Military Careers, Second Careers - Marine Corps Times

The ‘mechanics’ of opening a business

The auto business is booming despite rising gas prices.

That translates to a booming aftermarket demanding maintenance and repair.

If you want to cash in on the car business, franchise companies come with built-in advantages — including a name and a system proven to be successful.

When former Navy aviation structural mechanic and current Idaho Army National Guard 1st Lt. Mark Sherman decided to buy a franchise, he did his homework before choosing to open a Meineke Car Care Center in Post Falls, Idaho.

As a veteran, Sherman received a 25 percent discount off Meineke’s franchise fee, but the discount wasn’t the only reason he went with Meineke.

“My dad had a shop, so I grew up around it, and I love working on cars. But I wanted a solid business,” Sherman said. He found that Meineke was open to new ideas. “They were progressive, and their business was progressing.”

Sherman employs three technicians. His initial investment — the amount he needed to start up — was $264,000. He said that so far, business is good.

“We’re toward the top as far as profit and expectations,” Sherman said. “In January, we were selected as new business of the month by the chamber of commerce, and we’d been open only eight months. We’re in good shape.”

His advice for service members keen to become shop owners:

Save your money

Sherman took $64,000 from money he’d saved when he was on active duty to supplement the up-front cash he would borrow to get the business off the ground.

Exploit military discounts

He received 25 percent off Meineke’s $30,000 franchise fee as well as breaks on processing fees for the $200,000 in loans he received through the Small Business Administration.

Don’t skimp on real estate

A Meineke representative helped Sherman find the right site. “We had to do a market analysis from now to three years. Post Falls is a fast-growing city, so we chose a location on the edge of town. But in a few years, it will be in the middle of town, and it’s on a main street.”

Learn everything you can

In Sherman’s case, that was easy. He spent 30 days at Meineke’s Charlotte, N.C., training facility, learning about purchasing, computer systems, ordering, vendors, tools, the shop and generally how to run the business.

Be patient

“It doesn’t happen overnight,” Sherman said. “I contacted Meineke in the spring of 2006. We bought raw land, not a lot with an existing building, so we didn’t even get into the building phase until March 2007. I got my certificate of occupancy in June of 2007, and then I could open for business. All that time the money is locked up — just sitting there while you wait.”

Hire people with good attitudes

Sherman had to “clean house” about three months after the shop opened because the first crew didn’t work well together. “By then I knew to hire good techs who also had good attitudes, good customer service skills and could work together as a team.”