Stock turn over

[DCS01 27]

My plans are progressing. Tolerance levels for the dealer I am working for a running thin so I am making moves ready to jump.

My Mrs wants me to come up with a business plan as it will be our money being invest and her possibly subsidising us in the short term.  I have mapped out as much as I can although there will be a lot of variables. 

I have had a quick look through past posts but obviously times change! I would be grateful for a feel out there for Ave stock turn over figures. 

I would say I am possibly around 8/10 times although this is with such a small stock level I don’t want to rely on that.

I understand this will vary from business to business and area of the country but would be grateful for some ideas so I can include it in the plan.

thanks

 

[Mojo121 229]

A mate of mine has 12 on sale at all times and regularly does 20+ per month - he’s really flying and no one can quite figure it out. He’s definitely one in the race to the bottom as he’s always the cheapest on AT and probably flies very close to the wind regarding legal obligations

Another friend has 10-12 on sale, he’s on AT and does between 10-16 per month.

I tend to have 18-25 on sale, not on AT and do 14-20 a month.

what are you planning on selling?

ps an in-depth business plan is a waste of you time. After a month it’ll be out the window. 

 

[DCS01 27]

Thank you for the response. That is really helpful.

I am currently selling anything between 1500 to 4000k. We are in the sticks a little so have had a bit of luck with estates but mostly 1st time cars and little Jazz’s etc. I am slightly tied at the second as working full time so having to bid on cars through D/a that I can collect near me or at weekends.

 

I do understand that the business plan will be out the window....however my wife is in business planning and improvement and to be fair to her it’s her money also and wants to see that I haven’t just gone on a whim.  

[justina3 518]

A business plan is almost like sticking your finger in the air looking for wind direction, there are so many unknowns Brexit, budget looming half term upon us buy a lemon, buy an extra good one, a customer from heaven and a customer from hell, those alone are enough to turn a business upside down in a flick of an eyelid, its a good rule to go through overheads and costs see where savings can be made, other than that trying to foresee where you will make and lose money is about as reliable as buying lottery tickets. 

 I would struggle to predict my next 12 months and i have been around selling cement to repair fred flintestones car.

 

[trade vet 702]

13 minutes ago, DCS01 said:

Thank you for the response. That is really helpful.

I am currently selling anything between 1500 to 4000k. We are in the sticks a little so have had a bit of luck with estates but mostly 1st time cars and little Jazz’s etc. I am slightly tied at the second as working full time so having to bid on cars through D/a that I can collect near me or at weekends.

 

I do understand that the business plan will be out the window....however my wife is in business planning and improvement and to be fair to her it’s her money also and wants to see that I haven’t just gone on a whim.  

Could you give us an indication of what you are earning from your present job.

[DCS01 27]

£45 to £48k

3 minutes ago, trade vet said:

Could you give us an indication of what you are earning from your present job.

 

[metcars 397]

The mrs probably has concerns about you giving up the 'day job'? 

[DCS01 27]

Just now, met said:

The mrs probably has concerns about you giving up the 'day job'? 

-

100%. I truly think I can make it work. I have been a used car controller for the last year and a half. Selling cars for 20, My customer service skills are good and although was never top buy was always up there. 

I just feel I am working my arse off for someone else when I could at least see if it will work on my own.

[Dave2302 387]

I hope she isn't expecting you earn that in your first year !!

[DCS01 27]

No. I don’t think she is. Hence the business plan to get an idea of exposure.

 

 

[trade vet 702]

38 minutes ago, DCS01 said:

£45 to £48k

 

I had not realised you were already in the trade.However,I am with your wife on this one.If you are doing 2 or 3 per month on top of what you are earning now,there will be a lot of people on here dreaming of having that situation.If you think packing in your day job and running your own business funded by your wife will be easier and make you more money,think again.

She is right to ask for your business plan under the circumstances.Incidently what do you intend to do,be a home trader or work from premises,how many will you stock,who will supply you and how much do you intend to invest.I would imagine she will want you to incorporate as a limited company and she will know what the average returns are.

[justina3 518]

17 minutes ago, trade vet said:

I had not realised you were already in the trade.However,I am with your wife on this one.If you are doing 2 or 3 per month on top of what you are earning now,there will be a lot of people on here dreaming of having that situation.If you think packing in your day job and running your own business funded by your wife will be easier and make you more money,think again.

She is right to ask for your business plan under the circumstances.Incidently what do you intend to do,be a home trader or work from premises,how many will you stock,who will supply you and how much do you intend to invest.I would imagine she will want you to incorporate as a limited company and she will know what the average returns are.

Totally agree.

[DCS01 27]

22 minutes ago, trade vet said:

I had not realised you were already in the trade.However,I am with your wife on this one.If you are doing 2 or 3 per month on top of what you are earning now,there will be a lot of people on here dreaming of having that situation.If you think packing in your day job and running your own business funded by your wife will be easier and make you more money,think again.

She is right to ask for your business plan under the circumstances.Incidently what do you intend to do,be a home trader or work from premises,how many will you stock,who will supply you and how much do you intend to invest.I would imagine she will want you to incorporate as a limited company and she will know what the average returns are.

Thanks, I don’t want to go over old ground if people have read it before. Full disclosure I am somewhat in a lucky position as my Dad owns a garage, 4 ramps, MOTs, 2 fuel pumps. Has space for 10 cars which are used by customers and for parking cars at the second. This will make things easier obviously.

[DCS01 27]

2 minutes ago, tradex said:

Snap, can I have your job when you leave? 

Haha. You are welcome to it. Have been told 55k to 58k ote. We haven’t underachieved but I will be lucky to hit 48k. 

 

1 minute ago, tradex said:

Jesus, what are you selling, Fezza GTO's? 

Haha. 4k

[David Ayers 171]

How much do you expect to retain per unit after costs, Vat etc?

[Rory RSC 596]

Are you happy making best part of 50k a year having days off  and time off and prepared to trade it all to earn very little in the first few years but potentially earn much  more long term but sacrificing holiday, days off, family events, sleep etc.... If you are going to walk away from a good job you need to really be behind it for 80/100 hours a week 7 days. 

[Mark101 536]

Personally, I would say go for it, after ..........................

You have all your ducks in a row:

Stay employed and use your spare time to source ALL your stock, get the first batch prepped and ready to show/go - then switch.

Don't under estimate how long it takes to gear up to 10 good buys, all prepped, all pictured, all advertised, all recon and ready to go.  Where's your income coming from in the first couple of months whilst you're spending time doing this?  

Make the most of your Dad's garage space and start filling it before you quit a wage.

Just my opinion but go for it, if you're not happy.

[DCS01 27]

14 minutes ago, David Ayers said:

How much do you expect to retain per unit after costs, Vat etc?

£500 Ave at the second. As I said I am in a lucky position as I have the forecourt space and the insurance covered. 

At the second I am under the VAT threshold, that is maybe a conversation for another day as I think I need to speak to the accountant as might be better to put through the VAT reg’d garage and pay myself a commission 

[trade vet 702]

I see now,I think I can recall the last time we discussed this.I think most of us told you to have a go last time.Your Dads garage is an up and running established business with probably a good customer base so why do need a business plan.Is he going to charge you £25k rent ?.Forget your wife’s money,go to the bank and personally borrow what you need and get on with it.

[It's me 615]

i know we are getting sidetracked but if you dont do it you will regret it for the rest of your life

if your wife is supportive then she is probably being pragmatic in getting you to put a lot of figures down and see what comes out at the end

as said figures can mean anything you want but at lweast it gives you an idea of all the costings

can you not say start up a limited co make your wife secretary to give her an insight into how you are doing and pay a peppercorn rent to the garage to keep everything sweet

main thing is you must match your stock to the area do not buy something because you like it

you can do it you just need the wifes support

[DCS01 27]

11 minutes ago, trade vet said:

I see now,I think I can recall the last time we discussed this.I think most of us told you to have a go last time.Your Dads garage is an up and running established business with probably a good customer base so why do need a business plan.Is he going to charge you £25k rent ?.Forget your wife’s money,go to the bank and personally borrow what you need and get on with it.

Yes, sorry I didn’t want to go trough old ground. After the last conversations I have pretty much made my mind up. Just wanted some ideas of stock turn so I can give this plan to the wife, the plan is to leave at the end of the year.

[David Horgan 564]

Business plans make me laugh .

How can you put a business plan together when the cost of each car is so variable , return price of said cars is so variable depending on how much each car needs spending on it to make it saleable.

Then even if one car sold quick it doesn't mean another will sell at the same price or same speed as the last one .

Chances are you cant even repeat the same purchase after selling the said car , 

Turnover is only any good if your rolling on the floor laughing  

only one thing is important when you work for yourself 

PROFIT got it . 

Its all about what you MAKE , NOT what you take . 

[Ocsltd 133]

3 minutes ago, David Horgan said:

Business plans make me laugh .

How can you put a business plan together when the cost of each car is so variable , return price of said cars is so variable depending on how much each car needs spending on it to make it saleable.

Then even if one car sold quick it doesn't mean another will sell at the same price or same speed as the last one .

Chances are you cant even repeat the same purchase after selling the said car , 

Turnover is only any good if your rolling on the floor laughing  

only one thing is important when you work for yourself 

PROFIT got it . 

Its all about what you MAKE , NOT what you take . 

Like

[David Ayers 171]

Tell her 45 days to turn around your stock.

I think you'll need to be selling 10 a month to get a reasonable wage.

How many of those 10 spaces is your Dad happy to let you use? Even if you have 10 for sale you'll need a couple more being prepped to replace sold stock. Probably another 1 or 2 waitng to be collected. The odd bit of crud px that you need to dispose of somehow.

 

.

 

 

[DCS01 27]

8 minutes ago, David Ayers said:

Tell her 45 days to turn around your stock.

I think you'll need to be selling 10 a month to get a reasonable wage.

How many of those 10 spaces is your Dad happy to let you use? Even if you have 10 for sale you'll need a couple more being prepped to replace sold stock. Probably another 1 or 2 waitng to be collected. The odd bit of crud px that you need to dispose of somehow.

 

.

 

 

Pretty much all of them to be fair.  I was aiming to work with 12 or so that kind of works with what I was thinking. 3/4 are already mine and the rest are local customer’s and a couple of non runners from the garage.