Are you a car guy? I am. I grew up around cars and have owned close to a hundred myself. They are a fascination and for many they are part of our culture. They embody camaraderie and friendship over a common passion and have become an integral part of our American identity.
As Marc Anthony once said “If you do something you love, you’ll never work another day in your life.” So if you have a strong entrepreneurial spirit, why not look into buying an automotive franchise, right? Not so fast…
Prior to being a consultant and helping my clients discover franchise opportunities, I owned a car dealership. I was young and I wanted to do something I enjoyed. But let me tell you, the car business is tough! It is certainly not what I thought it was going to be. We offered a variety of services. We had sales, finance, parts, and service. Our service department included routine maintenance, performance upgrades, lift kits, dent repair, and window tint among other things. We also built custom limousines and did high end restorations. Our facility was 25,000sqft of pretty much everything you could ever want or need for a vehicle. What I realized through that experience is that there are some parts of the automotive industry that were fun, exciting, and profitable while others were a 24/7 pain in the butt.
For example, there are a lot of automotive franchises that specialize in service. You have the general automotive repair franchises, transmission franchises, etc. Here are some things you need to prepare yourself for if you are going to look at one of those. Firstly, that is not a clean business. You are dealing with dirty and grimy work. There are also hazardous chemicals that need to be disposed of properly. But the biggest challenge I faced was in finding good help. For these kinds of jobs, you need certified technicians. A good mechanic is extremely hard to find and even harder to keep. Even if you find a good one, they are still human so they are going to make mistakes, right. Well, what happens when they repair intake gaskets on a vehicle and didn’t see that nut that fell into the intake as they were putting it back together? You deliver the vehicle and then next thing you know the car is back with a misfire. Come to find out it damages a piston as it fell through the valve and now that $600 job that you made a couple hundred on now requires a $6000 motor. For those of you who have been in this industry, you would say “yeah but that’s rare”. That’s true, but it happens. If you try to ask that technician to cover those losses then you might as well call that rollback and help them load up their toolbox yourself because they are gone. You’re going to have to eat it, or at least most of it.
Let’s say you own a transmission repair business. Have you ever gotten transmission fluid on anything? It is one of the nastiest things to deal with. It’s smelly and it’s almost impossible to get off anything that is not a smooth surface. The same labor issues still apply.
But there are a few automotive industries that are none of those things. Like window tint. This is a business that is clean, well lit, and well organized. Dust is the enemy of window film. If you are opening a franchise with your spouse, it’s a place that they will be comfortable. Second, it’s a small footprint. My dealership cost me a fortune in expenses before I ever made a dime. These businesses can be operated out of a very small commercial location which keeps your overhead low so you can sleep easier at night. Third, labor is much easier to find and keep. This is a trainable job. Most window tint franchises can train someone how to tint windows in a week or so. Then, once they have that skill, they can make better money than other types of jobs out there in a simple retail environment which makes the employees sticky. They now have a career where they can make good money, and you can too. Fourth, window film is universal. You don’t need to carry inventory for numerous makes and models. That saves space and improves cash flow. Fifth, if your tinter messes up a window, you just peel the film off and redo it. NO BIG DEAL, film is cheap! Finally, let’s talk about margins. This is an industry with great profit margins. If you were looking across multiple industries for a simple retail type of business, then the more you look at these types of businesses, the more you will like the simplicity of them and the opportunity for a savvy car guy to be surrounded by the cars they love while having fun at the same time.
There are lots of great franchises in the automotive industry but there are some things you should consider when making that decision. If the idea of a simpler automotive franchise, like window tint for example, interests you then take a look at what it has to offer in terms of the lifestyle you are looking for as well as your income requirements. Like any other industry in franchising there are good tint franchises as well as bad ones. Take advantage of the experience that comes from working with a franchise consultant to find the right automotive franchise for you. We are a great and free resource that will help you along your journey to get to where you want to be.
About the Author
Dustin Helms is a partner in The Franchise Consulting company, which focuses on helping clients find the right franchise. Dustin has owned businesses in multiple different industries and believes that owning a business is one of the greatest joys in life. He enjoys helping his clients grab the keys to their own business and unlock the door to entrepreneurship. Contact Dustin at dustin@thefranchiseconsultingcompany.com.
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