Going Multi-Store by Greg Bunch was a very popular session at Amplify 2023. We might be biased but from when you should expand to how to sustain operations and continue growth, Greg answers all your burning questions.
But who is Greg Bunch? Greg is CEO at the Transformers Institute, a coaching and consulting company dedicated to helping transform the automotive industry for the better. He’s been in the automotive industry for 25 years now, along with six years in coaching and consultancy.
He’s also the owner of Aspen Auto Clinic with six auto repair shops spread across Colorado – in true multi-store fashion.
Now, let’s have a look at Greg’s tips and tricks for going multi-store.
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Key takeaways
From this article, you’ll be able to get a recap of the Amplify 2023 session, Going Multi-Store with Greg Bunch. You can watch the full episode here, but this article will recap the following:
- Why should you go multi-store? What’s in it for store owners?
- How do you get into the right mindset for shop expansion?
- How can you create an acquisition strategy?
- How do you evaluate a shop before acquiring it?
Why go multi-store at all?
The business lifecycle of a store can be broken down into six stages.
- Startup
- Growth
- Established
- Expansion
- Mature
- Exit
Most shop owners build their shops from the ground up. This is the startup stage where you create a business plan and start implementing it.
Then they go through the growth stage where they expand operations, set up systems, and hire employees to achieve stability.
An established business can then be expanded and matured. But many business owners lack a growth mindset.
Instead, they zero in on maintaining existing operations and work on an exit strategy when the time feels right.
This is a clear missed opportunity.
Two things happen when you go multi-store:
- The value of each one of your shop quadruples
- You’re in a better position to bargain as your target buyer changes to bigger entities with bigger budgets.
Ultimately, this means you aim for greater success and bigger returns on your business.
Does that interest you? If yes, going multi-store might be just what you need.
Preparing to go multi-store
Going multi-store doesn’t mean you get a bunch of new shops, repeat what you’re doing at your first shop, and eventually boost profitability.
No. The way you run your business completely changes when you’ve got more than one shop. This requires a shift in your management. Here’s how to get into the right mindset and key things to note.
- Make time for your new role. You can’t continue working as a mechanic fixing things. Create more time for management, process building and leadership. You need to focus on hiring the best, building workflows, training supervisors, overseeing KPIs and finances, and so on.
- Create a mission. Know why you’re going multi-shop and make sure your employees are aligned with your growth goals.
- Be ready to embrace rejection and fear. Not everyone will be onboard with your shop goals and that’s alright. Don’t let it get you down. Get comfortable with your anxiety, fear, and stress. It’s the starting out that’s tough so weather the storm well.
- Let go and learn to trust people. Multi-stores need more than one leader. You need to train supervisors and shop managers to be able to oversee your operations. This means letting go of control, training others, and learning to trust them too.
- Hire, train, and retain the best talent available. Put together a great sales pitch and get the best people on board. But work equally hard to retain them. Offer the best training, build a great culture, and look after your people.
The best part? Greg believes multi-stores have an edge in attracting the best talent as they are perceived to offer more opportunities.
“The fight for talent is too strong and people want an opportunity to grow, and I think they’re gonna go with the companies that they see that opportunity.” - Build systems around functions, not people. Even though we try our best to keep people around, they can’t run the business forever. That’s why you need to create SOPs and workflows around your business functions. This also makes it easier to fill roles that open up.
Here’s what Greg believes: “Top talent and good systems and processes is really the winning formula.” - Prefer acquisitions over starting from scratch. Buying a shop costs a lot more money than building it from scratch. But acquisitions can become cashflow-positive very quickly.
- Build an acquisition strategy. Identify and analyze targets, value them, consider your financing options, and negotiate well. When things don’t seem to be pulling through, walk away.
- Start taking care of yourself. Look after your physical and mental health both if you want to be the best leader.
- Prepare to persevere. Managing multiple stores is a marathon, not a sprint. You need to be resilient, patient, and ready to do whatever it takes for your shops to become profitable.
- Know when to walk away. Sometimes a new location just doesn’t work for you, no matter how much effort or money you put into it. When this is happening, know when to let go. Move on to the next best thing! There’s no need to stop.
How to evaluate a shop before you acquire it
Not all shops make for good acquisitions. There’s no right or wrong answer for a “good acquisition”, but here are some questions to ask yourself as you evaluate a shop.
- How close do I want it to be to my base? Am I okay with expanding to a different state?
- Does this shop fit with my brand image and other shops?
- Should I lease or own the real estate?
- Are you acquiring good human capital or will you have to hire people for the location?
- Are you happy with the equipment and the facility? Can you improve upon these?
- What’s the environmental impact of the existing operations?
- What’s the traffic like around the area?
- What are their KPIs? Can you help them improve these numbers?
» Looking to transform your shop? Discover how AutoLeap can help.
Final thoughts
As you enter multi-shop ownership, things can become chaotic pretty fast. But with the right mindset, you’re prepared to face the challenges head on.
Greg’s tips will prepare you to create an acquisition strategy that works for you, find your winning formula as you test, duplicate processes, and continue expanding.
