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From Investment Banker to Shop Owner [RR 752]


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Ready to be inspired by a shop owner that came from the merger and acquisition realm? Why did he choose our industry? What fresh perspective does he have?  I’m with Thomas from Hotchkiss Auto Repair and his passion about people and training is infectious.

Thomas, Hotchkiss Auto Repair, Denver, CO

Key Talking Points

  • He came from the M & A (mergers and acquisitions) world as an investment banker. Looked into different industries to get into, over 800 small businesses in 1 year. He found automotive is highly segmented and recession-proof. 
  • Don't be a bank teller- build a relationship
  • Buying an existing business- what’s working? Why do customers already love this business? What can your background/strengths improve the business? The most valuable asset is the people  
  • Power of people- you can’t get a degree for it
  • Accountability for the owner- do your employees feel like they’re making an impact on the workplace? Empowered? Value? 
  • Monthly meetings- what went well, what didn’t go well, and what are you doing to be the best version f yourself? Express positive and negative and be heard. 
  • Job vs career- training and development and career track. Creating a habit personally and professionally. 
  • Challenges- losing teamwork as there are more turnover and fewer people developed through their technical careers. Creates labor inflation and competition for talent. National brands with mergers and acquisitions   
  • Training resumes/libraries
  • Motivation cannot come from external sources
  • Joined the NAPA AutoCare Elite Business Development Group (BDG) Colorado, for which he hosted its latest Elite Owner Support (EOS) meeting where members gather to support, educate and grow each member’s shop through constructive criticism and honest evaluations.

 

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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