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Joe Marconi

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Blog Entries posted by Joe Marconi

  1. 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”.
  2. 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!
  3. 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!
  4. 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!
  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
    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!
  7. 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!
  8. 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!
  9. 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!
  10. Joe Marconi
    This past week the foundation for the new building was completed and the land is now being graded in preparation for the new blacktop. The process of constructing the walls will start within two weeks. The dream is slowly becoming a reality.
     
    Earlier in the week I met with the general contractor, bank project manager, electrician, plumber, architect, excavator, the building inspector, Hunter Alignment rep, Rotary Lift rep, advertising agent, overhead door company and the company that will be installing the bulk oil tanks and pumps. By Thursday night I was shot! I didn’t sleep that night at all.
     
    I am now in the phase of the project that you begin to second guess yourself. Did I make the bay sizes correct? Did I pick the right equipment? Did I pick the right people do construct the building? Did I get the best rate for the bank loan? Will I be able to increase the business to repay the loan? Question after question I asked myself into the wee hours of the morning. I was a walking Zombie by Friday.
     
    The excavator needed to break up the driveway to run power lines and drains and decided to work through the weekend so as not to disturb my business. This morning, Sunday, I picked up coffee and donuts and brought it down to the crew. There were very thankful.
     
    Do you think I am scared? You bet! But I can’t quit now and need to put my faith into the belief that all the preparation to this point will pay off. Did I make mistakes this past year? Tons of mistakes! Mistakes that cost me dearly. But that’s all part of the process.
     
    All I can say is, if it were easy everybody would be doing it. Fear keeps people from sometimes achieving their potential. It kept me from growing my business for years until I asked myself what’s the worst that could happen? Actually the worst would be to loose everything, but I don’t think that will happen. After 28 years in business, this is something I need to do and want to do.
     
    Stay tuned!
  11. Joe Marconi
    Before I made the final decision to expand from 6 bays to 10, I asked myself a series of questions: Why expand? How will the expansion affect my current business? How much of an increase in car counts do we need in order to support the expansion? How much of an increase in revenue do we need to support the new mortgage? How will this affect the future of the property? Will the population in my area justify the expansion? Who is my competition? What legal steps do I need to take? Are there demographic trends in my area that would be a benefit or hindrance to the project? What do I need to learn in order to make this work?
     
    As I mentioned in previous blog entries, you cannot take on a project of this size by yourself. There are just too many variables and issues along the way. Plus, I needed to also pay attention to my existing business. I give a lot of credit to people like Donald Trump and Bill Gates who have the talent and genius to organize large projects. But their strength is in HOW they organize the project, not in actually WORKING the project. You will never see Donald Trump working a crane or bulldozer, nor will you ever see Bill Gates assembling a hard drive. Their strength is in their vision and ability to bring a project from concept to reality.
     
    Since I don’t have the financial resources of people like Bill Gates, I needed to organize the project, create a plan and outline a detailed list with goals of items that needed to be done. After the initial concept and business model was created, I created a goal sheet of all the things that needed to be accomplished. This included items such as meetings with contractors, a site engineer, an architect, my bank loan officer, a business consultant and my lawyer. My plan had to make legal sense and financial sense.
     
    The next step after I picked my professional team was to create a goal sheet and timeline that I could refer to on a weekly basis to get periodic updates from my team. In this way I could track their progress and make adjustments. This team would be needed to get all the town approvals and permits. This process took almost 2 years.
     
    While all this is happening, the actual business model, building design and details of the new facility had to be developed and refined. My next blog entry will outline the next steps.
     
    Stay tuned!
  12. Joe Marconi
    In order for the expansion project to be successful, we need to increase revenue. With an additional 4 bays, we will have the opportunity to service more vehicles in a given day, but opportunity alone does not pay the bills. Filling those bays each day will be the challenge.
     
    I have put together a plan that will increase car counts by increasing our exposure in the community and by providing a while-you-wait service program. We have begun TV advertising the start of the summer and have already realized positive results. We made a decision to decrease all print ads and increase our direct mail advertising to existing customers and prospect customers. We spent months getting all our advertising in order: creating a central theme, logo and artwork. It’s important to be being consistent with our message, creating our brand and value proposition.
     
    Our “Say Yes” program has been a huge success and will be our platform to launch the new facility. The “Say Yes” program simply means will never say no to a customer and will make attempt to accommodate the customer on their terms. I know what your thinking, “Is he crazy, have the customer dictate the schedule?” All I can tell you is that it works. Our “Say Yes” policy has increased our car counts and gross sales. Yes, it was difficult in the beginning and our techs did revolt. But after they saw an increase in productivity pay, they quickly changed their minds.
     
    We also plan on having radio ads and expand our exposure on the Internet, using Google and Yahoo. In addition to our paper newsletter, we started a monthly email newsletter, which is sent to all customers and all businesses the area. Email programs are extremely cost effective and can be launched at a moments notice.
     
    The last piece of the plan involves teamwork. We have created in-house customer training seminars to reinforce the value of customer service to all employees. Marketing starts and ends at the front counter. The best brake job in the world means nothing if the service you provide is not world-class.
     
    Next, I will share how to organize a large project.
     
    Stay tuned!
  13. Joe Marconi
    Our building was approved by the Architectural Review Board last week, August 5, 2008. This is the final step in obtaining the actual building permit. We actually started in June demolishing the old building which will be replaced by the new 4 bay facility. As stated in earlier entries, this building will add 4 bays to our existing 6. The new 4-bay building will be a separate structure where all our quick, while-you-service will be performed. Our existing 6 bay facility will be our actual repair shop where larger and long term jobs will be performed.
     
    Once we have the actual building permit (which we should receive this week), the construction process will progress at a steadier pace. Our plan at this point is to get the building up and closed in by the winter. The interior will be finished during the winter months with a projected opening date of March 31, 2009.
     
    Stayed tuned!
  14. Joe Marconi
    Once we made the decesion to expand, we realized we needed to create a business model that will take us to the next level. One thing we did know. If we continue to conduct business the way we did in past, we would fail. Times have changed and motoring public has changed with it.
     
    There were three factors that we considered when we developed our new business model. First, cars last longer, don’t break down as much and don’t require the same amount of service and repair work the cars did years ago. Two, every segment of the auto industry, from dealership to national chains are car cars centers now. The service and repair pie is being sliced smaller and smaller. Three, we live in fast-paced world. We can no longer expect people to be given a scheduled date for their when it suits us. We have to be accommodating to the customer and book appointments when it suits the customer. In addition, we need to handle walk-ins. Turning away unexpected people who want to wait for an oil change or state inspection is bad business, in my opinion. What’s worse, turning away first time customers. That can be the kiss of death. If you look at all the large chains, tires stores and quick lubes, they welcome walk-ins.
     
    So based on our findings, if we want to expand and add four more bays to our existing six, we need to reach out to a larger customer base in order to increase market share and car counts. This can only be accomplished by accepting walk-ins, allowing customers to schedule the service time for their car that fits into their busy schedule, extend business hours, be open on Saturdays and promote while-you-wait service.
     
    I want to make one thing very clear. I am not say that this is the only model and that the way you conduct your business is wrong. And, I am not saying that we should completely change the way we have been doing business for so many years. This is the model I created based on the changing times and changing demographics from my perspective.
     
    Next entry…how to capture a larger market share and increase car counts.
     
    Stay tuned!
  15. Joe Marconi
    My bank loan for the construction project was approved last Thursday. That is a huge load off my mind. The money is not in my pocket yet; the bank still needs to do the appraisal, review the construction plans in detail and do an environmental impact study.
     
    I will let you in a few key things that made the loan process go smoother than expected. It occurred to me years ago that someday I might want to expand, purchase land or invest. To do this I would need money, lots of it. What I felt was important was to have a business that showed a profit, had growth and was involved in the community.
     
    Each year, for the last ten years I worked to insure that the business showed growth and made a profit. Another thing you need to do is to establish yourself in the community. Get active with the local chamber and other local organizations or church. Sponsor athletic teams and school activities. Get to know the people at the bank, including the loan officer and bank officials. If your bank is local and employ local people find out what functions these people are involved with and get involved. Reputation is also vital and equally important is to have a clean facility.
     
    Perhaps the most impressive thing I did was to create and extensive business plan showing past history, financial charts, employee team and our plans for the future. We outlined the area demographics and showed the potential for growth in our area. We carefully detailed the new business model and illustrated the potential growth we would have once the expansion was complete. There are many great books and computer programs that can help you with creating a professional looking business plan.
     
    Another thing a bank loves to see is a great credit rating and equity. Since I own the land, the bank looks more favorable on the project. Investing in your own property has advantages, especially if you can show sustained growth through the years.
     
    Stay tuned!
  16. Joe Marconi
    Our first strategic meeting was held at the local Chili’s Restaurant. Over a few beers and burgers my team and I outlined our future. We talked about the business today and the business yesterday. We talked about our successes and our failures. We talked about how the business has changed in the past 10 years and where we believed the industry was headed. Prior to this meeting we interviewed many customers to find out what they wanted from our company. We asked them what they didn’t like and what changes would they make in our business. We found out that although price is an issue, it’s not at the top of their list. What do our customers want? A friendly face, a fair price, one-stop-shopping, a good warranty and most of all to bring in their car when it was convenient to them. Many customers told us that we were always so busy and having to make an appointment for basic service was not acceptable. Because of this, many times they went to the local quick lube.
     
    Our customers never mentioned ASE certification, or asked what kinds of parts we use. No one asked what kind of equipment we had. I guess they assume we hire qualified techs and are equipped with the right equipment. I think it’s the same as when you go to the doctor; you just assume he’s qualified and has the latest equipment.
     
    Based on our feelings on where we thought the business was headed and what we found out by listening to our customers, we decided to design the new building to handle all the customers who prefer to wait for service. Our new business will market; “You don’t need an appointment, bring it right in”. The existing 6 bay facility will handle all the traditional repairs, diagnostic work and those jobs that require longer times for completion. All basic service work will flow through the new 4 bay facility. If extensive work is found and up sold, the vehicle will flow to the 6-bay facility for completion. The new 4-bay facility will work as a feeder to increase car counts and to satisfy while-you-wait service and emergencies such as flat tires, bulbs and wipers.
     
    We tested out our new plan the beginning of 2007. We began to offer while you wait service. We asked customers when would they like to bring the car in for service. This caused a lot of problems at first and my techs rebelled. Pulling techs off of repair jobs to do an oil change or tire repair caused a lot of tension. But for the greater good we endured. After 6 months things settled down and our car counts went up. Our productivity suffered a bit, but our ARO increased due to more up sells. We pushed the envelope to see how this model would work and it did!
     
    We expect an increase in our productivity once the new 4-bays are up and the repair techs can concentrate on their jobs.
     
    Now that we have the plan, what do we do with it?
     
    Next time I’ll talk about starting the process with the site engineers and the bank.
     
    Stay tuned!
  17. Joe Marconi
    In the year prior to making the decision to grow the business and construct an additional 4 bays, I did extensive research in learning about franchise businesses, quick lubes, national chains and also big businesses such as Disney, GE, Starbucks, McDonalds and others. I wanted to find out why these businesses have a higher percentage of success and growth, as opposed to so many general independent repair shops that seem to struggle and plateau after a few years.
     
    I also visited many quick lubes and national chains to learn how they conducted business. I even took my car in for service at a few quick lubes and tire stores, without them knowing that I owned a repair shop. This experience was extremely enlightening and I advise all shop owners to do the same.
     
    What I learned from my research was that all these business differ the traditional repair shop in many ways and that there are many similarities among franchises, quick lubes and tire stores. And these similarities are not just common to the auto industry but common to all successful businesses.
     
    To be successful you need to have a plan, you need to have vision, you need to think like a businessperson, you need to market your business, you need to advertise, you need to create systems and you need to create policy that all in your company must follow. What I also learned is that the more consistent you become the more successful you become. This can only be achieved by creating systems that make your business more automatic and run without you. The more the business runs without you, the more profitable it becomes. If your business is dependent exclusively on you, your business will never grow.
     
    Perhaps the most important thing I learned is that you need to be a leader and that great leaders can't do it alone. Leaders need great people around them to accomplish great things. I created a team of advisors within my company. This team consisted of my service advisor, shop foreman and lead tech. I also recruited the help from my two sons, a financial analyst and a graphic artist. Together, we created a new plan to expand and grow the business.
     
    Stay tuned!
  18. Joe Marconi
    My first step in making the decision to expand the business was to overcome fear. Fear holds people back from achieving their potential. For me, it was the fear of failure and fear of the unknown. This project was doing something that was out of my comfort zone.
     
    For over a year I thought of every excuse NOT to expand the business: Where do I find more techs? How will I afford the new mortgage? Why do I want to start this at my age? Do I really need to do this? Why do I want the additional headaches? Aren’t things fine the way they are now?
     
    The project would involve demolishing and old building and constructing a new one. The new building will add an additional 4 bays and new customer waiting area.
     
    I had multiple meetings with the site engineer asking question after question. Finally he told me, “Joe, you have been going back and forth on this project for over a year, either sh_ _ or get off the pot”. At that moment I decided to go for it.
     
    I guess it’s easier to live in your comfort zone. It’s harder to move forward into the unknown.
     
    In future entries I will outline “The Plan” for the new building.
     
    Stay tuned!
  19. Joe Marconi
    28 years ago I made the choice to become a shop owner. For years prior to starting my business I worked hard to become a skilled mechanic. By the time I was 24 years old I was rebuilding engines, transmissions, solving the most complex electrical problems and became an ASE Master Tech. How did this benefit me when I went into business? NOT VERY MUCH!
     
    How did this help me with expanding the business and creating a new business model? NOT AT ALL!
     
    I opened in 1980 and after struggling for years it dawned on me that being skilled mechanically just wasn’t enough. I needed to become skilled with the mechanics of business.
     
    I needed these new skills to design my new business model. I will outline my steps in future entries and share the process. One thing is certain; you need to have a business mindset to create vision for your company. You need to become a leader. Why? You can’t do it alone. You need great people around you to help you build your empire.
     
    Stay tuned for more!
  20. Joe Marconi
    After working for more than 2 years, we finally have all the approvals for our expansion project. My business plan has been submitted to the bank and hope to hear from them soon. Our next step is to have the building designed approved, which we do not anticipate a problem.
     
    We now have 6 bays and will be adding four more bays, which will be a stand alone facility. This facility will accommodate all our while you wait customers and light service work. The repair work and bigger jobs will be done in the original 6 bay facility.
     
    A lot of work went into this project (many sleepless nights) to get to this point and it's not over yet. We broke ground last month and looking at 6-10 months for completion.
     
    I have to admit, creating a business plan and new model was not easy and out-of-my-comfort zone. It's like starting a new business. It's both fun and scary!
     
    I will make periodic updates as the project progresses and will share the step by step process needed to build and create something new.
     
    Please contact me with comments. I will share the experience with all.
     
    Stay Tuned!


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