Auto
Tech, Inc .
89 Pioneer Way, Mountain View, CA. 94041
(650) 964-7844
"Tools, Training & Technology...make the difference"
My
Beginnings
The following is copied from A San Jose Mercury News article dated Wednesday,
April 4, 1990.
Auto Mechanic Driven to
Excel
Shop on track to be a winner
Frank Edelman aims to be able to repair every make and
model of car
on the road at his A-1 Auto Tech shop
Frank Edelman may be the only auto mechanic who
gives customers his home phone number. But to Edelman, 29, owner of A-1
Auto Tech on Evelyn Avenue in Sunnyvale, it's a small price to pay.
Edelman figures that after 13 years in the car business, he knows what it takes
to win the race.
His plan is to put his independent garage into dealership class for
every make and model of car driven. To that end, Edelman has contracted
with a computer services to supply him with a series of industry updates on the
mechanical problems and recalls of all new cars.
He and his employees frequently attend classes and seminars to keep
up with automotive developments.
And he hires technicians: Mechanics who are trained to understand
the finer points of today's
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By early 1989, overhead - in the form of rent, utilities,
employment and other taxes, worker's compensation, benefits and equipment forced
them into a big decision: pare down the business or build it up?
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cars, such as the computer chips that serve as the brains
of most new cars.
"We want to be able to handle a car as well as any dealer
can," Edelman said.
He started out in the automotive business at age 16, Edelman worked
after school for Bob Witter's Shell, an independent service station in
Sunnyvale. "The very first day I didn't have anything to do, and I
picked up a broom and started sweeping the (service) bays, and Bob was
floored," Edelman said.
Witter sold the shop four years later (Edelman sees Witter as a
mentor and continues to consult him for advise), and Edelman got a job with a
Ford dealership. But in the week between jobs he started servicing
customers' cars at his Sunnyvale home. "The first week out of my
garage I did $3,500," Edelman said. He earned only $14 an hour at the
dealership.
Two months later he had a booming business. One day an old
high school acquaintance, Dave Mareno, dropped by to find out why cars were
parked up and down the street near Edelman's house. Mareno, who did body
work on cars at his house at the other end of the block, was having the same
problem.
To avoid troubles with the city, the two formed a partnership that
in late 1987 led to them to rent a small two-bay garage a couple of blocks form
A-1 Auto Tech's current location. They pooled their resources; Edelman had
$10,000 from a pension plan at the service station, and Mareno had a like amount
in savings from his home-run business.
They cleaned the place themselves, and Mareno did all the interior
and exterior graphics and design work. Mareno kept his auto body business,
Classic Automotive Restoration, separate. But he served as Edelman's
bookkeeper, a system they maintain today.
They hired a mechanic, one of Edelman's former colleagues at the
Shell Station. The first month
A-1 grossed $12,000, the second month, $18,000, and the third month, $24,000.
They moved to their current 6000 square foot location when they ran
out of space. Unable to secure a business loan, Mareno took cash advances
from his credit card so he could afford to clean, paint and install blinds,
linoleum, lifts and other automotive equipment.
They moved in September 1988 and hired a second mechanic.
Revenues continued to build, and they brought in about $40,000 the first
month. But by early 1989 overhead - in the form of rent, utilities,
employment and other taxes, worker's compensation, benefits and equipment-forced
them into a big decision: pare down the business or build it up? They
decided to expand. Edelman took a second mortgage on his house to help
ease the transition. They hired two dealership technicians and let other
shops know they could handle new cars. The timing was right. During
the mechanics' strike that cut business at many dealerships last year, A-1 Auto
Tech performed all the warranty repair work for two Sunnyvale Dealers.
Edelman said local independent garages have been referring new car
owners to A-1 Auto Tech to fix the computer troubles they are not equipped to
handle.
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High Octane Tips For Entrepreneurs
Keys to finding a new niche in an old business:
-
Know the business; get experience
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Take a close look at what the customer wants. Edelman believed his customers wanted to keep going to their family mechanic, instead of a dealer, even after buying new cars.
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Keep up with technology. Edelman and his employees frequently attend automotive seminars.
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Creative financing. Using credit cards for loans probably isn't the most reliable method. But Edelman and Mareno would not let themselves be deterred by banks turning down loan applications
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Be willing to make tough decisions based on your long-term goals. When Edelman and Mareno had problems with high overhead, they could have cut costs and pared down the business. They chose to expand the business.
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Don't be afraid to seek advice. Edelman often consults with his first employer.
This is a copy of the article that was written in 1990, Frank still lives by these values today.