5 Tips of Starting an Automotive Repair Shop

5 Tips of Starting an Automotive Repair Shop


what’s up everybody is Charles today I’m here with bogie from a million things like bogies garage all girls garage 180 degrees garage that’s because that’s how hot it is in Phoenix in the summertime and a million other things also a very good friend of mine professional colleague and a whole bunch more today we’re gonna give you guys five tips for starting your own shop and who better than someone that did exactly this right when I say it it’s one thing but when someone actually did it these people you know they’re ball game so Bo you are shop owner BMW technician TV superstar internet famous gal wears glasses and has a black shirt on and artist Travie bleep plenty more so let’s jump into it what is tip number one when a technician who all of us I think think this I could open up my own shop and do a great job what is tip number one for that technician to to follow don’t do it kind of so tip number one is be really clear on why you’re doing it do your homework first if your reason is I want to have more flexibility I want to have more time I want to make more money I want to be my own boss I don’t want to have to answer to anybody revisit that because when you own your own shop you have less time you have less money you have less flexibility with your time and instead of just answering to one boss you answer to all of them meaning your employees are your bosses the state is your boss the city is your boss the feds are your boss all of your customers are your bosses and you have to report to them so know why you are doing it and put in the research and the time to make sure you’re doing it for the right reasons I think the big reason to is like you think your boss sucks and he’s doing a bad job and you could be better you might be right but really make sure that you’re right before you do it instead of after yeah there are so many things that I understand why shops that I work for used to work for why they did things the way they did now that I’m a boss and now that I run a company because I can see the whole picture now when I was a tech all I saw was my piece of the puzzle and then once you’re the boss and you’re like oh that’s why they did that because there’s this whole other part of the world that I didn’t know number two if you want to still be a technician or a mechanic and you want to turn wrenches you don’t recommend starting your own shop this is becoming a list of why not to start a shop but you know what I think honestly though sometimes this is what we need to hear instead of you know me because I’m gonna be a cheerleader do it like that’s my nature and I think hearing here’s the reasons why I wouldn’t is equally if not more valuable so let’s let’s hit that number two so not just an automotive world but in pretty much any industry people do this all across the country they say I’m really good at doing this thing so I’m gonna start a business doing this thing and make all the money for myself instead of working for a boss and then what happens is you get into being a business owner and you stop getting to do the thing that you love doing if you love turning wrenches and diagnosing cars do that if you become a shop owner you’re not doing that you’re doing bookkeeping you’re doing advertising you’re doing Human Resources you’re dealing with legal you’re dealing with all of the other things and you’re gonna find yourself eventually if you’re doing it right sitting behind a desk instead of out in the shop working on cars which is not why most of us got into this all right wanted to are done what do you got for three okay number three you’ve decided this is what you want to do remember you don’t have to go it alone I think this one is huge so there’s two different ways that this could be translated one is you can partner with someone so if you decide you’re the person who wants to wrench and that’s what you want to do awesome partner with somebody who likes to crunch numbers and wants to sit in the office and do the rest of it and deal with the customers and all of the other parts and pieces that would be how I would have to do it I’m not the number cruncher I can I just don’t want to so that’s how I know you want to be a technician not a business owner just saying because you kind of even if you partner with someone you do want to understand some of this so you can make sure you’re keeping your partner on track if you don’t know how to read the P&L or if you don’t know what a P&L is you’re not gonna be able to know if your partner is stealing from you and you can’t figure out why you’re not making any money so you still need to know the stuff but partnering with somebody is a really good option the other way and what should I say you don’t have to go it alone is there’s a lot of great resources out there there’s mastermind groups there’s management training there’s there’s programs for business owners that don’t even exist in the automotive world they’re outside of the automotive world but business is business is business and it all applies so find peers find mentors learn from other people’s mistakes partner with somebody but go get yourself educated because if you just dive in you’re gonna fail they say like 95% of all small businesses fail within the first five years it’s super high and I would say make sure you’re partnering with someone that is the complement of your weakness yes don’t hire or partner with someone like you and your tech buddy who just know fixing cars you might not make the best to business people out there so partner with someone that is the opposite and does the things that you’re not good at because if you’re the same person essentially you’re both you both have the same weakness yeah number four let’s hear it number four is have a bigger reason why you’re going into business oh not just because you hate your brother not just because you hate your boss because this becomes your marketing strategy too so if you go to your customers or to your community and you’re trying to differentiate your shop from the 9,000 other shops down the road how do we differentiate you can’t just say well because I fix cars right the first time that’s great that should be the expected minimum like saying that I you should come to my restaurant because my food won’t make you sick that’s a that’s a standard for me it should be a standard fixing the car right should no standard but if you have a bigger why whether it’s to give back into the community whether it’s to raise up new technicians whether it’s to be a part of changing the perception of the automotive industry whatever that reason is maybe you want to donate a percentage of your proceeds to I don’t know autism research I don’t know what your thing is but have a thing have a reason why you’re doing this that’s bigger than I want to make more money and I don’t want to work for my boss because your customers don’t care about that but if you have a unique selling proposition that makes you a high-value and and why should a customer go to you instead of the thousands of other places right down the street I’ll add that doesn’t mean have a gimmick so much as make sure this is like the core construct of your business right the ethos of your business all right you wrap it up number five now guys let me just say we’re talking about five things there’s probably five thousand things this is just like some of the biggest things from experience of being a technician and opening a shop so don’t think like if you cover these paces you’re good and you’re gonna have this multi-million dollar business right there’s a lot more to it but though you hit us with number five all right number five is you need to be comfortable with your numbers and that is the thing that most people hate the most about being in business for themselves you need to know your numbers you need to look at them on a regular basis you need to know how much it costs you every day that your doors are open every minute that your doors are open so that you are doing and making the right decisions to make sure you’re profitable way too many businesses are just doing their due every day they’re running like in their little treadmill and they’re the little hamster wheel and they’re working their butts off and they’re busy but they’re not making any money and it’s because they don’t know they don’t know where’s all the money going you’ve got to look at your numbers on a regular basis and get really comfortable with them and I think there’s a lot that I know had I started my own shop and say 2010 when I was like full-on dealership technicians there’s a million things I wouldn’t have thought of where do I buy brake clean is it cheaper to buy in a 55-gallon drum or is it cheaper to buy little cans what about rags what about insurance what about insurance for my employees do i want employees i don’t know right all the things that you don’t know how much is an alignment rack gonna cost how long is it going to take me to pay off that alignment rack if i do three point one alignments a day for five days a week for how many years right all those things and if you don’t know i if you don’t know that stuff i’m not saying you’re not gonna be a successful business i’m not saying you should do it you but you should learn that stuff before it’s costing dollars out of your pocket instead of diving in spending three hundred thousand dollars to open up this shop and not having any idea how you’re gonna pay for the equipment how you’re gonna keep your employees fed right it’s like being a technician i only really worry about my own paycheck sure there’s an advisor upstream that you know gets their paycheck based on what I do and it’s ER manager based on what I do but now you got to flip that funnel around because your paycheck as a business owner is probably the least important paycheck in the whole building that technician you hired and you need to keep them fed that advisor that office manager everybody has to earn theirs and then like if there’s anything like that so and don’t just say if those of you out there saying well I’m not gonna have employees it’s gonna be just me well then you don’t own a business you own a job because what happens when you’re sick what happens when you want to take a vacation you’re not making any money so now you’re tied to this and you’re stuck so if you want to be a business owner you’re gonna have employees and that is going to become part of the equation in that space absolutely in it honestly at that point I would say well what would be the difference between that and just having a job at a dealership where you have benefits where you have health insurance where you have an HR person that like can bail you out and help you out and also understand you’re gonna be paying way more in taxes right all those fees you said you you have the state the city the county the federal right all those things really you need to make sure you put the time energy effort money into learning how to do this making sure you understand all the regulations cuz county a and county B may have different regulations right make sure you do the research before you do it I am in no way discouraging anyone from doing it because I’m the biggest cheerleader of doing your own thing agree whatever the thing is I just don’t want to see you know you have to in five years shut down your doors and you’re a million dollars in debt because you didn’t know what you were doing and didn’t take the initiative to learn that kind of stuff before you’re a millionaire biggest mistake I made I quit my job with $200 to my name and called all my friends and said I’m gonna start my own shop start bringing your cars to me and I knew nothing about being a business owner and it took me three years of being insane out of my mind pulling my hair out we’ll busy running around like a lunatic not making any money before I said this is not sustainable I need to learn and I dove into education and I rewrote my business and I learn how to systematize it I learned how to be a business owner and then I became successful but if you can save those three years of craziness that I went through by doing in the education the research upfront then you’re ahead of the curve so that’s it five awesome tips guys if you have any questions or comments as always drop them down below I will link up all bogi stuff even though you probably already know that in follow her anyway I’ll link that down into the description guys thank you so much for watching and we will see you next time


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