Posts by Carm Capriotto, AAP

There are many family businesses in the auto service aftermarket, and for many, there is yet to be a concrete plan to move ownership to the next generation.

The goal of succession encompasses not only the transfer of ownership and leadership but also the preservation of family values and culture. It involves careful planning and consideration to ensure continuity while allowing for fresh new ideas, innovation, and growth.

Hunt Demarest’s podcast ‘Business by the Numbers’ offered two compelling episodes on Succession. These are must-listen-to episodes as Hunt presented the many positive and challenging issues that face the business family.

I will not take any thunder from what Hunt outlined because they speak strongly for themselves. I wouldn’t do his episodes justice except to encourage you to listen intensely to them. See the links below.

Even if you have younger children that may not be interested in your business, hey, you never know; it is worth listening so you can expand your thinking on family succession and tax ramifications that can occur when a transaction is not handled well.

A well-crafted succession strategy can allow for a seamless transition between generations while honoring tradition and embracing change. It enables family businesses to adapt to evolving market dynamics while staying true to their roots.

Please give these episodes your attention; you’ll thank me for the reminder and Hunt for the wisdom.

Passing Your Business on to the Next Generation – Part 1: The Basics

Passing Your Business on to the Next Generation – Part 2: The Deal

When it comes to staying motivated and active, you can easily fall into the trap of stagnation. However, some individuals constantly strive to keep themselves limber and moving forward. These individuals act as the “oil” for the symbolic Tin Man, ensuring they never rust in one place.

My five-year-old grandson Donovan watched The Wizard of Oz this past weekend with Grandpa for the first time. There are so many lessons for all ages in this eighty-four-year-old classic. It has always been one of my favorites. In the last eight years, my mission has been being the ‘oil can’ for the independent automotive service industry.

I thank all the ‘oilers’ who have come on the podcast to share their wisdom to pay it forward so others can get a spark of a strategy or idea for themselves.

In a world where complacency is tempting, aftermarket professionals increasingly understand the importance of continuous growth and development. Leaders actively seek to expand their knowledge and skills via coaching, networking, and absorbing our podcast content.

By embracing change and remaining adaptable, being armed with ideas and insights can easily navigate obstacles. They understand that staying languid is not an option if they want to achieve their goals and fulfill their potential.

So you can refuse to settle for mediocrity by ‘oiling up’; learning from others, or setting ambitious goals. Learn to get out of your rusty comfort zones and reach new heights because progress requires constant effort or movement.

Let us learn from those who oil the Tin Man – those who stay limber and moving despite the ease of stagnation. Embrace change, seek new challenges, and continue their journey toward personal growth and success. We are your repository of trending and essential information that will keep you from rusting.

A few weeks ago, Tracy and I had the honor to hang out with a group of Operations Directors for Multi-Store Operations compliments of the Transformer Institute. We also recorded a few outstanding podcast episodes.

A big takeaway for me was to have your store manager present their P & L back to you each month. If you want to know if your manager(s) understand their financial responsibilities, KPI goals, and net profit, get them to present their view of their P & L results.

What a  valuable opportunity to showcase their hard work and achievements. It allows them to demonstrate the financial performance of their operation, highlighting key metrics such as revenue, expenses, and profitability and linking them to their goals.

This exercise, each month, reflects on their ability to effectively manage finances but also showcases their analytical skills and attention to detail, or lack thereof. It provides a comprehensive overview of the financial health of their area of responsibility. Be sure your statements are based on accurate data.

This exercise also allows them to advocate for their team’s accomplishments and contributions and how their efforts have affected the organization’s bottom line.

Furthermore, having your manager present the P&L statement emphasizes collaboration and teamwork. It demonstrates that you value their expertise and trust them to successfully communicate financial information in a clear and concise manner.

Overall, having your manager present your P&L to management is an occasion for recognition and appreciation. It allows you to showcase the results of your hard work while reinforcing trust in both yourself as a leader and in the capabilities of your team. It demonstrates that they understand where the money goes.

Finally, presenting a well-prepared P&L statement demonstrates financial understanding and dedication to driving profitability and making informed business decisions. It allows you to transfer ownership of the results and communicate them effectively as the learning continues.

When I get a feeling about an important topic to discuss on the podcast, there is always the hope that these interviews will reveal common sense principles and important trends to pay attention to.

I’ve heard a lot of discussions lately about skilled trades and the younger generation going into the trades instead of going to college. I want to share with you a few key strategies we must consider to recruit and retain our top talent.

First, let’s talk recruiting. Being a recruiter, or a professional talking head, is an important role. You must find a high school and college career days and speak with students. We are experiencing the most exciting technology in any skilled trade. Young talent is looking for what we have to offer.

You need a legitimate apprentice program for any young person to enter. Please sign up and implement the NAPA Apprentice program. This is a strong and beneficial program that Pete McNeil and Jake Sorenson created at McNeil’s Auto Care Center in Sandy, Utah.

And don’t forget your client base. Be sure they know of our honorable profession as a skilled trade. They may have children or relatives planning their next moves and may have never considered automotive until you mention it.

Let parents and students understand that being an automotive technician has the same respect as electricians, plumbers, carpenters, and welders. These are all considered trade jobs, and uniquely they go through apprentice programs to earn their place as a tradesperson.

Remember that many high schools in the last 20 years removed their CTE (Career and Technical Education) programs, and now we hear that many will start to bring them back. Add to that the hundreds of automotive technical colleges, both private and state-run, that are doing everything they can to update equipment and their curriculums to meet the challenge of filling the thousands of jobs available. Part of your recruitment efforts is to be involved in education.

A considerable part of our technician shortage is people leaving the industry; no career path, training, or belonging. Add to that pay and benefits (medical, dental, retirement, PTO), and we lose to other industries that have figured out how to provide a strong alternative. Do you know why you lost a top talent or superstar? Did you ever find out why a potential hire ghosted you? Did you build a compelling case to join your team? Was it to get a better offer from their current employer? 

Other industries are taking some of our top talents for the reasons I just stated. Should top auto technicians make as much as plumbers, electricians, welders, or carpenters? Many technicians earn more because their skill sets are deservedly broader. You need sales, margin, and profits to have the money to recruit and retain superstars you rely on to repair and diagnose anything that drives into your shop.

I want you to look inside your business and what you do to retain your best people. Are you completely aware of the competition you have for your people? Matt Fanslow and Glen Forehand had a robust episode on recruiting our talent. Glen has been in and out of the industry many times as a technician who now works for a casino. He described that his talent as a technician folded in nicely to work maintenance. He set up a warning to our industry that a good mechanic has many job opportunities in other industries, not only for more pay but for better work conditions, benefits, and less stress.

Many solutions to this problem are presented in an episode on retaining top employees. It is all common sense, but in the end, when considering pay and benefits, you must have a profitable company with a culture that becomes the glue. You put everything you have on the line daily to open and sustain the business. Shouldn’t it be giving you and your people a fruitful career? Is your goal to have the lowest labor rate, pay your people the least, and scrape by? Some in our industry think like that and are struggling to survive, giving the industry a black eye.

Critical points from that episode, find the link below to listen, are accountability, training, soft skills, positive affirmations, and career opportunities. 

Remember that you are not only competing with peer automotive shops in your market; you are competing with any industry that needs the talent, hands, and mind of a top mechanic. Manufacturing, forklift repair, departments of transportation, fleet management, industrial maintenance; the list is endless. These industries are waking up to the fact that recruiting for mechanical ability and paying for it is just as crucial for them as it is for you.

You may need more profit, a cleaner, brighter environment, better equipment and tooling, and/or a more robust culture to retain and recruit top talent. You must provide opportunities for professional development and training, recognize and reward them and offer a flexible work arrangement if necessary.

Formulating everything takes time, and the best time to start is now. For many shop owners, their claim to unrivaled success is hiring a business coach and networking with peers.

Retaining the right people saves money in the long haul. You must invest in them. You need to pay what they are worth. When you pay people at the top of the scale, you can ask for more and hold to a higher standard. Your culture will allow you to keep top talent. Do you care about them, their family, their goals, and their career? Are you listening, over-communicating, and looking out for their future?

A final thought is to consider implementing EOS (Entrepreneurial Operating System); a trend taking hold in our industry. Next to hiring an accountability partner (coach), EOS is a great move to elevate your business.

The people in your business are your business family. Would you do less for them than you would your own family? Let your answer guide you.

• Remarkable Results Radio – Retention: Keeping Top Employees https://remarkableresults.biz/a327/
• Matt Fanslow Diagnosing the Aftermarket A-Z Episode on Career Transition  https://mattfanslow.captivate.fm/episode/084
• Remarkable Results Radio – EOS Playlist – LISTEN HERE

It was Coach Rod Olson who said ‘It’s About Parenting’. Rod Olson is the coach’s coach. Sports and even Navy Seals, he has influenced many to better themselves over the years. I talked about him last week, but there is more.

You know me, I listen for the sometimes jewel of a statement within a conversation. When you listen to the show, you find me pulling very wise or profound lessons from each guest.

When he said, ‘It’s About Parenting’, it felt like those words, that statement, could be a difference maker for the many shop owners and managers who are struggling to become better leaders but just have not found the lesson or spark to make it happen.

If you have children or not, I feel you can relate to the statement ‘It’s About Parenting.’ Like parenting, a leader has to nurture and guide their team members toward growth and success. They set clear expectations and hold their team accountable for their actions. So simple and yet so hard.

There is that blend or balance between being authoritative and being empathetic. Do you understand the strengths and weaknesses of each team member and use that knowledge to motivate them toward achieving common goals?

So much to learn by listening to or watching my interview with Rod and Dan to spur you on to becoming a stronger leader. By adopting a parenting mindset in your leadership style, you can build strong relationships with team members, leading to better performance and success for your organization.

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