Quantcast
Jump to content
    • You can post now and register later. Already registered? sign in now to post with your account.
    • ×   Pasted as rich text.   Paste as plain text instead

        Only 75 emoji are allowed.

      ×   Your link has been automatically embedded.   Display as a link instead

      ×   Your previous content has been restored.   Clear editor

      ×   You cannot paste images directly. Upload or insert images from URL.


      Once you submit your question, a new topic will be created for you in our forums. Our moderators may move your topic to a more suitable forum category if one exists. Members will see your topic and be able to respond to your question.

    • This will not be shown to other users.
auto74

Unsure of whether to give the business a try.

Recommended Posts

Hi, looking for a different perspective on a possible business opportunity... sorry ahead of time for the long winded post

 

The business: 70 year old family owned service station that's gone downhill in the 15-20 years. Virtually idle, as old established client base literally dies off from old age.

 

The good:

1) 100% mortgage free. Taxes+insurance are the big bills.

2) 5 service bays. 2 bays with lifts (1 newish lift, 1 ancient lift), 2 bays with a 2 car long pit.

3) 50' street frontage 1 lot up from a busy intersection. ~15-20k cars per day on each cross street.

4) large enough lot for a small used car lot ~15 car space, still with room to access 2 large bay doors in front

5) large enough back lot for 30 cars... a 40x40 building would fit with some room to spare.

6) Reputation for honesty

 

The bad:

1) leaky office in disrepair, flat rubber roof over entire building. Would take me a couple of months to gut the office and fix the leaks., "elbow grease" work in my spare time

2) exterior of building needs some TLC, more "elbow grease" kind of work.

3) front lot needs to be repaved at some point, not too attractive

4) not much of an existing client base

5) old equip... almost 0 diag equipment.

6) old junk everywhere, nothing has been tossed in seemingly forever.

 

I'm in high tech and don't plan on quiting the day job as it probably pays more than I could make at this place anytime soon, since there is zero existing business. And I can use some of the cash I make now to try and invest in the business. It absolutely PAINS me to see the place completely under/misutilized like this and I've wanted the chance to do something, anything there even it ends in failure. At least I gave it a shot.

 

Possible ideas:

1) Lube shop that utilizes the pit. minimal investment in equip. Get people in and provide greate service that may lead to other repairs in the future. I've gotten mixed reports on lube shops... Seems like it an endangered business since oil changes are freebies with a new car and the 12,000 and 15,000 mile oil change recommendations. But, the few times I've staked out the other lube place a few miles down the road all three bays are packed.

 

2) Tire business. Maybe 10-15k in investment up front for a modest used tire changer and balancer. There are two existing old workhorse coats machines that aren't really good for doing newer alloy rims. Maybe pair up with Tire Rack for promotions.

3) Both lube and tire...

 

The idea is to start doing the gruntwork building improvement myself and with a helper until it gets to a point where I wouldn't be embarrased to have a client/customer walk into the office. There is a pretty trustworthy guy who rents one of the bays now who would love to get in on something like this. He'd do the most of the auto work till it ramps up and I would spend most of my time doing marketing to get people in the door.

 

I'm really not sure if an arrangement like this can even work. I want it to be a win-win for whoever is willing to take a chance and get involved. I believe the place could be a great business.

 

There is also the possibility of renting one or more bays to folks like car detailers. I've been at the office two times in the last month when someone came in and was looking for a bay to rent. A single rented bay can pay for around half the yearly taxes.

 

Any thoughts? Advice on how to set up a business partnership? Any other caveats?

 

Share this post


Link to post
Share on other sites


Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Topics

    • By Joe Marconi
      We, automotive shop owners of America,  must take the opportunity of a lifetime and turn it into a bunch of success stories. What opportunity?  Look around you. The world is in turmoil. COVID-19, social unrest, uncertainty about the presidential election, the economy, how are we going to get out kids back to school, on and on and on.
      While the world is spiraling out of control, we have the power to make big changes to our auto repair shops.  And it can all be positive! 
      The Opportunity...
      First, the average age of a car in the U.S. is about 12 years old, attaining well over 200k on the clock. 
      Second, Uber, taxis and limo companies are suffering.  Guess why?  
      Third, the motoring public in the foreseeable future will be traveling by car, taking road trips like they have never did before.
      Fourth, the roads are packed with motor vehicles, as more and more people prefer their own car as their primary means of transportation. 
      Fifth, as the cars get older and older, more of them will be out of factory warranty.
      Sixth, independent auto repair shops have a vast amount of training, resources and replacement parts.
      Seventh,  the overwhelming majority of cars being build and sold today are still internal combustion engine powered cars. If you factor in the expected average age of car these days, we can safely bet that those gas engine cars being sold today will still be on the road in 2033 and beyond! 
      Eight, You need more?  That's not enough! 
      Get your plan in place.  Get your prices in line with making a profit. Don't give anything away anymore (I am mostly referring to checking, testing, diags of any sort!) Offer world class customer service. Be a leader of your employees.  Show the world what you are made of! 
    • By Elite Worldwide Inc.
      This is your last chance to enroll your service advisors in Elite's Masters Service Advisor Training Program starting September 10-12! 
      To ensure that we're able to comply with social distancing and keep your advisors safe, this is a rare opportunity for your advisors to receive this industry leading sales training entirely online! 
      Your advisors will not only receive 100% of the training that we offer at the live 3-day course, but you'll be able to save on travel and hotel expenses, and your advisors won't have to spend any extra time out of the shop due to travel. Most importantly, after the initial 3 days of online training, your service advisors will still get the identical 6 months of sales coaching from Ratchet & Wrench All-Star Award winner Jen Monclus, which has been proven to increase sales by an AVERAGE of $10,750 per month after the training!
      This is your last chance to enroll, so give us a call at 800-204-3548 to take advantage of this rare opportunity. For more info, feel free to visit our Masters Program web page. 
    • By Joe Marconi
      I can't speak about all businesses in my area, but the repair shops are doing ok. In fact, most had a normal or near normal summer.  A few weeks back we had a major storm that knocked out power for nearly the week. That killed the week. But aside from that, we had a very good June, July and August.   With a miserable March and April, this was a great morale lift and financial boost.
      The only  down side is the affect COVID is having on other businesses, like restaurants, deli's, sport businesses and other businesses. Will this have a trickle down effect on our industry.  No one can tell for sure.
      I will be shoring up my finances and preparing for the unknown. 
       
       
       
    • By Elite Worldwide Inc.
      Special Announcement
       
      Elite's September 10-12 Masters Service Advisor Training Program Will Be Presented Entirely Online!  
       
      Only a Few Seats Left!
       
      To ensure that we're able to comply with social distancing and keep your advisors safe, our Masters Service Advisor Training Program starting September 10-12 will be presented entirely online! 
       
      Your advisors will not only receive 100% of the training that we offer at the live 3-day course, but you'll be able to save on travel and hotel expenses, and your advisors won't have to spend any extra time out of the shop due to travel. Most importantly, after the initial 3 days of online training, your service advisors will still get the identical 6 months of sales coaching from Ratchet & Wrench All-Star Award winner Jen Monclus, which has been proven to increase sales by an AVERAGE of $10,750 per month after the training!
       
      There are only a few seats left, so to reserve your advisor's spot, just give us a call at 800-204-3548. For more info, feel free to visit our Masters Program web page. 
    • By Elite Worldwide Inc.
      We're excited to announce the arrival of Sales Master University, Elite's online service advisor training service that delivers higher sales and happier customers to your shop!  
      What is it? 
      Every month your service advisors will have access to the industry's top sales training delivered by Ratchet & Wrench All-Star Award Winner, Jen Monclus. Plus they'll learn from superstar shop owners and service advisors to help them with real world application, and will benefit from assignments, testing, resources and more.   Your advisors can start learning the moment you enroll them, and can complete each lesson at the pace they choose from the place they choose for only $49 per advisor per month!   Enroll your advisors in SalesMasterUniversity.com today and get ready for amazing results. 
      BONUS: Enroll before July 31st and become a Charter Member and receive Mastering Sales Objections and Phone Procedures for the Automotive Professional, FOR FREE! 
      Visit SalesMasterUniversity.com to get your advisors on the path to higher sales and happier customers today!


  • AutoShopOwner Sponsors



×
×
  • Create New...