Appropriately, I started writing this article on May 10th, National Small Business Day. Coincidentally, Zach Evans opened Zach’s Transmission and 4X4 in May of 2008, so Zach is celebrating his 13th anniversary with this Shop Profile. This accomplishment defies the odds of small business success.
According to data from the Bureau of Labor Statistics, approximately 20 percent of small businesses fail within the first year. By the end of the second year, 30 percent will have failed. By the end of the fifth year, about half will have failed. And by the end of the decade, only 30 percent of businesses will remain — a 70 percent failure rate.
Overcoming that broad-based statistic is impressive for anyone stepping into the entrepreneurial world. Many fail multiple times before finally succeeding. However, Zach made it on his first attempt! Still, it wasn’t a “walk in the park.” Let’s look at the keys to Zach’s success. I think you’ll see yourself in some of the elements of Zach’s story.
In 1985, business expert Michael Gerber wrote his now-famous book, The E-Myth – Why Most Small Business Don’t Work and What to Do About It. Its underlying principles are timeless, and Zach is the perfect example of Gerber’s 2 main points regarding the entrepreneurial myth.
- It’s a myth that most people who start small businesses are entrepreneurs.
- It’s a fatal assumption that an individual who understands the technical work of a business can successfully run a business that does that technical work.
I’m sure it’s no surprise that most transmission shops are started by or purchased by individuals who are highly skilled transmission techs or builders. They eagerly make the leap from technician to business owner under the belief that success is assured by their ability to provide quality transmission repairs and rebuilds. It’s like the old saying, “Build a better mousetrap, and the world will beat a path to your door,” or the theory behind the movie Field of Dreams, “Build it, and they’ll come.”
Zach’s journey to business owner began with over 17 years of learning how to be a top technician – from R&R to diagnostician to rebuilder. Ultimately, he opened Zach’s Transmission and 4X4 in Longmont, Colorado.
Longmont is an almost perfect location for a shop – lots of steep hills, off-roading, hauling, and extreme temperatures all contributing to plenty of demand. With virtually no competition, and in his opinion, no peers in terms of quality, Zach figured that all he needed to do was provide top-quality repairs, and success was inevitable.
It didn’t take long for Zach to become a victim of the E-Myth. He quickly found out that there was more to running a transmission business than fixing transmissions. He also soon discovered that owning a shop doesn’t mean you haul your money off to the bank in a wheelbarrow. There were many times that he worried about just making ends meet, let alone making a profit.
Zach recalled, “Following what I thought was ‘expert advice’ from an industry veteran, I was going to work with one focus, the almighty dollar. In retrospect, I’m sure it was obvious to my customers too. I probably had dollar signs in my eyes. I didn’t treat them badly, and they always got great quality and value, but I was focused on the wrong thing – money.”
Zach realized he needed to do something different. Fortunately for Zach and for his customers, he decided to attend the ATRA Powertrain Expo. In search of answers, he’d been reading the management articles in GEARS, which motivated him to attend the What’s Working Seminars at the Expo. That’s where I met Zach.
I recall the first time I saw Zach at one of the management sessions. He appeared to feel a little out of place, but he quickly settled in. I remember how he stood out in the audience with his broad smile, red beard, red hair, and ponytail. In fact, to this day, I fondly call him “Ponytail Zach.” He’s a big muscular dude, so thank goodness Zach wasn’t offended.
Zach was one of those students that soaked up information like a sponge in water. I could practically see the lightbulb lighting up over his head as each new idea was presented by the slate of expert speakers. I never had a doubt that Zach would put those ideas to work in his shop as soon as he got back from Expo.
There’s never been a question about Zach’s passion for quality. But he learned that customers don’t measure the quality and value of car repairs the same way a technician does. Technicians measure it with quality parts, technical proficiency, and repair accuracy. Customers primarily measure quality and value by how they feel about their experience with the shop.
Zach became a believer in being what we, at ATRA, call customer-centric. Statistically, the most successful shops have a customer-centric service focus. Zach puts it this way, “Profit is the natural result of making customers your primary focus and providing an excellent customer service experience. Of course, you still need to deliver high technical quality.”
Zach not only possesses a passion for excellence, but he also possesses a kind heart and open mind. These latter character traits made his transition From Technician to Tactician more natural and smoother for him. As I already mentioned, his mind was open, soaking up new information like a sponge. He always knew that treating customers with integrity was essential, but he now treats them like guests. He realizes that behind every car, there’s a customer and that we don’t just fix cars; we fix customers. As Zach puts it, “The purpose of our business is to create relationships, turning customers into lifelong clients – not to make money. If we treat our customers well, the money will follow.”
Zach’s kind-heartedness plays well into his chosen tactical marketing plan. Again, through his training at Expo, he learned how to build a customer base through community involvement. Zach looks for every opportunity to make Zach’s Transmission and 4X4 the first name to come to mind when somebody needs repairs or service in the Longmont area. This includes sponsoring charity events, walk-a-thons, local sports teams, and car shows. Zach’s is everywhere customers spend time – on restaurant menus, in bowling alleys, and at ball fields.
Zach pointed out, “About 1/3 of our business comes from general repair shops who trust us with their customers or use us to bail them out of technical difficulties. However, most of our new customers are word-of-mouth referrals. While many customers say, ‘You guys have been great, but I hope I never need you again,’ they’re always sending their friends and family our way.”
Zach had always approached transmission diagnosis and repair as a tactician – he just hadn’t realized it. He points out, “You must diagnose the problem to determine the best solution. But the best solution includes considerations like intended use, age and condition of the vehicle, customer needs, expectations, and of course, any extenuating customer circumstances.”
Today, Zach uses a similar tactical approach to managing his business. Zach explains the process, “What’s the current situation or problem? How do I want it to be? Why do I want to change or fix it? How will we make it happen? Are there any obstacles to overcome? And finally, we pull the trigger and make it happen.”
Zach was quick to point out that the “Old Zach” would have taken it all on himself. He hadn’t learned how to build and manage a team. That’s something else he’s learned over the years of attending the ATRA Powertrain Expo. Today Zach focuses on the aspects of the business he enjoys and is best at doing. He delegates the other tasks and responsibilities to others who do them better. He confirmed, “I’ve spent a long time pulling together a great team that works well together. Most importantly, they also embrace my commitment to providing our customers with top quality, fair prices, and a great customer service experience.”
Have you ever wondered how shops are chosen for this column? We know there are many deserving ATRA shops out there – you might be one of them. Sometimes, we hear about shops and their unique stories through the grapevine. However, most of the time, we end up being detectives. We ask our industry contacts for recommendations, and then we contact the shops they’ve suggested.
You’re invited to tell us about an ATRA shop that you think has an interesting story to tell – maybe your own shop. There’s no cost. It just takes about an hour for a telephone interview and a visit by our photographer. We’ll do all the heavy lifting. To get the ball rolling, send an email to Ruben at rvera@atra.com.
