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!

Sorry, we sold it last week.

Any more details on your business model?

Now is the time for all independent shops to position themselves as solvent companies in this economic downturn. Those who fight now will reap the benefits down the road. In my opinion, many shops are beginning to see positive signs that there is opportunity out there. I urge all shops to continue there marketing and advertising. It will pay off.

We always go to our local CARQUEST store first for all TPMS sensors and kits. They have good coverage.

Looking forward to it.

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”.

I will be there, putting in my 2 cents, don’t worry. The business plan is the foundation of you business. It’s your game plan. Without a game plan, you cannot win. Dreams are one thing, but realistic goals and planning are always written down. This is the first step. With your education in business, you do have an edge over most of us. I started my business in 1980 as a mechanic who decided to go into business. I had no business skills, and as a result, did not do very well until I realized that running a business takes a different set of skills. It wasn’t until I dragged myself out of the bays and into the office did I start to grow a business. Amazing things happen when you think of yourself as a “businessman” and not just a “man in business”. Keep your focus on business and never loose site of the big picture. Too many shop owners spend too much time in the bays fixing cars. That’s not to say it’s wrong. It’s just that in order to grow and build wealth you need to build a business that runs on it’s own. Most shop owners today realize this and are making the change. This is why AutoShopOwner.com is needed in this day and age. Our success as shop owners will be determined by our strength in business, not necessarily in our ability to repair cars. Servicing and repairing cars is how we make money, but you must understand and secure your role as the leader of your company. So, your focus must be on the “mechanics of business”. Let’s keep this dialogue going. Maybe you can start your own blog. I’m sure that people will enjoy reading it and helping you out. There are a lot of shop owners out there with years of knowledge. If you have any questions along the way, post them. I for one would welcome the opportunity to help you, along with the future of our industry.

Don, I think you are getting into the business at a great time. There is great opportunity in the near future and when all the dust settles from this economic down turn you will be in a position to reap the harvest. My name is Joe Marconi, one of the creators of AutoShopOwner.com and a shop owner for over 28 years. I am now in the process of a major expansion. I recently purchased the building adjacent to my business and in the process of constructing another 4 bay facility. We removed the old building and erected a new building. The new 4-bay facility will focus on express service and maintenance and will accommodate customers who need while-you-wait service or repairs done in the same day. The existing 6-bay shop will focus on larger jobs, such as timing belts, engines and transmissions. This new business model is the future of auto repair and service. Please see my blog in the blog section of AutoShopOwner.com. It outlines the steps I took to start this process and outlines the current progress of the construction. I welcome your comments, questions and thoughts. Joe Marconi Osceola Garage AutoShopOwner.com

Dan, great hearing from you. You are right on target with you advertising program. Those who invest now and maintain a strong presence during this economic climate will reap the rewards down the road. Now more than ever, shop owners must realize that marketing your business is critical for survival. Great to see that you always maintain a positive outlook. Joe Marconi, Osceola Garage

While billions of dollars are being wasted and used to bail out wall street and other miss-managed companies, people like you and me must foot the bill with our hard work, blood and tears. NO ONE will bail us out. But we keep America rolling. And most jobs are created by small buisiness, not big business. BUT, the power is not within us...it's found in the unions and the with big business. The state of this once great land has serious issues.

Some say that if we don't bail out GM, Ford and Chrysler, the economy will suffer because of all the jobs and companies that are directly tied to the auto industry. Others say to let them die. They did it to themselves. What are your thoughts? Bail Out or let them Die Out????

With consumer confidence at an all time low and the holidays upon us, I think we will be in a tough ride again. We need to be sensitive to customer concerns. I don't think heavy discounting is the solution or retreating in our advertising programs. Gas prices are down, and that's a good thing. But is it enough to hold the economy together? Or is it just a sign of the times? I would like to know what plans do you have going into the winter months?

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!

You make a valid point. But I think it goes beyond that. The hard working people of this country did not get us into this mess. I think we need to look at our trusted elected oficials, finacial advisors and big bussiness leaders. While we were hard at working, earning a living the old fashion way, these people made bad decesions out of greed and power and destroyed our finacial system. Glad to see you still have 2 cents, EASAUTO!!!!! I'm not sure if I still do!!!

We must be sensitive to customer's fears and adjust. Don't concede and roll back prices too much. Create packages that have value. Sell service in a way that shows the customer you care about their pocket book. Try not to cut back on advertising too much. This is your life-blood. Remain postive and tell your customers that things are ok and tell your people things are ok. The shop owner is the leader and effective leaders must show strength. A scared general will surely get his men killed.

Conusmer confindence is bound to be at an all time low and will affect our business. What do you expect when the consumer is bombarded 24/7 on the news, TV, radio and newspapers on how bad the economy is. We need to be sensitve to customer's fears but not throw the towel in. Bad times will happen and this is BAD. But it's not the end to civilization. Let's be postive and draw postive things to us. If we give in to this negative atmosphere we may become victims by our own actions.

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!

I agree with on exception. The majority of hard working people who have seen there 401k dissappear really had nothing to do with this mess on wall street or in Washington. The people with power have done a really bad job! Now WE, the hard working people will have to clean up the mess with our tax dollars. It's not fair!

People say Obama has leadership quailities that can ignite the ecomomy. Is this a factor in our recovery? Or are we too far down the slippery slope?

Will the election of President Obama have a positive or negative affect on business?

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!

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!

I see one bright star in this sea of economic doom and gloom...the fact that new car sales are down and many dealerships will either consolidate or close in the next few years. People will still drive and cars will be out there for repairs and service. I think now is the time to get your marketing and advertising in gear and start promoting your shop to capture market share.

I don't want to get too political but I am curious. How will the election affect your business? Or, will it have an affect on your business? Will the country be better off after the election?