A Small-Business Survival Story

Guy and Terry Mitchell’s auto leasing and sales company thrived for many years, but when the economic downturn hit their business and an illness compromised Guy’s health, the Mitchells found themselves unsure of the future.

In 2008, Celebrity Auto Leasing, a Los Alamitos family business, was in danger of closing, like so many other small businesses during the recession. In many ways, their financial struggles were a microcosm of the nation’s. The loss of the business would threaten the older generation’s once-secure retirement, and the dismal job market stalled the career of the youngest Mitchell. In their effort to ride out the economy, the Mitchells moved in together, and they explored social media as a marketing alternative.

“We had no pension or retirement funds to fall back on,” said Guy Mitchell, 65. “I didn’t know what to do. I poured every bit of money back to the business, hoping that we would one day be able to sell it and use the money for our retirement.”

He began his career selling cars 35 years ago, and in 2001, a friend asked if he was interested in taking over his auto leasing company. 

“I had been selling cars for him for years, but I was a little hesitant at first. Then again, I wasn’t getting any younger,” Guy said. “He wanted to get out of the business, and we were close friends, so I knew that I could trust him.”

That is when Guy and Terry set up shop at Celebrity Auto Leasing and Sales in Los Alamitos. They made a dynamic duo—he was the persistent businessman and she was the bright woman who worked behind the scenes in administering the business.

Things were looking good for the couple whose business survived the 9/11 crisis.

“People were afraid to buy cars then, but we continued on, thanks to my wife,” he said. “She doesn’t quit. It wasn’t an option for her to give up, no matter what happened.”

Their small businesses began to grow, and they were able to pay off the loan they took out to purchase their business in seven years. Their company—based on word-of-mouth marketing and a slogan they label “repeat and referral”—is made up of 70 percent new cars and 30 percent used cars.

They even hit their peak in sales in 2006, making about $800,000 in revenue. But, again, another crash would shake the core of their business even harder in 2008.

“I got a sinus infection that got so bad it got to my skull,” said Guy, who had suffered from sinus infections for years. He said he was in so much pain that he had to be on antibiotics for months after recovering from a surgery in which part of the bone in his eye was scraped off. 

“I had to make it through this moment. I couldn’t stay in this dark tunnel,” he said.

Still, sales plummeted to the worst they had ever generated, to a low of $300,000 in 2008. The business fell from selling a high of 60 cars a month  to a low of 15 cars a month. Although the duo have never had to lay anyone off, two of their car salesmen left on their own, seeing how bad sales were.

“I have always been the optimist in the family, but I was ready to give up,” Terry said.

“The difference between 9/11 and the financial meltdown of 2008 was that in this crisis, people were not just fearful of buying. They really did not have any money for a big purchase like a car,” Guy said. “Most people who buy a car do so because they have a desire to, not because they need to.”

Their youngest daughter, Kimberly Mitchell, was also going through a crisis of her own—bouncing from one master’s program to the next.

“I was unsure of what path to take. I didn’t complete any master’s program because I wasn’t completely sold on any of them,” said the 27-year-old who studied everything from business to teaching. Kimberly was out of work and living back at her parents' house because she wasn’t able to afford a living with her fiancé any longer.

The three Mitchell family members were dismayed.

But it was Stacey Mitchell, 32, the couple’s eldest daughter—who lives in Northern California with her husband and two children—who finally switched on a lightbulb for the family.

“My sister said to me, ‘Why don’t you work for Mom and Dad? They need some extra help,’” Kimberly said. “It wasn’t even a matter of choice; I had to help save my family’s business.”

What began as a necessity in a tough economy turned into a blessing for the family.

Kimberly discovered an enthusiasm for the family business, and she quickly revitalized the company by setting up advertising for the small business both on and offline in the first week.

“I told all my friends to add us on Facebook. I wanted to introduce my parents to the 21st century,” she said. She also created a blog, Twitter account and Craigslist ads for their company—including a “cold calling” and door-to-door campaign to introduce herself and her family’s tight-knit business.

“I have had huge support from my wife and children through this time, I am so proud of them,” said Guy. 

Sales are picking up again, and Celebrity Auto Leasing generated $500,000 in revenue last year. The Mitchells were able to keep three of the car salesmen who stuck with them since they opened up the business 10 years ago.

Guy said he can look into retiring again in a few years, although he is happy to stay where he is for now.

 "I don’t regret anything that has happened to us,” he said. "I try to maintain the view that you need to hit a few bumps in the road to become a very good driver.”