Not too long ago, I received an unsolicited, out-of-the-blue email that said:
“My name is Ben Rasmussen. I am an MBA student at Brigham Young University, heading into my final semester of my program. I have been interested in the tire dealership space for some time now and have had some experience with the space. My experience has been from a tertiary financing perspective (lease-to-own options for customers at point of sale) and our biggest vertical was always the tire dealerships. I am developing an investment strategy around rolling up tire dealers through a self-funded acquisitions search and I wanted to ask you a few questions, given your expertise.”
Not knowing Ben from Adam, I was intrigued. Was he serious? Why would a college student want to buy a tire store, as opposed to another business? What was his plan?
I replied to Ben and learned that number one, he is serious; number two, he admires tire dealers and is excited about the prospect of owning a tire dealership; and number three, he wants to learn more about owning a tire dealership before he takes the plunge.
Ben is looking for expert advice. That’s why I’m introducing him to you. But first, some background.
Ben wrote to me that his “journey” into the tire industry began when he worked “for a finance company that provides leases and loans” for cash-strapped consumers, including tire buyers.
While at that job, he interacted with independent tire dealers. “I loved talking with them. They were passionate about what they did. They loved their customers. And I couldn’t ignore how well a lot of them were doing. This exposure sparked my interest (in) and appreciation for” tire retailing.
“I have always enjoyed working with small teams of hard-working, honest folks who value their craft and support one another. Tire dealers fit this description well. A well-run tire dealership can create value and wealth that can be shared among those involved.
“During my MBA, I discovered the concept of entrepreneurship through acquisition. The (tire) industry's ongoing consolidation and the opportunity to continue a shop’s legacy, along with its owner’s, in a sector that’s adapting well to innovations, also was a key factor. I’m drawn to the idea of maintaining integrity and providing long-lasting value. Lastly, few (businesses) challenge an entrepreneur in all aspects of business as tire dealerships. As I have read MTD’s articles, including those outlining tips and best practices, I see the tire industry as equal parts rewarding and challenging.”
Ben also told me that he envisions a long-term career as a tire dealer. “Conversations with industry veterans, like a retired manager from American Tire Distributors who shared his passion and experience, have only enhanced my desire to build a rewarding career in the tire industry.
“Purchasing my first tire dealership will take a tremendous amount of time and effort. My expertise in business operations, honed over a decade before pursuing my MBA, complements my eagerness to learn and contribute to the tire industry.” (For the record, Ben is 36 years old.)
“But your readers are the experts and I want to learn from them. I am especially interested in aiding those seeking retirement from their current dealership. As someone passionate yet relatively new to the tire industry, I welcome advice, leads on purchasing healthy tire dealerships or simply discussions.”
Ben added that his search “could span one to two years or more, depending on finding the right opportunity,” and that he has “already engaged with several tire dealers in Utah and the Midwest.”
Tire industry “newbies” open tire stores all the time. We’ve highlighted many of these entrepreneurs in the pages of MTD. Could Ben, who has since graduated with his MBA, be the next? He has the dream. And I get the feeling he has the drive to make it happen. He just needs an already-successful tire dealer or two who would be willing to act as a sounding board, answer a few questions and share some advice.
One of the many things I’ve learned about tire dealers is that they are generous people who enjoy helping others — especially those who take a sincere interest in our great industry. Let me know if you’d like to talk with Ben and I would be happy to put you in touch with him.
Questions? Comments? Please email me at [email protected].
