Quantcast
Jump to content


deal or a lifetime or...


Recommended Posts

is this the opportunity of a lifetime or a nightmare?

 

A little backround on my shop, we are a small operation currently leasing a 2400sqft two bay shop with two techs (father and brother) and im in the office running the business as well as turning wrenches.

 

For the first few years the business grew aggresively but in the past two 2 years it seems to have hit a rough spot we are barely making enough to cover the bills and everyones salary. For the longest i have been loosing sleep trying to figure out how to make this place profitable again and then some.

 

Every time brain storm it i come to the same conclusion LOCATION!

We find ourselves hidden away in a business park surrounded by a few different companies (that we do work for) but no real exposure to a main road.

 

Today i found myself smiling knowing that maybe enduring all these hard times would come with a reward some day, and it looks to be like it has and it was in front of my face this whole time..

 

it is a former gas station that has been shut down for a few years now and in the past yr had all pumps and underground fuel storage tanks removed,

with 1176 sq.ft. three bay work space plus additional covered work area where pumps used to be in addition it also has a 500sq ft waiting area. it is situated on a corner lot of two major intersections and just a block from a major hwy, so i start researching car count and it looks to be at least 40,000 cars drive by it daily!!!

 

So my blood gets pumping being the entrepreneur that i am i start to see the immense potential of this location/"service center" im thinking State Inspection station, tire services, brake service and just all the easy stuff that can draw in customers.

 

But then comes the realization that something like this just won't be handed to me it'll def. come with a huge price tag, so i speak to my current broker tell them i am incredibly interested in this place and need to know what it will cost to get me in there!

Mind you there were no For Sale/For Lease signage so i was semi discouraged at this point.

 

So i get a call back from my broker......turns out he's very familiar with the owner of the property and has informed him he needs to get north of $350,000.00 for it.

As i try to let this sink in im overcome with both excitement and surprise as i was fully expecting a property like this to go for $1.5million easily

 

so as i get down from this high i wanted to get everyones thoughts on this and think logically is this a good move?!?

i know what the potential is and i can get all the business plan in order and know what we need to do to be able to make a profit.

that being said one of the things i would need to do would be get a loan. which i am not big on(thanks dave ramsey). but i have no where near $300k in the bank.

 

My broker informed me that he knows a few local small bank owners that work hand in hang with small business that are very friendly when it comes to handing out these types of loans.

 

so is this the opportunity of a lifetime or a nightmare?

 

TIA

 

-Israel

Link to comment
Share on other sites

Property taxes? Does it pass environmental inspections and certified clean? Would a bank mortgage this property or is there something else wrong? Is it a desirable neighborhood? What is the median income of the neighborhood?

Or it may actually be a great deal. Due diligence comes to mind. I wouldn't jump on this nor let this opportunity pass without doing my due diligence.

  • Like 1
Link to comment
Share on other sites

While I believe location can add to a business, I do not think it is the reason you are struggling now from a once thriving business. My place is actually in a small strip mall with mini storage behind it. It looks more like an H&R block than an accessory and auto repair shop. If you do not resolve your declining business, location is not the real solution.

  • Like 1
Link to comment
Share on other sites

  • 1 month later...

I agree with cdhowell. My shop is very hard to find. Something most of my customers comment on during their first visit. Yet I continue to remove oil change stickers from shops on the "main strip" and replace them with mine. Before you try to convince a bank you can make it on that intersection why not try convincing yourself you can make it any where.

Link to comment
Share on other sites

A lot of shops start seeing a decline after the first couple of years because they just stop advertising. With a shop on a main strip you can skimp on the advertising because you will get all of the "walk in" traffic. If it seems like a great deal I would lock it up by putting in an offer and just make it contigent upon x, y and z so you are covered if you find out it can't support a shop, has back taxes or whatever else you have planned for it.

Link to comment
Share on other sites

Here in our state environmental inspections are required just to refinance! If you get serious about the property make sure they have an inspection done to make sure you don't get into anything ugly. Even though they removed the pumps there may be issues you need to know about.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      In this episode of Business by the Numbers, Hunt explores the benefits and considerations of owning your auto shop's real estate. Learn about financing options, affordability, and real-life examples to help you make an informed decision.
      -Understand different financing options for purchasing real estate.
      -Assess your shop's ability to afford property ownership.
      -Learn the long-term benefits of owning your business premises.
      -Real-life examples to illustrate key points.
      
      Thanks to our partners, NAPA TRACS and Promotive
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      In this episode, Hunt explores the crucial difference between profit and cash flow. Learn why your high profits don't always translate into more cash in the bank and how to better manage your shop's finances.
      Difference Between Profit and Cash Flow: Understanding why profit and cash flow are not the same and how this affects your financial planning. Accounts Receivable Impact: How the timing of your transactions can create a lag between recording a profit and actually seeing the cash. Managing Inventory: The effects of inventory purchases on your cash flow and strategies to manage it effectively. Fixed Assets and Liabilities: The impact of major purchases and financing options on your cash reserves. https://www.tn.gov/revenue/2024franchisetax.html  
      Thanks to our partners, NAPA TRACS and Promotive
       
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...