Small Business Help Requested (Entrepreneurs & Auto Mechanics Please Advise)

N/A | 4-21-03 | Jhoffa_X

[Jhoffa_]

Two distinctly separate events have left me pondering a business opportunity.

I have the opportunity to go into business, by myself, repairing automatic transmissions.

I already have an equipped shop, years of experience as an ICAR trained auto-body man and structural welder, as well as a former professional auto mechanic.

I used to R&R transmissions for a local shop here, but I never rebuilt one. The training is out there, I am sure it wouldn't be a problem as I have rebuilt many auto & motorcycle engines, manual transmissions and the like. I don't anticipate any issues in this area at all. Specialized tools also aren't a problem. None of that's an issue.

The management/customer service angle also isn't an issue, I have years of experience as a multi-unit retail & restaurant manager. I am not worried about that either.

What I am wondering about is the viability of such a business. After looking at the numbers from a recent transmission repair, I figure I could pay the bills and get by on an average of one job a week. Two would put me in the > $50,000.00 a year range. I see real potential here.

I guess what I am is scared. I am scared the business isn't there. I am scared of investing allot of time and money only to fail and I am scared because I don't know if this is God's will for me or if he would help me in this.

Can some of you small business owners or mechanics give me some advice on what it was like when you started up?

Do you have any idea what the failure rate is for automatic transmissions or how the local transmission businesses in your area are doing?

I never really considered working for myself till recently and any advice (especially if it's related to this field) would be extremely helpful in making a decision.

[Jhoffa_]

Any input is greatly appreciated. I am a nervous wreck just thinking about this.

I am sure there's a dozen other questions I should have asked and forgot, so by all means feel free to chime in.

[Cagey]

"If you don't make mistakes, you aren't doing anything."
....James Casey (founder of UPS)

There's much to consider of course and the degree of fear would rise if you're married and have children. But, if your gut says you can do this, you'll know you can. I gave up a company car, insurance benefits, and a decent salary to go into business over 20 years ago and I starved for the first year and a half but it was well worth it for me.

I don't know if Harry still posts here, but he's an auto technician and might have some good insight.

[Jhoffa_]

I think Callahan got banned..

But I appreciate your insight and effort though!

[sistergoldenhair]

I was co-owner of a such a shop.
The general repairs provided steady income; tranny repairs were the gravy.
The rate of transmission repairs wasn't predictable.
When/if transmission repairs were plentiful some of the general repair could be postponed without damaging customer service.
During slow times, transmissions could be rebuilt and placed in stock for future use.
Good luck. If you're skilled at your craft you'll do fine.

[Jhoffa_]

Wonderful, thank you for your reply.

Say, if I could trouble you further..

Can you give me a rough estimate of how many transmissions you repaired in a given year and the aproximate population of the city or town you were located in? Did you ever try to arrive at an average of when they failed exactly?

I really wanted to specialize here. Deal specifically with transmissions. It would cut down on the parts inventory and specialized equipment significantly.

I honestly don't have much interest in being a catch all mechanic.

[momteacherandvp]

I have been lurking since 9/11, but have never replied or posted before. Your situation is very similar to mine and I think I can offer a little advice.

My husband has been in auto body, auto glass, and management for 20 years. Two and a half years ago we were asking ourselves many of the same questions that you are asking now. We opened an auto glass business on a hope, a prayer and a 2nd mortgage and we are just getting to the point where we can live on what we are making. It has been an incredibly fulfilling and exciting two years.


If you feel like you are paddling upstream to make this happen, maybe it is not God's will. If things seem to just fall into place, I say keep praying and go for it!

You should have a plan for how you will pay your bills for the next 2 years, just in case you need it. Be sure to over-estimate what you will need.

Marketing, Marketing, Marketing. Check out shops, similar to yours. Do they look sucessful or do they look run down. Notice how they advertise and then advertise MORE! We have had several other companies pull away from our area since we started, including a national company.
Try different forms of advertising, keep track of where business is coming from, and put your money into what is working.

Call or drop into shops in another city close by. Ask them where they advertise and what kind of respose they recieve. We did this and it was very helpful, just be sure to go far enough away from where you will open that you won't be in competion.

Never underestimate the power of "word of mouth". Make sure every customer is thrilled with everything you do. When you mess up, go out of your way to fix the problem and that customer will send you even more customers. If you send away an unhappy customer, you've really messed up. I know this is true because I get calls from people who are unhappy with my competion and they sure like to talk about it!

Our lives have changed in so many ways since we went out on our own. My husband feels so good about himself and his job now, it just shows all around him like sunshine! We work very hard, but the rewards have been great!

[sistergoldenhair]

The business was in a Chicago suburb of ~ 85,000 with several other tranny shops including at least 3 national chains.
All the shops (including the chains) did some general repair.
Failure seemed to be linked to the "towing season"; people towing boats and trailers during summer vacations or off roading in water and not changing their fluid.
You'll find you don't need much in specialized equipment and inventory costs for tranny parts are very small.
If you decide to also do general repair, most parts are ordered on an on needed basis.
Again, good luck!

[Jhoffa_]

Thanks again Sister Golden Hair. Hey, before you go.. can you give me a rough estimate of how many you did monthly or yearly?

Just a ballpark, if you can remember..

[Jhoffa_]

I assume your post was intended for moi?

Thanks for your input.. I do appreciate it. Good advice.

Regards & Welcome to FR!

[sistergoldenhair]

I really don't remember.
Also, don't overlook the potential for building for other shops, dealerships, etc.
Builders make good money and smaller places can't afford to maintain them full time.
You can deliver a product faster and at a price to competitive with the "in the crate" rebuilts.

[balrog666]

This is the best advice you will ever get, so I will just repeat it:

Never underestimate the power of "word of mouth". Make sure every customer is thrilled with everything you do. When you mess up, go out of your way to fix the problem and that customer will send you even more customers. If you send away an unhappy customer, you've really messed up. I know this is true because I get calls from people who are unhappy with my competion and they sure like to talk about it!

The policy of being too cautious is the greatest risk of all. - Nehru

[Cagey]

I realize your post was meant for JHoffa, but I'd like to echo what balrog pointed out from your thoughts. It is excellent advice for any company, be it a company of one or a Fortune 500 Corporation, good customer service before and after the sale is so important and all too often neglected.

[Jhoffa_]

Oh yes, that's been my experience also.

It's doubly true of small businesses.

Thanks for your input.