As I sit at my desk writing this article, I’m preparing to head out to the Ratchet & Wrench conference in the coming weeks. I’ve had the privilege of speaking to an incredible audience of shop owners at every Ratchet & Wrench event since 2017. This year, I’ll be discussing the journey of going multi-store and how to begin that process.
Over the last six or seven years, I’ve worked with hundreds of clients who either have multiple stores or are in the process of expanding. One recurring theme stands out: "They didn’t know what they didn’t know." Many wish they had built a stronger foundation before diving into multiple locations.
A friend of mine once shared a story about how he had this really ugly couch that bugged him every time he got home from work. But, like many of us, he was tired and didn’t have the money to buy a new one. He tolerated that couch until, one day, he’d had enough and hauled it out to the trash. Without a couch, he had to sit on folding chairs to watch TV until he could afford a new one. That story always reminds me that we, as humans, have a tendency to delay decisions and avoid taking care of business unless there’s a strong motivation or a looming deadline.
I’ve seen it time and again: a single-store operator knows they need to document their systems and processes, establish hiring and training protocols, maintain accurate books, and learn to work on the business rather than in the business. But, because that requires a lot of work, it’s easier to just go into work every day and let things stay status quo, all while telling themselves, “I’ll get started on those things tomorrow.” Days turn into weeks, weeks into months, and before they know it, years have passed, and the work that needs to be done still isn’t done.
Then, out of the blue, a deal comes across their desk to buy another shop—an offer they can’t refuse. It’s in a great location; the owner wants to retire, is offering owner financing, and is practically ready to hand over the keys. Reality sets in: you want it, you know you’re going to do it, but now you’re scrambling to figure things out, document processes, and train your team because you won’t be at your store every day. You won’t be the person everyone comes to for answers anymore. This is a scenario that has played out for many of us. The first year after acquiring a second location is tough. A lot of shop owners have expanded from one to two to three stores, only to shrink back down to one due to self-induced headaches from not building a strong foundation—me included.
I don’t pretend to know the future, but I do know that baby boomer shop owners are retiring every single day, either by closing their doors or selling their shops. The more doors that shut, the fewer bays there are in our communities to service vehicles, increasing the potential for more business. Shops that have been around for a long time and have a great reputation are often excellent candidates when it comes to expanding your business and growing your footprint.
If you have a desire to own multiple locations and don’t know where to start, I’ve given you the list: document your systems and processes, get your books in order, learn your KPIs, and build a hiring, training, and recruiting system within your shop. Even if you decide not to go multi-store, you’ll have done the groundwork for a solid single location. But if you do decide to grow, you may be able to do it without pulling out your hair—or turning it gray. Whether we like it or not, consolidation is happening in our industry. You can land on the right side of history, build generational wealth, or walk away feeling defeated after spending a lifetime building something that has no value. Whether you’re 25 or 65, today is the day to think about your future and take proactive steps to shape it into one of wealth, prosperity, and success.
More to come next month—I would love to hear your thoughts.
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