Out of the Crisis.Org

[Louis Altazan]

I often hear stories about how hard it is to start an auto repair shop today. Clearly it is no easy task and there are all sorts of handicaps. Speaking from experience it was not that easy in 1974 either. At that time the Country was in an energy crisis, gas prices were sky rocketing and economy was bad, there was high unemployment and cars were getting a lot more complex, sound at all familiar?

The point is starting a business is never easy. While there are difficulties today, there have always been difficulties. My first building was financed at 16.5% APR interest. For those that might wish to give business a try, I list several reasons why I feel things may be at least as easy now as in 1974.

1. Cost are higher, but service rates are also much higher.
   
2. Vehicles cost a lot more, it is practical to perform much higher price repair. In 1974 the average vehicle was about $4500.00. A two-thousand dollar repair was largely out of the question. Today average prices are over $20,000.00. A two-thousand dollar repair is fairly common place.
   
3. There are far less things people can do for themselves. Vehicle repairs are too complex for most people to attempt. Even if people had the skill and tooling, few have the time.
   
4. People drive more miles and keep vehicles longer. The average vehicle does not need as much maintenance, but given the additional miles driven and the time of ownership, there are plenty repairs to be done. Retaining clients is far more critical. It is also easier than ever before, for shops willing to provide quality service.
   
5. The work is more complex, but it is also considerably less grueling.
   
6. Competition is fierce, at the same time it may be easier than ever before to compete. The number of shops, truly meeting client’s expectations may be lower than ever. People are practically begging for service and willing to spend big bucks with those that can provide it.
   
7. It may be hard to get the word out about a new shop. With the internet, blogs, podcast and web sites it may be easier and far less expensive than ever before to reach potential clients. It is also much easier to stay in touch with clients.
   
8. Equipment is expensive, but it has always been expensive, perhaps a lot more so in 1974 relative to the service rate. Today, with a factory scan tool, a large number of expensive repairs can be performed on one make of vehicle. With a few such tools, knowledge and hard work a person can do most repair on several models. A good factory tool allows access to engine, transmission, body, HVAC, ABS, SIR and many more system.
   
9. There is also greater access to information, management, technical and otherwise than ever before.

No, it is not easy to start a business, but it never has been. It can be done and the potential for those capable of doing so may be greater than ever before.

_________________
Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA