Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 12, 1990 TAG: 9004130583
SECTION: NEIGHBORS PAGE: S-13 EDITION: METRO
SOURCE: RANDY WALKER SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE: LENGTH: Long
But now that she's in business herself, she's getting a real education.
"There's nothing like actually being in the trenches," says Anderson, a vice president of Car Guys Inc.
Based in Roanoke, Car Guys offers weekend packages of driving instruction to car buffs. Driving their own cars, students learn high-performance techniques on professional race tracks.
It's a service that takes more time to organize than Anderson first imagined.
"It's something you never leave at the office," she says. "The great thing about being your own boss is setting up your own hours, but it also means if you don't do it, there's no one else to do it."
Car Guys is the first business venture for Anderson and her husband, Kenley Smith.
The company grew out of the Roanoke County couple's involvement in the Porsche Club of America. Smith enjoyed organizing race track events for the club and decided to turn the hobby into a vocation.
Car Guys incorporated in spring 1989 with Smith as president, Anderson as a vice president, Earl and Jean Hutson of Vinton as vice presidents, and Dave and Claudia Snow of Salem as treasurer and secretary, respectively.
The officers put together a $20,000 nest egg and the company was off to a start. But after setting up the office and computer and reckoning with advertising and insurance, the officers found they had made a common small-business mistake. They had undercapitalized. With additional personal loans from the officers, Car Guys kept running. "No one has gone into debt - yet," Smith says with a slightly nervous laugh.
The financial obstacles are formidable. To reserve a race track, Car Guys must put down a deposit months in advance. And rents aren't cheap; Charlotte (N.C.) Motor Speedway goes for $1,900 a day. And that's not including the ambulance, fire truck, security and facilities for classroom instruction.
Another major expense is insurance. Students must sign waivers releasing Car Guys from responsibility in case of accident, but in this age of litigation a piece of paper is scant protection. Car Guys carries $5 million worth of liability coverage from an Indiana insurance company.
Of course, Car Guys tries to keep accidents from happening in the first place. In the five sessions conducted so far, the worst accident involved a car scraping a guardrail. Smith points out that the race track is a controlled environment where everyone is paying attention, while on the street, even the best driver is at the mercy of the "lowest common denominator."
While some of Car Guys' problems are unusual, others are common to any small business - marketing, for example.
Smith knows of only one other company competing with Car Guys. However, he must contend with race track events sponsored by non-profit car clubs. Car Guys' angle is to offer classroom training, more run time, and more individual attention, with the idea of developing repeat business.
"We're giving them something special for their money and we have to do it first-rate," Smith says. "We have to get people talking about how well it's done."
The target group varies. Students range in age and station from the college kid in a Firebird to the self-made businessman in a high-priced import. And you don't have to be a guy to be a Car Guy, you just have to love cars.
Jean Hutson, one of the vice presidents, is a Porsche-driving grandmother whose feet "barely touch the pedals of most cars," according to a Car Guys brochure.
One thing prospects must have in common is money to spend. The price of a Car Guys weekend ranges from $250 to $300. "I'm looking for the guy with some disposable income who can afford to do this several times a year," Smith says.
Smith's first marketing move was to place small-space ads in two national car magazines. Response was so-so. About 30 students have attended each one-weekend event, and the company needs 30 to 50 to succeed.
Smith is investigating alternatives such as offering group rates, marketing to car clubs, and special promotions for past students.
Although there's an educational aspect to Car Guys' schools, Smith has no illusions about the real attraction - the thrill of speed, the camaraderie of the track. "We promise one hell of a good time," he says. "The key is discovering the marketing that will let it fly."
Running a small business, as Smith and Anderson have discovered, is a lot of work. It can also be a lot of fun, as you can tell by reading the humorous company newsletter, the Car Guy-zette.
Smith, 31, formerly led a somewhat undisciplined life as a fiction writer. With a beard flowing down to his chest and long hair streaming out from his Car Guys cap, he still doesn't look like most people's image of a corporate president.
Asked how many hours he puts in as head Car Guy, Smith says "billions and billions. It's beyond belief. You have to go out and find the business."
"The hard thing is, we both bring the strain of trying to make a small business succeed home with us," says Anderson, who gives her age as "30 going on 100."
At the same time, Anderson enjoys the freedom to command her own schedule. The business has its rewards for Smith as well. What makes it worthwhile, he says, is "the challenge. And being able to do something I really love."
by CNB