Should You Grow Where You Are or Plant Somewhere New?
The moment in nearly every successful shop owner’s journey whenthe bays are packed, the phones won’t stop ringing and you catch yourself wondering, “Should I add more here or is it time for shop number two?”
That moment is exciting. It means you’ve built something real.
But it’s also where things can start to unravel if you don’t make a thoughtful decision. I’ve seen owners bolt toward a second ocation too soon – and I’ve watched others stay put too long: both ended up stuck, frustrated or financially strained. Growth is essential, but how and where you grow is what separates a flourishing business from a fractured one
Let’s look at two paths.
OPTION 1: EXPAND WHERE YOU ARE
You might be surprised how much potential is sitting under your own roof. I once coached a shop owner who told me, “Vic, we’re maxed out.”
But a walk through the building told a different story: technicians crossing the shop four times to get parts; one underutilized bay filled with old equipment and parts; and a two-hour backlog because of one missing service advisor. He didn’t need more space; he needed better systems and improved focus.
So, before you start scouting commercial real estate across town, ask:
Have I maximized my current bay and technician efficiency?
Is there equipment I could add (like an alignment rack or deepening your maintenance
services) that would increase the average RO?
Are we losing sales on services we could be doing in-house vs. sending the client down the road?
Sometimes, growth doesn’t mean expansion; it means excavation.
Digging into your inefficiencies, streamlining workflow and optimizing your labor mix can unlock capacity you didn’t know you had.
Want to go even further? Consider add-on services. Fluid services, ADAS calibration, detail services, fleet maintenance or hybrid/EV specialization are all ripe areas for shops in the right market. Adding a new lift might cost $10–15k, but if it gives you an additional 30 billable hours a week at $140/hour, you’ll make that back in a month.
And, don’t forget your digital curb appeal. In “Balancing Business and Marriage,” I talked about presence – both online and at home. If your shop has poor SEO, slow web load times or weak Google reviews, you might not need more bays – you need more eyeballs on your digital assets. Double down on your local digital marketing before doubling your square footage.
Also, evaluate what’s happening at the front counter. Are you consistently offering maintenance plans? Are your service advisors confident in presenting higher-ticket repairs? A solid process for customer communication can raise your average repair order without adding a single bay.
OPTION 2: OPEN A SECOND LOCATION
Let me be honest: opening a second location can be both one of the most fulfilling and frustrating things you’ll.
Some shop owners treat location #2 like a simple expansion. But within months, they find themselves bouncing between shops, burning out team leads, and watching quality and morale dip. Why? Because shop two isn’t a clone – it’s a startup.
Here’s what I tell every client considering location #2:
You’re not opening a second shop – You’re opening a second business. Your SOPs need to be bulletproof. Your leadership bench better be ready.
Your culture must scale.
Simply put, if your first location operates efficiently only when you’re in the building, you’re not ready.
Financially, too, you’ll need capital, whether from retained earnings, a line of credit or costly outside investment. You should also have an additional three to six months of operating expenses saved, plus buildout costs and marketing. You’ll also need to invest time developing your new team, getting involved in a new community, and likely doing things yourself until the new location’s rhythm develops.
That said, when done right, a second location can be an incredible catalyst. I’ve seen clients double their revenue in three years, create career paths for their best team members, and dominate in neighboring zip codes. But, it all starts with readiness, not restlessness.
Look at Nealey Tire & Auto in Edgewater, MD. They’ve experienced exponential growth over the last few years, adding locations and market share in a highly competitive area. But, that growth didn’t happen by accident. It started with AJ’s crystal-clear vision. Every decision, from leadership development to systems implemen-tation, was aligned with his vision and long-term goal. Nealey Tire proves that with the right vision, people and execution, expansion isn’t just possible, it’s scalable.
A GUT CHECK BEFORE YOU GROW
Whenever I coach an owner at this crossroads, I walk them through this gut check:
- Am I out of room or out of ideas?
- Do I have a second-in-command who can run the first shop without me?
- Am I chasing growth or escaping boredom?
- What’s my true why?
- Do I have systems and processes in place for the shop to operate without me for 12 months?
I’ll add a bonus question: “Have I seen this play out in other shops?”
Real-world examples, like Nealey Tire, show that scaling is not just a theory. It’s being done right now by shop owners who’ve aligned their team, tools and time with their vision
Final Thought: Know What Season You’re In
A few years ago, I spoke to a group of shop owners about marriage and business. I said then what I’ll say now: growth needs to align with the season of life you’re in. If you’ve just onboarded new techs, upgraded equipment or are still recovering from a major personal event, maybe now isn’t the time for a second shop. Now is the time to deepen, not widen.
On the flip side, if your team is strong, your first shop runs like a clock and you’ve got a calling to serve a new community, start looking.
Either way, be honest with yourself, your numbers and your capabilities.
Because, at the end of the day, it’s not just about growing your business. It’s about growing it in a way that supports the life you have and the life you want.
If you would like a worksheet to complement this article, email Vic Tarasik for a free action plan to help you get started. Vic was an independent auto repair professional for more than three decades, is the former owner of Vic’s Precision Automotive in The Woodlands, TX and is founder of Shop Owner Coach – contact him at Vic@ShopOwnerCoach or www.ShopOwnerCoach.com to discuss how working with a coach can benefit you and your shop.