• April 28, 2021 at 1:51 pm #118384
    Justin Piper
    Participant

    We are looking at the idea of purchasing the shop that i currently work in. I have been here 2.5 yrs and it is still a good and growing shop. This is also a form of retirement for me.  I am looking for the good and bad that others have experienced and any warnings that anyone has.

    April 29, 2021 at 8:31 am #118392
    Tom Ham
    Participant

    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

     

    Tom - Shop Owner since 1978

    May 3, 2021 at 8:41 am #118509
    Randy Lucyk
    Participant

    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.

    Attachments:
    1. april-2021-snapshot.jpg

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