The Basics of Owning An Auto Repair Shop - Part 2

Lucas Underwood and David Roman are again joined by guest Cecil Bullard to continue discussing the financial considerations of running an automotive repair shop.
Cecil emphasizes the importance of understanding your business's financial model, including accurately accounting for fixed expenses and miscellaneous costs. They also delve into establishing a realistic labor rate and the significance of generating a fair profit to sustain the business.
00:00 I have money, can pay bills, share business.
08:05 Determining the value of labor and profit.
12:17 Modeling business expenses, including labor and parts.
15:34 Roof leaking, low profit, tough working conditions.
16:43 Investments must exceed stock market returns passively.
19:48 Tech wants to start shop, high expenses.
22:43 Seek undervalued businesses, adjust and market strategically.

[@craigscarcare2835]

Cecil Bullard and the entire institute team are the real deal with knowing how to teach and train a shop owner to know how to work on their business and have it running like it should be. If you're auto repair business is not running on all cylinders and you need a manual and training on how to fix it these guys are who you need to contact. If you started like I did as a tech turned owner with little to no business training then you need training on how to work on your business just like you needed training on how to work on the cars that made you a great tech. To be a great owner you need the same type of resources. I went the first 10 years as an owner learning from the School of hard knocks kind of like on the job training that you paid for in all kinds of mistakes instead of paying for books or a trainer.

[@shnookxk3151]

best auto channel keep it up!!

[@autodiagyt]

Love these conversations

[@mostwantedmotor]

Good point on Minimum wage example. To be fair if I had minimum wages income after lifestyle expenses Id be rich. 15 an hour times 160 equals $2,400 a month extra money. Put that in market for 10 years you’ll be a millionaire. Problem is lifestyle expenses on minimum leaves no money to invest.

[@ginaq5834]

I need help with understanding my shop numbers!! This video has proven how little i know about the finances 😢

[@ChangingTheIndustry]

The institute does a free business analysis you can sign up for by clicking the link. If you have specific questions, we'll do our best to answer them in an upcoming video!

[@nickayivor8432]

👍

[@johnschneible4812]

Some smart guy out there needs to make a p&l calculator. Maybe a spreadsheet where we can fill in expenses from our p&l and it calculates these targets for us 😅.

[@ChangingTheIndustry]

They did! It's called quickbooks 😁

[@johnschneible4812]

@ChangingTheIndustry Ha! Not exactly what I meant, but I use Quickbooks. Maybe I will just keep listening and save my questions until the end! 🤣

[@ChangingTheIndustry]

I gotcha 🤣 My recommendation is to set your p&l to a percentage of income and it'll give a ton of perspective.

[@BrazilBro_]

Not a lot of meat on the bone with a shop. Less than I imagined

[@halvorsonmx]

How do you find out what the other expenses are to get up to 37? Just to know what you're overlooking.

[@ChangingTheIndustry]

We break the P&L down even further in a future video.

[@BehindTheCounter_TFSO]

Perhaps the next video could focus on purchasing a business. Many senior individuals are seeking strategic guidance in this area. It's common for them to overvalue their businesses, believing they're worth six or even seven figures. However, upon closer inspection, it becomes evident that they're merely renting their premises. Additionally, their equipment is often outdated or basic. Their customer base prioritizes price over quality. Maybe it's better to start from scratch?

[@ChangingTheIndustry]

We'll definitely be covering that!

[@Adam-kk7nw]

​@ChangingTheIndustry u look like youtuber Camelot please talk about gamestop one time

[@baldmechanic7415]

In B4 1 million

[@Joe.O_623]

Isn't there a shop type business software where you can punch in all your numbers and it tells you where you land?

[@DavidRomanKC]

No. There are many that claim to, but meh. Shop-Ware's analytics is the best I've seen.

[@tallstacker]

make ur own with excel