Multi-Unit Franchisee Magazine Issue II, 2014 | Page 40

MULTI-BR A N D 50
tion’s first small-business concentration.
“Now every business school does it, but
he was the pioneer,” says Mulherin, who
earned an undergraduate degree in political science and an MBA from DePaul.
The franchisee, something of a Renaissance man in terms of his interests
and pursuits, learned about hard work
during his years growing up in Chicago’s
South Side. His first job, he says, was as
a 13-year-old busboy at a wedding reception at a country club. “On my first
day on the job, I dropped a tray full of
glassware, dishes, and silver on a dance
floor during the reception,” he recalls.
“It was a show-stopper. I got a round of
applause from the 500 guests and a pink
slip a few minutes later (they made me
clean it up before they fired me). I was
13 years old and figured that I could only
go up from there.”

BOTTOM LINE
Annual revenue: Low seven figures.
2014 goals: 15 percent top-line growth.
Growth meter: How do you measure your growth? By traffic or, as
we call it, car count or estimate count; by average repair order dollar amount;
by top-line and bottom-line growth and customer satisfaction scores.
Vision meter: Where do you want to be in 5 years? 10 years? I
plan in 3-year increments; 36 months is about the limit of my vision.
How is the current economy affecting you, your employees, your
customers? Things are getting better. The national deficit is decreasing as a
percentage of GDP. National unemployment currently stands at 6 percent, which
is a marked improvement over the past 24 months. Our area is experiencing
significant job growth, and housing sales are picking up. But there is still great
caution, and many of our customers are very tight for money.
Are you experiencing economic growth in your market? Yes. The
South, particularly the coastal areas, is prime retirement country. Charleston is
now the #1 tourist city in the U.S. Many new companies (the largest is Boeing) are making billion-plus capital commitments to plant facilities, technology,
and people.

Good credit can sometimes get money, but marginal credits are quickly shown
the door. A variety of specialty finance companies are around, lending at usurious rates. Small businesses in tight situations are greatly at risk.
Where do you find capital for expansion? Self-funding, cash flow lending from banks, specialty lenders. Also, a West Coast company called Guidant is
a specialist in creating a business 401(k) from existing 401(k)/IRA accounts.
Have you used private equity, local banks, national banks, other
institutions? Why/why not? National and local banks, Guidant.
What are you doing to take care of your employees? We have a
full range of health, vacation, and holiday pay as well as regular increases for
performance. Our health plan rate quadrupled in 24 months and we dropped it
as a result. Under the Affordable Care Act, because of our size, we are exempt.
We retained a specialist to meet with each employee, and 100 percent of our
team has entered the South Carolina state pool and obtained good coverage at
much lower rates. In some cases they have qualified for assistance, which in
my view is a good thing.

How do you forecast for your business? I don’t.

How do you reward/recognize top-performing employees? We try
to create a career path. Our shop has different positions with varying skills. We
provide training and promote upward mobility. We construct most pay plans
with base hourly or salary and a commission plan to promote and reward behaviors that generate revenue. We interview from within for existing positions
as a first plan of recruiting before we go outside.

Is capital getting easier to access? Why/why not? No. Banks were
lending like drunken sailors in the housing boom and are now overreacting.

What kind of exit strategy do you have in place? It’s too early to say
at this point. Ideally, a sale to existing management. I’m still working on it.

What did you change or do differently during the economic
downturn that you are continuing to do? We get very close to the
customer, demonstrate value and need, and are flexible in pricing and tenacious in sales.

38

MULTI-UNIT FRANCHISEE IS S UE II, 2014