well i got a call earlier, saying i need to go to the office tomorrow, along with the rest of my crew
i have a bad feeling we're getting laid off or at least some of us are

i know i have enough in my savings to live for about 6 months, but i don't want to do that, i have an idea, there is an oil change/ tire center/mechanic shop for sale locally
and i am really considering buying it, but my big deal is i know it's A LOT of overhead
and i'll need someone to run my books that i can trust, insurance and the whole nine yards

the thing that really worries me is if it goes under me and my family are screwed

any suggestions???

 

When buying an existing Auto Repair buisness...
Excerpt:
NAICS: 811111

Rules of Thumb
25% to 30% of annual sales plus inventory
2 times SDE plus inventory
1.5 to 2 times EBIT
2 to 2.5 times EBITDA...

General Information
"Good technicians are always hard to come by, but with a busy and nice looking shop it makes it easier to attract them."

"For 2007, there are an estimated 78,567 independent general mechanical service businesses in the United States. These independent businesses employ an estimated 328,301 individuals who provide service and repair for more than 249 million motor vehicles. It is estimated that 70 percent (174 million) of out-of-warranty vehicles are repaired at independent shops.

"The figures do not include the approximately 21,200 auto dealerships with service facilities that took in approximately $29 billion ($17 billion in labor and $12 billion in parts) in 2006, according to the National Automobile dealership Association."

"Most auto repair shop owners focus too much on offering the lowest prices rather than providing excellent customer service. If you provide excellent customer service, customers are willing to pay for it. Most people think the number of bays is important. The number of parking spaces is a lot more important than the number of bays."

"Eighty-eight percent of my automotive purchasers are buyers with no prior experience. The multiple on this type of business has dropped from previous years. Why? Lack of skilled technicians, overabundance of service centers, low unemployment. Most buyers in today

 

Sorry to hear you may be getting laid off. I hope if you do open this shop that it does very well.

 

Occupational Outlook Handbook - Automotive Service Technicians and Mechanics
http://www.bls.gov/oco/ocos181.htm

-------------------------------------------------------------
Excerpt: Tighter money also is changing how owners regard their vehicles. In the days of short-term leases and regular trade-ins, cars were basically "throw-away vehicles," said Stan Rodman, executive director of the Automotive Body Parts Association, a Houston-based alliance of 140 independent part-makers.

Now, Rodman said, owners are recognizing the value of long-term ownership and are ponying up for repair costs, at least required ones. The change isn't so clear on maintenance, but prudent owners are doing more of that, too, he said

 

i would be the head-tech, and around here i have a very good reputation for doing service jobs on friends and friends of friends vehicles as a hobby, and i love that kind of work plus the shop has a good reputation for customer service

i really didn't want to go back to being a grease monkey but i think in this case it'll be different, i'll be my own boss and other peoples boss as well, but when i was doing that a few years ago i hated dealing with customer b.s. and i think it'll be worse because i'll be the owner

 

My buddy has owned his shop for almost 10 years. I've owned my own business for about seven.

1. Define your role. You can't be a boss and a tech. You will do neither well.
2. Invest in a service adviser (gatekeeper). This person can be you, but you will find you won't have time.
3. Running a business is a full time job. Plan to get nothing else done.
4. Nobody cares about your success expept you. You will spend much of your day fixing problems created by the apathetic staff of your suppliers and government agencies.
5. Customers will want you to diagnose problems for free so they can fix their own car. They will pay you later to un-fix it.
6. Good techs are very difficult to find. Expect most to suck. You will need to stay late to fix their comebacks.
7. You will cherish fondly the grand and wonderful days of a steady paycheck, beers after work and walking out on Friday and forgetting the job for the entire weekend...and most of Monday.

 

1) in a sense, you can be a boss and a tech if you are primarily the boss and only a tech when you have to cover for someone/help out when yall get slammed (make sure that doesn't become every day)
2) definitely agree
3) yes it is a full-time job, but getting nothing else done?
4) ok
5) yes, but if you do this and are honest, you will get the jobs that they don't want to do, and you will get good word of mouth
6) yes
7) don't know
5) yes

 

i'd love it to be a performance shop, but down here it's out of the question, maybe i can do certian jobs on the side, build engines, turbo kits, fab work, maybe even install a chassis dyno and do tune work along with tune-ups oil changes tire work and selling wheels

 

As a business owner you must remember to work ON the business, not IN the business.

 

Gatecrasher, that is some great info that you found and posted. I don't, nor do I ever expect to, own a shop but as a businessperson, I can appreciate this info. Nice find.

One more item for the OP to consider and that is financing. If you are serious, start talking to lenders now. Most banks aren't real keen on lending money right now. The ones that are will do it at their terms. Best bet is an SBA loan, decent rates and decent liquidity in that market. Good luck.