Rodney Hudepohl always wanted to run his own business because he didn’t feel comfortable in an office cubicle or dealing with office politics. After a couple of false starts, Rodney learned that the world’s largest wheel repair service, Alloy Wheel Repair Specialists (AWRS) in Atlanta, Georgia, had an open franchise territory in east-central Iowa. With the help of Al Beach at the Kirkwood Small Business Development Center (SBDC) in Marion, Rodney was able to negotiate advantageous terms and reached an agreement with AWRS to become a franchisee.
Rodney knew he could be successful operationally because he would be working out on the road and making his own decisions. His main concern was that he did not know how to secure enough financing to get started. The Kirkwood Small Business Development Center made it possible for Rodney to get his idea funded.
Once the decision was made, Rodney and Al spent about three months planning his next steps. Rodney asked the SBDC to assist him with three issues: (1) negotiating the best possible franchise terms, (2) developing an effective business plan that would clarify for bankers the local demand for a service of this sort, and (3) negotiate the optimum loan package.
Rodney invested almost $100,000 to start the business. This included paying franchise territory fees, buying a pickup truck and a mobile shop, and start-up expenses. He financed the purchase with an SBA 7(a) guaranteed loan from Cedar Rapids Bank & Trust, a structured-payment agreement from the franchisor, and by injecting some of his own personal equity. At the end of six months company revenues totaled $56,000; at the end of 2009 revenues were $264,000. Rodney says 2010 revenues are on track to total $330,000.
Rodney opened Alloy Wheel Repair Specialists of Eastern Iowa out of his home in June 2007 as an LLC with no employees. The main part of the business is repairing and reconditioning broken, bent, gouged and scratched wheels so they look like new. The cost for new wheels is several times that of repairing damaged wheels and the warranty coverage does not last the life of the wheel. The company also offers a second service called Nitro-fill that provides his auto-dealer clients a new revenue stream by replacing oxygen in customer tires with nitrogen, which is less prone to leakage, improves gas mileage, and extends tire wear. Roadside assistance is also part of the Nitro-Fill service package.
In 2009, Rodney purchased $75,000 in new assets, including a Nitro-Fill nitrogen generator, an additional wheel straightener, a second mobile shop, two additional pickup trucks, and a van currently being converted into a self-contained vehicle/mobile shop. His debt to AWRS is now retired and he has injected more personal equity into the business. He currently has an office and a three-bay shop in Hiawatha and now employs four people.
“Having never owned a business before,” says Rodney, “I did not know what it would take to start one. Al and the Kirkwood SBDC organization spent hours educating me and providing the assistance and wisdom to be able to successfully start up, grow, and live out my dream.” Rodney continues to schedule frequent progress reviews with the SBDC each year to discuss marketing and growth strategies.
Today, Alloy Wheel Repair Specialists serves more than 100 body shops, dealerships and tire stores across Eastern Iowa. The company’s territory includes Cedar Rapids, Iowa City and the Quad Cities, plus all surrounding towns. Rodney was recently elected to the AWRS National Franchise Council for a two-year term.
“I grew up on a farm and I learned from my father and grandfather: If you never give up, never say no to anything and do whatever it takes to get the job done, hard work WILL persevere,” says Rodney. His thriving business in Hiawatha proves this philosophy. Check out Alloy Wheel Repair Specialists of Eastern Iowa at www.easterniowawheelrepair.com.