Investing a year as a GM: Learnings and Next Steps

After searching for nearly two years, I came across a good business to purchase. But, my wife thought the risk of buying a business for $5M in an industry I knew nothing about (oil/tire change, car wash, repair) was too great. And, in many ways, I can see her point. I’d spent 20 years in tech, ecomm, and software. So, challenge accepted. In September 2024, I took a role as the GM at a local Maaco franchise (auto body, collision, and paint shop). Experience in the industry? None. And that was exactly the point. I needed to be successful by dropping into an unknown industry at an operations level and prove that I can do it. Testing out the “industry agnostic” concept before buying a biz. And, no - I don’t have thesis or any intention of buying in this industry. My hiring manager was an Army Ranger, and he saw that I am a Marine. He told me that he could have hired an industry veteran, but he wanted a leader. The previous GM led the shop into a decline. Technically, it has only been 11 months, but I led my team to stop the decline in revenue, and actually increase it by 27%. During that time I have always tried to think like an owner. As such, here are some of my observations, learnings, and thoughts for those looking to be an owner/operator. -Cash is still King. While obvious when stated, it becomes incredibly accurate after 3-6 months when the cash gets tight. Even our modest growth needs more cash (working capital cash). You know this....plan accordingly. Suggestion: at time of purchase and financing, get a line of credit for working cash. -Older infrastructure needs more cash to maintain. Yes, again, painfully obvious, but critical items of infrastructure (think compressor for a paint shop) as they age require more maintenance. That means more cash. Model that accordingly in your forecasts, don't just drag the line item across an excel sheet. -Be Ready to Fire, Hire, and use it to re-org. With a team of 12 (high tempo operations), I've fired 4, 2 left, and had to hire replacements. Get comfortable with the idea that you are both an answer to someone's prayers and may be part of one of their worst days ever. Also, use each personnel change as an opportunity to reinvent and restructure as needed. -Culture eats strategy for breakfast. I've heard it in B-School, and see it daily in the shop. You set the tone. Don't want people having extended breaks - point it out to them, and get them back to work. Someone smoking by the flammable products? Call it out instantly. Your strategy won't have the chance to come to fruition if no one wants to work for you or with you. Provide guidance, discipline, direction, leadership. -Recognize people & do something simple to celebrate. A box of donuts or a pizza for lunch goes a long way in creating a good environment. -Get your team some Swag. I purchased hoodies, and they get worn daily. Your team will take pride in representing - give them something so they know they are part of the valued team. Since then, I've purchased trucker hats, t-shirts for warm weather...all a hit. -Adjust your pricing. I've just changed our pricing (increased) for the 5th time since I started. Granted, our business is small projects, so I can test pricing very quickly. Don't be afraid. If you are providing value, charge for it. -Examine the tech stack. Our systems (provided by franchise) do not allow for customer database 1 to speak with customer database 2. It sucks. I can't do so many marketing automations because of this. -Many industries still heavily rely upon paper checks. Additionally, I'm STILL trying to get digital access to all of our vendor's invoices and payment systems. I've learned a ton about what characteristics I like, don't like, and are going to be deal breakers when I begin searching again. Speaking of... my plan is to begin searching again once I hit the 1 year marker. I'm heavily considering finding a buy-side brokerage/advisory. If you have used a buy-side firm, please let me know who, and how you liked them.