Are Your Business Dots Connecting?

A shop operator opens the doors with visions in his or her head thinking this is just the beginning of their dream and the best is yet to come. They are very grateful for the opportunity given to them but at the same time scared of the unknown. They approach each day with optimism and a positive attitude that lights a spark with anyone they come in contact with.

The first year is an amazing learning curve but it is part of the process and is accepted.

The second year is now in comparison to the first and they see progress but there is still much to learn and understand.

The third year sees a big step as additional staff come on board and technical training classes are continued updating the shop to vehicle reality.

The fourth year starts to play a little havoc with cash flow because income tax issues have come into play stronger than first understood and new reinvestment is also now required to stay up with technology.

The fifth year starts to see a serious wearing down of management as they now are seeking some serious vacation time because the energy consumed over the first four years to make this work right has totally drained their "batteries" and the little enthusiasm that is left is like a slight flick of a lighter. Cynicism starts to settle in.

The six year experiences staff retention issues as cash is tight, lack of time off, family issues are definitely becoming more prominent which all play on managements attitude and outlook of the day to day shop tasks. That clustered attitude is picked up by the staff and the shop's overall environment becomes more negative with each passing month.

The seventh year settles in with the thought "this is not what I signed up for, I'm not enjoying it any more, its just too tough to make a living. I've bought myself a lousy job. Now what am I going to do? These dots are not connecting at all the way I thought they would."

Sound familiar?

In some shops, this scenario can play out within the first 4 years, but is this the normal route a shop business must go down today to get on the path to be successful?

The definite answer is "No"

WHAT HAPPENED HERE?

The first mistake was a lack of understanding by management as to the complexity of this business they were entering. Management should have taken the proper courses BEFORE they opened the doors. This statement also holds true for any son or daughter planning to take over the Family business. From there, a proper business plan should be addressed and the right people and the right companies that are going to be involved with the business should have been interviewed/selected. The shop procedures and business measurement guidelines should have been established.

The second mistake is that the industry NEVER came to him up front, stuck to their guns and simply said "If your going to play in this game you must learn the rules." Get through these classes BEFORE we do business together because the fact is, if you don't succeed, we don't succeed.

Consider that the aftermarket sector is so hungry for sales, they don't even take the time to really "qualify" their new prospects. Someone has opened these new business doors...who gets him first with the best price and ropes him in wins? This format says its all about the supplier, never about the shop owner. They seemingly act like vultures swarming around the potential prey.

Now before I get some nasty responses, I'm not running down all parts suppliers. I know some unbelievable companies across North America that bend over backwards to help their customer base because those suppliers and shop owners get it. My concern is about the shop and jobber owners who don't get it. They are affecting the credibility and profitability of our Aftermarket industry.

Consider that running a automotive service shop today is a true "Profession". The "Trade day" mentality is over. Licensed technicians who open a shop today must understand that to run a profitable business they must move into a Management role which means they must be up front building consumer and business relationships as well as taking the right time to nurture and develop a professional shop culture. They can not be under the car at the same time and accomplish those objectives....it doesn't work that way anymore.

This is a very complex business today and "Shop Business Acumen" should be sought out before the doors are opened. If they don't take the various industry business courses first, then financial failure can be a real possibility. That is not fair to the family who must support the shop owner and it's not fair to the staff that take a risk and join the business.

Management has an incredible responsibility today. Let's not neglect it or take anything for granted.