Up and Running

A custom automotive repair shop was in business for 12 years. Revenue has been declining for the last 5 years. He had a second mortgage on his house so he can fund the business and the bank was telling him they were going to call the note. All his credit cards were maxed out. He has been letting go of experienced technicians so he can make payroll for the remaining employees. He was behind 9 months on his lease and the landlord was ready to evict him. Two ex-employees were suing him because they were let go. All his vendors required that he pay them in cash when he picks up any parts. He had 8 auto bays, and 6 of them had autos in them for over 1 year, because he needed parts to complete the job and did not get paid to do the job yet. His only marketing was his website that was not attracting any visitors and if they did find his site, they wouldn’t know what to do because it was so confusing. The reviews he has received in the last 7 years are all negative. All his competition was growing around 20% every year. His wife moved out because she didn’t like where he and his business were going.

In 4 months:

Eliminated his parts inventory that was not selling and just sitting on shelves by 100%.
Negotiated new deals with his vendors so he did not have to carry any inventory and they extended him credit up to 30-days. This improved his cash flow.
Had a sit-down with the 2 ex-employees and came to an agreement where they dropped their lawsuit.
Got the parts for the autos that were taken up all the room in his shop, by getting paid for the projects.
Sold off all excess equipment and supplies that he never used which helped pay off his credit cards.
Started to collect 50% of all projects up front so he had the funds to pay for the parts and to pay his employees.
Increased his prices to start covering all his costs.
Started using the expensive accounting system he had to run reports and taught him how to read and use that information to make better business decisions.
Started charging for all inspections, which eliminated tire kickers and brought in new revenue.
Started attending Jeep events (his market) and promoting his services, which lead to a massive increase in customers.
Reworking his web site to reflect what he does for his Jeep clients.
Started a drip campaign to Jeep owners in the area, which started attracting new clients in the first month.
Renegotiated his lease and his landlord gave him more time to get caught up in back rent.
Cleaned up his shop, which attracted more high-end Jeeps to be worked on.
Started hiring 1 more technician due to the increased volume of business.
In process of finalizing 3 new joint venture agreements which will keep his shop busy for years to come.

The first 3 months were not easy for him, and he worked hard to make the positive changes that are going to save his business and marriage. He started receiving positive reviews. His employees were very happy because they were busy and getting paid on time. His competition started taking him seriously and reached out to him to find out what he did to turn his business around. Found out 2 months later his wife moved back in with him and all the business debts were paid off and he was starting to pay off all his personal debts.

QUOTE: “Steve not only saved my business, but he also saved my marriage and my life. I have never felt in control of my business since the day I opened and now I feel I know what is going on with my business and make smart decisions to keep growing.”