my workings Wink ) Where in bega can i find you, i will try say hello within a week or two if thats ok with you of course?

I plan on working in a music shop as a retail person whilst getting an inventory together to work on wiring and repairs in my own time. The accountant side, well that scares me but i think i may be able to handle it, but to start of i think a bookkeeper is needed.

Tim

[peter.coombe]

No need to be scared of an accountant. All you need to do is to make an appointment to discuss what is necessary to start up a small business. Do what they tell you to do and then all you need to do after that is to give the accountant all the information they need at tax time. There is no need for a bookeeper, you keep the books yourself. You just need to record every expense and sale, and make sure all the transactions go through a business bank account that is separate from your personal account. A bookeeper cannot lodge your tax return, that requires a registered tax agent, so the accountant is essential. Believe me, if you are running a small business, you do need an accountant at tax time.

My contact details are on my web site. Just press the profile button and it is listed there. Just about any time should be ok. Just give me a call or email beforehand. If you are scared of accountants, my other half does not bite.

[Allen]

I had better let the blokes speak up for themselves about shed tours. Not everyone is up for them. But if anyone is ever up in Cairns, the door is always open.

[kiwigeo]

marktaylor8899 wrote:
HI IM NEW IN THIS SITE SO IWANT TO KNOW MORE THINGS ABOUT THIS SITE instruments builders forumI HOPE YOU CAN UNDERSTAND ME AND HELP ME TO UNDERSTAND THIS ISSUE PLEASE REPLY ME AS SOON AS POSSIBLE

Mate, a couple of comments:

1. Can you be a little less specific with your question? What exactly is the "issue" you dont understand?
2. The caps are kind of in your face..its the cyber equivalent of shouting. In here shouting is only done when beer is being bought.
3. Your post isnt really relevant to this thread and you really should start your own new thread.
4. You've put up the same post twice on the forum....I would avoid multiple posts as it arouses suspicion from the spam police in here.
5. The cut and paste commercial ad in your signature line is also suspicious as is the fact you've posted to at least 50 other forums under the same user name and your posts are equally as ambiguous.

[liam_fnq]

Quote:
marktaylor8899 wrote:
HI IM NEW IN THIS SITE SO IWANT TO KNOW MORE THINGS ABOUT THIS SITE instruments builders forumI HOPE YOU CAN UNDERSTAND ME AND HELP ME TO UNDERSTAND THIS ISSUE PLEASE REPLY ME AS SOON AS POSSIBLE

Man, Tubby Taylor must really be stuck for a gig. I would have thought those fujitsu ads would pay a little better.

[Kim]

I deleted that users post and account Liam because he had spam in his signature and was being a tosser. Felt good to so look out everyone

[Aexion]

Allen wrote:
I had better let the blokes speak up for themselves about shed tours. Not everyone is up for them. But if anyone is ever up in Cairns, the door is always open.

So far Thanks Allen, i visit QLD every so often, just got back from a wedding in Tambourine mountain, really nice place!

[Puff]

I wake up, play, solder, play, research, practise, practise, research, sleep!
Every day! I love it I cant see myself doing anything else to be honest.

Getting a job might give you a better grip on the realities of the universe.

[Puff]

There is more to life and guitars than flash animated avatars and ........

[Lillian]

Puff, every time I see one of your posts I hear Peter, Paul and Mary singing. How about at least putting your real name in your signature block. And while you are at it, how about a bit of an introduction as well. Its nice to be able to relate to each other as people.

[Aexion]

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Puff wrote:
Quote:
I wake up, play, solder, play, research, practise, practise, research, sleep!
Every day! I love it I cant see myself doing anything else to be honest.


Getting a job might give you a better grip on the realities of the universe.

Look puffster, by the time i were 22 i had My Restaraunt mLicence, since then i worked and traveled, snowboarded, surfed the coast, played a few local gigs(solo/ and with a band) taught guitar and worked on alot of friends geetars, right now i have a zakk wylde lp that im about to run with a jimmy page push pull settup and custom wound pups, a strat replica im bringing back to wood an doing some artwork on, then i have a 12 string yamaha from the late 80's that needs a holle patch and neck replacement maybe, then i have 6 tracks i have almost done for guitar that i plan on making into an albun late next year

so what have you done lately i wonder?

[sebastiaan56]

Aexion,

I own and run a printing business. Of my day 20-30% is direct sales, 20% is planning stuff like getting stock and setting the program for the presses, 20-50% is dealing with various levels of problems and crises. A good day a week goes into maintaining books, paying people, collecting debts etc. Occasionally I get to touch the print or do some art or actually contact the product. I have 5 staff. They get better pay than I do a lot of the time. My average week is 50-60 hours.

Im telling you this so that you can get that its much easier getting a job where someone else does all this stuff and you actually make things. Because running a business is getting other people to do the work while you invest and take the risks. That's what business owners get paid to do. That's why CEO's get big money.

Peter is one of the most respected Mandolin makers around, anywhere. It has taken him years, it will probably take you years. Listen to him.

Now that Ive put you off a bit I will also say that I dont think I could be an employee again. I have freedom and independence that can only be gained by being your own boss. Dream big fella! there is a whole world out there!

[Aexion]

No, that didn't throw me off at all. I know how running a buisness can be, ive run a restaurant with 15-19 year old staff, compared to that i feel this will be a breeze lol.

No in all seriousness, i will grab every opportunity to become better and soak it up like a sponge. This is a must for me, guitars that is, thanks for the kind tips everyone Peter, i will give you a call in a week, i have a few things to get done then i can drop in and say hi

[kiwigeo]

Lillian wrote:
Puff, every time I see one of your posts I hear Peter, Paul and Mary singing.

"Leaving on a Jet Plane"?

[Lillian]

youtu.be/

[DarwinStrings]

I have been feeling like your average grumpy old man this morning Lillian but your posts just put a big smile on my dial. I dragged up " Blowin in the wind" and "If I had a hammer" on Utube. I never realised how much of an influence Peter Paul and Mary had on me till I saw that I wear the same goatee as Peter and Paul

Jim

[peter.coombe]

Jeepers creepers that brings back memories.

Aexion, whether you run your little guitar enterprise as a business or not really depends on your intentions. If it is a part time activity that makes little or no profit, and you have a full time job, then there is really no need to start a business, and you won't need to worry about paperwork, tax, and accountants. When I started the rules were different. There was a big advantage in that you could offset losses from the business against your salary. You can no longer do that, unless you satisfy certain rules, and an accountant can tell you what the rules are, but you do need to make a profit in some years to satisfy the rules. The only advantage of a business I can think of is if you need an ABN. An ABN can sometimes get you cheaper prices, and does help when exporting an instrument, but in most circumstances you probably won't need one. It is only when you get to the situation of having significant turnover (and profit) or need to employ some help where it becomes essential to start a business, or you want to look more professional to your customers. Whatever the situation, the business must make a profit or have a reasonable expectation of making a profit or the ATO will not accept you are running a business. There are ATO rules for determining whether a small enterprise is a business, but I can't remember the exact details. All I can remember is I need to go over a certain threshold of turnover every year and I'm ok, I can keep the ABN. This was introduced to stop people running things like an Amway business that always makes losses, and is never ever likely to make a profit. The other situation where you need a businesss is if you make enough turnover to have to register for GST. Believe me, a Luthier almost certainly won't need to register for GST, and if you don't need to then definately don't! You need to talk to an accountant to find out what the rules are and if it is really worth it. There is no longer any tax advantages in running a business compared to declaring it as a hobby. Hobbies are much simpler to run, you can spend just about all your time doing what you love doing.

My real job used to be with the ATO, and my other half is a Tax accountant, so I should know this stuff.

[Aexion]

My basic plan is to slowly stock an inventory of parts,tools and accessories, this town desperately needs a good vendor for quality parts, strings, etc... Slowly being the key word. Until i get enough to open up i am happy to research and learn what i can.

I will definately see an accountant within the month, just to view my options before i make it official. I am not employed at the moment so i have lots of time to concerntrate on getting things rolling. I have lots to learn, before i buy slabs of wood (soon though) and start from scratch! In the mean time its repairs and wiring Wink And Marketing ideas, thats the killer, getting known! But i feel with good hard work, word of mouth will help out eventually.

I eagerly offer my skills for free to any luthier thats willing to put up with me a few days per week Laughing Just PM me or call 0466 671401

Tim Mason