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tirengolf

By tirengolf
in General Automotive Discussion

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tirengolf Collaborator

tirengolf

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Hope all are doing well, I have been absent for a while , life gets in the way at times. I have ask you guys questions many times and the answers have always been superb. This is not a question more like a huge decision I have to make. 

 My store was built in 1958 , just a square building with 4 outside bays across front with large roof system  and tech shop we added 10 years ago in the back with 5 stalls and 3 lifts. I have been there since I was 15 years old and now I am 60. We have always been squeezed with our corner lot, well 2 weeks ago the business next door which has 290 feet on the highway plus a very old body shop and a very old house that is liveable came up for sale. I have a contract on the property for 250k. But dang I wish I was 50 and not 60 years old. It lays out perfect where I could add 2 more open stalls and give anoher tech 3 new stalls down the side and tons of parking, I have none. We are busting at the seams,I need the room. no parking heck I cannot get all the work out of there daily. I can get some residule income from the one house, already had 2 guys ask me about rent on it. We have just had a huge brand new county jail built 2 blocks from us, Prettiest jail I have ever seen ,LOL, anyway guys I am having a hard decision on pulling the trigger , one thing is my age second thing I assume those  5 bays will help my bottom line tremdously. As you know with that comes a few more employees, new writer and probaly 2 new techs. Maybe I am apprehensive because I have never expanded like that. Has any of you guys done this or better yet gone through it, if so tell me the good the bad and the ugle. My employees are great but I will need at least 1 writer and 2 or 3 oil/tire/ tech trainy. Techs are hard to find today , I never thought I would be stealing other techs from other stores but I guess it is the way of th world. Any advie or help would greatly be appreciated. Thanks Guys, David



bantar Community Regular

bantar

Posted
Posted

Not sure I can offer advice, but I can offer encouragement.  Based on what you've said, this is a gift from heaven.    Ultimately, if the stress doesn't kill you 😬, you will have a bigger shop to sell and would likely reap bigger rewards when you sell it.   Ignoring capital costs, once you scale, your fixed costs won't increase significantly, which should help your bottom line.    It seems that you'd be crazy not to accept this gift.   

I'm guessing you are not the type of guy that sits still for long?   Am I right?  Ready to retire?   Likely you are still 50 at heart.   Go for it!

I can't tell from your messaging whether or not this would be two separate buildings.  If so, put the ones you trust the most in that secluded building!   It'll be the party shop otherwise.

With hiring, this is easy.   You stroll into other shops and solicit their employees == stealing.   You advertise and put the word out that you are hiring and other shop employees apply == recruiting.   Everyone got to my place by quitting somewhere else and for sure, they will quit here to work elsewhere in the future.  

Good Luck!  .... (and congratulations too)

Hands On Community Regular

Hands On

Posted
Posted

I hope you go for it. I am 43 and getting ready to pull the trigger on a second location in February.  I am nervous and excited at the same time. Good luck. Any advice for my second unit?

dfrisby Collaborator

dfrisby

Posted
Posted

What does age have to do with it?  Add value to your business and if you decide to sell, it's worth more. Otherwise grow till you can afford the staff to run it for you and send you a monthly check.  I'm 48 and 7 years into my shop ownership, and if all goes well, I'll still own it when I'm 102. I just will have been absent for 40 years while somebody sends me a check every month.  That is if everything goes well..... but either way, I'm making my own way and even if I'm still turning wrenches at 102, I will go out happy and know I made my own way in this world.

 

  • 2 weeks later...
rpllib Enthusiast

rpllib

Posted
Posted

This is where I started (as stated by others) "Create an exit strategy, or succession plan". I would take that a step further and say "make a personal plan" for your next 20 years. 

For me, I would by the property, let the rental income be the return on my money, for the time being(assumes no banks or mortgages involved). I would not feel pressured to decide today, what ultimately would be the plan. I would be comfortable in the knowledge, that I just improved my real estate position substantially.

But that's just me. My plan is to be no more than a landlord within three years, and that plan is well in place. 

Here's a  good guy to talk to"

https://www.perpetualbusiness.co/

You would not have a wasted minute, in a conversation with Bob 

 

  • 3 weeks later...
MINI4U Enthusiast

MINI4U

Posted
Posted
On 12/23/2020 at 12:54 PM, bantar said:

 

With hiring, this is easy.   You stroll into other shops and solicit their employees == stealing.   You advertise and put the word out that you are hiring and other shop employees apply == recruiting.   Everyone got to my place by quitting somewhere else and for sure, they will quit here to work elsewhere in the future.  

I can't see us "stealing" employees in their own shop. Advertising has gotten us nowhere in our area with the shortage of experienced techs. 

 

  • 2 weeks later...
  • 3 weeks later...
tirengolf Collaborator

tirengolf

Posted
  • Author
Posted

Thanks guys for all the advice. I close on the place on 24th of this month. I sincerelly thank all you guys for taking time to  respond. I will keep you posted as we move forward. 

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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