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The right time to grow my business (Read 232 times)
Bill Hamilton
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The right time to grow my business
Nov 3rd, 2017 at 7:09pm
 
Well...

A few years ago I decided to start my own business. I went too high up the ladder in the wrong direction at the company I was with. I was in charge of too many people with a crushing workload.

I had a dream of being a one man show forever ( I just enjoy fixing cars), but I am finding that dream is coming to an end. I am far too busy to continue this way. I am hiring a new guy. Someone that I trained in my old position. A very good tech. My number one pick.

As I continue on my journey I am looking for words of advice. Tips and tricks to make these next few years of growth to go the right direction.

I know the focus of autonerdz is not business, but I sure do value your opinions. Your minds are wired similarily to mine, so I assume what has worked for some of you would work well for me as well.

Thank you Smiley
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Andy_
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Re: The right time to grow my business
Reply #1 - Nov 4th, 2017 at 5:54am
 
I don't have advice, but I just want to let you know I think you're doing the right thing, if that makes any difference to you.

If something were to happen to you and you couldn't work for a while, as a one man shop you'd be done. This way, at least the shop could carry on.

I also like that you hired someone you trained and is your number 1 pick.

-Andy
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Bill Hamilton
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Re: The right time to grow my business
Reply #2 - Nov 4th, 2017 at 7:13am
 
Andy_ wrote on Nov 4th, 2017 at 5:54am:
I don't have advice, but I just want to let you know I think you're doing the right thing, if that makes any difference to you.

If something were to happen to you and you couldn't work for a while, as a one man shop you'd be done. This way, at least the shop could carry on.

I also like that you hired someone you trained and is your number 1 pick.

-Andy

Thank you Andy.
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Tom Roberts
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Re: The right time to grow my business
Reply #3 - Nov 4th, 2017 at 2:42pm
 

Autonerdz was a one man show too.  Then things started to grow more than I could handle by myself.  So, I built a facility and hired my first choice.  I had already made a note to self to find Brian if I ever needed someone.

As for growth, it's overrated.  Business gurus are always preaching growth.  Growth for the sake of growth is unsustainable.  I find that managed growth is the key to sustainability.  There is a time to invest in growth but it's really easy to overextend trying to bite off too much anticipating more growth than you are ready for. 

I guess my advice is to manage your growth so that what you grow into is something you are comfortable with and that is sustainable in the long term without giving you a heart attack.

On a national scale, economic growth is also unsustainable.  I think sustainability should always be the goal, not growth.
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richmunch
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Re: The right time to grow my business
Reply #4 - Nov 4th, 2017 at 2:48pm
 
Hi Bill, I started as a 1 man show and hoped to do only that too. But eventually I added a bunch of different things and of course employees.  Smiley

Finally I took on a partner. Mainly because I felt I no longer had any life. Plus, I knew the guy was a top notch person and mechanic. So I knew it would be a great fit. He has been my partner a little over 2 years and it is great. I have been in business 6 years now.

One thing I would say about employees is they don't always work the way you do. Some move fast, some slow. Most try to do a good job. At times you will think they don't care or work to slow. Or don't know how to fix a sandwich.  Grin     Most of the time the blame for the employees doing poorly is the people in charge. They either don't give them the information they need or they micro-manage the hell out of them.

Try to communicate well with them. Ask them if they need any tools or special equipment. Let him have access to your shop info. Alldata or whatever you use. I like to ask if anyone wants coffee. I buy lunch 2x a week. Don't ask him to do only the shit jobs. Let him do some easy brake work or other easy work. You aren't hiring a slave, you are hiring a mechanic. If he's a few minutes late now and then don't make a big deal of it. If he needs days off try to accomadate him. As I like to say we are all in this together. If we go out of business that is not good for anyone. Grin
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Bill Hamilton
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Re: The right time to grow my business
Reply #5 - Nov 4th, 2017 at 3:55pm
 
Tom Roberts wrote on Nov 4th, 2017 at 2:42pm:
Autonerdz was a one man show too.  Then things started to grow more than I could handle by myself.  So, I built a facility and hired my first choice.  I had already made a note to self to find Brian if I ever needed someone.

As for growth, it's overrated.  Business gurus are always preaching growth.  Growth for the sake of growth is unsustainable.  I find that managed growth is the key to sustainability.  There is a time to invest in growth but it's really easy to overextend trying to bite off too much anticipating more growth than you are ready for. 

I guess my advice is to manage your growth so that what you grow into is something you are comfortable with and that is sustainable in the long term without giving you a heart attack.

On a national scale, economic growth is also unsustainable.  I think sustainability should always be the goal, not growth.


I agree with you. My problem for the last 3 years has been trying to stop growth at the expense of my sanity. From now on when there is more than I can handle I will grow. I do plan to grow as slow as possible. I have seen rapid expansion do bad things to companies.

Thanks Tom
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Bill Hamilton
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Re: The right time to grow my business
Reply #6 - Nov 4th, 2017 at 4:04pm
 
richmunch wrote on Nov 4th, 2017 at 2:48pm:
Hi Bill, I started as a 1 man show and hoped to do only that too. But eventually I added a bunch of different things and of course employees.  Smiley

Finally I took on a partner. Mainly because I felt I no longer had any life. Plus, I knew the guy was a top notch person and mechanic. So I knew it would be a great fit. He has been my partner a little over 2 years and it is great. I have been in business 6 years now.

One thing I would say about employees is they don't always work the way you do. Some move fast, some slow. Most try to do a good job. At times you will think they don't care or work to slow. Or don't know how to fix a sandwich.  Grin     Most of the time the blame for the employees doing poorly is the people in charge. They either don't give them the information they need or they micro-manage the hell out of them.

Try to communicate well with them. Ask them if they need any tools or special equipment. Let him have access to your shop info. Alldata or whatever you use. I like to ask if anyone wants coffee. I buy lunch 2x a week. Don't ask him to do only the shit jobs. Let him do some easy brake work or other easy work. You aren't hiring a slave, you are hiring a mechanic. If he's a few minutes late now and then don't make a big deal of it. If he needs days off try to accomadate him. As I like to say we are all in this together. If we go out of business that is not good for anyone. Grin


I am good with communication and process and procedures. Taking care of many people in my old position I learned to never take for granted what someone does not know. I already have pictured procedure operations for brake jobs, wheels, U joints etc etc etc. How I want things done and standardize my work and express my expectations clearly in documentation. I have notes on how to approach training, research,morning meetings, work area organization etc,etc,etc.

I hope my incentive based pay plan is enough to keep him intrinsically motivated. It is basically a profit share plan that rewards him based on the profit of the business and as more guys come on will continue to reward him for the training of new hires. It really gives a guy a sense of ownership without being a partner. He has big potential to be a very well paid. We do well as a team. We fail as a team.
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Matt H
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Re: The right time to grow my business
Reply #7 - Nov 15th, 2017 at 6:03pm
 
Quote:
My problem for the last 3 years has been trying to stop growth at the expense of my sanity.


Raise your prices. It controls growth, as well as cultivating a better clientele.
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Bill Hamilton
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Re: The right time to grow my business
Reply #8 - Nov 17th, 2017 at 6:27pm
 
Matt H wrote on Nov 15th, 2017 at 6:03pm:
Quote:
My problem for the last 3 years has been trying to stop growth at the expense of my sanity.


Raise your prices. It controls growth, as well as cultivating a better clientele.


That is how I will deal with my next spurt. I feel that I am already charging more hours than my competition because I charge for cleaning rusty flanges, dirty threads, mud, ice, slop. I will not work on a vehicle slopping in dirt and mud. Not because I can't handle dirt, but because when I tighten parts together there better be metal on metal contact.

I charge for rusty bolt removal and stuck parts etc. (UsualIy worked into the estimate beforehand) know some of the places with higher rates than me are always afraid to charge for that stuff.
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James H
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Re: The right time to grow my business
Reply #9 - Nov 18th, 2017 at 11:06am
 
I started in 1981 as a sole proprietorship, grew but remained small (1 to 2 employees). My advice.

Remain small. Its easier to adapt to change that way and you'll need to change to stay current. Make sure you are always the face of the Company. Empower your employees but ensure that their vision does not become the Companies vision. Resign yourself to the fact that you will have to wear all the hats, hence you will always have too much work to do even if the shop is not busy. Look for ways to differentiate yourself from the competition in one big way ever couple of years.. ie: new equipment purchase, training etc. Try to set good precedents early in your business years, it will pay dividends down the road. As examples - no shortcuts, staying after hours, payment plans..etc. Charge BMW price but give BMW service.
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Bill Hamilton
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Re: The right time to grow my business
Reply #10 - Nov 18th, 2017 at 5:56pm
 
James H wrote on Nov 18th, 2017 at 11:06am:
I started in 1981 as a sole proprietorship, grew but remained small (1 to 2 employees). My advice.

Remain small. Its easier to adapt to change that way and you'll need to change to stay current. Make sure you are always the face of the Company. Empower your employees but ensure that their vision does not become the Companies vision. Resign yourself to the fact that you will have to wear all the hats, hence you will always have too much work to do even if the shop is not busy. Look for ways to differentiate yourself from the competition in one big way ever couple of years.. ie: new equipment purchase, training etc. Try to set good precedents early in your business years, it will pay dividends down the road. As examples - no shortcuts, staying after hours, payment plans..etc. Charge BMW price but give BMW service.


I agree with much of what you have said. I am going to attempt to stay smaller through specialization. I still feel it will probably even out at 6 or so employees,even primarily working on dodge and gm trucks.
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