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https://youtu.be/8I_6equiTFI

The Panel:

 

  • Denise Guyton-Boyer, SVP Commercial Lending, FCB a Division of ACNB Bank. Denise's banking career has included branch management, consumer and residential lending and commercial lending. She attended Community College, University of Maryland School of Banking, Xerox University of Commercial Lending.
  • Mark Roberts is the owner of Roberts Properties, Inc, Managing Partner of Total True Automotive dba Schertz Auto Service, Craftsman Building and Renovation LLC. He is also partnered with a Local Custom Homebuilder. Mark is also the former owner of Auto Collision Works. He grew up in Schertz and has been a resident since 1969.
  • Mark also serves on the Board at Shertz Community Bank, is a Board of Director of Guadalupe Valley Electric Cooperative, Guadalupe Valley Home Services Corporation, and the Guadalupe Valley Economic Development Corporation. Listen to Mark’s previous episodes HERE.
  • Dwayne Myers, Dynamic Automotive 4 Stores Frederick, MDShop Owner. Dwayne invests time in the industry with the Auto Care Association and serves on the education committee with CCPN (Car Care Professional Network). Dwayne was recently honored as one of only 17 outstanding individuals that qualified for the prestigious 2017 World Class Technician Award presented by The Auto Care Association and ASE. He is very passionate about hiring and sustaining a strong and engaged team. Listen to Dwayne’s previous episodes HERE.

 

Key Talking Points

  • Dwayne’s banker, Denise Guyton-Boyer is his friend first and banker secondTrust is what the relationship is about
  • It is good to have a strong relationship to help get through tough times
  • The banks in your time should be calling on you even if you don’t do business with them
  • Both Mark and Dwayne believe in the value of community banks vs. the big corporate (national) banksMore personalized and involved with your business
  • As Covid-19 proved the relationship with your banker helped navigate the PPP loans with SBA.
  • You do not want a transactional relationship. No matter the situation you want personal service
  • Keep in touch with your banker. Talk to them about your business and our industry
  • Your personal financial statement is very important to gain commercial loans. This helps the bank realize their risk with a personal guarantee.
  • If you are looking for bank support you will need to provideBackground on your business
  • Three years of tax returns
  • Three years of personal tax returns
  • A debt schedule and payments
  • Financial statements
  • Purpose of the loan
  • Collateral for the loan
  • Cash flow statement
  • Mission statement
  • Cash is king.
  • Your banker can help mentor you to financial success to get you to the point where you can borrow money and we a risk they are willing to takeThe banker should work with you hand in hand to process and secure loans. 
  • Will help you consider SBA loans if you do not have enough cash or collateral
  • Credit Unions are an option
  • Mark has learned a lot since being on a banks board of directors and on the loan committee.He has seen all kinds of personal financial statements that tell all
  • Dwayne says to always be truthful with your banker. A good month or bad share it all.Their bank did a video of Dynamic automotive. Watch it here: https://bit.ly/3dH9vim
  • Denise gave Dynamic a second chance at lifeShe saw something in the business to help them
  • In five years they have grown to four stores
  • A business plan is important for a banker to know where the business is goingCash flow projections
  • Work with your accountant. Your Accountant is part of your advisor family
  • Have a solid relationship with your branch manager and their team
  • Banks can offer:Credit cards
  • Construction loans 
  • Mortgages
  • Rehab loans
  • Many businesses do not want to pay taxes and their Financial statement reflects that. If you want to borrow money your statement should reflect the correct net profit 
  • Having a credit line can be an important facility to have to support your businessUse for cash flow
  • Short term purchases if cash wasn’t available
  • It is a short term loan and must be paid back
  • Can be used during a crisis as we had with the pandemic

Resources:

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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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