By Joe Marconi
I have been contacted by many shop owners about the decision to close or not. In most cases across the nation, Auto Repair Professionals are considered essential workers. Which means that we can stay open for business. However, even though we are essential, I personally will not demand my employees to come to work. If business fails because of this virus, it will fail in the short term. We will all eventually find a way to come back and rebuild our businesses.
Things are changing by the hour, and that makes our decisions as leaders even more difficult. I don’t want to get sucked into panic, but I don’t want to turn a blind eye to the fact that we are in uncharted territories and that we are all learning from this crisis together.
The decision to close your business is yours. There is no wrong or right decision here. The safety and well-being of our families are our number one concern. If it makes it any easier, make your next decisions from the heart, not from a business standpoint. Be strong, be a leader, and know that we will get though this.
When the dust begins to settle, we will have learned a lot about business and even more about who we are are as a culture and a society.
I cannot tell you what I am doing tomorrow. I plan on having a meeting with my staff, and a decision will be made to stay open, cut staff, cut hours or perhaps another scenario will surface. I will keep you updated and try to bring a little sanity to everyone during these crazy times.
You are all leaders; you are automotive shop owners. You are the toughest of the toughest. I know you and I will prevail through these troubling times and I look forward to the future when we can all look back and say…”We may it through, and we’re better off for it.”
By Mark Johnson
Are you a Iowa shop owner? If you have been affected by COVID-19, have 2-25 employees and have a location in the state you can get a grant of between $5,000 and $25,000 from the Iowa Small Business Relief Grant Program. (If you are not from Iowa please tell friend from the state) YOU MUST APPLY NOW! (Deadline is March 31, 2020) So what information do you need? A LOT! ● Most recent Income Statement ● Revenue Loss Analysis ● Most recent Balance Sheet ● Payroll Schedule And Analysis ● Funds utilization report ● Fill out All Paperwork You need to apply now because applications close March 31, 2020. This is FREE money, don't let it pass.
We are currently helping business owners to access this grant. For more info please call us at 1954-324-0803 or book an appointment at https://calendly.com/markjohnsontaxplanner/45min
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Has the Coronavirus (COVID-19) impacted your auto shop business? If it hasn't yet, it has the potential to do so soon. Please share what you are currently doing, how your business is impacted, what plans you have in place, etc.
Some things to consider:
Do you have a plan in place should you or one of your employees become ill? With school, event, and business closures, how will this affect your shop? Are you sending anything to your customers in terms of sharing your plans around keeping your customer and employees healthy and doing your part in your community? Many small and large businesses have been sending email communications to their customers. Are you marketing to your customers in terms of not delaying car repair, should there be a need to temporarily close? Are your parts suppliers sharing their plans, should the pandemic affect supply chains? Are you stocking up on business and shop necessities? Please share your experience in this topic and stay healthy!
In the media:
The coronavirus and its growing tally of sick and dead victims around the world have been roiling financial markets, prompting countless hand-washing reminders and ruining more than a few vacations, and that’s before anyone knows exactly how widespread the effect will be on the automotive industry, including your local repair shop. Source
“By mid-March, the shortage of supplies will be felt and members are projecting they’ll experience disruption through May or June,” even if operations in China soon get back to normal, said Stacey Miller, senior director of communications at the Auto Care Association, a trade group representing 150,000 auto aftermarket and service businesses. Source
I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.