Shop Owner, November 2014

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 Earning Employee Loyalty

 Shop ‘Sellability’ Part 2

Year-End Tax Planning

November/December 2014

It’s more than just fixing cars

[atc] AutoCenter Centering On Trust, Talent, Truth & Teamwork

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Here’s a sneak peek of:

See page 32

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®

November/December 2014

Shop Profile 32 [atc] AutoCenter, Augusta, GA 46 Clark’s Car Care Naperville, IL

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Features 6

Technology: The Paperless Shop

22 Buying/Selling: Sellability Score, Part 2 42 Customer Service: Winning Over Tough Customers

Sponsored by:

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Customer Service: Winning Over Tough Customers

Shop Profile: Clark’s Car Care

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®

Departments 14 18 38

Shop Owner Staff

Executive Interview: Robert Sanford, ACDelco Shop Management: Earning Internal Customer Loyalty & Trust

Publisher

Jim Merle 330.670.1234, ext. 280 jmerle@babcox.com

Editor

Mary DellaValle, ext. 221 mdellavalle@babcox.com

Graphic Designer

Cindy Strubbe, ext. 231 cstrubbe@babcox.com

Advertising Services Director

Cindy Ott, ext. 209 cott@babcox.com

Contributors

Chris Crowell, ext. 268 ccrowell@babcox.com

Finance: Year-end Tax Planning Tim Fritz, ext. 218 tfritz@babcox.com Andrew Markel, ext. 296 amarkel@babcox.com Subscription Services

Maryellen Smith, ext. 288 msmith@babcox.com

Babcox Media, Inc. 3550 Embassy Parkway Akron, OH 44333-8318

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President

Bill Babcox bbabcox@babcox.com

Vice President/ Chief Financial Officer

Greg Cira gcira@babcox.com

Vice President/ Group Publisher

John DiPaola jdipaola@babcox.com

Controller

Beth Scheetz bscheetz@babcox.com

In Memoriam

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|Shop Owner|November|December 2014

Founder of Babcox Publications

Edward S. Babcox (1885-1970)

Chairman

Tom B. Babcox (1919-1995)

䊚2014 by Babcox Media, Inc.

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|Technology|

by Uwe Kleinschmidt, CEO, AutoVitals

Change Is Good & Profitable When Done Right Highlighting The Value of Digital Inspections And Workflow Management Many shops across the country have introduced Digital Inspection and Workflow Management on tablet devices in the back shop and internet browsers in the front office. A significant number of these shops scored such incredible productivity and efficiency results that it begs the question, “What have they done differently than others who are still trying to find their mojo?”

The rumors are true. Many shops realize a more than 20% increase in average repair order value (ARO) using Digital Inspections and Workflow Management. The use of certain procedures and policies, in conjunction with SmartFlow, resulted in these incredible increases in ARO and technician productivity.

How Gradual Process Changes In The Shop Make A Huge Difference AutoVitals invited four owners, who run shops of different service specialties and varying sizes, to share their formula for success at our monthly Service Adviser Huddle webinar in October. A highlight video of the broadcast can be found at www.ServiceAdvisorHuddle.com on the AutoVitals’ website.

The owners, Bill Connor, Craig’s Car Care; Bill Bates, Eagle Automotive; Dan Gar-

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lock, Silverlake Auto; and Russ Hilliard, Tires Too (all NAPA AutoCare Centers), introduced policies and procedures in their shops that are tailored to their type of business and specific to the interactions between motorists, service advisers and technicians.

The excerpts below give you an idea of how they all increased their ARO by more than 25%.

Four Shop Owners Embrace The Drive To Eliminate Paper AutoVitals’ goal is to get dealership professional-grade educational information to the motorist and dramatically increase consistency and productivity for service advisers and technicians. All of you have a “work in progress” screen in your shop management software, but you also have the paper rack. We identified that

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missing information is a major source of unnecessary busy work because techs have to walk back and forth to get that information. We eliminated that so all the important information needed by the service adviser is only one click away.

The best analogy I have is that everybody used a landline phone in the past, but many of us have switched from that basic technology to a smartphone. For some of us this switch was initially not easy, but new features created a whole new experience with a whole new level of quality.

The same holds true for digital inspection and digital workflow management. So, let’s dig in as four shop owners discuss digital inspections, detailing what route they’ve taken and what’s going to come next.

has just gone through the roof. Being able to show them and educate them about what’s going on with their vehicle with pictures and a professional inspection is really giving them the confidence that they can trust us beyond anybody else right now.

We’ve seen ARO improvements of about $50 in our Oconomowoc location, and we’ve seen even greater numbers in our Hartland location.

We’ve also been seeing about a half an hour increase per average repair order.

Russ Hilliard, Tires Too, Londonderry, NH: We spent most of the winter playing around with it and getting our inspection format down asking our service advisers and techs to develop that. We went full bore on May 1 and since then we’ve seen a 27% increase in our AROs, and gross profit margins are up by almost 4%. We’ve seen $1,700 a week in additional business.

Brian Bates, Eagle Automotive, Littleton, CO: It’s been a great productivity tool for us, especially owning multiple shops. It’s nice to be able to go to the computer instead of calling another location and asking, “Hey, how’s the day going?”

Instead, you can go to the computer, and you know which cars are in the inspection process, which cars are waiting for authorization, which ones are being estimated, which ones are finished, which technicians have flagged how many hours, and which advisers have the work in the shop.

You can answer a whole lot of questions without disrupting anything in the process.

Dan Garlock, Silver Lake Auto, Oconomowoc and Hartland, WI: Really, the biggest result that we’ve seen is our customer competence

Garlock: We basically just quit paper inspections. We told the guys “alright, we’re quitting paper inspections, and we’re going to do digital inspections.” We also provided some parameters about what we expected them to do, like we wanted a minimum of four photos

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on each inspection, and one of those four had to be of something “good” on the car so we could still build some value in the car.

We also asked our service advisers to get an email address from our customers. Now that we’re not going to print these inspections anymore, we needed a way to get it to them. So, we had to train our service advisers on how to educate our customers about what we’re doing and why we’re asking for their email address.

Once we did that, we got very little pushback from our customers.

Patrick Egan, AutoVitals: Can you walk us through and discuss how you set up the day with SmartFlow and how you queue up the jobs for each one of the techs?

Bill Connor, Craig’s Car Care, Allen, TX: We look across the top of it so we can see exactly how many hours our techs have agreed to do for today, and then the service advisers make sure they’ve got enough hours approved to go ahead and actually meet their goal.

And then all day long, the techs can be efficient at what they do.

And, based on the promised time (because a promised time actually shows right up on the technician view), we can basically drag and drop the tile, in the order that we want the technician to work. So we’ll just drag things around first thing in the morning, and if anything was left over from the day before, it automatically shows the hours that are remaining. We’ll

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then drop whatever we need to for each technician and then keep optimizing the technicians’ ability to work on the vehicle effectively and in sync with our customers expectations.

Bates: It’s a change in process just like going from mailing letters to sending emails. It was a major cultural change for most of us. Just as most of us wouldn’t go back to sending letters through the mail now that we’re on email, that’s how we feel about the digital processes. It was a bit of a change; a transition. It took a little while for everybody to get used to it, but if you asked my guys now whether they’d rather go back to the paper inspections or stick with the digital, they’d all say that they wouldn’t want to go back to paper for anything.

Garlock: Right now, I don’t think any of our guys would want to go back to paper.

It has really made our shop and our inspection processes much more consistent. It’s taken that guesswork away from the service adviser. “Does the vehicle really need this? Am I selling the right thing?” There’s just belief right away.

Hilliard: None of us are looking back. We are terribly excited about it. This is a game changer as far as I’m concerned. It just raises your credibility, and your level of professionalism, and takes your market to a whole new level. Shop owners who aren’t looking to move in this direction are going to get left behind.

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Involvement Of The Whole Staff Is Key Going from a paper-based shop to a fully digital operation is a task involving the whole staff. Just as when new tools are introduced to the shop, new policies and procedures are needed so everyone can fully benefit. Using a landline phone doesn’t even tap 10% of the smartphone’s capabilities. But, as with other big changes in processes, small steps can help bridge the technology gap and yield better and faster results in the overall transition process. A typical point of resistance from initial technician feedback is paper is what they are used to and it works, so why change?

one of the staff to embrace the new way; everybody was convinced it would be a game changer when he pulled the (paper) plug.

Garlock introduced a procedure of picture taking, specifying precisely “what” and “how many” images to take during the inspection.

Once process adjustments are made, and a few iterations are applied to finetune the new process, nobody actually realizes how far they’ve already come. By instituting small changes at a time, and with buy-in by the staff, you can make a huge difference in how fast the new process can be implemented. Everyone emphasized that nobody in their shop would

Switching from paper to digital is like switching from a landline phone to a smartphone.

Connor recommended letting the technicians select the tablets and make sure the advantages of the tablet are immediately obvious to eliminate pain points. Speech-to-text is supported natively by recommended tablet types and not only shortens the (often unpaid) technician time, but also creates technician notes without typos.

Bates couldn’t emphasize enough that developing the inspection sheet as a team effort results in 100% “buyin” by all involved, and even if it takes a few iterations, it pays off significantly.

Hilliard realized that he was the last

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go back to paper.

Connor summarized it this way: “We can see exactly the time each technician has been committed to.

The service adviser will now make sure that enough approved hours are available and use the promised time to the customer as a management tool for prioritizing the vehicles for the technicians in the back shop.”

Watch the whole recording at www.AutoVitals.com, and sign up for the next Service Advisor Huddle webinar at www.Recipe4Shops.com to join the transition to the digital shop.

SO

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Corporate|Spotlight|

MAHLE Service Solutions Introduces TechPRO® The Industry’s Most Advanced Diagnostic Scan Tool TechPRO®, a new diagnostic scan tool from MAHLE Service Solutions, is the most advanced technology available for professional technicians. This versatile, software-based, laptop or tablet-enabled device helps analyze, diagnose and repair today’s sophisticated computercontrolled vehicles faster and more accurately than any other tool on the market.

With decades of providing diagnostics to OEM’s end-of-line manufacturing test systems, MAHLE Service Solutions now brings this speed and stability to an aftermarket scan tool for the first time. TechPRO features the ability to decode a vehicle identification number (VIN) in one second with one click.

Plus, the speed of diagnosis is measured in seconds versus minutes for competitors’ tools.

The new device was engineered so the vehicle communication interface (VCI) and software can be used with a technician’s current desktop, laptop or tablet, making it unnecessary to buy or lease extra hardware. In addition, regular vehicle data and software updates are downloaded automatically and seamlessly via the Internet.

Among TechPRO’s features is J-2534 pass-thru capability for reflashing and reprogramming.

TechPRO also features an ergonomically engineered VCI with a bright LED light for high visibility and confirmation that the VCI is connected and communicating. Other useful functions include cylinder balance tests, compression testing, key relearn, misfire graphing, customer reports, and full-time data recording The MAHLE Service Solutions TechPRO diagnostic scan tool will be available for sale in 2015.

MAHLE Service Solutions www.servicesolutions.mahle.com ADVERTISEMENT

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14-16-Executive Interview, ACDelco 11/18/14 11:45 AM Page 14

Executive|Interview|

Robert Sanford General Director, ACDelco

Robert Sanford is general director of the ACDelco channel of General Motors and is responsible for its business strategies and overall performance. He joined GM in 1982 and has served in a variety of service, sales, aftersales and management roles with the company.

Sanford’s previous assignments have included: director of GM Mexico/Central America/Caribbean Aftersales; regional service manager for GM’s Northeast Region; zone manager in Memphis and San Antonio; Chevrolet distribution manager and customer assistance manager. He has received the General Motors High Achiever award numerous times.

Sanford earned his bachelor’s degree from the State University of New York.

You’ve been in this role a few months — have you had an opportunity to meet with shop owners who participate in your Professional Service Center program and, if so, what are they telling you?

Among the first things I did when I arrived was visit with a number of our distributors and PSC program shop owners. While we have an extremely constructive and honest relationship

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with our advisory committees, it’s no substitute for face-to-face visits and talking with them about their business challenges and opportunities — and learning how we can add value.

I appreciated their generosity of time and feedback. I was pleased to learn we’re doing a lot of things right — including the quality of our parts and field and business support. But they told us there is room for improvement on other issues and we’re addressing those as a management team.

In your view, what is ACDelco’s biggest challenge?

We need to accelerate our growth. The automotive aftermarket will soon be a $150billion-a-year business and we want to be a much bigger piece

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of that. I’d like to reach more independent service centers outside of our PSC network because there is tremendous potential there.

We have a strong brand rooted in technology and innovation, great distribution partners and a significant product offering of nearly 90,000 parts across 37 lines. We are the only true provider of GM OE parts, as well as premium aftermarket parts for most other makes and models. We regularly leverage the engineering technology leadership of GM. We can bring value to these shops while still honoring their desire for independence and upholding the quali-

foundation: We offer industry-leading training, great products and great marketing support. We’re profiling a few promising young techs-in-training in a series of videos called “The Part That Built Me.” Their stories are unscripted and authentic, and they are on our YouTube channel, syndicated on websites where the next generation of trade go and spread via social media.

We want to entice young people to consider careers as technicians because there will be a shortage in the next few years. We’re providing free access to introductory courses through NATEF-accredited programs and our

ty that distinguishes us from our competitors. So that will be a priority as we focus on our growth plan.

support for the GM ASEP technician program. This helps the industry and it promotes the ACDelco brand to a new generation of technicians.

You seem to be focusing on millennials lately – why?

Quite simply, millennials are the next generation of our partners in the trade. They will inherit this business and we want to enhance their awareness and usage of the ACDelco brand. What they need is a solid

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Last year you introduced a Regional Service Chain program. How is it going?

Fantastic. We have nearly 400 stores in the network and we’re seeing solid sales growth. A lot of consumers are turning to RSCs for maintenance and

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certain minor repairs, so this diversifies our presence in the market. We’ll make an announcement soon that will further enhance our partnership with Regional Service Chains.

What new products and services has ACDelco introduced this year?

We are always looking for ways to keep ACDelco fresh and relevant.

We’ve released hundreds of SKUs to our customers this year, including GM OE emission products that are new to ACDelco.

We continue to emphasize a “repair” strategy rather than just selling parts. Shop owners tell us their techs are happier — and more efficient — when they have everything they need to make the repair. That means more activity in the bays and satisfied consumers.

This strategy extends to software, too. Shops can access our TIS2Web diagnostic soft-

ware by the day, month or year so they can keep more diagnostic work in-house. At AAPEX, we sponsored a clinic where shop owners could learn how to diagnose, replace or reprogram GM Transmission Electro Hydraulic Control Modules, the heart of more than 8 million GM six-speed automatic transmissions on the road.

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We have also released OE key fobs to the aftermarket. Again, we want our shops to be able to provide one-stop solutions to their customers.

And we have made our training more accessible with the introduction of short “TechTubes” that tackle individual topics, as well as half-day sessions that help techs take advantage of important training without taking time away from the bay.

We just finished redesigning our award-winning Knowledge is Power car care educational seminar to help independent service centers better connect with all of their customers through education and empowerment. There is a lot of updated content, especially in the area of hybrid technology. When we first introduced Knowledge is Power, we thought it would appeal just to women. But it has resonated with everyone who wants to be better educated about maintaining their vehicle.

Our updated ordering system, ACDelco Connection, makes it easier to do business with us.

The Connection is a B2B online parts ordering tool that offers automotive professionals quick access to their ACDelco supplier’s full inventory of parts, real-time availability, price and labor for all makes and models. The Connection provides exclusive access to GM Specialty Catalogs, including the Illustrated Catalog that contains system illustrations from engineering data for GM vehicles from 1992 to present.

Your readers can learn more at acdelcotechconnect.com. SO

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18,20,21-Shop Mgmt, Earning Empl Trust 11/19/14 7:49 AM Page 18

Shop|Management|

by Bob Cooper, president, Elite Worldwide Inc.

Earning The Continued Trust Of Your Internal Customers

Many years ago, I read an article that featured an interview with Herb Kelleher, the co-founder of Southwest Airlines. In the article, he stated that he and his mother (who was a Harvard graduate) would often debate who was more important. He argued that it was the employees of a company, and his mom argued that it was the customers.

With all due respect, I would argue, why does it need to be one or the other? From my point of view, this debate is like having two children and being asked which one we love the most, because both your customers and your employees are equally important.

Since it’s becoming increasingly difficult to find and hire the superstars, I would like to use this article to help you continue earning the trust of your employees, who at Elite we refer to as our internal customers.

Putting first things first, as business owners we need to recognize that our internal customers are much like our external customers. In your case, your external customers come to you with transportation problems that you solve, and then they pay you with their hard18

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What can you do to keep the stars you have, not just for a few years, but for the length of their working careers? Although there is no formula that will guarantee results, there are a number of things you can do to keep your stars as your stars. a few years, but for the length of their working careers? Although there is no formula that will guarantee results, there are a number of things you can do to keep your stars as your stars.

Winning Employees’ Hearts

earned money.

Your internal customers come to you with needs as well.

Those needs include being able to save enough money to buy a home, or having the funds available that they’ll need to educate their children.

Simply put, you should provide them with the right opportunities and help them fulfill those needs. In return, they pay you with their work efforts and their contributions toward your success.

So the question is, what can you do to keep the stars you have, not just for

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First, and most importantly, never forget this cardinal rule of managing people: We have to keep (win) the hearts of our employees, because once we lose their hearts, their minds will follow. I actually coined this rule long ago and have lived by it for decades. Now, here is how you can implement it: With every superstar who works with you, you need to look beyond the employee component of your relationship, and consider them as a person, just like you. This means that you need to truly care about your employees as people, and the things that are important to them need to become important to you. Once they realize that you really do care about them and their families, as well as their goals, they will then care about you and the goals of your company.

Secondly, you need to be a great

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listener, you need to pay close attention to their suggestions and you need to always thank them for their input.

I’ve also learned that you need to be a shoulder that your employees can lean on. By being sympathetic to their personal struggles, you’ll find that if you have the right people, they will not take your sympathy for granted, but they will go to the ends of the earth for you. You need to let them know that you recognize their talents and strengths, and you need to give

Over the years, I’ve discovered that people don’t leave companies.

They never have, and they never will. People leave people, not companies. If you’d like to continue earning the trust and confidence of your employees, then I would encourage you to apply the principles that I’ve shared with you. If you do, then I’ll make you a promise: Beyond being a great role model for your employees, the morale of your employees will go up, your shop’s

You need to truly care about your employees as people, and the things that are important to them need to become important to you. Once they realize that you really do care about them and their families, as well as their goals, they will then care about you and the goals of your company. them praise for jobs that are well done.

Beyond that, you have to show them the humility that all employees seek. This means you’ll need to set your pride aside to let them know that they are much more gifted than you in many ways, you’ll need to admit to your mistakes, and you’ll need to give heartfelt apologies at the appropriate times.

Lastly, if you plan on keeping their hearts, you’ll need to constantly share your vision of the future and paint a clear path to their success in the coming years.

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productivity will go up and any employee turnover problems you have will disappear. SO

Since 1990, Bob Cooper has been the president of Elite Worldwide Inc., www.EliteWorldwideStore.com, an ethics-based company that helps both struggling and successful shop owners take their businesses to new levels through one-on-one coaching from the industry’s top experts. The company also offers shop owner sales, marketing, and management seminars, along with service advisor training. You can contact Bob at contact@eliteworldwidestore.com, or at 800-204-3548.

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Buying & Selling|An Aftermarket Business

by Art Blumenthal, MBA, CBI

Do You Know Your Shop’s 2 of a 2-Part ‘Sellability Score?’ Part Discussion If The Sellability Score Is A New Concept To You And You Plan To One Day Sell Your Business, Read On… As discussed in Part 1 of this two-part article in the Sept./Oct. 2014 issue of Shop Owner magazine, “sellability” is a powerful indicator of the value of your business, regardless of whether or not you have any intention or even interest in selling your business today. A high Sellability Score may confirm or surpass the value you have in mind. A lower Sellability Score may point directly to the underlying issues in your business which undermine its value.

The need for drilling down deeper into the Sellability Score is why I created a two-part questionnaire, consisting of Parts A and B. While Part A provides you with a score that ranks the sellability of your business within businesses of all industries, Part B supplements the results of Part A and drills down deeper to rank the sellability of your business specifically within the automotive aftermarket service industry.

If there is any question of the need to drill down as deeply as possible when establishing your own shop’s Sellability Score, there is one thing you can count on – 100% of potential buyers of your business will drill down as deeply as possible before deciding whether or not to place an offer.

The Sellability Score is one being utilized by a growing number of prospective business buy22

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ers to determine whether or not an asking price is justified and their corresponding resultant offer.

Are You Running a Valuable Aftermarket Business?

It’s fun to imagine how much your aftermarket business is worth. It’s not as much fun when you find out that for all the energy you poured into it, a business broker or potential buyer can’t see the value you can, or thinks your number is unrealistic.

Issues which may be adversely affecting the Sellability Score of your aftermarket business are probably the same ones causing mounting frustration for you — the feelings of being overwhelmed, working too many hours, dealing with inconsistent customer experiences, and the difficulties of managing cash flow.

Whatever your personal and

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financial goals are for your aftermarket business, as a responsible business owner you simply have to be able to answer these questions: • If you wanted to, could you sell your business today for a number that you’d be happy with?

• Is there anything that you could be doing each day to make your business more valuable?

• What steps can you take to reduce the number of hours that you work, while simultaneously boosting the profits and the sellability of your business?

The “Sellability Score,” both Parts A and B, can assist you in answering these questions.

Whether you want to sell next year or a decade from now, or pass the business to a family member, you strive to build a branded asset that someone would value monetarily – otherwise, you just have a job, not a business.

The Sellability Score is an interactive tool offering a comprehensive assessment of the “sellability” of your business. In just 26 minutes, 13 minutes for each of the two parts, this absolutely free and confidential self-assessment tool will score your business in a number of key areas and tell you just how sellable your business is.

Since the publication of Part 1 of this article last month, many aftermarket business owners nationwide have gone online to my website www.art-blumenthal.com and completed both Parts A and B of the Sellability Score and are already realizwww.ShopOwnerMag.com

ing the benefits of focusing on areas of their aftermarket businesses that need attention in order to maximize value.

What Does Part B of the Sellability Score Provide?

The aftermarket Sellability Score pinpoints key elements most attractive to aftermarket business buyers. Your responses, as well as other publicly available data about your area and location, will be analyzed to provide an assessment of how your business compares to other automotive businesses in terms of sellability. The

aftermarket sellability key factor analysis is based on my 37 years in the automotive aftermarket and successfully selling dozens of automotive businesses.

The scoring system is based upon a zero to 100 scale and those shop owners achieving scores higher than 75 are well on their way to achieving November|December 2014

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a hoped for value of their businesses.

Very recently, some aftermarket shop owners who completed Parts A and B of the questionnaire were surprised and delighted to find that their busi-

of your business will

Once you have your Sellability Score, you can…

• Do nothing — your curiosity about the Sellability Score for your aftermarket service business has been satisfied. I promise you that no one will bug you to do anything further or spend any money.

• Post your Sellability Score on your office wall as a daily reminder of the drivers that determine sellability and the concrete actions that you can take on a daily basis to work fewer hours and raise your score and the value of your business when the time comes to sell.

• Take the next steps to obtain a no-cost, no-obligation broker’s opinion on the most likely selling price of your business, so you can decide if now is the time to sell. If not, then at least you have learned about the concrete actions that you can take to increase the sellability and value of your business.

drill down as deeply as

How Deep Are We Drilling?

If there is any question of the need to drill down as deeply as possible when establishing your own shop’s Sellability Score, there is one thing you can count on – 100% of potential buyers

possible before deciding whether or not to place an offer.

nesses are actually worth much more than they thought. Many others have learned that they have areas that require their attention if they want to sell at the price they have in mind.

Either way, ultimately the higher your Sellability Score, the less time it will likely take to sell your business and the more money you will get for it.

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The aftermarket specific questionnaire evaluates your business compared to similar automotive businesses. The results are ranked using the following key factors commonly employed by buyers when analyzing a potential purchase of an automotive aftermarket business. The sellability scoring also factors in geographic and demographic criteria to predict the number of qualified entrepreneurial buyers that are actively shopping for a business in your area.

Key factors include: 1. Your Products and Services: Most buyer prospects will have certain preferences for the type of automotive aftermarket businesses for which they are looking. For example,

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buyers with no automotive background may gravitate to a franchise brand because of the perceived training and support that is provided to

newcomers to the industry. Buyers who wish to avoid the technical complexity of today’s vehicles may lean toward a quick lube operation or one focused more on tires and tire-related services. A business that is very specialized, such as transmission repairs, air conditioning service or large truck and fleet service may scare some buyers who believe that the operation requires more specialized knowledge or that it will be more difficult to recruit experienced technicians. On the positive side, a good broker with aftermarket industry experience should be able to portray a specialized business as one with great potential to increase revenue in the future by broadening the breadth of service offerings. The broader the appeal of your business is to buyers in the marketplace, the more sellable 26

it is, and the more likely that you will attract multiple buyers with competing higher offers.

2. Your Business Location and Facilities: Buyer prospects will scrutinize your physical facilities much the same way as a prospective home buyer might check out a house for sale. A well maintained and organized building, with an attractive and comfortable customer waiting area and up-to-date automotive equipment will help make a good first impression on a buyer.

A sophisticated buyer is interested not only in your asking price, but is also factoring in how much money will have to be spent on building repairs, cosmetic improvements and replacement/upgrading of equipment.

The higher their estimate for capital expenditures, the lower they will be willing to spend to acquire your business.

Visibility and access to your build-

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ing, bay capacity and adequacy of parking are also key factors that buyers will evaluate in comparing your business to similar ones on the market. A business that can handle the capacity to service more vehicles will be more sellable among buyers with aspirations to grow revenues.

3. Your Competition: Competition is less of a factor if your business is solid and showing sales growth.

Most buyers will be confident that they will be able to retain your growing customer base. However, if your business is struggling and you have lost business to new competitors in the marketplace, then you will have more of a challenge convincing a buyer that your lost customers will come back just because there is new ownership.

Buyers are increasingly looking at the Internet reviews of businesses that they are considering. A business with below average reviews on Yelp, Google, Yahoo and Angie’s List will be of concern to a buyer prospect, especially one who sees the value in growing a younger consumer base that is increasingly using Internet reviews when first-time shopping for a trusted service provider.

If you don’t have a five-star rating on the Internet, then taking action to improve your online reviews increases the sellability of your business. If you are not Internet savvy, then contact a specialist in this area who has the expertise to work with social media companies on reviews, rankings and advertising. You may be intimidated by the mysterious inner workings of the Internet, but at least understand that there are affordable experts out there who know the tools and tricks to improve how your busi-

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ness is perceived by potential first time customers.

Improving your sellability with a five star online rating may take some time to accomplish, so it is better to start now and make it an ongoing effort!

4. Your Property: Most buyers will have a preference of either leasing a building or purchasing the real estate. If you do not own the real estate, then your lease terms are critical to buyer prospects. Most buyers, as well as the banks that might be financing the business acquisition, will want to see that there are at least 10 years on your lease, including options to renew.

Obviously, the rent during that period impacts your cash flow and hence the value of your business.

If you only have a few years remaining on your lease, you can enhance the sellability of your business by talking to your landlord now and getting an option to renew added to your lease. If you wait until you have a buyer in hand to go to your landlord, then you are not in a good negotiating position to get the most favorable terms.

If you own your real estate, then it becomes a personal and financial decision on your part whether to sell the real estate to the purchaser of your business or to lease it. There are many factors that can enter into that decision, so it is a good idea to review the pros and cons with your accountant, attorney and broker.

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5. Your Employees: All buyers will perceive your employees as critical to their future success.

Being able to boast several long-term, loyal employees will make your busi-

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ness more sellable and increase its value. It also helps if your employees are well trained to act independently and follow the customer service processes and quality standards that you have established, especially when you are not there to watch over them.

You may have worked very hard over the years to build a strong business and have great relationships with your customers that keep them coming back. However, to a buyer, your business is far more valuable if there are reasons for customers to return for future service other than your personal honesty, technical abilities or great personality.

A dependable crew of experienced technicians and service advisors that continue to deliver excellent customer service and quality workmanship when you are no longer on the premises will make your business significantly more sellable and help you achieve a higher sales price.

6. Your Business Trends: Nothing enhances the sellability of a business more than a steady growth curve up to the present time. Trying to convince a buyer that a sales decline is due to the owner being absent or losing interest in the business goes only so far. Buyers formulate their offer price based upon the present performance of the business, not based on how much money you may have made two or three years ago, or even what the business may do in the future if the market turns around or if an energetic new owner takes over and does all the things you haven’t had the time, expertise or fire in your belly to implement.

Every business has a sales cycle, and the natural reaction is to want to

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hold on to your business when it is on a growth curve. When it comes to sellability, a growth curve is the best time to sell in order to maximize your sales price. Far too many owners unfortunately wait too long and then are faced with the challenge of finding a buyer for a business that is on a downward sales cycle.

To compound matters, banks are very hesitant to finance the acquisition of a business with a double digit sales decline, so the likelihood of the seller having to offer financing increases.

Main Street, U.S.A. “Main Street” Businesses It’s important to point out that in designing the aftermarket-specific Sellability Score, I took into consideration that most automotive service shops I work with are “main street” businesses. In other words, they are businesses or franchises that are owned by an individual or an individual with partners or family members, as opposed to larger corporate entities with much greater annual revenues.

As a result, I am able to pinpoint and develop comprehensive results and action plans based upon the “real world” factors that affect your shop’s value in the eyes of potential buyers.

Of course, the ultimate sellability of your business is also dependent upon several important factors: • Your business has a positive cash flow attractive to buyers; • Your business is priced fairly to enable a buyer to earn an attractive salary and receive a reasonable return on investment; November|December 2014|Shop Owner|29

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unexpected events (illness, accident or death); and • Help to prepare you and your business for the future.

Both the standardized Sellability Score questionnaire and the customized, aftermarket specific questionnaire can be key tools in building your exit plan and are available for free at a link on my website homepage at www.art-blumenthal.com.

Each is easy to use and takes about 13 minutes to complete.

After completing the confidential questionnaires online, you’ll immediately be provided with a raw score for your business and a summary of what the score means. Meanwhile, based upon your questionnaire answers, I’ll develop and provide a comprehensive report for your business which we can later review together, usually within 72 hours.

My future case study articles appearing in Shop Owner magazine highlighting the successful sales of selected shops will include some specific Sellability Score factors that affected the value of those businesses. Both the challenges of selling a specific business with a lower Sellability Score as well as the opportunities realized as a result of a higher Sellability Score will be discussed as appropriate. SO

• Your business can be purchased with a reasonable down payment; • Your business will qualify for bank/SBA financing or the seller offers financing; • There are buyers in your market actively looking for your type of business or willing to relocate to your area; and • The quality of the marketing efforts, including advertising, Confidential Business Review and financial presentation, pre-arranged financing and the professionalism of your broker and/or your own selling efforts.

Building An Exit Plan Using The Sellability Score When you spend a lifetime trying to build a successful business, it leaves little time for much else, including thinking about an exit plan; but even if you are planning to pass the business on to family, you want to ensure you are offering them a valuable business. Whether you are creating an exit plan for the short term or for years into the future, it’s never too late or too soon to start understanding — and increasing — the value of your business.

Seventy percent of all business owners in today’s market plan to sell or pass their business on within 10 years. But 76% don’t have an exit plan, and many do not know the value of their business.

A well thought out exit plan can: • Protect the legacy of your business; • Build value for your business; • Provide financial security for your family and your stakeholders; • Make it easier to deal with any

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Leveraging more than 30 years of experience as both an aftermarket business owner and aftermarket technology executive, Art Blumenthal LLC provides business intermediary and advisory services to both buyers and sellers of industry businesses of all sizes. Art is a member of IBBA (International Business Brokers Association, Inc.). For more information, or to initiate a no-obligation confidential consultation, visit www.art-blumenthal.com.

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Shop|Profile|

by Debbie Briggs, contributing writer

[atc] AutoCenter A Family Tradition Of Quality & Service Excellence When brothers Chris and Brian Weeks purchased [atc] AutoCenter in Augusta, GA, back in October 1999, they did so knowing they needed to live up to the expectations set by the previous owners.

This wasn’t just any business transaction — Chris and Brian purchased the shop from their father, Carl, and their uncles, Allen and Larry, upon their retirement in 1998. As the original owners, they had set the bar high since opening the doors in 1972, building a strong customer base and consistently delivering quality repairs.

“We ran the business for a year before purchasing it,” Chris explains, adding that they must be doing something right, having just celebrated their 15-year anniversary as shop owners.

“Both Brian and I went to Southern Polytechnic State University, where we both graduated with bachelor’s degrees in mechanical engineering in technology. Not that that makes us good business owners — everything we’ve learned up to this point has been self-taught.”

Focus On Training [atc] AutoCenter’s four technicians as well as the independent repair shop’s two service advisers all benefit from required continuing education. As a NAPA AutoCare Center, [atc] AutoCenter is also eligible for the company’s Autotech classes offered [atc] AutoCenter owners Chris (left) and throughout the year.

Brian (right) Weeks.

Elite Worldwide also has been instrumental in helping

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Brothers Chris and Brian Weeks just celebrated 15 years as owners of [atc] AutoCenter, and will open a second location in 2015.

Chris and Brian take the shop to the next level in terms of production and profitability.

“Elite Worldwide’s coaching program has helped us tremendously,” Brian says. “In the coming year, our service advisers will attend Elite Worldwide’s Master’s Program. It’s a six-month commitment that is really a lifetime commitment to change for the better.”

In addition to paid training, as well as reimbursement for ASE certifications, [atc] AutoCenter employees enjoy performance bonuses, paid vacation and holidays, short- and longterm disability coverage, as well as a savings plan.

“We treat our employees like people, not a number,” Chris says. “We don’t look at ourselves as ‘the boss’— we all work together.”

While transmissions are the shop’s specialty, [atc] AutoCenter techs also perform everything from routine maintenance to advanced diagnostics on

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almost all makes, both foreign and domestic, and occasionally even a Ferrari or Aston Martin. Each tech has a laptop, and assigned bays help keep repairs on track and productivity up.

“We have started setting goals for the technicians to hit based on the previous year’s numbers, and we post them weekly,” he explains. “All techs clock in/out on each job through our management software, Mitchell Enterprise. We’ve also assigned bays for our techs so they don’t have to drag their tools from one end of the shop to the other.”

Focus On Shop Appearance While continually improving processes is critical to success, Chris is quick to add that customers also need to feel welcome and comfortable while

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[atc] AutoCenter techs specialize in transmissions, but perform everything from routine maintenance to advanced diagnostics on both import and domestic vehicles.

Chris and Brian Weeks firmly believe that a shop’s appearance should convey professionalism and organization, and customers need to feel comfortable while waiting for repairs.

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[atc] AutoCenter’s goal is to change the way people think about the automotive service industry and develop customer relationships that are based on trust.

waiting for repairs. Shop appearance should convey professionalism and organization.

“We have created a warm atmosphere in our waiting room, complete with Keurig coffeemaker, cold beverage cooler, TV, newspapers and snacks to help customers feel at home,” Brian says. “We also offer a shuttle service to customers who need a ride.

“I think the biggest thing about customer service is to treat people like we want to be treated, and to let them know that you empathize with what they are going through,” he continues.

“Our goal is to change the way people think about the automotive service and repair industry and to develop relationships that last.”

Focus On Communication Word-of-mouth has worked for the

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Augusta-based shop since the doors opened in 1972, and satisfied customers continue to send friends and family to [atc] AutoCenter. So much so that Chris and Brian are able to focus on creating brand awareness in the community, rather than more traditional marketing such as direct mail.

More than ever before, people are also searching for independent repair shops online, which is why Chris and Brian have allocated resources to keep [atc] AutoCenter’s website up-to-date with options such as scheduling appointments online.

And fresh content on the shop’s site includes not just your typical blog, but video posts that showcase how customers can save money by checking tire pressure, as well as how to budget for maintenance.

“We’ve just gone through a redesign of our website and are constantly

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trying to change content so that it doesn’t get stale,” Chris says.

“Most people will research you online and check out your website before they will even consider doing business with you.”

Focus On The Future [atc] AutoCenter’s signage includes brackets around the name for a reason. They serve as visual reminders of the company’s priorities, representing the past and the future of the shop and showcasing what’s “at the center” of everything they do.

“Our care and attention goes beyond the car and beyond the customers’ expectations,” Chris says. “At the center of our business, you’ll find a unique mix of trust, talent, truth, teamwork and, of course, transmissions.”

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Adhering to those values, while also partnering with outside training like Elite has helped Chris and Brian continue to push [atc] AutoCenter toward continued success in today’s fast-paced world.

“The single biggest thing for us was to get out from under the hood and instead focus on our business,” Brian says. “Partnering with companies such as NAPA, Elite and Jasper’s reman program have helped us tremendously.

“Success comes in many forms,” Brian continues, “from being a mentor to the people around us and trying to make a difference in someone’s life, by adhering to what Bob Cooper with Elite says: Do the right things for the right reasons and your business will be successful!”

Chris and Brian are definitely on the right track, with their success allowing them to start construction on a second location, coming in 2015. SO

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|Finance|

by Vic Tarasik, owner, Vic’s Precision Automotive

Now Is The Time To Plan for 2014-’15 Tax Savings End Of Year Tax Strategies Can Reduce Your Tax Burden Shop owners who are focused on serving their customers and operating efficiently are taking a little extra time to also get their financial house in order. They realize the value of the ABCs of a wellmanaged business: A for attorney, B for banker and C for CPA.

These trusted advisers could help you focus on your customers and your business, while also ensuring you operate legally, effectively and profitably.

Seasoned shop owners know

A

Attorney

that to have long-term success they must have efficient accounting and shop management systems, but they also need to maintain and utilize them. This is where the expertise of your CPA can be a big help.

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B

Banker

Keep your business and personal income and expenses apart; this starts with setting up separate bank accounts and your banker can advise you in this area.

Always retain your tax records and support documents for as long as they may be needed to support your tax returns. This is usually three years after the filing due date or when the tax return was actually filed (whichever is later).

Remember, some records need to be retained indefinitely.

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Examples would be copies of original tax returns, legal documents, asset purchase confirmations, asset purchases and real estate sales.

Become a cash manager by learning exactly what your cash position is at all times and what your daily, weekly, monthly and annual cash requirements are.

You can do this by properly using your accounting system.

Ask your CPA to develop your business model so that you understand the effects of price increases, labor cost changes, and the mix of labor and parts sales that maximizes your cash flow and profitability. You may want to consider using an accrual basis of accounting to ensure you know your future cash requirements at all times.

Determine what your optimal cash position is and pay your vendors on a timely basis, taking advantage of discounts when available.

If your business is growing and you’re ready to consider limiting your legal liability, you should consult your attorney about possibly creating a corporation or operating a limited liability company.

Plan to file all tax returns on a time-

C CPA

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ly basis including paying over-withheld payroll taxes when due. One of the most difficult problems to overcome is a failure to pay them. The penalties and interest on the taxes can

overwhelm a small business.

The tax rate for Social Security remains the same, but the maximum deduction has been increased for 2014 to $117,000. Your CPA can again help with changing tax laws if you stay in frequent communication and describe potential changes in your business before they are scheduled to take effect.

Remember that if little things like W-2 and 1099 forms are not filed on a timely basis, they can trigger significant penalties.

Section 179 Expensing In 2014, businesses can elect to expense (deduct immediately) the entire cost of most new equipment up to a maximum of $25,000 for the first $200,000 of property placed in service by Dec. 31, 2014. Keep in mind that the Section 179 deduction cannot

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exceed net taxable business income.

In addition, unless Congress reauthorizes it, the bonus depreciation expired at the end of 2013 and is not available for 2014. If assets are required that exceed your resources, consider financing or leasing your equipment. Your banker can help you with a loan and your CPA can determine the best alternative for you.

Tax laws change each year and 2014 and 2015 are no exception. The IRS standard mileage rate has changed for 2014 to $0.56 per mile, and will change again for 2015. Be certain you and your employees use an expense reimbursement system that documents the number of miles and purpose of the business travel.

Having operated effectively all year and realizing a profit, consider steps to legally minimize your tax liability.

Accelerate expenses and defer income

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if you are a cash-basis taxpayer.

Acquire assets that you know you’ll need next year anyway, and place them in service to utilize your available Section 179 deductions.

Consider an IRA or SEP if you’re a sole proprietor and invest in a 401k.

When funded, these retirement accounts will reduce your current tax liability and provide a future taxable income stream when your tax bracket could be lower in retirement.

Consider your attorney, banker and CPA as essential parts of your business team. Each can bring a level of expertise to you on an as-needed basis that will give you an edge in managing your business. Successful shop owners know their knowledge limits in these areas and seek the help of subject-matter experts. The really good ones are team builders with dedicated employees, appreciative customers and trusted business advisers.

On a personal note, I started my shop out of my garage, and shortly after, I relocated to a dedicated building. Back then, I met my first adviser who is still my CPA today.

In the 27 years we’ve done business together, he became the most valuable and trusted member of my ABC team. He has helped keep me on the right path over the years, and with his help our business continues to thrive. It was also with his help that I penned this article. Thanks Pat! I hope you all have a successful and profitable 2015! SO

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Customer|Service|

by David Rogers, president, Auto Profit Masters

Winning Over A Tough Customer

If you close your eyes and picture a tough customer, what image do you see? Is it a price shopper on the phone? An argumentative customer at the front counter? A Yelp reviewer who went directly to the Internet instead of giving you a chance to address his or her concerns?

Each of these kinds of tough customers can put a kink in our day if we let them. I know because I’ve lived it. When I came to work for Terry Keller, I didn’t start as his chief operating officer for Keller Bros.; I started as a service writer. So, I’ve been on those front lines.

When I say that we can win over each of those tough customers in the same way, I say so from experience.

But as we’ll see, there’s more to this topic than just winning over tough customers, because the same things we do to help the individual tough customers are the things we can do to make real, lasting, sustainable changes in our shops that truly set us apart.

But I’m getting ahead of myself. First, let’s look at these tough customers and how (and how not) to win them over.

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“How Much Will A Water Pump Run Me?” I saw a service writer training video recently on how to win over price shoppers. The advice? Lie to them.

Trick them. Convince them that their repair might not be as bad as they think. Above all, get them into your shop. (Strangely enough, the video didn’t go on to cover what to do if that customer’s repairs were more than they originally thought.)

It’s patently bad advice, but there’s a nugget in there that I want to dig out: it’s easy to get burned out. When you’re on the front counter, dealing with tough customer after tough customer, it’s natural to want to get them off the phone and into the shop no matter what.

But whether we’re talking about price

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shoppers or any other kind of tough customer, we’re just talking about people — people who need our help.

They don’t know what we know.

They don’t have access to the equipment and information we have.

More than that, they’re looking for somebody who they can entrust with the safety, welfare and financial well-being of their family.

Sure, the question may have been about the cost to do a water pump job, but the thought behind it was: “I’m trying to take care of my family’s finances.”

Which is why our job in this moment isn’t to close the sale. It’s not to give them a price, or to persuade them to your side. It’s not to tell them they are wrong for asking about price.

It’s not the time to worry about getting the car into your bay. And it’s absolutely not the time to sell them.

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Now is the time to stand up for them.

At Keller Bros., I teach our service writers to think of their own grandmother. If she were in this situation, how would you want somebody to treat her?

The people we consider “tough customers” really just feel betrayed.

I’m using the price shopper as the stand in so far, but it’s true of any of the tough customers that I brought up.

A price shopper feels betrayed by the person who sold the car to them or by the last repair shop that worked on the vehicle, and they’re just trying to protect themselves. An argumentative customer feels betrayed by the information they had before the repair.

The Yelp reviewer feels that their trust has been so betrayed that they don’t have a better option to deal with it.

And viewed through that lens — this is somebody who needs our help, our respect, our care and

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attention and expertise because they’ve been betrayed before. It’s clear that the solution isn’t to lie to them or to get frustrated that they’re angry or to be annoyed that they’re looking for a price.

The solution is to take responsibility for them.

Consider this approach: put everything else to the side so you can focus 100% on that customer. Get everything that is between you and the customer out of the way — including the counter or even the phone. Don’t worry about the car or the money or anything else except: “there’s a person here in front of me who I am responsible for.”

Everything that comes next should flow from that place.

If the tough customer is a price shopper, offer genuine advice. What should they know about the job they’re asking about? What might they not typically think to consider when they’re choosing this job?

If they’re upset with the job you performed, learn why. This person can teach you better than anyone where you have a breakdown in your systems and processes. Be their advocate and let them teach you how to be better.

These same lessons apply even to the Yelp reviewer. Remove the obstacles, and move the conversation offline and into your shop so there are no obstacles between you. And then listen to them and treat them the same way you’d want a service writer to listen to and care for your grandmother.

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The Bottom Line Taking responsibility for the people who trust you doesn’t start and end with the tough customers, of course.

In part, I mean that this extends to all customers. It’s why we worry about hiring ASE-certified techs. It’s why we create procedures for proper inspections and hold the team accountable.

It’s why we set clear policies on adjusting parts pricing so that one unlucky out-of-towner doesn’t get raked over the coals in the name of hitting our parts gross profit target.

But it’s bigger even than being responsible for our customers.

Being responsible to the people who trust us is why, at Keller Bros., we set targets for our team and measure them daily. Our employees trust us to run a profitable business and to protect them against bad employees who might otherwise try to sabotage our mission.

That responsibility doesn’t start or end during business hours, either,

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because it’s not just people who trust us to protect them — it’s our entire community. The classes we teach in the community and the charities we support may not directly win over “tough customers,” but they’re part of a bigger mission that does: when we make it our constant focus to protect the people who trust us, when our dedication to customer service spills into every area of our business, all of our customers will feel it — even the tough ones.

That’s your winning difference. SO David Rogers is chief operating officer of Keller Bros. Inc., president of Auto Profit Masters and creator of the RPM ToolKit™, which integrates with shop POS software to help owners identify problems in their shop and get one-click training solutions. Reach him via email at contact@autoprofitmasters.com, toll-free at 1-866-826-7911, or online at ww.AutoProfitMasters.com.

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Shop|Profile|

by Debbie Briggs, contributing writer

Clark’s Car Care Overcoming Challenges To Find Success

Many shop owners get their start the old-fashioned way: Their dad or uncle owned a shop, and they grew up learning how to fix cars.

Essentially, it was “in their blood” so to speak.

But Matt Weber, co-owner of Clark’s Car Care, has a very different back story, one that starts with a detour from an accounting degree to take a less traveled road to shop ownership.

“The road that led me to Clark’s Car Care began when I was an 18-year-old college student majoring in accounting,” Matt explains. “I got a job as a part-time porter washing cars and doing odd jobs at a car dealership. I enjoyed the automotive business and eventually went on to work in almost every departOwners Laura and Matt Weber

ment — detailing, parts, car sales, finance — and, ultimately, I left school and settled in the service department.”

For the next five years, Matt worked in the service department at several dealerships.

Despite the long hours, Matt says he loved the work and looked forward to solving each day’s problems.

“There is a unique thrill to be had when you have an upset or angry customer and turn the situation around to make them happy,” Matt says.

While he enjoyed the work itself, Matt says the long hours began to take their toll, and he started to wonder if he needed a change. He changed jobs with the goal of one day going into business for himself.

Owners Matt and Laura Weber, with their sons, Parker and Trent, opened Clark's Car Care in 2001.

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Laura attends business expos periodically to promote community awareness about Clark's Car Care.

“I started to think, ‘I could do this better,’ ” he says. “I could help people and honestly fix their cars and still make a decent living. I got a job at a dealership closer to home earning way less money, but with shorter hours so I could begin to focus on

going into business for myself.

“While walking around that dealership one day, I noticed that a lot of the cars in for service had followed me from my previous job. That was when I first realized that my business would focus on customer service and the business of people, not just fixing cars. Those customers followed me because of my passion for helping

In college, I earned the nickname Clark Griswold (the main character in National Lampoon’s Vacation movies) for my habit of accidentally running into doorways and narrating scenic vacation spots in a very dad-like and corny manner. Who better to name your business after than the iconic hero played by Chevy Chase?”

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At Clark’s Car Care, our goal is to develop an on-going relationship with our customers based on trust.

We want you to feel the satisfaction that enables you to recommend Clark’s to your friends and family.

We accomplish this by providing you with an honest evaluation of your vehicle’s needs and fixing it right the first time.

to begin repairing family members’, friends’ and neighbors’ cars right out of his driveway.

“I would pick up the customers’ cars at their houses, bring them to one of the technicians’ home garages, get the parts and then deliver the finished vehicles,” he explains. “I was the customer service middle man, explaining what the vehicle needed and why it was important, and the customers The waiting area at Clark's Car Care is decked out with a massage chair, XBOX, cable TV, free popcorn & soda, and kids' toys.

Your expectations are high.

We hope to exceed them.

people, my friendly service and my automotive expertise.”

Humble Beginnings While still working full-time at the dealership, Matt says he used his connections with quality technicians 48

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loved my services. Friends and family started telling their friends and family, co-workers, etc., until my neighbors started wondering if I was opening a used car lot.”

Matt and his then wife, Laura, who now co-owns the shop with him,

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decided to order business cards. But to do that, they needed a name for their business, and Weber’s Car Care just wouldn’t cut it. Matt says people often wonder how they arrived at Clark’s Car Care, and he always

Serious Business All joking aside, Matt and Laura knew opening their own shop was a huge step, one that could mean success or failure. But Matt knew he had to take the chance, despite having a young

On our journey, we encountered the bumps in the road faced by most businesses — expansion, slow seasons, staffing problems and budgets. replies, “Funny you should ask.”

“I can’t tell you how many times I’ve been called Clark or Mr. Clark,” Matt says. “In college, I earned the nickname Clark Griswold (the main character in National Lampoon’s Vacation movies) for my habit of accidentally running into doorways and narrating scenic vacation spots in a very dad-like and corny manner.

Who better to name your business after than the iconic hero played by Chevy Chase?”

family at the time — go big or go home, he likes to say.

“We started getting more serious about opening a location,” Matt explains. “It was much tougher than we ever imagined. Two kids in their 20s with no money, no credit and no business experience trying to rent a building to turn it into an automotive shop. Not many owners were willing to rent their building for automotive use. People were worried we were too big of a risk and it seemed like

Through its Cars for Cares group, Clark’s partners with other shops and NAPA Auto Parts to provide extremely low-cost repairs for struggling families.

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applied for a lot of credit cards. We collected applications from many different banks and filled them out and mailed them all in the same day.

We simultaneously got approved for $100,000 in credit. We used this credit to live on as we started Clark’s Car Care.”

They leased their first location from a shop owner who wanted to downsize, but he didn’t have much faith in the couple’s dream either. However, Matt and Laura had a plan.

“The building owner was skeptical, and the other Matt having fun in technician Mike Heineman's service shop owner was bay. The Webers promote a pretty open about fun, family atmosphere at the fact he thought the shop. we had no chance,” Matt says. “We convinced the owner the odds were against that we would not us. just be one more “We searched and we small business that searched and while we failed, but that we searched, we applied for had plans that a home equity loan and Rick Robertson, ASE Master Tech, has been with Clark's since it opened 14 would ensure our got approved for years ago! success. We signed $20,000,” he continues. a lease purchased from Office Depot “That wasn’t going to be enough. We without the presence of a lawyer, had no other collateral. The SBA basi-

We handled these situations by discussing our possible solutions, asking our management company and fellow shop owners for advice, and implementing policies that addressed each issue. cally told us that we needed to be in business to get money for a business.

“But, our dedication was strong although our solution was insane; we

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ordered a small sign for the door and purchased a motorized car lift. I put my two-weeks notice in at the dealership, and we were all in.”

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Learning How To Be Business Owners

problems. But the program was very expensive, and we had no money, so Clark’s Car Care opened in November we decided it was sink or swim time 2001, and initial marketing efforts and charged the $20,000 fee to our included oil change flyers and ads in already high balance credit cards. We the local newspaper. Their customerneeded to figure out how to run the centric approach soon attracted more business productively and profitably, and more business, and they began to or we were going to fail, despite our add employees. But Matt and Laura passion.” soon realized they really didn’t know That persistence paid off as Matt how to run a business. and Laura focused on training sessions that helped them develop an advertising budget and create systems and policies to track key performance indicators.

“We started to become profitable, and through careful accounting and strong discipline, in our third year we had paid off our debt and had a party to celebrate the last payment,” Matt says.

Since then, Clark’s Car Care has continued to grow, currently including The Weber family swagger wagon in the shop. eight bays and eight employees. It hasn’t always been easy, “We were feeling stressed and but with a clear vision, Matt and going deeper and deeper into debt — Laura have managed to come out on $80,000 in credit card debt,” Matt top. says. “We got a flyer in the mail about “On our journey, we encountered a $200 seminar that promised to help the bumps in the road faced by most automotive businesses that were feelbusinesses — expansion, slow seaing the same way we were. We decidsons, staffing problems and budgets,” ed to attend, and that seminar he concludes. “We handled these changed our lives. situations by discussing our possible “The seminar was basically a snapsolutions, asking our management shot of a comprehensive management company and fellow shop owners for system that involved intense training advice, and implementing policies and coaching and was automotive-inthat addressed each issue.” dustry specific,” Matt explains. “We A million dollars in sales, completewere in awe and couldn’t wait to get ly debt-free and always profitable — started. We were convinced this prowhat more could any shop owner ask gram was going to solve a lot of our for? SO

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