Location

[Zs Automotive]

Hello everyone,

 

As some of you are aware I'm currently running my shop as a side business. I still have my full time job, but I'm considering going full time with my shop to try and grow it. Well my shop currently is located on an old Hwy meaning it use to be the main hwy but now they've built a bigger hwy. Car count averages 160 per hr where I'm at and there are a lot of neighborhoods around here. My question is, there is a shop available on the main hwy with a lot more car count but the overhead will increase about 50%. Do you guys think I should stay here while I do the transition to full time and try to grow my shop with a cheaper over head or will the increase exposure make it worth it to move. I know it is a difficult questions I'm just trying to get your professional opinions.

[CARMandP]

I wouldn't move until you have enough cash set aside to pay the increase for several months until your car count increases enough to afford the move. I was "forced" to move a few years ago long before I had the money or was ready to move and I am still struggling to get under the cost of that move.

[mmotley]

I agree. You haven't gone full time and I'm sure you are still on quite a learning curve... Have you hired anyone? You'll have to learn how to interview. And how to train them to call and make sells. And how much to schedule in one day... There is a lot to learn before just jumping in.

[Zs Automotive]

Thanks for the replies. I will take your advises. I'm going to stay here and try to grow the business. No Motley I'm still a one man show. Thanks for sharing your experience Car man .

[ATLAuto]

I'm not an expert on marketing and traffic counts at all. However, while researching our location, I came to find that a Meineke repair franchise location requires a daily traffic count of 20k+ vehicles per day. A more location-dependent business, such as a Denny’s or an IHOP restaurant, requires a higher traffic count in the range of 30k+ vehicles per day.

 

I'm not saying this applies to your shop directly, but I did find it interesting that these franchises will not even consider locations off the beaten track.

 

Sources

2. http://www.meinekefranchise.com/site-submittal

3. http://dennysfranchising.com/siteguidelines.html

4. http://www.ihop.com/about-ihop/franchise-opportunities/international-franchising#05

[Joe Marconi]

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[xrac]

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[RyanGMW]

I left my shop on my property because a competitor turned me in for a code violation. I picked an expensive shop right on the highway for a 3 year lease. It was 3200sq ft. I out grew it and moved to 8200ft in 2.5 years. I was barely making it before I moved and then turned a profit the first month in the 3200ft building. Now I make even more money in a bigger shop. Sometimes you have to take a leap of faith to get ahead. Be aggressive and commit to whatever you choose. Make it work like failure isn't an option.