Introduction to LMS Group
LMS Group, founded by my family, was a diverse enterprise encompassing auto body repair, towing, storage, insurance, tax preparation, bookkeeping, real estate, mortgage lending, and construction. Despite our broad range of businesses, the 2008 financial crisis proved challenging, affecting all sectors similarly to the 1986 oil bust in Texas. LMS had grown from a small 400-square-foot office to a larger facility by 1998, reflecting its expansion and success over the years.
Early Days and Humble Beginnings
P&M Paint & Body Shop, established in 1976 by my parents, faced numerous early challenges. Our first office was a makeshift space with mismatched windows and inadequate heating. Despite these conditions, we made the most of what we had. By 1998, LMS had outgrown its initial office and relocated to a 1,500-square-foot space. This new location allowed for further growth, including adding services like check cashing and cell phone sales.
Expansion and Success
From 1998 to 2003, LMS continued to grow, servicing thousands of tax clients and insurance customers. The addition of an Allstate agency marked a significant milestone, despite initial resistance from my brother Ernest. With persistence, we met Allstate’s goals early and opened additional agencies in Houston. The move to a larger office in 2004 further supported this expansion, elevating LMS’s public recognition and solidifying its reputation.
Personal Background and Early Life
My journey began in a modest Hispanic neighborhood in Houston. As the eldest of six, I grew up working in my family’s auto body shop, learning the trade from our skilled technician, Chewy. Despite the challenges of fitting in culturally and academically, I found my path in entrepreneurship, starting with P&M Towing in 1984. This venture faced initial skepticism but eventually thrived, demonstrating my resilience and adaptability.
Challenges and Setbacks
The oil bust of 1986 brought significant financial difficulties. Our tow trucks were repossessed, and the bank threatened foreclosure. To survive, I started a swap shop selling car parts. However, a theft charge and subsequent imprisonment in 1988 due to buying stolen parts brought severe personal and professional consequences. This period was marked by financial ruin and legal battles, compounded by personal struggles.
Turning Points and Recovery
After serving time in prison, I faced the challenge of rebuilding my life and business. My wife, Deana, stood by me through these trials, and I began to turn my life around. The 1990s were a period of rebuilding and reassessment, leading to a renewed focus on faith and business. By 1997, a personal crisis involving my mother’s health prompted a deeper spiritual commitment and a more determined approach to rebuilding LMS.
2007 Crisis and Recovery
By August 2007, LMS was struggling to cover basic expenses. A rent dispute led to a lockout by our landlord, forcing a move under tight deadlines. I decided to close the body shop, despite its profitability, to alleviate financial strain and consolidate resources. The move involved significant challenges, including a $300,000 debt, but creativity and determination led to a successful transition and a new beginning.
Rebuilding and New Beginnings
Facing a negative financial balance, I utilized every resource available to rebuild the body shop into a functional office space for our tax services. With the help of loans and creative solutions, we managed to prepare for tax season in January 2008. This successful transition demonstrated our ability to overcome adversity and adapt to changing circumstances.
Reflection and Legacy
Reflecting on my journey, I recognize the profound impact of past struggles on my personal growth and business strategies. The challenges faced during the 1980s and 2000s shaped my approach to business and faith. Now, as I work on a book about surviving adversity, I see my experiences as a testament to resilience and transformation, offering valuable lessons to others facing similar struggles.
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