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When it comes to starting a business, you have a lot to consider.

How are you going to make sales?

Are your operations in order?

How will you approach legal, HR, and marketing?

But it’s important to not forget about one key part to getting your business off the ground: funding.

You’ll want to be well-versed in what to look for in a potential partnership whether you’re in the startup phase, the expansion phase, or even in a plateau phase.

By better preparing now, you’ll set your company up for future success.‍

Recently, Prasanth shared his thoughts about different kinds of funding with Texas CEO Magazine. You can read the full piece here, or check out some of the highlights below.

Determine The Right Equity Path For Your Business

The first step for any business owner should always consist of researching and selecting the right method of funding for your company. Once you’re confident in your company’s business model, your company’s current state, and any future aspirations for your company, you’ll want to determine the right equity path that can take your company where you want it to go.

1. Venture Capital

Venture capital is a more traditional route and is optimal for new entrepreneurs. If you have an idea for a potential business venture but aren’t sure exactly what to do with it just yet, venture capital could help you secure funding so that you can bring your ideas to fruition.

With venture capital, your partner will purchase a significant portion of the company, and in turn will offer support and guidance to nurture your company’s growth

2. Growth Equity

If your company has already excelled in the starting phases and needs another boost to continue expanding, you’ll want to consider growth equity—otherwise known as “rocket fuel.” Growth equity tends to be founder-centric and offers more autonomy and room to remain true to your company’s original core values and business model.

3. Private Equity

Companies that have reached the later stages of their business’ lifecycle may opt for private equity.

This route can be a good contender for companies that are at risk of going under due to lack of profits. Private equity can give your company the boost needed to prevent it from closing up shop.

Whoever you choose to partner with will take a large portion of your company’s ownership and will make significant changes to the company. However, the private equity route tends to yield bigger checks.

What Did Tekmetric Do For Funding?

Prasanth knows how important the right funding for your company is.

Prior to 2021, Tekmetric was in the startup and the small business stage, so the initial funding from friends and family was an avenue that worked out really well at the time

After 2021, Tekmetric started to expand exponentially. Tekmetric’s Co-CEOs and Co-Founders Prasanth and Sunil Patel realized that more growth could be possible if they changed from their personal network funding to the growth equity route.

Growth equity provided funding for additional initiatives, such as marketing, product research, and hiring. In turn, Tekmetric was able to pursue the vision that Prasanth and Sunil had outlined during the company’s beginning stage.

Find The Right Partner

You’ll want to be intentional about choosing any of your partnerships as a business owner, especially when it comes to finding the right funding partnerships.

The partner you decide to go with will help determine what your business’ tone and future will be like.

As you’re determining the right partnerships for you, ask yourself 5 questions:

• Is the partner aligned with my business goals?
• Do I trust this partner with my team and my business?
• What will my relationship with this partner look like?
• How much day-to-day involvement in my company does this partner expect?
• Does this partner provide a reasonable amount of funding to support my goals?

No matter what equity direction you take, you’ll want to find a partnership dynamic that works for you, your business, and your team. As you’re choosing the right partner, remain transparent about any goals and expectations you have in mind for your company.

You won’t want to choose a partner solely based on numbers. The partnership will be a long-term business relationship—a marriage of sorts—and you should treat the partnership with thoughtfulness and respect.

What Did Tekmetric Do For Funding Partnerships?

At Tekmetric, Prasanth and Sunil knew whichever partner they selected to provide funding would play a significant role in the company’s future, and would have a strong impact on Tekmetric’s overall tone, goals, and growth.

At the time Prasanth and Sunil started looking for partners, Tekmetric was a well-established name throughout the auto repair industry, so they wanted a partner that would work alongside them, not just someone who would give them money and stay at a distance.

Eventually, Tekmetric found the right partner—one who is not only sensitive to the company’s needs but also the needs of Tekmetric’s customers.

Remain True To Your Business Yourself

No matter the equity path you choose to go or the partnerships you choose to take, you’ll want to stay true to your business’ core values and who you are as a business owner.

Rather than cutting corners, you can opt for the best possible solutions.

Prasanth said it best: financial support and equity can be confusing, and it’s easy to get lost in the numbers and forget why you started your business in the first place. However, the right partner will make all the difference.

After all, if you are putting significant time and effort into your idea, your company, and your team, you should expect a partner who supports your continued success long into the future.

→ Check out our latest blog on 12 marketing strategies to help you bring in more customers, or learn how you can become the ultimate leader for your team

A special thanks to Texas CEO Magazine for providing space for Prasanth to share his knowledge.

He and Sunil Patel started Tekmetric in 2016, and today, it’s become the preferred auto tech software in the auto repair industry.

Prasanth’s success prompted Authority Magazine to contact him for an interview on the formula for scaling success.

Below are just a few excerpts of Prasanth’s interview with Ken Babcock (CEO of Tango), along with bonus content for any entrepreneur seeking to scale their business.

Scaling with People

Let’s look at each component.

The Right People.

First, you have to have the team that serves your company the best.

At Tekmetric, we learned this the hard way. We had a phenomenal idea — but our first team wasn’t comprised of exactly all the people we needed.

And that meant we failed in the first round. It was disappointing, but we learned a valuable lesson, and the next round, we hired people based on the talents we knew we needed. It was the right move, and it set us in the right direction toward success. In fact, many of the team members from this second group are still with us today.

Tekmetric’s People Today: The Best Support in the Industry

Today, Tekmetric has a growing team of people working in various departments, such as customer support, sales, product development, and human resources.

Walk into our Houston headquarters, and you’ll see people from all backgrounds catching up on their week, discussing the next product update, or talking about the future of our company over a cup of coffee.

A large portion of our team works remotely. We have employees across the United States, including: </p><ul>

• Cleveland, OH
• Washington, DC
• Denver, CO
• San Diego, CA

But no matter where our team members are, one of the big things they have in common is that they’re passionate about providing Tekmetric’s customers with the best experience and support possible.

Our support team in particular is easy to get in touch with.

Customers don’t have to spend hours listening to annoying “waiting” music on the phone or anxiously sitting in front of their computers for a response to a support ticket.

The Tekmetric support team acts to get questions answered quickly and any issues resolved fast.

After all, auto tech software needs to move at the pace of the auto repair industry—fast—and support is an important part of that process.

Sound like you would fit in? Join us!

Scaling with Direction

You also have to know the direction you’re going.

Having the idea is great; getting it right as you grow is vital. You may not have the details fully fleshed out, but you must know what you want to do and the tools you need to get there.

I’ve always said, if you have a goal in mind, and you don’t know how to get there, then you’re doing something right.

If you do know how to get there, you’re not thinking big enough. Think long and hard about what you want your business to look like.

Once you figure out those initial steps and orient yourself in the right direction, you can think ahead to challenges like growing and scaling.

Tekmetric’s Direction Today: Driving the Auto Repair Industry Into the Future

The Tekmetric team keeps a close eye on what’s happening in the auto repair industry so that we can stay one step ahead when it comes to driving the auto repair industry into the future.

For example, Tekmetric listened to its customers’ desires for a true two-way texting feature, which enables shops and their customers to communicate more seamlessly than ever before.

Tekmetric also frequently adds to its list of integrations with industry-leading tools so that shop owners can set up workflows that work best for them.

And Tekmetric listens to what shop owners, technicians, and service advisors are saying, taking their feedback and suggestions into account.

We know that we cannot do this on our own, and respect the contributions of people throughout the industry.

Businesses are buckling down and tightening their checkbooks in an effort to control expenses to avoid or reduce the effects of a potential recession.

But in the auto repair industry, there are unique opportunities that come with uncertainty in the market – and that’s more business opportunities.

As people across the country reduce their spending, they are more likely to repair vehicles than to replace them, offering auto repair shops the opportunity to actually increase business. With the right strategies, you may find that it’s entirely possible for your shop to not only survive an economic recession – but thrive and grow.

Tekmetric, a Houston-based leading auto repair technology company, was named the winner of a silver Stevie® Award in the Achievement in Growth category in The 20^th Annual American Business Awards®.

Tekmetric was nominated in the Achievement in Growth category for the company’s tremendous growth and expansion in the last year.

The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit and non-profit, large and small. 

Co-founded in 2016, Tekmetric offers an all-in-one SaaS business management system for auto repair shops. As the auto repair industry’s leading cloud-based solution, Tekmetric has grown from just a few customers to more than 3,000 shops across the U.S.

In the last year alone, Tekmetric’s revenue has increased by more than 115%, a reflection of its role as a trusted industry solution for increasing shop efficiency.

“Tekmetric strives to deliver premier service and value to auto repair shop owners who partner with us, and this unmatched level of care wouldn’t be possible without the outstanding team we have built,” said Prasanth Chilukuri, Co-CEO and Co-Founder of Tekmetric.

“To experience an expansion that more than tripled to more than 95 talented professionals from across the U.S. and Europe has been an incredible journey. We are honored to have been recognized in the Stevie for our continued growth and leadership in the auto repair industry.”

More than 230 professionals worldwide participated in the judging process to select this year’s Stevie Award winners.

Nicknamed the Stevies®® for the Greek word meaning “crowned,” the awards will be presented to winners at a gala ceremony at the Marriott Marquis Hotel in New York on Monday, June 13. Tickets are now on sale.

“We are so pleased that we will be able to stage our first ABA awards banquet since 2019 and to celebrate, in person, the achievements of such a diverse group of organizations and individuals,” said Maggie Miller, president of the Stevie Awards.

“If you are interested in picking up a new hobby like boating, you’ll do everything you can to learn more and more and more. Why can’t you do that with your auto repair shop?

Is it because it’s boring?

Is it because it’s not the same?

It doesn’t excite you as much as your hobby would?

If you take a second and stop to think, you’ll realize you can have any hobby in the world if you focus on your repair shop and get it to where it needs to be.

There is no waiting for the right person to walk through the door. There is no waiting for the right technician."

"It has to happen right now, today."

Tekmetric Co-CEO and Co-Founder Sunil Patel recently joined Kelsey Outram on the LIFT Your Shop Podcast to talk tech, mentorship, and transforming your auto repair business.

From medical school to law enforcement, Sunil tried his hand at a variety of fields over the years, but eventually all roads led him to founding Tekmetric with Prasanth Chilukuri in 2016.

Tekmetric quickly became the preferred shop management system in the auto repair industry.

And if you ask Sunil why, he’ll say it’s all about mindset.

If you’re a shop owner who has been feeling stuck, here are six steps you can take to shift gears.

1. Define Your Goals

“When you really set your mind to something, it subconsciously changes how you behave as a human, as a person. And you hone in on what you’re trying to accomplish and you accomplish that task.”

Here are some examples of goals you might hear people talk about in the auto repair industry:

• “I want to make one million dollars in revenue this year."
• “I would like to add another bay to the shop by the end of the year."
• “I want to open another location in 2023.”

What do these goals all have in common? They are specific, achievable, and easy to track.

In the same way that it’s difficult to plan a vacation without having a travel destination in mind, it’s difficult to achieve a goal if you never set one in the first place.

Knowing where you want to go is the first step toward figuring out a roadmap to get there.

2. Accept That Change is Part of the Process

“Forget about the technology and software and all that for a moment, and ask yourself this: Are you happy with where you are today running your shop? And if the answer is no, then dig deeper.”

Whether your shop is looking to switch parts suppliers or invest in a new shop management system, change can be intimidating.

Many shops experience growing pains, but keeping an open mind is essential to driving your business forward.

Co-CEO and Co-Founder of Tekmetric Sunil Patel joined Editor Chris Jones on Ratchet+Wrench Radio to talk about how shop management software suites are changing the landscape of the auto repair industry, especially when it comes to building relationships and communicating effectively.

Sunil also touched on the history of some of Tekmetric’s relationships and how Tekmetric makes sure the voices of shop owners are heard.

Listen here, or catch some of the highlights below.

‍Note: some of the following answers have been condensed for clarity and brevity.

Relationship-Building 101: Laying Down a Solid Foundation

Jones: The last time we saw each other was at WorldPac STX in Orlando. And that’s where you guys announced a partnership with Advance Auto Parts. I know a lot of our readers have seen it, but can you share a little bit about the details with our audience, just from your own words and perspective?

‍Patel: So we’ve had a great relationship with Advance Auto Parts for a very long time. And we wanted to leverage the relationship to try to get more shops to use Tekmetric, and it just happened to be the right place, right time.‍

‍Jones: That’s kind of cool to see how the relationship evolved over the years.

‍Patel: It’s a big company. It’s not like turning a speedboat, it’s like turning a steamship. Sometimes it just takes time to let some of these relationships play out. It affects so many people. We have to be absolutely sure of how this is going to play out, and how it’s going to work.

Using Shop Management Software to Get Everyone on the Same Page

Jones: So let’s talk about shop ownership a little bit. You were once a shop owner kind of in the Dark Ages before we had these robust shop management software suites. What was it like for you to operate on these limited tools?

‍Patel: You know, it was tough. Customers didn't always respond back, and we would always have to follow up with a phone call. There was always a disconnect.

We were probably ahead of our time 12 years ago trying to get some of this stuff out. Tekmetric used a combination of manual processes and text messaging. Text messaging was pretty popular back then, but MMS or multimedia messaging or picture messaging was not so popular.

So adding that in the mix with communications and whatnot into one platform has been very paramount to the success of our company because it closes the loop between the vehicle owner, the shop owner, the technician, and the service writer.

It keeps everybody on the same platform and communications thread. That way everybody has full visibility into what's going on with the repair of that vehicle to ensure a timely repair—ultimately making the customer happy.