Many shop owners have invested the time to learn how to manage their shop in today's new realities. This is excellent and they must be applauded for that commitment made to their business. Now they return to the real world of the aftermarket after the course with great intentions and are faced with the incredible day to day distracting noise within the industry.
The changes required to the shop are substantial and will take, on average, 2 to 3 years to fully implement, but the biggest impediment to making the change will always be Management's self discipline to get it done.
Self discipline is everything in moving a business forward today. Self discipline is only controlled by one person and is no one else's responsibility. Self discipline will be the key measurement in the end when evaluation takes place as to why the business succeeded or why the business failed.
It takes a lot of guts to remain disciplined to see things through as the owner/manager now must re-enter business territory that they have purposely tried to avoid in the past. Two examples include:
1. Owner/managers are not comfortable with confronting a long-term staff member to see if they can change to get them on board to create a TEAM concept within the shop. No one likes staff confrontation but in some cases it must be done as you need the right people and the right attitude on the bus.
2. Owner/managers find it difficult to insert the new day to day measurement disciplines required today as they now must work closer with the bookkeeper, knowing they are not an expert or even comfortable discussing accounting formats but they must learn to do so in order for the business to move forward.
The owner/manager is facing many personal internal fears when making changes to the business, but the changes must be made IF the bottom-line opportunities are going to be realized.
In the end it is clearly acknowledged that running a professional automotive service shop today is the most complex business in the retail world. If it was easy, everyone would embrace it. Knowledge, pure guts and incredible self-discipline are required to "get it done".
Are you one of the select few entrepreneurs who will be enjoying an incredible and rewarding business career moving forward into the next 5 to 7 years of the aftermarket or will you end up being a historical footnote in our industry?
Look in the mirror. Talk the truth to yourself. You now have the knowledge and all the resources at your disposal to succeed. Use them. Believe in yourself. Push yourself each and every day. Be proud of who you are and what you and your business stand for in delivering integrity, service and quality to your business clients and your community.
You CAN do it!!
Tuesday, January 26, 2010
Monday, January 4, 2010
7 STEPS TO YOUR NEW BUSINESS MODEL IN 2010
There are steps that a shop owner can start to take to transition the business into the modern day format that is required to be successful for this new decade.
Consider each point as it applies to your operation.
1. THINK ABOUT THE SHOP'S HISTORY: Never embark on a new plan without first understanding where the shop came from. Discuss the shop's history with your team and talk about why change is required and how each individual will benefit from the change desired.
2. DO SOME MATH: Study the basic numbers of the business and project how the numbers would change in the business when the new transition is in place. Math does not lie and when the employees income improves and the shop's bottom-line is positively impacted, then effort to make the transition makes sense.
3. SEEK OUT THE SHOP'S VULNERABILITY: With any transition in business there is always one or two weak links in the chain. Review the shop's weakest points and how they would have to be changed in order to support and make the transition work.
4. ARE THE RIGHT PEOPLE ON THE BUS?: In any business having staff with the right attitude is everything. A negative staff member creates conflict, business stress, and always slows any new desired process down. I would rather have a staff member with an incredible positive attitude and little experience over a highly qualified individual who knows it all. Do an inventory of the shop's staff. Can this shop operate as a team or is it too individualistic? Today's business requires a team.
5. DON'T SELL, COUNSEL: Work on changing the mind-set throughout the shop that we are Professionals being hired by our client to advise them based on the clients parameters. This is the Professional way of doing business today. When the client is properly and Professionally served, the sales will look after themselves. Review all internal vehicle inspection and reporting processes to ensure the client is being properly and fully informed.
6. MEASURE THE RIGHT CRITERIA: Transition the business effectively by monitoring and measuring 2 basic items on a weekly basis, namely, the average billed hours per invoice (minimum 2.0 to 2.5 hours per invoice for basic consumer vehicle maintenance) and total shop efficiency (minimum 75% with a desired goal of 80%). Report and discuss these numbers to the staff as they point out exactly the effectiveness the shop is having, as a team, with each client.
7. PATIENCE WITH DISCIPLINE: If change was easy, the entire industry would be embracing it. The fact is transitioning the business to a new culture requires Management patience coupled with discipline to execute. It is so easy to make up an excuse to stop trying or quit.
I believe 2010 will be an exceptionally positive year for the Independent sector of the Aftermarket. There is a lot of pent up demand for vehicle preventative maintenance that was turned down or neglected during 2009. The shop's that have transitioned their business to professionally serve their clients are in the right position to reap incredible rewards.
Are you enjoying a career or have you bought yourself a job?
Consider each point as it applies to your operation.
1. THINK ABOUT THE SHOP'S HISTORY: Never embark on a new plan without first understanding where the shop came from. Discuss the shop's history with your team and talk about why change is required and how each individual will benefit from the change desired.
2. DO SOME MATH: Study the basic numbers of the business and project how the numbers would change in the business when the new transition is in place. Math does not lie and when the employees income improves and the shop's bottom-line is positively impacted, then effort to make the transition makes sense.
3. SEEK OUT THE SHOP'S VULNERABILITY: With any transition in business there is always one or two weak links in the chain. Review the shop's weakest points and how they would have to be changed in order to support and make the transition work.
4. ARE THE RIGHT PEOPLE ON THE BUS?: In any business having staff with the right attitude is everything. A negative staff member creates conflict, business stress, and always slows any new desired process down. I would rather have a staff member with an incredible positive attitude and little experience over a highly qualified individual who knows it all. Do an inventory of the shop's staff. Can this shop operate as a team or is it too individualistic? Today's business requires a team.
5. DON'T SELL, COUNSEL: Work on changing the mind-set throughout the shop that we are Professionals being hired by our client to advise them based on the clients parameters. This is the Professional way of doing business today. When the client is properly and Professionally served, the sales will look after themselves. Review all internal vehicle inspection and reporting processes to ensure the client is being properly and fully informed.
6. MEASURE THE RIGHT CRITERIA: Transition the business effectively by monitoring and measuring 2 basic items on a weekly basis, namely, the average billed hours per invoice (minimum 2.0 to 2.5 hours per invoice for basic consumer vehicle maintenance) and total shop efficiency (minimum 75% with a desired goal of 80%). Report and discuss these numbers to the staff as they point out exactly the effectiveness the shop is having, as a team, with each client.
7. PATIENCE WITH DISCIPLINE: If change was easy, the entire industry would be embracing it. The fact is transitioning the business to a new culture requires Management patience coupled with discipline to execute. It is so easy to make up an excuse to stop trying or quit.
I believe 2010 will be an exceptionally positive year for the Independent sector of the Aftermarket. There is a lot of pent up demand for vehicle preventative maintenance that was turned down or neglected during 2009. The shop's that have transitioned their business to professionally serve their clients are in the right position to reap incredible rewards.
Are you enjoying a career or have you bought yourself a job?
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