A CAR repair firm has celebrated 10 years in business by steering in a new direction. In an unusual case of re-engineering small business, Autobody of Maidstone has turned into www.hiremorecar.com.

Founder Jeremy Feeney says several things prompted the change of strategy--changing markets, the need to cut staff overheads, soaring insurance costs, and the difficulty in obtaining bank finance.

And despite the bursting dotcom bubble, he has exploited IT to aid re-engineering while remembering that clicks and mortar work better than clicks alone.

Worried about the pensions crisis, he also sought a way of ensuring that he and his business partner Dick -- also his father-in-law -- could work productively, with minimum stress, into their 70s and 80s if need be.

"We wanted to be in a position where Dick and I could run it without the need for anyone else," Mr Feeney said.

"Big companies spin people out in their 40s. We wanted to re-engineer the company to a point where Dick and I could run it almost until we're incapable of working. That's one of the reasons we are dependent on IT and why we outsource."

The company, formed in 1993, bought secondhand cars and did them up in the bodyshop. They employed several staff. It was hard work for low returns. The partners looked for an enterprise with bigger margins and less risk.

"We've always been fairly well informed about what's going on in the world," Mr Feeney said.

The growth of the Internet, rising numbers of imported cars, falling used car prices and interest rates, all affected business.

"You need to be aware of all the factors that are changing in the business environment," Mr Feeney said. "Things used to stay the same for years and years but the rate of change is increasing all the time. It will come round and hit you if you do not see the wider picture."

The firm abandoned the repair shop, got out of used cars and moved into car rental, promoting its services globally through a website and forging links with the Maidstone-based Streamline taxi firm.

IT was the key. Mr Feeney shunned manual book keeping from the start, adopting Dos-based Sage computer software and using it to track trends.

Now the car rental company has diversified into a fleet management operation, providing cars to Streamline Taxis on a long-term rental contract basis.

In a "cradle to grave" process, cars are bought new or nearly new. After three years, they go to the taxi firm, ensuring prolonged life for the vehicles and giving some protection from heavy depreciation. Those over seven years old are sold on the eBay website.

"We would not have been in business if we hadn't changed," Mr Feeney said.

The firm was now looking at offering long-term contract hire -- he is working with Business Link Kent on this -- and, believing that customers will tire of basic models -- hiring out luxury cars for special times.

"Self-drive is moving to niches and we want to exploit those niches."

Meanwhile, Mr Feeney recently won a week's use of a £32,000 Mercedes CLK for a week in a trade competition organised by luxury car reseller Guy Salmon.