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Big City Travel Tips – Safety First

Big city travel has never been more alarming for individuals not used to city travel and unfamiliar with the city in question. It can be daunting traveling to a new destination, but apprehension is more likely to rise to the surface when you look at just how many crimes take place these days. Couple that with the alarming big city travel stories that have been publicized on the Internet and it is little wonder that individuals debate as to whether they really want to experience certain cities for themselves!However, big city travel tips can easily help to put the minds of potential travelers at rest. There are several things that anyone can do to keep themselves safe in the big cities and thus can visit them, see the sights and enjoy some well-earned time away from the stresses and strains of modern life with little hassle. Simply follow the big city travel tips below and you cannot go far wrong!1. Luggage – Only take what you need when you travel and make sure that you have a list of the belongings in your bag. This big city travel tip can save you time if your luggage does get stolen, but will also enable you to find what you need in an emergency. You should never leave your luggage unattended for even a second while traveling in a city. It will most likely either be stolen or tampered with if left unattended for a few seconds so ensure that it remains within your sight and possession at all times.2. Money – Only take one or two credit cards with you on your big city travel trip and ensure that the PIN numbers, if you have them, are not in your possession. Also, when taking money with you, split it up. Divide the cash between pockets in your luggage and areas on your person. For example, keep some of it in your socks, some in a pocket, some in a money belt under your clothing and so on. That way, if anything does happen to you, you will at least have enough money to get back to your hotel. If you are going to a city abroad then take travelers checks with you because they are insured. If you lose them then you can cancel the originals and receive replacements usually within 24 hours.3. Schedule – Vary your schedule from day to day when undertaking big city travel. This may not seem like a big deal to couples and families that are set in their ways, but individuals looking to make a quick buck one way or another undoubtedly target some tourists. If you vary your schedule then it will be almost impossible to predict where you are going to be at any given time and this can keep you safe.4. Clothing – Never wear anything that projects wealth or affluence when undertaking big city travel. This includes jewelry, clothing and any accessories that may point to the fact that you would be a great target for a mugging or robbery. Most tourists wear normal and relatively cheap clothes that blend into the background, and anybody flaunting that guideline is putting him or herself at risk.5. Family – If you and your family split up during big city travel time, make sure that you have a way to get in touch with each other, have arranged a set meeting place and time, and are completely clear on all of these points so that you will be alerted to the fact that anything is wrong straight away. Wherever possible in big city travel, individuals traveling together should stay together. However, the need does sometimes arise. If it does, make sure that you all have the address of the hotel and a map of the city with you at all times.6. Scams – There are always individuals looking to scam people that are strangers to an area, and during the course of big city travels there are many of them about. Only ask trusted sources for directions and advice, never follow the guidance of strangers unless they are affiliated with official bodies and only buy merchandise from official stores. These guidelines may sound like common sense, but many people flaunt them and this can get them into difficulties!

Building A New Body Shop

The purpose of this article, and the subsequent follow ups I will be writing, is to share with our customers what we hope will be valuable information in not only starting but running a successful collision repair facility.

When someone decides they are going to start a business, it usually comes from the thought that “Hey…not only can I do that…but I can do it better than the other guy….AND I can make some money doing it.” As such, the entrepreneurial spirit in us kicks in. We put together a business plan, we weigh the options of cost/loss versus profit and we decide to roll the dice, as it were, because we know we can build a better mouse trap. It is this spirit that drives us all in business.

In starting a collision repair facility, there are essentially two schools of thought. The first being the “corporate” path where one looks to build large scale, borrowing heavily either from banks or investors to finance the designing, building, staffing and managing of a larger facility. The second, and far more common is the “mom and pop” approach. Now arguments can be made as to which one is better for the ROI of the investment, but I tend to believe that the smaller shop is a better investment, long term for the ownership. I recently spoke with a long-time customer of mine about his thoughts on a start up body shop. He had successfully expanded and maintained a very large facility over the past 20 years. His annual gross numbers are well above 2 million. When I asked him his opinion on a best case scenario for starting a body shop, I was surprised to hear that his views are very much like mine considering he chose the “corporate” method and it has done extremely well for him.

When my friend Robert went to the bank 8 years ago, he was asking to borrow about one million dollars to build his new shop. He was looking at increasing the size of his operation by over four times its current state. Expanding his operation from a 4200 square feet facility to a building well over 22,000 square feet was a mammoth undertaking. He rolled the dice, borrowed heavily and has since made a very good living for himself as well as his employees. Yet when asked if he would recommend doing the “corporate” start up, he said he would not and that the “mom & pop” approach was a much better decision for a new shop owner. As we discussed the issue over a few phone calls, these were some of the key points we agreed upon.

1. You should not start any business without a business plan and you will not borrow money from a bank for a new business without a business plan, period. My advice is to seek professional help on this. Look to the Small Business Administration to help you with establishing your plan. They have a large library of “how do I’s” for the small business starter. They can recommend advisors, give ideas about money management and in some case help you secure some funding sources to help in the startup process. Additionally, with the current economy having banks scared of lending money to anyone regardless of your credit score, borrowing history or cash flow, they can help you solidify your smaller business plan. Also getting a bank to lend you a smaller amount of money maybe a little easier if you have a well thought out and structured business plan as long as they feel comfortable with the amounts and the diligence you have put into the research of the plan. Be sure to include studies of the surrounding marketplace. How many other shops are in an immediate proximity to your proposed location? Is there sufficient egress to the property via main intersections or other businesses in the area that can generate potential “drive by” advertising for you? Do you plan to build or perhaps lease an existing building?

Have you made any contacts with potential clients such as rental companies, delivery companies, cab companies, or perhaps municipalities for bid work? Getting secured, contracted work will add bottom line receivables to your business that banks like to see. Be sure to approach suppliers and work out some soft numbers for discounts on parts and materials so you know your margins based on percentages. As you are looking for a location or perhaps looking to build, remember that you can always expand if the business calls for it. Avoid going into “building” debt and not being able to afford to install the necessary tools you need for opening day. Try not to over extend your business on Day 1 by over borrowing. Establish the track record with the lender by borrowing what you need to get your shop up and running and perhaps a small operating cushion. Sell them on the fact that you will be profitable quickly.

2. You will need to further decide how your business plan will be incorporated into a complete business model for your shop. A common misconception is that “bigger makes more money”. This can be true as we see in the larger consolidators. It means, however, as we are starting up more cost, higher risk and an inability, far too often, to survive. Start with what you know. Perhaps you are a good painter/body man. You have a good body man ready to come on board. Perhaps another fellow is a frame man. All you need is a small space, perhaps three bays, a small Chief rack and a paint booth to make it all happen. It is as simple as that. Start small and grow. Do not over commit unless you have something you can fall back on. In Robert’s case, he was maintaining his original shop while he expanded and built his new shop. As you establish your business, your customer base and your reputation, you will see opportunities to expand as your bottom line grows.

3. Pay “cash” as much as possible until you have established your cash flow patterns. Many shops I have talked to over the years get strangled in a cash flow net. It is easy to do regardless of the industry but in our collision repair industry, it happens more than most due to the nature of the business. Fronting repair costs of parts and labor, awaiting payment for past repairs, fleet accounts that pay on 30 or 60 notes or getting stuck with abandoned vehicles are only few of the problems shops face. These and many more lead to faster cash out and slower cash in. So do what you can to minimize credit exposure. Pay cash for parts when possible. Try not to give away profits by “financing” deductibles whenever you can. As you establish your profit margins, you could consider this as an alternate revenue source but I caution against it in a start up shop.

4. Try not to bog your shop down with “stall sitters” such as severe hits or restoration projects. If you have the physical space to store them or move them easily from the work areas, it isn’t a big deal but remember, we are looking at a small shop scenario. The longer a car sits on the frame rack or in a tear down stall waiting on another car to come out means higher turn time and less flow through your shop. Try to establish a quick fix mentality. “Hang and Paint” repairs, while considerably less dollar amounts, tend to be as high or higher profit percentage than heavy hits. The turn time for fender benders is obviously less and can lead to attracting clients such as rental companies or service companies that need their vehicles on the road. A faster turn time for repairs on a rental car equates to more money for the rental company. This can obviously lead to more work in volume from the rental company to your shop. So consider keeping a streamlined process to handle smaller hits more efficiently to be more profitable. I am not suggesting you turn work away but rather be a little selective on the scheduling if you can.

5. Work to make sure your customers are the top priority in your business. They are the reason you are here. Go the extra mile. Make them realize they came to your business for a reason. A business man I know is fond of saying “the difference in ordinary and extraordinary is the extra.” When you think about it, it is the extra things one does for the customer that offsets them from the competition. Taking care of your customer is the easiest way to secure another customer. Generations of family member continue to take their vehicles the same shop because they have an attachment to the repair facility by some means. If you can establish that type of relationship by taking care of the extras, you can grow your client base laterally without much cost. Remember, every job we do in a body shop is like a rolling billboard for the next potential customer. Friends know that “Joe Consumer” wrecked his car. When they ask, you clearly want “Joe” to tell them that every aspect of the repair process was handled professionally, quickly and without incident. Since on the average, drivers only come to need repairs done once every 7 years. That is a long stretch if you are not ambitiously going after more customers. You do this by taking care of the details, the extras.

While these steps might seem simplistically drawn out, they are the cornerstone to a thriving business. What needs to be understood is that there are a lot of moving parts to getting a shop open. These are more fundamental practices. In my next article, we are going to get more involved with the actual shop set up, discuss DRP relationship and how we go about marketing to the public for our new body shop.