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DonaldPG

By DonaldPG
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DonaldPG Newbie

DonaldPG

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Hi,

 

My name is Don. I am from Nashville, TN and am in the beginning stages of putting together a business plan to open up an automotive maintenance and light repair shop. My goal through all of this is to explore every possibility of the business and build a business plan through comprehensive research, other business owners, and future customers that could be taken to the bank to obtain the money needed to build and start this type of business the way it should be done.

 

About me: I have been a part of various past business ventures, some profitable, some not so profitable. I have a business degree and am still in school pursuing my MBA. I would like to gain as much experience through this forum that I possibly can about the particular operations of an automotive business. I have been lurking around here for a week or two and decided to join this morning. I am not simply stating that I am going to throw a plan together and start a multi-million dollar business overnight. This thread is to walk through a step by step process of putting a plan together and assesing the risks and rewards of getting into this type of business. If it seems promising in the end, it will be a plan I take to the bank and pursue opening and managing a shop around the western area of Nashville, TN.

 

My goal for the shop is to handle all manufactuer scheduled maintenance, light repair work, tires, battery, things of that sort. I want things that will come in and go in one day for most cases. I would like to explore the possibilities of implementing a wash bay and light detail shop to service customers as well and maybe keeping up fleet maintenane for businesses in the area with fleets of vehicles that could be washed and maintained on a regular basis.

 

Please chime in with experiences from your own business and what you would change if you were going to start over from scratch. I am interested in hearing all of your experiences and way to improve your business. I want to put a business plan together that is as close to bullet proof as possible. I am willing to do the due dilligance I am just looking for a little information from experience. I will be asking things such as opinions on equipment, advertising, building layouts, services offered, management systems, inventory, customer service followup, etc.. Please join me on this journey over the next several months to build a business the right way!

 

Don Garside

Nashville, TN

DonaldPG Newbie

DonaldPG

Posted
  • Author
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Thanks for the reply. I thought you might be one of the first to chime in Joe. I have read many of your posts and you seem to be very knowledgeable of the industry. I have read a few of your blog entrys. I am going to check it out start to finish one afternoon when I have a little more time. I look forward to hearing of some experiences you might have pertaining to some issues I am going to come up with while writing up this business plan.

 

I agree that with the economic down turn if a buiness can start up and be set to operate on lower revenue levels it will greatly reap the benefits in the near future when people start to get loose with their money once again.

 

In the next week or two I will be laying out the ground work for this business venture I hope many of you will chime in.. Thanks

 

Don Garside

DonaldPG Newbie

DonaldPG

Posted
  • Author
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Well the first stages are going to start tomorow with mapping out the competition and drawing up exactly what I want in the business. I will post it up tomorow night and let you guys take a look at it. I look forward to learning a lot from you guys.

 

Don Garside

autoguy Rising Star

autoguy

Posted
Posted
Well the first stages are going to start tomorow with mapping out the competition and drawing up exactly what I want in the business. I will post it up tomorow night and let you guys take a look at it. I look forward to learning a lot from you guys.

 

Don Garside

 

Hey Don, where did you post it? Is it in another forum?

DonaldPG Newbie

DonaldPG

Posted
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No I have actually been throwing around a few different models as to weather I want to focus on larger commercial vehicles (big trucks, landscape trucks, dump trucks) or stick with the more traditional type shop and just service cars/trucks. I have grown up around the commercial transportation industry and know that many times a quick oil change and lube is all that is needed. You have to call dealers many time and make appointments and the drivers have to wait 4 and 5 hours to have the truck greased and the oil changed. I believe there is a good opportunity for a shop that focused on these things for commercial transportation companys and also local companies that have oversized vehicles.

 

Any thoughts?

Alex

Alex

Posted
Posted
No I have actually been throwing around a few different models as to weather I want to focus on larger commercial vehicles (big trucks, landscape trucks, dump trucks) or stick with the more traditional type shop and just service cars/trucks. I have grown up around the commercial transportation industry and know that many times a quick oil change and lube is all that is needed. You have to call dealers many time and make appointments and the drivers have to wait 4 and 5 hours to have the truck greased and the oil changed. I believe there is a good opportunity for a shop that focused on these things for commercial transportation companys and also local companies that have oversized vehicles.

 

Any thoughts?

 

I would probably try and build on the commercial end first and have the main stream automotive secondary. But, before investing in this type of business with equipment, etc...I would analylize the market and visit potential customers. There are bigger $$ in the commercial end, along with contracts, fleets, repeat business. :D

Bothell Newbie

Bothell

Posted
Posted

Hi Joe,

 

I read all your blogs and wanted to thank you for keeping us updated. I was wondering if you were going to try to post some pictures of your new 4 bay facility? I am new to this business with no prior experiences. My shop is 6 months old. I am 26 years old and everything that has happened has been an emotional roller coaster. I read all your blogs in one day and wanted to let you konw that it helped me feel better.

 

I know it might be too far back to remember your first year but what were your biggest obstacles and how did you overcome them?

 

In one of your blogs you mentioned that marketing & advertising for growth is critical to the success of the business. That has been my main focus since starting and I have been trying them all, some worked some didn't. The ones that didn't I haven't given them a second chance yet. Do I keep trying new techniques, even though I have been spending quite a bit of money?

 

Thanks...Robert

Bothell Newbie

Bothell

Posted
Posted

Hi Joe,

 

Thank you for your response, I look foward to reading your next blog and seeing some pictures of the construction.

 

THanks...Robert

 

Robert, it makes me proud to have a fellow shop owner read my blog. My goal is to help other through my experiences. I wish you the best of luck.

 

I was 25 years old when I opened my shop. I rented 4 bays in a large building shared by two others business. And although that was 28 years ago I remember it like it was yesterday. As you may know we grew to six bays and soon will have 2 facilities with a total of 10.

 

As far as obstacles go, I would have to say that the biggest obstacle I had was to learn how to be a businessman and not just a tech that happened to own a business, there were so many business skills that I did not have, and that actually hurt my business for a number of years. When I left the Ford dealer I was an A rated tech, performing everything from transmission overhauls to engine rebuilding. But, what I did not know is that being the best tech does guarantee success in the

 

business world.

 

Marking and advertising are two key elements in growing a business. In my opinion, marketing is more important because advertising may get them in the door, but how you market your business keeps them coming back. The best brake job in the world means nothing if you were rude to the customer or did not get the car back to them when promised.

 

If a marketing strategy or advertising promotion works, stay with until it does not work. Don’t be afraid of trying things new. If something does not work, no big deal. Learn from it and move on. Don’t give too much away either. Sell value, not price.

 

Remember, if price was the only factor people cared about, people would be driving Yugo’s not Honda’s and Toyota’s. Yugo was about price, not value.

 

Let’s keep in touch and please ask me anything. I will be making a blog entry this weekend and will be posting photos soon.

 

Joe Marconi

  • 2 months later...
jjtangye Rookie

jjtangye

Posted
Posted

Hello, I'm a new member, also looking for advice, for opening a shop. I haven't had a chance to read the blogs yet, but I look forward to anyone and everyone's guidance.

  • 2 weeks later...
Alex

Alex

Posted
Posted
Hi Joe,

 

I read all your blogs and wanted to thank you for keeping us updated. I was wondering if you were going to try to post some pictures of your new 4 bay facility? I am new to this business with no prior experiences. My shop is 6 months old. I am 26 years old and everything that has happened has been an emotional roller coaster. I read all your blogs in one day and wanted to let you konw that it helped me feel better.

 

I know it might be too far back to remember your first year but what were your biggest obstacles and how did you overcome them?

 

In one of your blogs you mentioned that marketing & advertising for growth is critical to the success of the business. That has been my main focus since starting and I have been trying them all, some worked some didn't. The ones that didn't I haven't given them a second chance yet. Do I keep trying new techniques, even though I have been spending quite a bit of money?

 

Thanks...Robert

 

Welcome to AutoShopOwner!

 

Hello, I'm a new member, also looking for advice, for opening a shop. I haven't had a chance to read the blogs yet, but I look forward to anyone and everyone's guidance.

 

Welcome to AutoShopOwner!

  • 2 weeks later...
jjtangye Rookie

jjtangye

Posted
Posted

I'm having a hard time finding any current data that shows that the independent repair shops are "kicking ass", cause it'd be really helpful for my business plan. Does anyone know where I can find this data?

autoguy Rising Star

autoguy

Posted
Posted
I'm having a hard time finding any current data that shows that the independent repair shops are "kicking ass", cause it'd be really helpful for my business plan. Does anyone know where I can find this data?

 

Good question, I would like to know myself.

  • 1 month later...
pammi93637 Newbie

pammi93637

Posted
Posted

dear friend

i have a smog check shop in california and i am thinking to hire a employ as a contractor...plus please can you guide me to have him sign, some guidelines that he has to follow during the work....i heard about a form 1099.....but i think you have more experience,,,,so plz help me....you cam e mail me

thanks in advance....................pammi singh

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's 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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