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Study Reveals Many Auto Shops with Financial Hardships

Joe Marconi
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alfredauto Experienced

alfredauto

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I must be an outlier, my business has zero debt. Of course I have 30 day accounts for parts but that's it. My thoughts are if the business can't pay for itself something needs to be done immediately. I went through some lean times, the cause was trying to become too big. I slimmed down to bare bones; one tech and myself. Most "experts" would say I went in the wrong direction but I disagree. Both my guy and myself take 4 weeks vacation every year. I do my own payroll, with one guy its simple. I stopped doing non profitable jobs, easy to say no to the b.s. work when there's only one guy to feed.

 

Honestly I make more profit doing half the amount of volume. I can keep one guy busy cheaply and easily, trying to keep a crew busy was a major stress which involved major cash outlays to keep everything going.

 

The only drawback really is I'm changing flat tires and mopping the floor on a regular basis. I'd be doing that for someone else if I kept going like I was.

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John Pearson Collaborator

John Pearson

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I am 160k in debit with my shop. I needed a small loan when it came time to buy new equipment when we added 4 more bays. the other 120k is a piece of land that we plan to build our own building on in 5 years.

 

Thats another shity situation though, I bought it for 150k and then 6 months later the state comes in saying they need it for a road improvement and will only pay 40k for what they need and are taking 3/4 of it and not leaving me enough space to build anything. we are still fighting that.

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