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Joe Marconi

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Blog Entries posted by Joe Marconi

  1. Joe Marconi
    Tomorrow is the bank closing for the construction loan. A construction loan is different from a bank loan for property, home or condo. Let’s say you looking to buy a home that sits on an acre of land and the agreed upon price is $500,000. The bank will do its due diligence to determine if this is a sound investment. The bank will also insure that your income qualifies you for that particular loan. With a construction loan such as mine, where I am erecting a 4 bay facility on property that I already own, I go to the bank with a plan. My plan must include projected costs of the project, projected increase in business and details on how I will grow the business. The bank does an analysis to see if the plan makes financial sense.
     
    For a construction loan, the bank will need to see detailed estimates from the builder, plumber, electrician, excavator, etc. The bank will also perform an appraisal to determine the value of the property and business at the present time and the projected value after the completion of the project. This is extremely important. If the loan amount you’re asking for is $500,000, the bank will use the property and building as collateral against the $500,000.
     
    Another major difference with a construction loan is how the money is disbursed. Let’s go back to the example with the purchase of a home. The bank will lend you the full amount at closing for the home less closing costs and any money you put up. You start paying back the loan with interest usually the following month.
     
    With a construction loan, money is disbursed in stages. The bank oversees the project and distributes only the money to pay for the portion of the project that has been completed. So, let’s say the excavator’s work is complete and his bill his $75,000. The bank will release the money to pay that part of the project. You pay only the interest on the portion of the money borrowed. The actual loan (principle and interest) does not begin repayment until the project is complete.
     
    This is why it is extremely important to work with the contractors and vendors to get hard figures and calculations. You don’t want to go over budget and be left with less loan money then what you projected. AND, always build in a contingency figure of 10% or 15% to cover unexpected expenses. Believe me, there will most certainly be unexpected expenses.
     
    Also remember to factor into the project all the expenses you incurred prior to putting a shovel in the ground; Architect fees, site work, attorney fees, consulting fees, town fees and any other expenses incurred prior to and not including the actual building construction.
     
    A word of advice when dealing with contractors and vendors, get everything in writing. Don’t rely on the “good old handshake”. Another piece of advice, when you make a mistake, and you will along this tough process, put it behind you. Mistakes are unavoidable.
     
    Stay tuned!
  2. Joe Marconi
    We have all seen botched automotive repairs by people who were either not qualified or who tried to save money by attempting to do the repair themselves. And in the end it cost more money then it would have originally been because now the job has to be done over or completed correctly. The same holds true when building an addition or new facility.
     
    Picking a General Contractor is perhaps one of the more crucial steps if you are going to expand your facility or build another facility from scratch. Unless you have experience in construction or your family is in the construction business, I would not recommend doing it yourself. You need to pick a qualified General Contractor. There are just too many areas that you may not be qualified in.
     
    In my case, the general contractor picked up many questionable items during the design stage that would have cost me money down the road. Also, the coordination of all the different contractors is mind-boggling. A good G.C. knows the right contractors and will hand pick the best people for the job. The G.C. gets paid a percentage of the total job, but it’s well worth it.
     
    For me, I need to know that the project will be taken care of from start to finish so I can concentrate on building and running my business. My expertise is the automotive business, not the construction business.
     
    When choosing a G.C. ask people in your local area about well-known builders. Also, ask your customers. There just might be a G.C. or builder in your own database. Try to stay with a local company. It will be easier to go and see some of the work that the G.C. has done before. Plus a local G.C. knows the area, has dealt with the town before and will be familiar with your local building department, planning board and zoning board members. This makes a huge difference, especially if you live in a small town.
     
    As we speak, the framing is started and the property is finally graded and ready for new blacktop.
     
    Stay tuned!
  3. Joe Marconi
    After weeks of working with a graphic designer and reviewing tons of marketing information, we finally agreed upon the new signage and tag lines for the business. The new logo is redesigned from the old logo and will be more visible from the road. The tag lines are simple and to the point. The colors did not change: red, white and blue. We proudly took our new proposed signage to the Architectural Review Board for approval only to be shot down like a duck on the first day of hunting season.
     
    The panel consisted of six people who scrutinized my drawings as if there was a deep, dark, hidden message within my logo. They talked among themselves as if I were not even in the room. The funny thing about it was that the chairman said he had no problems or issue with my signage. It was the rest of the panel that had issues, especially one woman who wanted to change the shape of the signs; which would actually change the logo.
     
    I lost my cool for a moment and asked the panel if they gave McDonalds, Starbucks, Dunkin Donuts and K-Mart a hard time about their signs, colors and logos. I went on to explain that logo branding is a key part in marketing and that extensive research goes into logo and signage design. That did not go over well. All I got after my comments were blank stares and an invitation to come back in two weeks.
     
    Their concerns were that the signage might not go well with the building design. From the road, the building shows only the customer service area, the work bays face the rear of the property. Maybe they have a point.
     
    So now I need to go back and make changes and compromises, but holding to my original logo design.
     
    When dealing with town boards, compromises are inevitable.
     
    Stay tuned!
  4. Joe Marconi
    The construction of a new building involves a coordinated effort among many people and all must pull their weight in the right direction. Without teamwork and precise harmonization, things start to fall apart. And the buck stops with ME. No one else will share the blame when things go wrong. It’s a lot like running your business; every day you make tough decision that may not be favorable to everyone.
     
    This process of expanding the business has taught me to make those tough decisions based upon what is best for the company. You need to analyze what is best for the project to insure its success. It’s not important that a friend who happens to be an electrician did not get the contract. If you decide that another electrician is a better choice then make the right decision. Your friend will have to understand. And, besides, he doesn’t help you write the mortgage check…does he?
     
    Remember, in the end the entire success of the project rests on your shoulders. It’s not a popularity contest. When my kids were young I would tell them: “I am not your friend, I am your father. I make decisions based on what is best for you. I don’t worry about whether you approve of my decision”.
     
    There is a lot at stake with a project of this size. Educate yourself, do your homework, ask many questions and make those tough decisions. Think it’s easy? No. Does it get easier? No. Will you make mistakes? Yes. But you will never hit a home run unless you swing the bat. And sometimes you strike out too.
     
    Stay tuned!
  5. Joe Marconi
    We are now in our 6th month of construction. The building is completely framed with the electrical work almost done. The windows, doors and siding should be complete by the beginning of December. This coming week will be a challenge. We need to put the binder coat of blacktop down before the blacktop plants close for the winter. This will mean loss of at least one to two workdays. And with Veterans Day on Tuesday (a usually great sales day), I do not want to loose much needed revenue. We will probably have to schedule around the blacktopping and make up for it later on in the week or on Saturday, with longer days, possibly into the night if needed.
     
    The past six months have been filled with excitement, anxiety, fear and anticipation. We finally got approved for our new signage, which completes all town permits. We need a DOT inspection of the driveways, which I don’t see any foreseeable issues.
     
    Probably the biggest concern is going through the winter months. We are located in New York, about 45 minutes north of NYC and the weather can be unpredictable at best. You can have 60-degree days in January and 3-foot snow falls in February. This can delay construction and consequently delay our opening.
     
    Other concerns of mind are the details of the project. Every aspect of the project: construction, finance, equipment purchasing, financial forecasting, advertising, marketing, branding and goals are being reviewed and tweaked.
     
    They say experience is the best teacher. If that is so, I have the best instructor in the area.
     
    Stay tuned!
  6. Joe Marconi
    Some people ask me why I have taken on a project of this size in this economy. With the downturn in business, why not wait until things get better? Other shop owners question my sanity. They tell me; “don’t you have enough problems running the business you have already’? Why do you want more headaches?
     
    Well the truth is, I didn’t know the economy was headed into a downward spiral. And even if I did know, would it be reason not to expand? And is growing a business adding more headaches?
     
    Right after I got my approval from the town planning board last February, my shop foreman, lead tech and service advisor came to me and urged me to wait on this project because of the economy and the rise in gas prices. I told them absolutely not. I assured them that I have done my homework and did the math. I told them this would work. It will take hard work and years to see a profit, but when this expansion is complete it will be the largest and best-looking state of the art facility in the area.
     
    I also told thanked my crew for their concern and understood that they were fearful of their futures also. But I told them that without risk there is no gain. I reviewed with them the reasons for the expansion: the parking issue, the fact that we have outgrown our current facility, the fact that we own a building next door that is in such disrepair that its mere appearance hurts us and that just doing nothing would be wrong. By demolishing this building and erecting a new building with a brand new large parking lot would be good for business. The project also makes economic sense. It will increase the value of the property and makes the property and buildings more marketable.
     
    There will always be people who will think you are crazy. One of my tool vendors actually advised me against expanding because he felt I would be creating a business too large to sell. Too large to sell? Do you think Donald Trump ever felt that way? Or Bill Gates? Or Warren Buffet? I am not putting myself in their company, but that tool vendor is crazy, not me!
     
    My advice? Chase your dreams. Walt Disney lived by this creed and look at the empire he built. Don’t settle for average. Anyone can be average. Push yourself to keep growing and expanding. In business, if you’re not growing, you’re dieing!
     
    Stay tuned!
  7. Joe Marconi
    Where is your daily focus? This is a question I ask myself constantly. If your daily focus is fixing and servicing cars, then that is what you will accomplish on a daily basis. But, as the leader of your company, is this where your focus should be?
     
    We are in the business of repairing and servicing the motoring public. But in order to grow and be successful, the leader of the company must work on insuring the success of the business. The leader of the business must work on marketing, advertising and creating systems that, when followed, will allow the business to run on its own. I tell my people that our company can only be a success if it runs without me.
     
    To have a company run on its own requires systems and policies along with the adequate training to insure that all procedures are followed. All systems and policies must be written and explained in detail to every member of the company. Constant review is vital. A system of checks and balances must also be put into place.
     
    To create a self-run company takes a great of time, and trail and error. Take for example the work-flow process. Every detail of the work-flow process must be detailed and itemized in writing: Customer write up, dispatch, reviewing the work order with the tech, road testing, the checklist, up sells, the actual repair, reviewing the completed work order and car delivery.
     
    With my expansion project, I have taken every segment of my business and broken it down into categories. For each category, I have written a series of procedures so that every employee understands what his duties are. Check lists and reports are generated and reviewed to insure that things are getting done properly.
     
    Years ago I was the hub of my business and every action required my involvement; from obtaining parts, to diagnosing jobs, to making payroll, cleaning the shop, road testing, selling work, etc, etc, etc. This is the most inefficient way to run a company and was doomed to fail. I needed to change and I did.
     
    Build a business that runs without. Empower your people to act with authority with the ability to make decisions. Create positions in your company where people report to each other and not to you. Relinquish control and watch your company grow.
     
    Stat tuned!
  8. Joe Marconi
    Setbacks are inevitable. Some are controllable. Others are not. Three weeks ago we planned on pouring the cement slab and finish the sidewalks, but the weather turned too cold. With temperatures in the low 20’s and a bone-chilling wind, the mason decided to wait. This past week, Mother Nature cooperated, and with temperatures in the mid 40’s; we finished the slab and sidewalks. The mason and his crew worked till midnight the Wednesday before Thanksgiving. I have a deep respect for people in the trades.
     
    A major setback occurred this week and is yet not resolved. It threatens the project and may delay the opening of the new facility. This setback has to do with the Department of Transportation. (DOT). First of all, you cannot build anything in this country without intervention from government agencies. And I swear, the pyramids would probably still be in the planning stages if we had government intervention back then. As a matter of fact, I’m not sure if the word “intervention” is correct. It’s more like government “interference”.
     
    Before a shovel is put into the ground you need the approval of the Town Planning Board, Town Zoning Board and the Architectural Review Board. The Department of Transportation gets involved, along with the Environmental Protection Agency. If you survive this, there’s the bank loan process to add a few more gray hairs. This process for me took about 2 years. So, as you might have guessed by now, I have had it with regulations and government agencies. But anyway, here’s what happened…
     
    The DOT has their input with respect to the driveways and curbs out on the road. I had to get a DOT permit and issue a bond before any work was started. In the permit are certain specifications that the site engineer must conform to when he draws his plans. The excavator follows the plans, grades the property and constructs the curbs in accordance with the approved site plan.
     
    Before work is started we needed to inform the DOT and ask for a meeting, which we did. When we called the DOT, the agent assigned to our case said, “Just let me know when it’s done and I will come out and inspect the site”. That was our first mistake.
     
    Our second mistake occurred when we called the DOT agent just before we did the actual excavation work on the DOT section of the property (the driveway and curbs). The agent again told us to call him when the job was complete. And that’s exactly what we did.
     
    We completed the curbs, blacktop and driveways and called the DOT agent. After repeated calls to his office he finally came out and guess what he said? You guessed it… The work is not acceptable. There’s a problem with the driveway grades. The shoulder of the road needs to slop away from the center of the road according to the specifications stated in the permit. This was Wednesday before Thanksgiving. The same day the mason worked till midnight to finish the concrete slab. What’s more annoying is that the DOT agent was out to site on Monday and never said anything to anyone. No one knew he came out. No one saw him. I had to finally call him Wednesday afternoon, only to find out he did come and he would not approve the work. And to top things off, he is leaving early for the holiday. Early for the holiday! I guess it’s nice to have a cushy government job these days, while the mason has to put in a 16-hour day just to have off on Thanksgiving!
     
    The DOT SOB never came out when we asked for a meeting at the start of project, never came out when we asked to meet before we started the work on the DOT section of the property and we had to beg him to come out to inspect the work once competed. And he did not even identify himself when he did come out and never called me. I had to call him.
     
    What’s the lesson in all this? Cross every “T” and dot every “I”. Do your due diligence. In the DOT permit, it is advised that a meeting be set up with the contractor and site engineer. Don’t listen to a lazy DOT agent. Insist on the meetings, go over the site plans and get everything in writing. I blame myself only because I am the one who needs to overcome this obstacle. After all, the DOT agent went home to a nice early holiday weekend. I know he enjoyed his holiday bird while I ended feeling like a turkey.
     
    Stay tuned!
  9. Joe Marconi
    There’s an expression that states, “You are who you associate with”. I have learned from this expansion project that this is brutally true. In order to grow and achieve the best for yourself in life you need to associate with people who share the same dreams, goals and aspirations. It’s amazing how many business people, including other shop owners, question the rationale behind my desire to grow my business. Maybe it’s a touch of jealousy? On the flip side, it’s remarkable how many customers wish me the best of luck and are behind me 100 percent.
     
    Then, there are the rumors. The gossip that got back to me is actually funny and sad at the same time. People told me that they heard that a major parts company was backing me. Others told me that they heard the only way I could accomplish this expansion was by charging astronomical prices for years past and by paying my people dirt-cheap. The best story is that I am somehow tied to organized crime. While I do admit that I grew up in the Bronx and of Italian decent, this is laughable. I don’t think Tony Soprano would be interested in my auto repair shop in update New York.
     
    I guess what really hurts are the comments from shop owners I have known for years that throw digs my way. Is it that hard to believe that a shop owner, of my caliber, take on a project of this size? Is this too far fetched? Maybe they are reacting to their own inabilities.
     
    The truth is that when I stand back a look at my project, it IS hard to believe that I’m actually doing this. It’s scary and things can go really wrong in a hurry. But the thrill of doing something like this is incredible. I will end this with another saying, “It is better to have tried and fail, than to have never tried at all”.
  10. Joe Marconi
    In business, if your not growing you’re dieing. This may be harsh, but true. All companies need to grow to survive. Whether you have 2 bays or 30, it doesn’t matter.
     
    For the first five in business I grew from nothing, so any growth was positive. After eight years my sales hit a plateau and hard times followed soon after. By my tenth year, I was nearly broke. It took me an additional 2 years to realize that although I could fix cars I could not fix my business. My skills were all mechanical. I needed to learn a new set of skills: The skills of business. It took an additional 2 years to create a plan that would free me from the hole I dug for myself.
     
    By 1994, I created my first business plan. I made major changes to the business and started watching the numbers of the business. I increase the staff to take on duties that I once performed: Every position from lead tech, service advisor, janitor, office manager, shop foreman, receptionist and just about every other position. I needed to give up control of the daily operations in order to gain control of the business.
     
    Changes were made in areas of marketing, branding and advertising. We launched programs that targeted our existing customers and reached out to prospective customers. We experimented with different forms of advertising: some worked, a lot did not. But, you will never know what works until you try. Today, our marketing and advertising is focused on growth.
     
    Once we made the decision to increase the business from 6 bays to 10, we ran the numbers to see what sales we would need to generate the income needed to pay for the expansion and return a profit on the investment. We also learned how many techs will be needed, the number of service advisors and support staff.
     
    Everything is on paper in a detailed business plan. Comprehensive strategy and scenarios were also written to simulate real life conditions. In-house training will be a key component. We compare to this to a football team or baseball team where all players are working in unison toward a common goal.
     
    Growth in business is determined by you particular needs, abilities and desires. All that matters it that you grow. You don’t have to achieve the status of Disney World or Trump Enterprises to be successful.
     
    Everything starts with a plan. And a plan is written. If your goals, dreams and aspirations are all in your head, there’re in the wrong place.
     
    Stay tuned!
  11. Joe Marconi
    We are in the final stages of construction. The exterior siding is almost complete along with the electrical work, plumbing, security system, heating and air conditioning. We expect the building to be complete within six to eight weeks, barring any unforeseen obstacles. Photos of the project will be available soon.
     
    A great deal of time has been spent on the design and layout of the not only the building, but the parking lot layout and the workflow process, as well. One thing I have learned in the past 28 years is that productivity is the key to profit. How your technicians move through the day can be the difference between making money and losing your shirt.
     
    Our old parking lot was a nightmare. We would park 25 to 40 cars in a lot designed for a maximum of 18. We would stack cars 3 to 4 deep and found ourselves on many an occasion moving 2 to 3 cars to get to the one we needed. This killed productivity and morale. We can now park 50 or more cars which greatly improves productivity and traffic flow. Also, an inviting, organized parking area means a lot to customers. They know where to park, and find it easy to navigate in and out of the lot.
     
    Perhaps the most important is in bay design. The existing 6-bay shop will be reserved for the bigger repair and maintenance work: transmissions, engine repair, analysis, timing belts, etc. We will staff this building with 3 techs, a foreman and a service advisor. Each tech will have 2 bays. With this design, a tech can bring a car in one of his bays, diagnose the problem and have the other bay available to start on another car if he needs to wait for parts to arrive. Or, if an unexpected vehicle arrives with a problem, having an extra bay available is convenient. This eliminates having to put cars back together when waiting for parts or having to work on jacks outside the bay due to lack of room. Again, I can’t stress enough that productivity is the key to profit. Keep the techs flowing smoothly throughout the day will make you more money.
     
    The new facility will have 4 bays and will primarily be used for more express-type service: oil change service, tire rotations, state inspections, tires, alignments, batteries, etc. One of advantages of designing a building from scratch is that you design it the way you want. Everything aspect about the new 4 bay shop is tied to productivity: The location of the office, phones, computer information system, inventory, bathroom, tire machine, balancer, floor jacks, jack stands, part delivery entrance and other equipment.
     
    Each bay will have overhead access to an air line, droplights, electrical power and metered oil reels. Each tech will have a cart complete with chemicals, rags, oil drain plugs, oil drain gaskets and other hardware. You don’t want techs walking to the far side of the shop for an oil filter and then to the other side for a drain plug gasket and then across the bays for an air line. That wastes time and kills productivity. Everything a tech needs must be within reasonable reach.
     
    The new facility will have three techs and one service advisor. We will install 3 Rotary Lifts: two 10,000-pound lifts and one 12,000-pound lift. The fourth bay will be the alignment bay. A flush-mounted Hunter alignment machine will find its home in this bay.
     
    Although we will promote while-you-wait service, we will not position ourselves as a quick lube. However, contrary to what many people in our industry believe, we welcome walk-ins and actually encourage it. I do realize that smaller shops with 2 to 4 bays may find it difficult to accommodate people walking in without an appointment, but the consumer's mindset has changed the way it expects service. For small shops and larger ones, I recommend developing a system that accommodates customers on their time, not yours. People don’t always have time to make an appointment to drop their car off for service. And they certainly will not make an appointment to drop a car off for an oil change. Performing simple services like oil changes, tire rotations and state inspections will build a customer base that will eventually lead to more profitable work.
     
    To expand your business will require an increase in your customer base and a different business model. At our shop, we no longer tell people when to bring in their car; we ask them when they would like to bring it in. Building a business is about building relationships, one customer at a time. Make it easy for the customer. Don’t get bogged down with a rigid schedule. It will take time to develop and your people may resist change.
     
    Our entire workflow process is designed to maximize productivity in order to boost car counts. An increase in car counts gives us the opportunity to sell more work and prosper.
     
    Find ways to prosper, it’s a lot more fun.
     
    Stay tuned!
     
     
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  12. Joe Marconi
    Everyone needs direction and everyone needs deadlines. We would never conduct business without knowing when parts are going to arrive, when jobs need to be done, how long jobs will take to complete and every other aspect of running a repair business. What’s vital to your business is to understand the amount of work needed (labor hours and parts sold) in order to reach your sales goal, which translates into profit. In other words you establish deadlines and goals on a daily basis. You probably do it so instinctively that you don’t even realize you’re doing it.
     
    Construction is a bit different. Although it’s your project and you have a General Contractor (G.C.), you are at times at the mercy of a particular contractor. I have gotten tough over the past few months and talk frequently to the G.C. about the progress of the construction.
     
    With any construction project, establish goals and deadlines from the start. Meet with the G.C. and the all the contractors and establish a realistic deadline for completion for each contractor. Review those deadlines often and make the contactors accountable. This may be hard. What happens in the construction business is that if they land another contract, they try to do both at the same time, yours and the other job. They don’t want to loose the income so they over extend themselves. I can’t blame them, but your main concern is your project and this needs to be conveyed to the contractor. The General Contractors on my project is extremely good at making sure contractors hold up to their commitments.
     
    My job is to have periodic meetings with the G.C. to review the progress and to make sure we’re still within our budget. Cost overruns and extras can kill you. There will be countless extras that each contractor will want to up sell you. Stick to your game plan. If the extra saves money in the long term, carefully consider it. If it’s a “nice to have”, but not a “need to have”, it might be best to pass on it. There will be enough unexpected expenses for you to worry about.
     
    We are coming down to the wire, with about 2 months to go. Every waking (and sleeping) hour is devoted to this project. Excited? Yes. Scared? A little. Nervous? You bet!
     
    Stay tuned!
  13. Joe Marconi
    Now that we are close enough to pick a date for the grand opening, we need to start the promotion process and make plans for the day of the grand opening. We need to jump start this business with a big splash in the community. Having momentum right out of the gate will be important to the success of the project.
     
    To help promote the business I have greatly increased our advertising and marketing. Prior to this project the only advertising I did was in the local yellow books, sport sponsorships and ads with local charitable organizations. I concentrated mainly with my existing customer base through newsletters, emails, service reminder cards, promotional flyers and specials. In order to increase market share, we need to expand our horizons.
     
    We purchased mailing lists and started a post card campaign introducing our company to people who are not our customers. We target a five-mile radius from our shop. We also use a company to send offerings to all new residents in our area and we are part of the local welcome wagon organization.
     
    Last spring we shot a TV commercial and started airing the commercial the start of the summer. This has been a great success and is more affordable than you might think. We just shot a new commercial last month, which will feature the new facility.
     
    In January we started with radio. It’s too early to tell how affective this will be, but customers and friends tell us they hear us. And if they are hearing us, others are too.
     
    We hired a press agent to help us with getting some free press in all the local newspapers. It’s amazing how newspapers like to promote local businesses. I convinced my bank to feature us in their newsletter. This was a good move. I had a new customer just the other day that walked in for service because of that article.
     
    Six weeks prior to the grand opening we will start to invite people to the event. We will invite local politicians, bank officials, local businesses, local Chamber of commerce, all the people involved with the construction and, of course, our customers.
     
    We will also hold a series of consumer clinics as a way to showcase the new facility. We will use the clinics as fundraisers for local charities. This is great end around marketing.
     
    The day of the grand opening will be a daylong event. We will have food, door prizes and other products to give away. We will make sure that we obtain names and addresses for all who attend. We will cap off the day with a ribbon cutting ceremony and will drive the first car onto the first lift for an oil change. We will ask selected people to say a few words and I will also present a speech.
     
    Promotion is key. I want to cause a lot of excitement in the community.
     
    Stay tuned!
  14. Joe Marconi
    With two months to go before the grand opening, I reflect back to 7 years ago when I first had the vision to expand. It took a few years to actually begin the process. There were things I needed to learn and a tremendous amount of fear to overcome. I can tell you honestly that the fear never goes away nor does it get any easier to handle. It’s there and I accept it. The hardest part was to pull the trigger. Once you make the decision, only look forward. It makes no sense to look back and second-guess yourself. Mistakes will be made, but that’s how we learn.
     
    The past 4 years were filled with countless hours talking to engineers, bank loan committees, town planners, general contractors, site engineers and architects. But that’s only part of the story. I spent almost every minute that I wasn’t working doing research on the auto industry, quick lubes, franchise models and other large companies. I also studied other companies like Toyota, Star Bucks, GE, General Motors, Disney, South West Airlines, McDonalds, Apple and Microsoft. Thank God for the Internet.
     
    I read books on leadership from great people like Winston Churchill, Benjamin Franklin and Abraham Lincoln. In addition, I studied the works of Dale Carnegie, Jack Welsh (former CEO of GE), Jim Collins (the author of Good to Great), John C. Maxwell and The Art of War by Sun Tzu. Not a day has gone by in the last 4 years that I did not work toward my goal. And reading was a big part of the process.
     
    So once you acquire knowledge, what do you do with it? The answer? You give it away. By sharing knowledge, you make the poeple around stronger, which will only make your stronger.
     
    We hold short meeting at my shop almost daily. These meeting only last about 10 to 15 minutes, but in these meetings I slowly share the knowledge I acquired. My goal is to share every aspect of the project and what is needed to be successful. I share the entire process including the numbers. It’s like a baseball team or an orchestra: although a team or orchestra is made up of individuals, they all work in unison toward a common goal and all the players know each other’s job.
     
    Power point presentations were created and after-hour training sessions were held and will continue to be held on all aspects of the business. From procedure, to policy and basic training on topics such as understanding charging systems, starting systems, ABS brakes, wheel alignments, steering, suspension and other service procedures.
     
    Probably the most important thing I learned the last 4 years preparing for the expansion is that every member of the organization must fully understand our goals and implement the plan.
     
    If the knowledge I gained, remained only in my head, that knowledge becomes useless.
     
    Stay tuned!
  15. Joe Marconi
    With one month to go, we are working hard making all the final preparations for the grand opening. The building is complete and most of the equipment has been installed. Each day starts with a review of our plan list to insure every task will be accomplished before opening day. Ten months of construction and years of planning are nearing the end.
     
    We had a team meeting last week, after hours, to review the workflow process and the elements of the expansion. Adding four bays and another building will bring challenges and we expect a bumpy road in the beginning. Even with all the planning, things will go wrong. But, we are convinced that the additional bays, increased parking lot size and the new business model will allow us to increase efficiency and improve productivity. Customers will also benefit as we promote our while-you-wait express service. Time will perfect the process.
     
    There will be other challenges as well. Additional employees, increased overhead and a big monthly mortgage payment, just to name a few. I have run the numbers countless times and know exactly what we need in terms of sales, car counts and income to support the new business. At the present rate of growth it will takes us a few years to realize any real profit.
     
    The benefits of the expansion far outweigh the risks of the expansion. Our facility and property had many issues that would eventually lead to problems down the road. Our parking area was too small, our facility size would not support future growth, and the building that was demolished was in state of disrepair and hurt the equity value of the property. The improvements made to the property and the addition of a new building, increase the value of the property substantially, even in this economic climate. Plus, the additional 4 bays will give us the opportunity to accelerate our growth rate.
     
    Our opening date is April 25th. It will be filled with events, food, prizes, music, a live remote from a local radio stations and tours of the new facility. Invitations will be sent to our customers along with invitations to local public officials. We hire a marketing agent to handle the advertising, promotion and press releases.
     
    To tell you the truth, at this point, I’ll feel a lot better when those bays are in operation. All the years of planning on paper is one thing, but the real test will be when those first cars start rolling into the bays. I can’t wait for sweet sound of an air gun, the compressor and the clanking of wrenches.
     
    Stay tuned!
  16. Joe Marconi
    Our grand opening was held on Saturday, April 25th. The weather was perfect. Hundreds of people came out to visit our new facility. The affair lasted all-day and ended about 7:30 that evening. All the money spent on prompting the affair was well worth it.
     
    A special thanks to CARQUEST Auto Parts, who provided their barbecue wagon, blow-up racecar, tent, banners and other items.
     
    It was great to see many customers share in the festivities and we had the chance to meet many new people from the community. We had a local radio station broadcasting a live remote that helped bring many people in and created a lot of excitement in the area.
     
    We opened the new 4 bay expansion shop officially on Monday, April 27th. The first week we had an increase of 27% in sales. This bounce in sales is obviously due to the excitement we created with months of promotions. Now we need to maintain the momentum.
     
    The best news is that the techs love the new facility. We had a meeting after the first week and everyone said that although we worked on more cars than usual it didn’t seem has hectic. We have total of 10 bays now and 6 techs, leaving bays open for walk-ins and up sells. Also, if a tech is waiting for parts that will not arrive for an hour or so, he can use one of the open bays, rather than putting the car back together. This increases productivity.
     
    I will keep this blog open to report on the progress of the new shop.
     
    Photos will follow soon too.
     
    Stay tuned!
  17. Joe Marconi
    Since our opening on April 25, 2009 we have increase business by a whopping 29%. We now have to insure that this becomes the norm and not just a grand opening bounce. Just about all our plans are falling into place. The added four bays and increased parking have allowed us to take on more work and become more efficient. We handle just about all walk-ins and refuse no one who calls for an appointment. We are determined to take care of our customers on their schedule, not ours.
     
    There is, however, a down side to the increase. We are starting to get a few complaints from customers on a variety of issues. We track customer service through a CSI cards, phone calls and email surveys. Our scores, although still very good, are not what they were prior to the opening. Our score prior to the opening was around 99.9%. That number has decreased to around 97%. This is unacceptable to me. I called for a team meeting last week to discuss this issue. Out of the meeting we found that we may be understaffed and that our attention to our customers is suffering. Our car counts have increased from 18-20 cars per day to 32 to 40 cars per day. The logistics of handling the increase, phone calls and other daily duties has put a strain on the entire staff.
     
    We need to regroup and analyze every step of the sales and service process: From the phone calls, to scheduling, to dispatching, to the actual service or repair and car delivery.
     
    This is where we are right now. Trust me, I have no regrets. These are good problems to have. Most important is that we maintain what made us successful in the past. And that’s serving the public, providing the very best in customer service and automotive care.
     
    Stay tuned!
  18. Joe Marconi
    This past April 25th, 2010 marks the first full year since opening our new facility. As many of you may know, we built an additional 4-bay shop which offers while you wait service and welcome walk-ins. This new shop features basic services, maintenance work, tires, brakes, accessories, oil changes, state inspections and other minor services and repairs. It also serves as a feeder for more complicated work and diagnostic work, which is sent to our existing 6–bay repair facility. This business model, for those shops large enough to accommodate it, is the future.
     
    The lessons learned this past year have been both positive and negative. With all the planning we did for the years and months leading up to the opening of our new facility, nothing is like real-life. Our projections and prayers came to be, adding some 60 to 80 more per week to our workload. I still say that a healthy car count equates to opportunity, however control is crucial in effectively managing the increase.
     
    First, the successes: The image and look of the brand new facility increased our visibility in the market and made us shine in our community, creating a draw for many first-time customers. Consumers and businesses in the area took notice of our growth; many questioned how we grew in a time when most businesses were feeling the effects of the recession. Our marketing and advertising programs worked and added a steady stream of new customers on a daily basis. Sales increased, car counts went up and the rate of new customers also grew. The new shop was featured in many local publications, which help to brand our new business model. The increase in sales and income is paying the expenses and we are running in the black. A lot of our one-time expenses incurred are being paid down on time and as these expenses get paid in full, will add to our bottom line as profit.
     
    Now, some of the failures: The sudden increase in car counts caused workflow issues at times, which resulted in mistakes and comebacks. Our quality control system was not being followed consistently, which added to our problems. Mistakes that should have been noticed slipped past and customer satisfaction slipped also. Our process was and always has been to review all work order before the job is started, maintain communication with the tech during the job and review the work and any up sells with the tech after completion. Also, all vehicles go through a quality control check list before the car is delivered back to the customer. In our effort to maintain the increased workflow, short cuts were taken and quality suffered. Shop morale began to fade and stress among staff members grew more and more apparent. The work conditions in the shop and the demands we were making on everyone were taking their toll which on added to the ever-growing series of problems. Something needed to be done…and fast!
     
    Last October I held two strategic meetings, one with the technicians and the other with my service advisors and office personnel. I simply told them not to hold back and tell me was not working, tell me what they don’t like and tell me what we need to change and how. This proved to be a valuable and eye-awaking experience. Out of these meeting came solutions and ideas that allowed us to tweak our processes and get control over the workflow issues. Our main goal: Creating solutions to solve workflow issues, reduce comebacks, improve morale and customer service.
     
    So, based on the suggestions and ideas from all staff members, I created a revised work flow process with new scheduling requirements and quality control systems. I held a general meeting with the entire staff and unveiled the new plan.
     
    The new plan outlined a more balanced schedule which limited the amount of diagnostic work and big repair jobs for our 6-bay repair shop. This will leave room for up sells and additional work sold from our new facility. We limited the amount of scheduled while-you-wait customers and spread out the work more evenly throughout the week. We gave customers options which were more in line with our schedule. The plan also included the addition of another service advisor, another technician and one more lube/tire tech. The added support staff was the number one concern from both the technicians and service personnel. We rewrote our workflow process to include more safety and quality control checks which made it easier to process the cars and paper work.
     
    It took us a full six months to implement the new plan and we stumbled a few times and fully expect to stumble again, but things are definitely better and shop moral is back to where it was.
     
    No company can grow and expect to be problem free. You learn more from failure sometimes than from you accomplishments. We pushed the envelope last year and luckily we were able to see the negative effects in time. Growth is a good thing, businesses need to grow. But growth needs to be managed properly and the lessons we have learned will help us to continue to grow.
     
    Growth and change are two of the same, and the pain and uncertainty associated with it is what people fear the most. No gain can be accomplished without change and growth, and if we fail at times…. well, that’s ok too.
  19. Joe Marconi
    Managing Your Most Important Asset, Your Employees
    A practical guide for shop owners
     
    By Joe Marconi
     
    We all know that without customers, your business would not survive. The strength of your customer base insures the success of your business and that success is directly related to the quality of people who work in your company. The only way to insure a great customer base is by building a great team of employees.
     
    When Yankee legend Yogi Berra was asked, “What makes a great manager of a baseball team?” Yogi replied, “A great ball club”. His answer may be simplistic in nature, but it speaks volumes. Satisfied customers can never be achieved without happy employees. Perhaps the most difficult part of management is motivating our employees to work toward the common goal of insuring the success of your company.
     
    Managers and owners deal with a variety of issues each and every day; from personality differences to generational differences. Workers from the baby boomer generation often have a tough time understanding younger workers which can cause resentment on the part of your older workforce.
     
    Speaking for myself, a baby boomer, I understood the unspoken hierarchy that the boss was king. And when the boss spoke, you listened. The boss commanded respect and ruled by the doctrine of, “My way or the highway”. I remember the owner at my first job at a gas station in the Bronx telling me the day I was hired: “You’ll work Monday through Saturday, half days on holidays, pump gas when needed and I’ll start you off at minimum wage”. The owner of that gas station never shut the bays doors unless it rained hard or snowed, never turned on the heat and we had no hot water. No one at that shop complained, we didn’t know any better, we were just happy to be working.
     
    Today, we live in a completely different world. I am not here to judge which way was better, only to say that the differences in the generations, gender and cultural must be recognized in order to maintain healthy morale in your workplace. For without a healthy and a cohesive workplace, your business will not thrive. The boss may still be king, but the king needs to earn the respect of the people that work in the company.
     
    Priorities and lifestyles have changed too. Past generations viewed their job and their family as their number one priority. Today, people still hold their careers as vital to their survival and future, but also desire a life beyond work. Time off, free time, family and friends are part of their makeup.
    Motivation becomes the issue. There was a time when just having a job and providing for your family was all the motivation you needed. That may not hold true anymore.
     
    People today are more social. They want a balance between work, family and play. So how do we motivate and get our employees to work as a team? How do we express to them the importance that the quality of their work is directly related to the success of the business? Well, the very first way is to tell them. That’s right; let your people know that you appreciate them. Spend time talking with the people in your company. Praise them when they do a good job. I remember when I worked at a Ford dealership in the late 70’s, the only time you would see the boss come out his office was to reprimand someone. You would cringe when you would see him walk toward you; you knew it wasn’t good.
    Don’t be that boss.
     
    Find things to talk about with your people. Become genuinely interested in what interests them. It could be sports, their last vacation, their family, the weather or anything other than work related. This shows your human side and lets people know that you care about them as a person, not just a worker.
    Get your employees involved in some of the decision making processes. If you are looking to upgrade your tire balancer, hold a meeting and discuss it with your staff. Have them help research the different equipment makers and collectively arrive at a decision. Making your employees feel important enough to help you with a key decision will go a long way in improving morale. That must be you goal. Remember, I can’t say it enough times: Happy employees make happy customers.
     
    I must be honest with everyone. I too once followed the doctrine of “My way or the highway”. However, though the years I have learned that you can be more effective when you get the people in your company working and producing because they want to, rather than because you ordered them to.
    When the people in your company feel the company respects their position and values the work they do, they begin to take ownership and pride in their work. People need to feel that they are making a contribution and that the company they work for recognizes this. Everyone likes to feel important and appreciated.
     
    Start today by walking around the shop and talking to your employees. Pat a few people on the back for a job well done. Let your employees see that you are more than just their boss. Trust me; you cannot grow your business by yourself. You need good people around you. Positive employee morale will result in higher productivity, better customer relations and more income to your bottom line. Employees are people first, workers second. Treat them as people and watch your business grow.
  20. Joe Marconi
    Everyone has core beliefs; those values and ideals that determine your personal success. Notice I said, “personal” success? That’s because success is defined by your goals, your desires and your individual talents and potential. Not by the achievements of others. A great athlete may study other great athletes to see how they achieved their success, but ultimately it’s the talents, work ethic and the potential of the individual that will determine personal success.
     
    Below is my list of core beliefs:
    1. Never judge your life or your achievements by the achievements of others.
    2. Always go the extra mile when performing any task, even at the risk or perceived risk of short term monetary loss.
    3. Commit to a life of continuous improvement and learning.
    4. Never give up when a problem arises; whether in your private life or in your daily work. Work diligently to find solutions.
    5. Never dismiss someone’s perception of you. While we should not govern our lives by other people’s opinions, how others view us should be considered. Are we respected and considered credible by the people we associate with?
    6. Spend more time listening than talking.
    7. Analyze what goes wrong in your life and learn from your mistakes.
    8. Never hesitate to make a key decision out of fear of making a mistake.
    9. Make decisions based on your gut feelings; which is founded on past experience, expertise and personal judgment.
    10. Accept responsibility of your life, your family, the world around you and your coworkers.
    11. When things go wrong in your business or in your life, blame yourself first. Ask yourself; “Was there anything that I could have done that would have prevented what happened?”
    12. Think beyond your job description, always be willing to help others, the more you understand the concept of the team, the better individual you will become.
    13. Be a leader, find other leaders and help others achieve their personal greatness.
    14. Don’t look for praise or recognition. Knowing that what you do in life matters is recognition enough.
    15. Find happiness in your life. If you spend your life looking elsewhere for happiness, you will never find it.
    16. Focus on your strengths, not your weakness. Do what you enjoy, but also do what brings the greatest return of fulfillment in your life. Joe Montana, famous quarter back for the San Francisco 49ers, devoted his life to becoming one of the greatest quarter backs of all time. Although he was a great football athlete, he did not spend his time perfecting his skills in tackling and catching the ball. That would have been a waste of his time.
     
    This is my list; you may agree or disagree with these core beliefs. The key thing to remember is that we all need to know what makes us tick. Who are we and what do we stand for? We may never know completely who we are and may never reach our personal definition of success, but, as we all know, life is a never ending journey, not a destination. Striving continuously in achieving our very best is what defines us and defines life itself.
  21. Joe Marconi
    John Wooden, the legendary basketball coach from UCLA, once said, “In my forty years of coaching, I never took a shot at the basket, never scored a point and never made a rebound. That was not my job”. John Wooden understood his role as a coach and the role of his players. We, as shop owners need to do the same.
     
    For too many years I wore way too many hats. This notion that I, because I was the “Boss”, had to be the best technician, the best service advisor and essentially the best at all positions was ridiculous. This way of thinking leads to burnout and disappointment.
     
    Learning your strengths as a leader is crucial. Knowing the strengths of others in your shop and helping them become better is a gold mine. Thinking that the world surrounds us and that we need to have our hands in every element of the business will lead to our demise. When the second baseman is not performing, the coach does not take his place on the field, he gets another second baseman.
     
    Once we assume the role as business owner, our life changes. If we don’t clearly define our role and all positions in our company we will not succeed. Trust me, until I realized that it’s the people around me that leads to my success, I struggled daily.
     
    Running a shop is not easy. It’s perhaps, one the toughest jobs out there. But it can be rewarding both financially and emotionally. Work on your role first, and then go to work making others around you better at what they do. Your happiness and the happiness of others depend on it.
     


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