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Posted

New member and new shop owner, sure am glad I found this site! Thought I would run my basic ideas by you guys and see what you think. I retired from the Marine Corps and I'm in this process of outfitting my shop. I'm not borrowing any money to fund the shop. I have enough money set aside to pay for the equipment and cover the overhead for the first year. I've got a 10,000 square foot shop on a major highway. I plan on doing tires, brakes, oil changes, exhaust, state inspections, and whatever else comes in. I don't plan on rebuilds or anything like that right away. I do plan on major projects for when times are slow. Mainly when I'm able to hire someone else. Right now it's just going to be me, but I think my Dad is coming to work the front with the customers. Luckily because of my retirement I don't have to draw a check from the shop, although it would be nice. For the time being I would rather use that money to pay someone elses salary if I can get enough cars in the door. I've got a website being built, a sign for the building, a CPA, insurance, and ATD for tires lined up. Shop equipment consists of a 2 post lift, 4 post lift, tire changer, tire balancer, exhaust bender, and various odds and ends. Anything I'm forgetting? I haven't done this before and you guys have, your opinions matter! Thanks

Posted

Any large purchases I would suggest discussing with a CPA any tax strategies. If I were you I would want to hoard as much cash as possible. What you can buy as a lease or finance with a decent rate it might be better off for depreciation purposes.

Posted

Thanks for the suggestions, XRAC the above tools are figured in. MSPEC I haven't looked into leasing equipment, I was just figuring on buying to try and keep my overhead as low as possible. I'll have to talk to the CPA about it. I was thinking the Autel scanner could do TPMS functions, more research is in order for me!

Posted

Take the time now to get some auto management training. Do it now or it's not going to happen. This was the biggest mistake I made. I started out the same way you did, same plan, no debt, only employee etc.. If you do not know what numbers you need and how to get them it will be a long and painful road. There are a number of different companies out there that will help you (read, take your money). Do your due diligence in researching them and choose the one that fits you best.

I would advise partnering with a parts distributor, NAPA etc.. You will be able to offer nationwide warranties as well as many other perks.

When the shop is running try to join ASA or some similar group. They will offer training and some mentorship in most cases.

You know about the hard assets you need, tools and equipment. You may know how to repair vehicles. What you probably don't know is how to run a profitable shop (5 years later and I am just starting to get a handle on it).

Posted

Take the time now to get some auto management training. Do it now or it's not going to happen. This was the biggest mistake I made. I started out the same way you did, same plan, no debt, only employee etc.. If you do not know what numbers you need and how to get them it will be a long and painful road. There are a number of different companies out there that will help you (read, take your money). Do your due diligence in researching them and choose the one that fits you best.

I would advise partnering with a parts distributor, NAPA etc.. You will be able to offer nationwide warranties as well as many other perks.

When the shop is running try to join ASA or some similar group. They will offer training and some mentorship in most cases.

You know about the hard assets you need, tools and equipment. You may know how to repair vehicles. What you probably don't know is how to run a profitable shop (5 years later and I am just starting to get a handle on it).

Probably the best advice you can get!

 

A good management training course will teach you KPI's, advertising, employee management, basic accounting/bookkeeping practices, etc. Just like kars, I went almost 2 full years before I actually started being profitable. This may seem like a huge investment, but you'll likely make that money back in 30-90 days if you apply half the information they teach you.

Posted

10,000 sq/ft shop and just yourself??? That's huge. you are going to need hired help, even if it's just a teenager to give you an extra hand for $8/hr.

Get the right software. I strongly recommend Identifix, saves you a lot of time diagnosing. Very important since you're the only tech

  • Like 1
Posted

It is a large space, right location right price. There isn't a lot of buildings available. No one really complains about having too much room!

Posted

I started my shop with just the money I had in my account and slowly grew over time. I had just the tools in my toolbox and no actual equipment. Start slow, don't try and buy everything at first. See what items you need and take the time to do an ROI report for every one. Shop has been open going on 8 years. Have 9 employees, three tow trucks. Just keep your head on your shoulders and THINK about every decision you make. Good luck!

  • 2 weeks later...
Posted

I started my shop with just the money I had in my account and slowly grew over time. I had just the tools in my toolbox and no actual equipment. Start slow, don't try and buy everything at first. See what items you need and take the time to do an ROI report for every one. Shop has been open going on 8 years. Have 9 employees, three tow trucks. Just keep your head on your shoulders and THINK about every decision you make. Good luck!

Tow trucks! For some reason I never thought about that. How is it? Do you have a tow truck driver full time? ROI?

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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