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This episode is brought to you by Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

Requirement for Growing a Branch Store [THA 205]

Carm Capriotto, AAP — Thu, 07 Jan 2021 05:15:00 +0000

Listen to Greg’s previous episodes HERE. Transformers Institute HERE.

Austin Miller. Tire Star opened the doors in 2011 in the back part of a grain elevator warehouse. Austin Miller started the business with the goal of providing trustworthy automotive repair at a fair price and timely manner. Since then Tire Star has grown to 3 locations and 40+ employees. This growth was made possible by employees willing to go the extra mile to provide a great customer experience. Austin is an ASE L1 Master Certified Technician and has received an ASE technician of the year award. Although he is not turning a wrench most days Austin is still very involved in learning about new technology and ensuring his staff gets the training they need to be successful. Listen to Austin’s previous episodes HERE.

John Manelas and wife, Karen Manelas,purchased their first location in April 2004. They expanded into their 2nd location in 2011. They bought out a former 20 group member in Maine in 2013 as their 3rd location. They purchased a former Chevy/Chrysler 14 bay dealership in 2014. In 2016, they purchased an import auto service business and converted it to an Auto Care Plus (store #5). In 2017, they purchased a Volvo Specialty Repair Shop which they decided to then re-brand and create a new brand for us calling it Euro Care Plus. In 2019, we did our first non-acquisition “build to suit” venture erecting an 8 bay facility with upstairs offices for their Corporate headquarters. They also decided to lease the rest of that building where we are preparing to open a Hybrid/EV specialty division to be named Electrified Auto Care. They now have 7 locations (5 of which they own the dirt). 6 Locations in NH and one in ME. Listen to John’s previous episodes HERE.

Key Talking Points:

I think I’m successful, I think I wanna grow, but am I ready for this?Not for money, not for ego, but for a challenge
Personal reasons for why
Some peoples why is to build wealthThe challenge of it
People are only happy when they are growing
Private equity
Add another location to justify the management teamGoing from 2 to 3 locations made you focus in on your process
Day you realized to lock your processes downEstablish SOPs
Use other people’s money to expandBuild to suit
Pay it back in a lease arrangement
Lean towards acquisitions
Newer growing areas are better for build to suit
Own the dirt whenever possible
The creativity of doing a dealYou do need capital not just the paper
Leverage other people’s money to make it happen
What Covid has done to our industryAbsorption is an option
If you’re gonna grow and acquire, you have to have the right peopleNot everyone fits your model
Not every size fits your model
Anticipate losing 10% of customer base
Anticipate losing 90% of your employees
During an acquisitionBuild an avatar of what the perfect customer looks like
Build an avatar of what the perfect shop looks likeLean and mean 3 – 4 bay shops
Garage-Mahal
7 – 8 bay shop
Main street
Backstreet
Euroshop
General repair
Asian specialty
Austin explains his why I enjoy the challenge
The problem child car that no one could figure out at other shops
Bored with only one shop
The challenge of taking something that is not operating very well and making it profitable
Single shop owner with an itch to grow… what do you tell me?I would ask you why?
Passion has to be in there
It can’t be all about money
It’s a long road
Are there gonna be huge opportunities on the horizon?The potential this industry has in the future is tremendous
Also gonna be filled with challenges
Technology is changing
The industry is going to change
Recession proof business
The word is “Cautious”91% of shops were affected by Covid
Shop owners looking to expand, take advantage of opportunities
Baby boomers are gonna get out early to retire (bcs of Covid)
Take advantage but don’t be a predator
Be prepared to lose 90% of your employeesLoyalty
Fixer Upper Shops
You don’t have a broken shop, you have a broken manager
Assessment of BusinessNumbers don’t lie, people lie
Look at car counts they are running
Number of rooftops for competitors
Location
Never advise someone to buy their second store that isn’t going to be better than their first shop
I wanna grow as a shop owner, I’ve done a self assessment and I’m ready…If you’re not profitable at your first business, you’re not ready
Profitability is important
How much involvement is the owner in the current operations
You can’t have a investor hat on and a technician hat on at the same time
Some people want a fixer upper, others want an established operation
How many shops is too many shops, is there a sweet spot?Depends on the business model you are running
Investing back into the business
We can’t run a business if we can’t fix the cars
Covid was a perfect opportunity to educate parents into the ‘college scam’
There is alot to prepare for going into multiple locations
Final WordsAustin MillerThe 20 Group
Ratchet and Wrench
Attend conferences, sit at the lunch table and talk to people
Greg BunchThe longer you wait to get help, the more expensive it will be
Don’t jump into the deep end alone
Need to have a passion for the industry
Information is not transformation
John ManelasMentors is #1
Get out and fight people that have been there done that
Wife and or significant other, you need to have their support
Attend seminars together
Henry Ford attributes 2 things to his successHis mastermind group
His wife

Resources:

A special thanks to Greg Bunch, Austin Miller, and John Manelas for their contribution to the aftermarket.
Books Page HERE
Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

This episode is brought to you buy Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

Frank Scandura – 20 Questions in 30 Minutes [RR 595]

Carm Capriotto, AAP — Tue, 08 Dec 2020 05:15:00 +0000

Frank Scandura, Franks European, Las Vegas, NV started working on cars as a teenager in upstate New York and moved to Las Vegas in 1988. After years of writing service for Mercedes, he opened Frank’s European service in 2001 and grew to a 12,000-square foot, 10 bay shop in the northwest part of Las Vegas, not far from the famous Strip! He has 15 team members and is partnered with his wife Deborah. From his first immersion in the business, pumping gas at 15 years old in Orange County New York, to writing service at a Mercedes dealer in Las Vegas Frank Scandura shares his business acumen and offers insights and trends on leadership as a business coach. Frank’s previous episodes HERE.

Key Talking Points:

If I had all the money in the world, what would you buy?Security for family. Becomes more important as time goes on. 3 out of 4 kids have already taken Dave Ramsey’s 7 Baby Steps- Make a monthly budget
Is it easy to say ‘I Don’t Know.’Yes, but you have to practice. It’s okay to not know everything, simply say “I’m not sure, let me do some research and get back to you.”
Do you see obstacles not as roadblocks but as opportunities?,Opportunities all the time. Anticipate roadblocks and play the “what if” game to solve the problem.
Do you have a strong intuition? Do you listen to it?Yes and act on your gut feeling. Trust your inner intuition and spouse’s intuition.
Your biggest learning moment?Used to let temper get the best of him and think he was the one that built business. Realized business would be nothing without the people around him. Humbling moment.
What are you doing to put the Customer first in your business?Putting employees first. If you treat employees right (training, tools, expectations) they in turn treat customers right.
A special strategy to build a strong reputation?Follow your morals, values and integrity. Do not tolerate anything else.
Recently fired a customer? The reason?Some customers make unreasonable demands. Everyone makes mistakes, it’s how you handle them that sets you apart. Politely tell the customer “I’m sorry but this is not the right shop for you.”
What impact does technology have on your business?If you’re not digitally savvy now, it might be too late. Need to capture as much data as possible. Have to have digital dispatching, reporting, inspections etc. Be ready for the changing technology in cars.
What is the latest book you read? Big take-a-way“Leadershift” by John Maxwell- making those around you leaders, shift how you lead to let them become leaders.
How much training per year do you get?Watches video series for Transformers Institute, John Maxwell training, reads everyday and has daily devotions. Hobby is woodworking and continues to learn about that as well.
Ever had a mentor?Jim Murphy, Dan Taylor, Greg Bunch
Share a Gross Margin HackLearn what gross margin is first. Don’t be afraid to charge what you’re worth. Can’t manage what you can’t measure.
Last labor rate adjustment?$30/hr since last August this year. Parts are becoming harder and harder to get margins on. Wanted to improve bonus structure and improve the bottom line.
Share a car count idea?Stop going for more car count, make every car count more. Every car needs a thorough written inspection. Every discovery needs to be estimated. 100% of the estimate needs to be presented.
How long ago did you update your website?Last month- complete revamp of site, chat bot
The most recent update to your processes/systemConstantly updating! Only way you can successfully do that is by having communication with the team in regular meetings.
Are you paperless? When did you go?6-7 years ago- saw the need for it a long time ago with streamlining technician writing in abbreviation and wrong parts got ordered.
Name something you tried that didn’t work?Hybrid battery rebuilding- learned that instead of needing to be the “first” for everything, can take a step back and wait before jumping in.
What is your dream car? Do you own it?Don’t currently but owned it twice- mercedes high performance 2 door CLK63 AMG Convertible. Sold it in town- a new customer knew it had an oil leak that would be fixed during the first oil change, turned out it had to be pulled out to be fixed. Frank bought the car back from the owner. Sold it a year later.

Resources:

Thanks to Frank Scandura for his contribution to the aftermarket’s premier podcast.
Link to the ‘BOOKS‘ page, highlighting all books discussed in the podcast library HERE. Leaders are readers.
Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP’s HERE
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NAPA AutoCare’s PROimage program makes it easy for you to make the most of the NAPA brand. A PROimage upgrade lets you maintain your shop’s identity as a reliable, locally-owned business while letting your customers and potential customers know you’re partnering with NAPA, the most recognized and trusted name in the automotive aftermarket. AutoCare Centers that have completed a PROimage exterior upgrade enjoy an average 23 percent sales increase during the first year. You can also choose to go PROimage on the interior and transform your customer waiting area from merely utilitarian to warm and welcoming. You can even get a free look by visting www.NAPAAutoCare.com and clicking on the NAPA PROimage link under the NAPA PROimage tab. Of course, the AutoCare site is also the place to go to find out about all the advantages being part of the NAPA family has to offer.

Learn more about PROimage and the hundreds of other benefits NAPA offers. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com visit the NAPA Benefits Center, at www.napabenefitscenter.com or call the NAPA Benefits Center at 844-627-2123.

Multi Shop Operations – Acquisition – Selling [THA 171]

Carm Capriotto, AAP — Thu, 14 May 2020 05:15:00 +0000

Listen to Greg’s previous episodes HERE. Transformers Institute HERE.

Dwayne Myers is a partner in Dynamic Automotive in the greater Maryland area. Dwayne invests time in the industry with the Auto Care Association and serves on the education committee with CCPN (Car Care Professional Network). Dwayne was recently honored as one of only 17 outstanding individuals that qualified for the prestigious 2017 World Class Technician Award presented by The Auto Care Association and ASE. He is very passionate about hiring and sustaining a strong and engaged team. Listen to Dwayne’s previous episodes HERE.

Doug Grills from AutoStream Car Care Center is a chain of FIVE family-owned, automotive service facilities that deliver honest and professional automotive repair and maintenance services to customers in the Greater Baltimore/Washington, DC area. Doug along with his partner Rick Levitan has been around the service station business for over 25 years and have built their reputation by offering best-in-class service to their customers.

All AutoStrem Car Care technicians are ASE Certified and the shops are AAA approved. Listen to Doug’s previous episodes HERE.

Key Talking Points:

Don’t fall in love with an opportunityA magazine survey a few years ago: 56% of shop owners wanted to be out of business by 2020. They are shopping their business
Disciplines to haveLocation, Location, LocationDo your research, internet search on demographics, traffic count
Cash is King
Team, People
If you don’t have strong systems and processes don’t even consider growing to another location
Standard Operating Procedures (SOP) are required to scaleWritten and documentedWriting it down forces you to understand it and know how it works.
Perpetually tweaked
Each operation should engage with the customer the same way and operate the same way
Watch the movie ‘The Founder’ all about Ray Kroc from McDonald’s
Watch the TV show ‘The Profit’ all about People, Process and Product
A diamond in the rough could entice youLong time business
You feel strongly you can turn it around. The Potential with new energy and perspective
Strong location and business that is not keeping up
You know your strategy, systems, processes and people will work in the marketplace
If the owner is the reason for the business and he/she leaves this could impact your diamond
Everyone wants $1,000,000 for their business but the numbers must substantiate it. It is an emotional life work valueThe seller needs to show you how they came up with $1MAn emotional issue
What is your cash flow
Strenght in the fundamentals of the business
Come to common ground
Understand the multiple or blue sky value (premium above cash flow)
You must have good financial statements
Make sure your business can function without you and be profitableNo vacation for years
Consider a broker to help you legitimize your valueThere are pros and cons to hire a broker
There are fees and the process may be longer
Show no emotion to the seller over the asking price
A Business Broker will be able to help make the numbers real
Your banker will not let you over-invest
The final number will constituteWill the owner carry paper
Do they want one check
Do they want a monthly check to support their income once retired/sell
Cash is King and so is your BankerYou need a good cash position, well-capitalized
A banking relationship is key. Highly suggest community banks versus the large nationals
Practice Profit First to put cash in places that you can not spend it.War chest monies for tough times and growth
Lines of credit are important when you need them. Pandemic is perfect example of a huge need
Determine a strong or smart multiplierA multiplier is the monies paid for a business over and above the EBITDA (earnings before interest, taxes, depreciation, and amortization) depending on the value of the business in the marketplace and to the buyer. For example, the business makes an average of $200K for the last three years. Because of the marketplace, location and many other factors the multiplier could be 3.5 times, therefore $200K x 3.5 would be $700K to offer for the business
Multipliers vary but can be stable within a market or at a premium for a top-flight business. Multip shop operators will get a higher multiple.
Pandemic has put some holds on private equity invests however there will be opportunities to grow because some shop owners are going to want to call it quits and there will be some great locations to choose from
To research a demographic profile on a location you can get from Google and there is also traffic count available.Income levels, cars per household, etc. are necessary to help evaluate the location
Ask around from businesses in the area and town
Look at Google reviews
Permits for buildings and growth in the town
Is the area alive are dead
You can pay for this information
A gut check is to ask yourself if you would want the business if there wasn’t an auto shop in it?
The location and demographics It needs to fit your business model
Performing a strong due diligence review is a must and will provide you information to help you make a smart decision
You get paid on what you are doing and the buyer find the synergies to help him afford the deal. The better your business runs and the more profit it has will get you a premium price or multiple.

Resources:

A special thanks to Greg Bunch, Dwayne Myers, and Doug Grills for their contribution to the aftermarket.
Books Page HERE
Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

Aftermarket 2030 Consolidation – Opportunities – Challenges – Succession Planning [RR 514]

Carm Capriotto, AAP — Fri, 28 Feb 2020 05:15:00 +0000

Rick Schwartz is co-founder and CEO of Schwartz Advisors LLC, a mergers and acquisition advisor and management consulting firm to the automotive and heavy-duty transportation industry. Prior to forming Schwartz Advisors, Rick’s career included senior executive leadership positions in sales, marketing, and finance.

At Schwartz Advisors, Rick has advised private equity firms, aftermarket management teams and boards of directors on growth strategy, M&A strategy and due diligence projects. Rick oversees operations of Schwartz Advisors buy-side, sell-side and strategic planning consulting practices.

Rick is a former member of the Auto Care Association Board of Directors, and he received the prestigious Northwood University Automotive Aftermarket Management Education Award. Prior to starting Schwartz Advisors, Rick held various senior-level positions at Nestle, Macy’s and The Upper Deck Company. Rick received an MBA from the University of Southern California Marshall School of Business and a BA in International Relations from USC. Listen to Rick’s previous episodes HERE.

Jason Rainey is the Vice President of NAPA AutoCare; a program of more than 17,000 independently owned automotive repair facilities that have chosen to partner with NAPA. He currently sits on the Automotive Service Excellence (ASE) Board as well as the Automotive Maintenance & Repair Association Board where he works to keep the best interest of independent repair facilities in mind.

Before taking the reins of the industry’s leading banner program, Jason spent 13 years in the NAPA Product Department. He worked with vendors on managing, sourcing and marketing in the Tool & Equipment, Batteries/Electrical, Brakes and Under Car categories on behalf of NAPA AUTO PARTS. Jason came to NAPA Headquarters after a successful career in Grand Rapids, Michigan where he worked in several NAPA Store and Distribution Center roles as well as working as a Territory Sales Manager and a Tool & Equipment District Manager. Prior to Jason joining NAPA he served in the United States Marine Corps. Listen to Jason’s previous episodes HERE.

Listen to Greg’s previous episodes HERE.

Key Talking Points:

Investors are looking for a good investment return
Looking for efficiencies in buying multiple shops
There is big M & A (Mergers and Acquisitions)in the entire industry and continue to look at repair and service
There is capital available
280M VIO (Vehicles In Operation) is attractive to investors
There is a lot of M & A in collision
Repair and Service shop is touching the consumer and is attractive
A study by 2020 56% of mom and pop shop owners wanted to be out of their businessMaking less money each year
Keeping employees
They are tired
Too much change needs to happen
Locations can be a challenge
They never built a brand
If you are looking to get out and sell to a consolidator:Location is key
The owner cannot be the centerpiece of the business
Will your customer accept a new owner
Run your business well so you have options
Quality of staff
If you own the real estate that can be attractive to both parties
Distribution has been consolidating and they see shop consolidation as opportunities for the top shop operatorsThere will be dedicated bays for specific repairs
Jason Rainey sees an opportunity for NAPA as their CarCare’s are growing and becoming stronger operators
Don’t be worried that you will have to look for or find a venture capital investor. Many local shop owners are looking to expandBring your systems and procedures to another market
Share costs
The opportunities to grow and add branches are going to be enormous going forward
Niche specialty shops are owned by master technicians from that brand (think Mercedes, BMW, Volvo, Euro)If the owner keeps up his aftermarket business acumen he/she can see a multi-store future as a specialist
Threats when a service professional is looking to sellThemselves, the owner is doing it all. They are the hub of the wheel and they have not delegated responsibilities
If the buyer does not know what they want in a transaction. Why are you buying, how will this business/location help your business? Can you fix everything that is wrong? Integration costs and time must be considered
Always talk about why you would not do the deal first.Some fixer-uppers may not be your best deal
Some businesses look to buy businesses that need fixing. That is their specialty.
Jason sees distributions role is to help their customers who want to grow stronger and ready
Attend training on how to grow stores. You may discover you are not ready. Having one successful shop does not mean you can duplicate itGreg has a class he teaches
How do buyers value the business?Financial performance first.
Offering a multiple of EBITDA or Cash Flow
Some businesses are sold on asset value from the balance sheet
What is the strategic value of the business to the buyer? Is the buyer getting something that he/she doesn’t have
Selling?How will your business succeed after you?
The owner needs to be out of the day to day operation
Will your team stay
Reputations
Reviews
Profitability
Multiples can be 3 times EBITDA
Start to fix your business
It is going to be a buyers market
Once the business gets fixed the owner may not want to sell because they are making more money than ever
You may have an internal candidate
Build your relationship with your parts supplier. Stop splitting your business to too many suppliers Find a parts partner that can help in branding, systems, marketing, even financing, training etc
Strengths in partnerships with suppliers along with stronger service professionals
Single store operatorsMust get bigger. Greg calls them Garage-Marshals
May run out of bandwidth
The big consolidators are looking for independents to grow to five or six shops. They would rather buy more than one shop at a time
Consider expanding your learning outside the industry93% of shops are owned by technicians that started their business. They need to expand their horizons in the business
Investment needed to run a top shopSoftware to improve efficiency, equipment, subscriptions
Recruiting and retention of your people
The experience of your client needs to be exceptional It starts at the curb
Wifi, Keurig, Water, Clean, Comfortable, Amenities and environment and a look for your avatar
You website that reflects your place, your commitment, your reviews, your value proposition
ConsiderationsADAS
Hybrids
EVs

Watch the video of this panel discussion: http://bit.ly/2XmWRxF

Resources:

Thanks to Rick Swhwartz, Jason Rainey, and Greg Bunch for their contribution to the aftermarket’s premier podcast.
Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
Love what we do, buy a cup of coffee HERE.

Be socially involved and in touch with the show:

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP’s HERE

This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com

Cash is King and Important to Your Business [THA 154]

Carm Capriotto, AAP — Thu, 16 Jan 2020 05:15:00 +0000

Bob Greenwood, AMAM (Accredited Master Automotive Manager) is President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada at Georgian College located in Barrie Ontario Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in North Richland Hills, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation.

Bob has over 40 years of Business Management experience within the Independent sector of the automotive aftermarket industry in North America, consulting Independent retail shops on all facets of their business operations. His 18 years of running his own local consulting and accounting firm in Ottawa, Ontario Canada created some of the most productive and financially successful entrepreneurs within the Independent sector today.

Bob is one of 150 Worldwide AMI approved instructors. He has created Business Management development courses for aftermarket shop employers/managers, Jobbers and Jobber Sales representatives which are recognized as being the most comprehensive, industry-specific courses of their kind in North America. His courses address the creation of measurable bottom-line profitability and not just developing activity to keep busy, by covering the very detailed nuts and bolts issues that are required to be clearly understood by every level of the industry if an independent shop is going to financially prosper and enjoy a professional future. Bob’s previous episodes are HERE.

Link to Automotive Aftermarket E-Learning Centre Ltd. (AAEC) HERE.

Listen to Greg’s previous episodes HERE. Transformers Institute HERE.

Jeremy O’Neal President and lead sales trainer for Advisorfix, began his career as a Service Advisor and moved into Service Management at the dealership level for VW, Audi, and Porsche. He consistently placed in the top 3% of Service Advisors across the nation.

With a passion for helping others, Jeremy started coaching Service Advisors in 2007. Jeremy also owns an independent auto repair shop Freedom Auto Repair in Hesperia, CA. Previous episodes HERE. Link to Advisorfix HERE.

Key Talking Points:

More businesses go out of business from lack of cash instead of a lack of profit. Too many run their business out of their checkbook
Undercapitalized, underinsured and lack of cash are indicators when things are not right in OZ
You need a credit line. Get it when you don’t need it. It will help you grow and sustain.
Cash does flow to Accounts Receivable. It is not a great place to spend your cash. If your business has fleets then no more than 20% of a six months sales average should be in AR. You must collect your money
Managing costs is a big component of cash management.
Bob Greenwood looks at the amount of labor sold to the total wage package of the entire company. Total grossed-up including benefits. If you achieve 1.30 of total labor to one dollar in your total wage package.
Build a reserve fund of cash. Example $10 per RO each month
Too many spend when they have cash and don’t when there is no cash. This is not a great strategy to manage cash
Budgeting is not a dirty word. Budgeting is cash management
When you are spending your cash you have to ask yourself how will this expenditure help my business
Jeremy looks at cash managementSurvival (Tier 1)Mass scramble to put cash in the bank
Stability (Tier 2)Know you can cover the bills, accounting in order, where is the cash coming and going
Significance (Tier 3)Begin to grow wealth
If you are not making enough money, charging a fair price (enough) is important. You have to believe and have confidence in what you are giving for value received for your customer
Triple check your margins. Bills are paid out of gross margin dollars, not margin percent.
Watch the TV show ‘The Profit’ and learn something
Target market a specialty you and your team have
Get a business coach so you can learn the power of Key Performance Indicator measures
Will an equipment purchase or lease generate enough revenue to pay for it? You will need to be sure you are doing all you can to market and sell the services that support the equipment purchase. How will you pay for the equipment
Service advisor role is to bring in the profitable sales
Bob looks at billed hours per Repair Order [RO]Create daily and weekly objectives and share with the team every day
If billed hours are weak then you are missing a lot of opportunities
The average shop is 1.4 – 1.7 billed hours per RO for consumer work and it should be 2.5Find ways to bring it up
There is money in tires maybe not the best margin, but money is there
If you want to sell your business to a big player you’ll need to have tires in your mix
Do not co-mingle funds. Personal is separate. Don’t devalue your company with personal assets on the booksKeep personal and business separate
Slow down and think about your business so you can evaluate your business. Know your numbers and ask how are you utilizing your cash
Take action. Save some money each day.
Pay your people well. You need profit and cash

Resources:

A special thanks to Bob Greenwood, Jeremy O’Neal, and Greg Bunch for their contribution to the aftermarket.
Books Page HERE
Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.
Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.