Buying an Existing Shop I Work in?

[Tom]

Many shop owners start out like that. You have a lot of knowledge of the shop that others do not. Have you thought of contacting a shop management coach/trainer/consultant? What are your specific concerns? Many of the smartest shop owners in the business are members of this site and are happy to answer questions. Here is the link to the directory for shop management coach/trainer/consultants: Management Trainers & Coaches – Automotive Management Network

 

[Randy Lucyk]

Justin

Know the numbers is the best advice I can give you. Not just the current numbers, but the numbers that will be in place, once you have your debt load and personal needs included. Even veteran owners are surprised, at how a good month financially, quickly evaporates to very little “reusable cash”. You will need help with this. I suggest you review the hour long youtube video from Bob Ward: https://www.youtube.com/watch?v=y1eQOwDrmqU  , and then contact him to see how he can help.

I have attached a snapshot of our shops performance from April 2021. I realize that your numbers will be much smaller, as our shop is much larger than yours, with multiple divisions. Maybe even better to make my point. The number at the bottom of the image is the one that will matter to you the most. It is generally very small. Much smaller than the number shown. Think $1000 or less per month, for many new shops/owners(and even veterans), Imo. This is just a glimpse at “where does all the money go”.

You will do well, to not let your evaluation stop at net profit. I would suggest that as a new owner, with likely marginal profits, what you will ultimately be concerned with is whether you have an excess or  shortfall of cash in your bank account.

You won’t regret spending time with Bob.