Do We Regret Starting Our Auto Repair Business?
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- Опубліковано 12 січ 2023
- Starting an auto repair business from scratch can be a challenging process. There are many obstacles to overcome, including finding the right location, obtaining the necessary equipment, and hiring qualified technicians.
Additionally, building a customer base and establishing a reputation as a reliable and trustworthy business can take time and effort.
In this video, we answer the question of whether we would start an auto repair business again if we got to do it all over again.
I started solo 2 years ago and boy it's been hard on the body and mind! Fixing cars and running a business are wayyy different 🤦 You guys always hit the nail on the head!
Thanks for the kind words! If I had known 15 years ago, what I know now? I'd be in a way better place 🤣
Well done guys. Excellent discussion. You guys knocked it out of park. This channel needs more of this...
Your comment is my love language. 😏
Thanks brother!
I always watch the videos from start to finish. You guys are both super interesting, entertaining, and informative.
TRYING to open a shop was hard. But I learned to diagnose that way. I've learned to program that way, I'm learning EEprom/board repair that way. It was good and hard. Long hours! Super frustrating. And you invest and spend so much. You better be ready if you start a business from scratch. I'm still just trying to make it.
I, too, learned to diag that way - mainly because it got super embarrassing guessing after a while.
ScannerDanner was a literal business and life saver at that point!
@@ChangingTheIndustry I came across his videos on UA-cam when I went home from work researching the jobs my old boss would throw in my lap. I started to look for ways to ensure the next time I put a part on, it would fix the car. I found him doing a crank sensor bypass test and was hooked ever since. You're right. Embarrassing to be wrong on a repair. If you care about the customer and the work you do and get it wrong... Then being embarrassed when you're wrong is natural. I got all my education on diag from his free videos on UA-cam. I only just a few months ago signed up for his premium website. Very worth it. Grow better... Together 💪🏻
That was an incredible discussion guys. Thank you very much for that insight.
Thank you for the kind words! Honored to have you as a subscriber!
Great topic! Very common that business owners underestimate the true cost of a start up. It can weigh heavy on you personally and professionally.
Great intro, I will watch them for 5-10 seconds. I started from scratch in the country (2000 people) in 1996 from 6PM to 10:00PM for three months before went full time with $200.00 and still working my day job in a shop 7-5PM. I was young (Under 30 :) , had a very low overhead, no insurance, my wife had a good job, and a body shop feeding us some steady mechanical work etc. If I did this all over again in today’s world. #1 Hire a coach #2listen to the coach #3 Go all in or do not get started #3 Buy an existing business#4 have a business plan. I was only a tech that had no idea how to really run a business. I survived on checkbook accounting for10 years before I realized we needed real automotive business coaching, Had we not done this, we would not be in business today!!!!!!!!!!
Amen brother!!! Couldn't have said it better myself!
I opened my shop at the end of 2019 from scratch my first year we did 450k my second 940k and the third 1.3 right now we are tracking 1.8 yes it was hard but I don’t think my success has anything to do with luck I think it had to do with hard work and being able to follow a process and also it took a lot of marketing
Congratulations on the success, Erick!
I am in the ASOG mastermind group... I basically started with zero customers... It's hard.. business hasn't been great. It's doing well enough to pay for itself... I am not really making the income I did as a technician... I did it differently than most. I bought and paid for my land, building, and equipment during the 6 years before I opened... Honestly my low overhead is the only thing keeping me floating.
I'm so glad you're part of the organization brother! Is it helping?
Thank God now I don't have to chase you down and tell you to listen to this episode. 🤣🤣🤣🤣
@@ChangingTheIndustry Absolutely it's helping... I think without ASOG I would be lost. It's reassuring to have guidance from owners that have been where I am before. I owe you one Lucas for getting me in there. Thank you!
You guys did an excellent job of playing good cop, bad cop, devils advocate, for the reasoning behind the bad shops to do business the way they do.
I specialize been called into shops, either to do the main diagnostic right up front . So the shop can make the money on the labor in selling the parts..
Or I get called into rework their vehicles after they’ve done three or four attempts, and they have an angry customer & dumping too much time and money, and they just want it fixed right now then I get the car.
As for the technician who is frustrated, working for a parts changing shop specially if they’re heavy into under car work and rely on non-technically skilled work he’s in the wrong shop he needs to leave for sure you are dead right correct on that .
No diagnostic technician belongs in a shop where the majority of the work is based on under car especially where the owner of the shop is not technically minded or skilled, and is incapable of training his own technicians, that is one of the worst places to work for usually , not all the time.
I get to work with and repair work for shops that are parts changers that last 10 years 20 years plus and never become technically skilled . Changed a lot of unnecessary parts some make money and some do not make money at it .
The ones who make money at it, deem themselves successful, because they are very wealthy, usually off the back to their technicians, who they take advantage of, and make sure they do not have bright , technicians kind of gullible easy to take advantage of they seek these kind of technicians out usually . Technicians who might even not have legal papers or speak the language very well. A shop owner type who likes to be on top of that type of technicians because they take it vantage of his situation.
As for starting an automotive business from scratch, since I am fourth generation, six great uncles and grandfather, all owned automotive businesses and body shops. I grew up in my dad on his own automotive shop, and my father would not give me his shop he said I had to earn it myself, and know what it was like to start it from scratch with nothing.. the same way his father did with him.
When I started after two weeks after day, one of starting my own business, I was making about 4 to 5 times more money than I was working for somebody else after two months I was so busy cannot go pass any more business cards out or little flyers to other shops That was the end of my advertising. After that it was word of mouth 30 later it’s still the same way..
We did the same thing to my two younger brothers one 12 years younger one, 15 years younger . By the time they were approaching 40 they were already set up for retirement owned a few houses, commercial properties, and retired from the business..
We started our youngest cousin off. He’s now in his 20s started from scratch, always busy never advertising, and after eight years in the business, he makes more money than most technicians by the end of their career. .
Starting an automotive business is super easy, if you were well coached, and extremely technically inclined with proper mentoring, and a real formal apprenticeship under somebody with education . Not learning by the school of hard knocks..
And I was actually the slowest one to catch on and started my own automotive business later than everybody else .
But because I have a commercial HVAC business to if I had to go back and start all over again .
I would’ve totally skipped the Automotive, part of my life and stated in commercial HVAC easier work ( for somebody technically confident, formally educated
In the engineering aspect, gone through a real apprenticeship, )more money, less stress . Somebody who is not cheap about education, constantly going to expose in seminars, not on how running a business and making 1000% more profit seminars. But actually continuously learning that ever involving an complexity of the engineering and technical aspects of the business so it’s never difficult. Everything is easy you usually never have problems. Nothing stumps you because you strive to be on top of your game..
Not relying on other people.
I’m actually witnessing one of my older shops that I was very proud of and was on my top (A game list ). Going through management changes they lost too many senior technicians. All the new management is too young and two inexperienced.. and this is causing problems in the shop. Knowing their technicians are absolutely want to get out of the automotive business now they’ve noticed how bad the shop has turned because it’s becoming more like a corporate run shop going by a playbook.. even the old guy wants to get out of there but he’s too close to retirement. He’s just gonna stick it out another year or two and retire early because what he has watched that shop turn into he wants to have no part of any more..
And I’ve seen this exact same scenario, play out many times over the last few decades .
Building any business is hard. It's not for everyone.
Looking for some advice. I am a dealership technician, I have done this for 10 years and I have advanced as far as I can (as far as they'll let me?) so the learning opportunities have stagnated, the ability to earn more income via pay raises has stagnated, and because I'm the top trained technician, I get all the fun stuff I like fixing but that tank my hours. I want out.
I managed an independent shop for a year, so a lot of what you say in this video resonates with me. Shut the doors at 5, spend the next 3 hours fixing cars, drag my weary tail to bed, start over the next day at 7 trying to get everything ready so my guys have no interruptions all day long. I've long thought about hanging my own shingle and doing a one man driveability specialty shop. I really love fixing cars, I'm not so big into running a business, but I don't want to be one of these techs that opens a shop and flames out for lack of business acumen.
Who are some quality advisors that can set me on the right path?
Really appreciate the video.
You need to find a home. What area of the country are you in?
@@DavidRomanKC Currently in the Texas Panhandle, but our (my wife and I) heart is in East Tennessee or the Ozarks.
We have friends that own a shop in Amarillo if you're looking to find a permanent shop. It doesn't hurt to have a conversation with them to see if it's a good fit.
Next podcast idea : when should I hire a new tech ?? The one man shop owner ready to hire his/her first tech and the shop owner with multiple techs.
We can probably do a video on this, but if you have the room and a marketing plan to keep more vehicles coming in, then you hire a tech as soon as you can.
I second this video
Couple questions: Should I buy an existing place that seems overpriced due to real estate or start a shop out of my home outbuilding and pole barn. I live in 3 acres with a High roll up with a connected pole barn
Have someone assess the value of the business. Always buy an existing place, but don't overpay.
I started my shop 8 years ago and it took off and I bought a large 8 bay shop almost 3 years ago,and I'm not sure I would do it again
What's the pros?
What's the cons?
Our listeners want to know.
I love this channel! But this video was incredibly pessimistic guys! I started from the ground up 5 years ago. Grossed over $200,000 last year. And I run a one man shop still. You guys are literally trying to convince people starting a shop from scratch is impossible..that’s what most people have to do, If that’s their dream. Unless you are lucky enough to have a financial backing. But I’m here to tell you that’s absolutely not the case. I started with $3000! it is possible. And my success has nothing to do with luck. It’s been a tough ride especially as I grow. Hard to keep up. But very proud at what I’ve built. Love all your content just happen to disagree with you on this one!
Please don't misunderstand - we're not saying it can't be done. I did the EXACT same thing.
But is it what's best for our industry?
Is its what's best for you? Your family? I doubt it.
SUBSTANTIAL Changing The industry Podcast
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From Nick Ayivor from London England UK 🇬🇧 ⏰️ 09:41am
The one question missing from this enlightened conversation was : are you running your business in an ethical way? Are you able to sleep at night? Are you dealing with your customers and your staff in an honest way? I think it was mentioned in an early podcast; longterm ethical profitability. Shotgun diagnosis or parts swapping is not ethical. I think it is easy for a business owner to lose sight of that in the rush and or blur of running a shop everyday. Too much rushing and not enough thinking.
There's no question that shotgun shop isn't doing this ethically.
To what email address should we send our messages? I have questions… and comments.
Post everything right here.
I do shotgun diagnostic but if it doesn't fix than I do not take payment from the customer. It's my risk that I'm taking. Also when it fixes the problem than I make sure that problem is completely solved and it will not return
But....but....but.... how can you make sure it'll actually be fixed?
And do you have a procedure or policy for when you use "shotgun" diagnostics?
@@ChangingTheIndustry I work on European cars, mostly diesels for 13 years. Right now in UK. There is always initial diag with scanner and checking live data.
Now here is something I should specify. I do like 30% of my diag "shotgun type" based on experience. Like EGR Valve or o2 sensors or poor start every morning or smoking from exhaust (different colour, different part could fail). But after replacing components like that I got my own "know good" measurements to check that everything is working in this system as it should. It's same with brakes. If someone got problem with vibration on steering wheel and suspension after check is fine I don't check disks except visually. If I will make mistake customer got free brakes and car checked again in order to find the problem. But all of these is based on experience. Or just in some cars it's cheaper to replace something instead of removing it, testing, if not sure putting it back and testing it. Sometimes "shotgun" is some sort of test. Not always.
I know how it sounds (kind of) but my main rule is that I have no right to decide about customer's money. And if I take "shotgun" that is my money I put on the table to do the tests
When I started my business I brought in $240,000 in revenue in my first year as a semi repair shop by myself
My techs bring in more than that each now. But $240,000, after paying yourself $50K a year and paying for parts, doesn't leave much for expansion, tool purchases, training, and subscriptions. Then there's rent, utilities, insurance, et. al.
In the end, the juice ain't worth the squeeze.
Glad I don't listen to podcasts before I jumped in. No auto business experience, small town shop. Started with $400 in my pocket, told the dealer I worked at to fk off and jumped in. That was 2016 and I'm still here grinding.
"I made a bunch of mistakes and had to grind it out to keep my business afloat. Everyone should do it the same way and no one should share what they learned!"
☝️ You
Nice copium... 😉✌️
@@ChangingTheIndustry That's not me at all, I started out thinking being a master tech with every ASE cert, smog lic, etc. I would be good at having a shop or whatever. I thought being cheaper than everyone else would gain all the customers and then a year in I'm wondering why I can't pay the bills. I was just doubling the cost of the parts, thinking that was enough markup, etc. I was hand writing RO's and thinking I knew it all. After that first year I watched a ton of video's, went to a couple of Vin Waterhouse seminars, got an invoicing system, started processes in my shop, etc.. and now I'm profitable and I want to start a second specialty shop. I don't believe in blanket statements like "I can't do xyz without this much money" or whatever. I find a way and hustle. What do I know though, I actually have a shop I don't make money doing podcasts.
With everything you've done, would it be fair to say that it would have been easier to have accomplished it had you started with $250k in the bank to be able to use?
@@ChangingTheIndustry of course but who has $250K laying around? I'd venture to say not many people and if they do get 250K it's on a loan. That's a big risk. If it doesn't work you fall hard. When you start with nothing and you can prove you can be successful and build a clientele then scale up and take out a big loan.
The guy on the left doesn't seem like a people person.
🤣
No such thing as luck, they didn’t get lucky in location, they found a suitable place to put a garage.
Yes, there is luck. Without any analysis or research, many owners have purchased randomly selected spaces without realizing they stumbled onto a gold mine.
I've seen it over and over again.
Sounds a little negative in the beginning can’t really agree every business started is a risk and you should know that if you don’t want risk then don’t go into business
I could see that - but should we jump on the bandwagon with the others....
Saying you can start a repair shop for $30,000...
And it's all sunshine and flowers?
Or should we have a real discussion about the experience of those who have started a business?
Let's throw it in perspective and say that between the groups we're part of, ( a sample of over 6,000, mostly repair shop owners), the large majority when asked say they didn't know what they were getting into, and decisions early on had substantial impact on their families, some lost their families and some suffered tremendous financial set back....
Yet many of the techs who hope to go out on their own seem to get frustrated when those struggles are discussed...
Is it because they are lying to themselves? They think it's going to be better than it is?
Is it because we're dummies and don't represent the large majority of the independently owned auto repair shops?
Or is it somewhere in the middle?
Whats your experience with starting a shop A dealers life?
Have things gone well? Any roadblocks you wish you would've known about?
I agree 100% starting a business is a risk, just like investing in the market....
I think my biggest take away? If I had invested in the market early on, I would've made more my first 10 years in business by investing than with my business.
Now, that's turned around and instead of the 10% net I would've gotten from the market, we're seeing improved returns and growth.
But my ignorance starting out? Cost me a fortune!