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The auto repair industry is currently going through the most significant changes in 40 years. The majority of Auto Repair Shop owners are retiring. Many businesses are closing down, and a select few are being carried into the hands of new business owners.
As a b2b, door-to-door salesperson who was once in the shoes of almost every person's job description in this industry, I observe more than I speak. I visit thousands of auto repair shops annually, so I can see the everyday successes and common failures. Most surprising is that most business owners ready to retire do not have a plan. That lack of planning has led to the particular issue that we are having; that lack of planning stems from the same cycle of ideas that the majority of new business owners are adopting today.
That cycle of ideas stems from motivation; but motivation, also without a plan. Planning to open a repair shop requires much more thought than the ideas I see out in the field.
- " I was tired of my boss or the corporate environment, so I started my shop."
- "If the dealership I work for can make $200.00 an hour, I can do the same job for half of that, and I'm still making five times more than they pay me."
- '"I needed a career change and discovered that auto repair is a lucrative business."
- "Auto Repair Shops make tons of money, I want in on the action."
- "I saw a building for sale and figured I would see what happens."
- or the previous owner just "seller financed" the business to one of the techs at the shop just to get out the door.
The experienced and successful business owners will all tell you that these are all motivating factors, but none of these ideas will make you successful. The craziest part is that the shop owners who have "just gotten by" all these years, some 20 to 40 years in business, have not learned how to operate a business on more than a passionate idea.
Thus, it is born 'The cycle of insanity" that is societally generated.
This business has more moving parts than most new business owners realize. The majority of businesses that are changing hands are coming from shop owners who did not reap the most out of the crop. The people buying these businesses do not understand the real potential, nor do they understand business ethics, safety requirements, liability, risk assessment, customer relations, or for the even more unfortunate few, automotive mechanics, electrical and programming, business overhead, or have a growth mindset.
Shop owners must take the time to learn every aspect of the business. The problem is that they spend more time working in their business than working on their business. I have a passion for changing these false perceptions that float around practically every automotive repair shop that I have ever been to. Life taught me that if something is happening in one place, it's also happening elsewhere. Things can also be worse in other places. The industry requires this business to be a business. The individual drivers and families that expect professionalism, truth, experience, industry knowledge, a friendly atmosphere, and most importantly, the ability to drive a vehicle out of your bay in a safer condition than when it went in; all depend on you just doing the right thing, and taking the time to grow.
