First time poster and glad to be here.
I'm a 40 something entrepreneur not currently in the auto repair business but I've been exploring shop ownership for several years.
Unfortunately, I've come up short using traditional business brokers to find a shop worth purchasing. To date, all that I've looked at have been overpriced and/or have some serious issues.
As shop owners and managers, do you have any tips for finding a solid, well-run general auto repair shop (EBITDA/SDE of $250k-$2MM) to acquire?
I would be grateful for any insights.
By Joe Marconi
I am not one to get political, and there are people that really need help in these times. Let me be clear about that.
With that said, the added $600 in most cases has caused more of an incentive NOT to work. I don't know the answer on how to distinguish who clarifies for extra help, but what I do know is that when people can make more money for sitting at home, it takes away the human spirit to go out and make a difference every day through hard work and community involvement.
It also does not sit well with so many of the essential workers that have worked through the virus crisis, and put themselves in harms way to keep American moving.
How do feel about this? I know it's controversial. Let's be open, honest and civil.
I absolutely can't stand that company. They are the leader in the market (auto repair shop management software) and arguably the biggest company however move at a snail's pace when it comes to making any sort of productivity or efficiency changes. They know they have a lock on their subscribers so they are just milking the cows for all they are worth. Even through that annoyance the most annoying thing is their billing department. I have heard horror stories from others but from my experience they are absolutely garbage. I had a QB integrator on the account that I had tried to cancel multiple times. I kept on getting billed for it even though it showed in their records that I had cancelled months prior.
I can't wait to move on from these turds.
By Joe Marconi
As a result of COVID-19, most business realize the need to enhance their crisis planning. For example, I have always set aside funds to offset any downturn, but my worst-case scenario fund accounted for a 25% decline in business. That was not enough. In addition, securing a line of credit, to only be used in a economic crisis is another way to shore up a business financially.
What changes have you made that will prepare your business for the next crisis?
By Joe Marconi
New York Governor announced yesterday that the stay-home order will remain in effect until May 15th. With so many consumers not driving and so many businesses closed; sales will be a struggle for the next 4 weeks or more. Many Auto Shops across the country will be in the same boat.
Ok, that's the bad news. The good news is that you are a shop owner, and no stranger to making tough decisions and finding solutions to the most complex problems. I know this is different, but truth is we are all learning together, and we will beat this.
With that said, you will be called upon to remove the emotions from the situation and make the decisions that are best for your employees, family and for the business. You will need to look at your average sales and projected near-future sales and adjust your payroll accordingly. I hesitated for a few weeks, but then made the tough decision to cut staff to get my payroll in line with current sales. It had to be done.
You will also need to look at each line on your Profit/Loss statement and see where you can shave any expenses. Even a few percentage points can end up saving a lot of money at the end of the month.
Lastly, have daily meetings and let your remaining staff know what you are doing. Let them know that the number 1 goal is the health and welfare of everyone. Number 2: Ensure the business thrives, not just survives.
You are tough....now go make those tough decisions!