The Government to the Rescue? SBA’s 504 Program
Donnie Jones had always dreamed of building a state-of-the-art body shop. But he faced major obstacles. Every banker he tried to get a business loan from wanted 25 to 30 percent in cash equity, with rates and terms that would have been a major stretch for his cash flow.
Show Me the Money! How and When to Sell Your Shop
As a successful collision shop owner, you’ve probably had to pour most of your time, energy and money into your business for what may have seemed like forever. It’s not forever, but it is a long time – the typical shop owner has been in business for 15 to 20 years.
Salvaging the Salvage-Parts Market
Collision repairers agree: Used parts are a viable alternative to new OE crash parts. They also agree that the lack of compensation they’re given for making used parts usable isn’t doable. Their solution? Insurers need to scrap their current way of thinking and recognize what repairers have to do to save them money.
In September’s article, "Repairing the Crash-Parts Market" (pg. 44), we took a closer look at the manufacturing of aftermarket crash parts, the problems repairers have with their use and the solutions raised by industry leaders. This month, we’ll examine the salvage-parts market in much the same way.
The Incredibly Shrinking Industry
Until three years ago, the prospect of some Wall Street investor teaming up with a body shop owner was incomprehensible. Today, it’s reality. Welcome to the brave, new — consolidating — world of collision repair.
Bought Out
“If I knew then what I know now …”. Only after promising them anonymity would several former shop owners speak openly about why they sold to consolidators, where it’s gotten them and if they regret it.
Managing To Be Great
Great managers possess an uncanny knack for juggling, allowing them to be everything to everybody.
Before You Build: Plan!
Shop owners have lost more money on new facilities in one day than they’ve earned in a lifetime. When designing and building your own facility, plan, plan and plan some more.
Balanced Budget
As more white collars enter the industry, shop owners need to become better business people by learning how to better manage their money.
Going Multiple
If you add facilities for the wrong reasons or without thoroughly understanding what you’re getting into, you may end up with multiple headaches instead of multiplied success.
The Right Manager for the Job
When opening another location, it’s crucial to find a manager whose talents complement your business — and whose business sense can help take your business to the next level.