Auto Shop Owners: Building Wealth Beyond the Business [E108]
This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
30% increase in revenue by improving transparency and trust
50% reduction in time spent researching and ordering parts
10% increase in profit margins through robust reporting
In this podcast episode, Coach Chris Cotton and Hunt Demarest of Paar Melis (https://paarmelis.com/) discuss what to do with surplus money when a shop owner is not interested in buying more shops. They emphasize the importance of investing wisely and aligning investments with personal goals, as well as considering the time commitment involved in different investment opportunities. They suggest that investing in commercial real estate, such as buying the building that the shop already occupies, can be a good option for generating passive income. They also stress the importance of having reserves and not putting all of one's investments into speculative ventures. Overall, the speakers stress the importance of investing surplus money in a way that aligns with one's goals and values, and that can generate passive income for the future.
Introduction [00:00:02] Coach Chris Cotton introduces himself and the podcast episode topic.
Investing Surplus Money [00:00:59] The speakers discuss the importance of investing surplus money and the tendency of some shop owners to spend all their profits on personal expenses rather than investing in their business or other opportunities.
Different Investment Opportunities [00:02:50] The speakers discuss different investment opportunities and the importance of considering the time commitment involved in each opportunity.
Auto Repair Shop Investment [00:06:10] The speakers discuss the profitability of auto repair shops as an investment opportunity and the time commitment involved in owning a repair shop.
Investing with Time and Money [00:06:54] The speakers discuss the importance of investing in a way that aligns with one's goals and the value of considering the time commitment involved in different investment opportunities.
Real Estate Investing [00:08:29] The speakers discuss the benefits of real estate investing, particularly in owner-occupied properties, and how it can provide both monthly cash flow and long-term appreciation.
Self-Rentals and Fair Market Value [00:11:43] The speakers discuss the potential tax benefits and pitfalls of self-rentals, and the importance of considering fair market value when setting rental rates to avoid devaluing the business.
Investing surplus money [00:14:47] The importance of investing surplus money in a way that aligns with one's goals and the value of considering the time commitment involved in different investment opportunities.
Shifting mindset of business [00:16:07] Shifting the mindset of a business from generating money for personal use to generating money for investment, using the business to generate cash for investing.
Matching return on investment [00:19:15] Matching up return on investment with investment goals and being mindful of risks, making sure investment strategies and risks match up to timeline and how much money is needed.
Common investment opportunities [00:21:03] Common investment opportunities for shop owners, including buying commercial real estate, multi-family rentals, and storage units.
Investing in another shop [00:21:52] Discussion on why investing in another shop may not be the best option and the benefits of having an investment portfolio.
Importance of having reserves [00:23:02] The importance of having reserves in case of unexpected expenses or downturns in the market.
Risk vs reward in investing [00:24:30] Discussion on the risk and reward of investing in real estate and the importance of having liquid investments.
Peace of mind in investing [00:27:01] The value of having peace of mind in investing and the benefits of having a financial advisor.
Benefits of investing in the market [00:27:33] Discussion on the benefits of investing in the market and the power of compound interest.
Investing in alignment with goals [00:28:55] Importance of considering goals before investing, whether it's for more time or money, and how to calculate the necessary investment.
ROI and time commitment [00:30:40] ROI breakdown and the importance of considering time and tax benefits when investing.
Different investment strategies for different goals [00:32:23] The importance of creating a personalized investment plan that aligns with individual goals and objectives.
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Connect with Chris:
AutoFix-Auto Shop Coaching
www.aftermarketradionetwork.com
940-400-1008
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
YouTube: https://bit.ly/3ClX0ae
Email Chris: chris@autofixsos.com
This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
30% increase in revenue by improving transparency and trust
50% reduction in time spent researching and ordering parts
10% increase in profit margins through robust reporting
Click here to learn more about AutoLeap and schedule a demo:
AutoLeap Link: http://bit.ly/3GRgO88
