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5 Tips of Starting an Automotive Repair Shop



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what's up everybody is Charles today I'm

here with bogie from a million things

like bogies garage all girls garage 180

degrees garage that's because that's how

hot it is in Phoenix in the summertime

and a million other things also a very

good friend of mine professional

colleague and a whole bunch more today

we're gonna give you guys five tips for

starting your own shop and who better

than someone that did exactly this right

when I say it it's one thing but when

someone actually did it these people you

know they're ball game so Bo you are

shop owner BMW technician TV superstar

internet famous gal wears glasses and

has a black shirt on and artist Travie

bleep plenty more so let's jump into it

what is tip number one when a technician

who all of us I think think this I could

open up my own shop and do a great job

what is tip number one for that

technician to to follow don't do it kind

of so tip number one is be really clear

on why you're doing it do your homework

first if your reason is I want to have

more flexibility I want to have more

time I want to make more money I want to

be my own boss I don't want to have to

answer to anybody

revisit that because when you own your

own shop you have less time you have

less money you have less flexibility

with your time and instead of just

answering to one boss you answer to all

of them meaning your employees are your

bosses the state is your boss the city

is your boss the feds are your boss all

of your customers are your bosses and

you have to report to them so know why

you are doing it and put in the research

and the time to make sure you're doing

it for the right reasons I think the big

reason to is like you think your boss

sucks and he's doing a bad job and you

could be better you might be right but

really make sure that you're right

before you do it instead of after yeah

there are so many things that I

understand why shops that I work for

used to work for why they did things the

way they did now that I'm a boss and now

that I run a company because I can see

the whole picture now when I was a tech

all I saw was my piece of the puzzle and

then once you're the boss and you're

like oh that's why they did that because

there's this whole other part of the

world that I didn't know number two if

you want to still be a technician or a

mechanic and you want to turn wrenches

you don't recommend starting your own

shop this is becoming a list of why not

to start a shop but you know what I

think honestly though sometimes this is

what we need to hear instead of you know

me because I'm gonna be a cheerleader do

it like that's my nature and I think

hearing here's the reasons why I

wouldn't is equally if not more valuable

so let's let's hit that number two so

not just an automotive world but in

pretty much any industry people do this

all across the country they say I'm

really good at doing this thing so I'm

gonna start a business doing this thing

and make all the money for myself

instead of working for a boss and then

what happens is you get into being a

business owner and you stop getting to

do the thing that you love doing if you

love turning wrenches and diagnosing

cars do that if you become a shop owner

you're not doing that you're doing

bookkeeping you're doing advertising

you're doing Human Resources you're

dealing with legal you're dealing with

all of the other things and you're gonna

find yourself eventually if you're doing

it right sitting behind a desk instead

of out in the shop working on cars which

is not why most of us got into this all

right wanted to are done what do you got

for three okay number three you've

decided this is what you want to do

remember you don't have to go it alone I

think this one is huge so there's two

different ways that this could be

translated one is you can partner with

someone so if you decide you're the

person who wants to wrench and that's

what you want to do awesome partner with

somebody who likes to crunch numbers and

wants to sit in the office and do the

rest of it and deal with the customers

and all of the other parts and pieces

that would be how I would have to do it

I'm not the number cruncher I can I just

don't want to so that's how I know you

want to be a technician not a business

owner just saying because you kind of

even if you partner with someone you do

want to understand some of this so you

can make sure you're keeping your

partner on track if you don't know how

to read the P&L or if you don't know

what a P&L is you're not gonna be able

to know if your partner is stealing from

you and you can't figure out why you're

not making any money so you still need

to know the stuff but partnering with

somebody is a really good option the

other way and what should I say you

don't have to go it alone is there's a

lot of great resources out there

there's mastermind groups there's

management training there's there's

programs for business owners that don't

even exist in the automotive world

they're outside of the automotive world

but business is business is business and

it all applies so find peers find

mentors learn from other people's

mistakes partner with somebody but go

get yourself educated because if you

just dive in you're gonna fail they say

like 95% of all small businesses fail

within the first five years it's super

high and I would say make sure you're

partnering with someone that is the

complement of your weakness yes don't

hire or partner with someone like you

and your tech buddy who just know fixing

cars you might not make the best to

business people out there so partner

with someone that is the opposite and

does the things that you're not good at

because if you're the same person

essentially you're both you both have

the same weakness yeah number four let's

hear it number four is have a bigger

reason why you're going into business oh

not just because you hate your brother

not just because you hate your boss

because this becomes your marketing

strategy too so if you go to your

customers or to your community and

you're trying to differentiate your shop

from the 9,000 other shops down the road

how do we differentiate you can't just

say well because I fix cars right the

first time that's great that should be

the expected minimum like saying that I

you should come to my restaurant because

my food won't make you sick that's a

that's a standard for me it should be a

standard fixing the car right should no

standard but if you have a bigger why

whether it's to give back into the

community whether it's to raise up new

technicians whether it's to be a part of

changing the perception of the

automotive industry whatever that reason

is maybe you want to donate a percentage

of your proceeds to I don't know autism

research I don't know what your thing is

but have a thing have a reason why

you're doing this that's bigger than I

want to make more money and I don't want

to work for my boss because your

customers don't care about that but if

you have a unique selling proposition

that makes you a high-value and and why

should a customer go to you instead of

the thousands of other places right down

the street I'll add that doesn't mean

have a gimmick so much as

make sure this is like the core

construct of your business right the

ethos of your business

all right you wrap it up number five now

guys let me just say we're talking about

five things there's probably five

thousand things this is just like some

of the biggest things from experience of

being a technician and opening a shop so

don't think like if you cover these

paces you're good and you're gonna have

this multi-million dollar business right

there's a lot more to it but though you

hit us with number five all right number

five is you need to be comfortable with

your numbers and that is the thing that

most people hate the most about being in

business for themselves you need to know

your numbers you need to look at them on

a regular basis you need to know how

much it costs you every day that your

doors are open every minute that your

doors are open so that you are doing and

making the right decisions to make sure

you're profitable way too many

businesses are just doing their due

every day they're running like in their

little treadmill and they're the little

hamster wheel and they're working their

butts off and they're busy but they're

not making any money and it's because

they don't know they don't know where's

all the money going you've got to look

at your numbers on a regular basis and

get really comfortable with them and I

think there's a lot that I know had I

started my own shop and say 2010 when I

was like full-on dealership technicians

there's a million things I wouldn't have

thought of where do I buy brake clean is

it cheaper to buy in a 55-gallon drum or

is it cheaper to buy little cans

what about rags what about insurance

what about insurance for my employees do

i want employees i don't know right all

the things that you don't know how much

is an alignment rack gonna cost how long

is it going to take me to pay off that

alignment rack if i do three point one

alignments a day for five days a week

for how many years right all those

things and if you don't know i if you

don't know that stuff i'm not saying

you're not gonna be a successful

business i'm not saying you should do it

you but you should learn that stuff

before it's costing dollars out of your

pocket instead of diving in spending

three hundred thousand dollars to open

up this shop and not having any idea how

you're gonna pay for the equipment how

you're gonna keep your employees fed

right it's like being a technician i

only really worry about my own paycheck

sure there's an advisor upstream that

you know gets their paycheck based on

what I do and it's ER

manager based on what I do but now you

got to flip that funnel around because

your paycheck as a business owner is

probably the least important paycheck in

the whole building that technician you

hired and you need to keep them fed that

advisor that office manager everybody

has to earn theirs and then like if

there's anything like that so and don't

just say if those of you out there

saying well I'm not gonna have employees

it's gonna be just me well then you

don't own a business you own a job

because what happens when you're sick

what happens when you want to take a

vacation

you're not making any money so now

you're tied to this and you're stuck so

if you want to be a business owner

you're gonna have employees and that is

going to become part of the equation in

that space absolutely in it honestly at

that point I would say well what would

be the difference between that and just

having a job at a dealership where you

have benefits where you have health

insurance where you have an HR person

that like can bail you out and help you

out and also understand you're gonna be

paying way more in taxes right all those

fees you said you you have the state the

city the county the federal right all

those things really you need to make

sure you put the time energy effort

money into learning how to do this

making sure you understand all the

regulations cuz county a and county B

may have different regulations right

make sure you do the research before you

do it I am in no way discouraging anyone

from doing it because I'm the biggest

cheerleader of doing your own thing

agree whatever the thing is I just don't

want to see you know you have to in five

years shut down your doors and you're a

million dollars in debt because you

didn't know what you were doing and

didn't take the initiative to learn that

kind of stuff before you're a

millionaire biggest mistake I made I

quit my job with $200 to my name and

called all my friends and said I'm gonna

start my own shop start bringing your

cars to me and I knew nothing about

being a business owner and it took me

three years of being insane out of my

mind pulling my hair out we'll busy

running around like a lunatic not making

any money before I said this is not

sustainable I need to learn and I dove

into education and I rewrote my business

and I learn how to systematize it I

learned how to be a business owner and

then I became successful but if you can

save those three years of craziness that

I went through by doing in the education

the research upfront then you're ahead

of the curve so that's it five awesome

tips guys if you have any questions or

comments as always drop them down below

I will link up all bogi stuff even

though you probably already know that in

follow her anyway I'll link that down

into the description guys thank you so

much for watching and we will see you

next time