By Joe Marconi
The strength of your company relies on many factors, and one of the most important is having a great set of systems and procedures in place. Systems and procedures bring consistency to your customer service, and to your repairs. While I am not a fan of creating a company with employee clones, having everyone in your company on the same page, sharing common goals is crucial for overall success.
In terms of selling your company, having systems and procedures in place is an advantage when potential buyers are interested in your company.
Please remember, it doesn't matter where you are in your business career, you are never too young to start planning for your exit strategy. And, perhaps equally important is that by preparing your business for sale will actually help build a stronger and more profitable business.
Stayed tuned for more tips on Creating Your Exit Plan.
Bill Haas is the owner of Haas Performance Consulting LLC, with 40 years of experience in the automotive service and repair industry. Clients now have access to Bill’s solution based focus, expertise, unique perspectives and in-depth knowledge of the industry. Services available include business management seminar development and delivery, keynote presentations, business consulting, performance coaching, and strategic planning facilitation. His career includes time as a technician, shop owner, technical trainer and most recently on the staff of the automotive industry’s oldest and largest association representing automotive service and collision repair businesses. .Bill received the Accredited Automotive Manager (AAM) credential from the Automotive Management Institute in 1996 and has been a member of the Automotive Management Institute’s faculty since 2002
Listen to Bill's other episodes HERE
Key Talking Points
Successor struggle- when every day is a struggle “Advanced Financial Strategies for Peace of Mind”- what is it that you need to pay attention to in business? KPI’s need to be reviewed every day, don’t wait until the end of the month. It needs to also be shared with employees. “If you don’t share, they don’t care.” Don’t make decisions without data- it lets you know what you need to work on and prioritize. Strategic thinking instead of working on many things at once. How do you know what to fix? Pause and do analysis. Make cars count vs car count. Coaches change clients- is this someone who is willing to put words into action? You need an investable business in order to retire- can’t wait until the end to start working on your business You have to want to change yourself and your business. If not don’t hire a coach or even join a networking group Focus on one particular area of concern, get it right, then move on to the next. Stop the smorgasbord of quick fixes. You can’t wait to fix the business when you want to sell or retire. It takes a few years depending on the depth of the struggle P & L statement- don’t ask your accountant how the business is doing, don’t rely on them to take the pulse of the business. Most accountants have clients in all different industries, they don’t know how to “fix” your automotive service business. Ask them to perform one job and that is to minimize your tax liabilities. Finances in your business is just a big math problem to solve Labor rate- gross profit percent on labor, labor parts split, hours per repair order Sales forecasting and budgeting- have goals, targets and expectations Connect with the show:
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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. AAPEX 2021 is in the record books and lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever.
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By Joe Marconi
Exit Strategy-Step 2
Have Clean and Accurate Financial Statements
The value of your business will be determined by your net profit, cash flow and a strong balance sheet. Having clean and accurate numbers will be more attractive to a potential buyer, especially if your business shows growth over time. While you may value your loyal customer list, and your tools and equipment, it's the profitability of your business that will be used to determine how much someone will pay for your business.
As an added benefit, having clean and accurate financials will also help you through tough economic times, and if you ever need a bank loan.
Get your books in order and work hard on your business to show a profit.
By Joe Marconi
I was attending a recent TECH NET council meeting a few weeks back and one of the topics discussed was Exit Strategies. One of the members spoke about finding a key person in your company, if there is no one in your family to consider.
There are many shop owners out there that are near retirement. It would be a good idea to share a few ideas. I know many shop owners may not even have a plan. My lawyer approached me about a year ago and insisted that I sit down with him to plan out my future. I am 59, been in business for 34 years and been in the auto repair business since high school. If your story is similar to mine, it's something we need to start planning.
Brian Holthe- Brian’s automotive trade experience started in Sept 1980 when he moved from California to Arizona to attend trade school. Brian started his first shop while attending trade school, two years after graduation he landed a dealership technician position working for a Volvo dealership, where he learned how a successful shop should run. He obtained his Master ASE and Volvo Technician certifications while employed there. After working in other shops as a technician, running a couple in management he ended up in Tacoma WA. In 1989. Here he worked for a shop that did lots of service and repair for everything from dealership lots to fleet and one RV Dealership across from the shop. For this dealership, he worked on RV chassis for coaches to be sold. The shop sold and Brian began a new chapter. In 1993 Brian opened a shop in Lakewood WA, a suburb of Tacoma. He carried the RV chassis repair business, used car repair business and building on those relationships Genesis Automotive Repair began. In 1994 Brian changed the business name to include RV Repair and incorporated. Since then, Genesis Automotive and RV Repair has also taken on service and repairs of food service vehicles, mobile pet grooming vehicles servicing chassis, internal equipment and power generation, becoming an Onan authorized sales, service and repair facility. Genesis Automotive and RV Repair has grown to be respected in the service and repair of automotive and RVs. Find Brian's other episodes HERE David Wagner, Mobile Diagnostician Matt Fanslow is the diagnostic tech/shop manager at Riverside Automotive in Red Wing, MN. His primary responsibilities are to diagnose driveability and electrical/electronic issues, and perform most all programming, coding, initializing, adoptions, etc. Basically, if it needs to be figured out or has wires, it goes to Matt. He’s been a tech since 1996. Matt is also a subject matter expert for ASE and has instructed at Vision Hi-Tech Training and Expo. Matt has participated on 18 ASE technical committees for the ASE Practice Test, A6, A7, A8, and L1 tests. He’s also done case studies for Standard Motor Products. Fanslow’s goal is to do everything in his power to improve the overall level of professionalism within the automotive and light truck repair trade and also raise the level of its public image. Matt Fanslow’s Previous Episodes HERE. Key Talking Points
Brian Holthe- addiction was from 14 years old, started drinking beer, alcoholic by 17. At 21, got turned on to coke, speed then drugs via syringe at 23. Once IV use began, I got into the crack, heroin, and meth. During his 30’s his turning point was his mom saying she wanted him out of her life. 1992 began his sober road. David Wagner- addiction to alcohol, cocaine, and crystal meth. Been off of the drugs for about 11 years now, Started having a beer or wine once in a while. His wife and mom were the catalysts to become sober. Help along the way- having trusting friends that can help, coworkers constantly checking. Understand people care about you. There are always people to help with anything in life- sometimes you just don’t see them or are aware. Being open, realize you have a problem, ask for and accepting help- realize danger signs, be willing to act on them, set a clear path to maintain being sober How to help- don’t distance yourself from the addict, acknowledge someone asking for help. Support as an employer- consider going to meetings with them, celebrate their sober milestones, never look down on them, acknowledge their sober path, listen, ask questions. The automotive industry has typically a fixer type personality- consider listening instead of trying to ‘fix’ and give your answers to them. Success stories can help motivate Safety nets- choosing to go to rehab and having job security Have to hit the bottom to rise above but so many people are still functioning addicts. Changing routine- drugs/alcohol disrupt your routine and you start not knowing what your priorities are Find a support group that works for you Higher power- you are in less control than you think you do, surrender and forgive yourself Putting energies towards other things instead of addiction- hobbies, teaching etc that is rewarding. Accepting you won’t feel the same “high” and start appreciating the little things. Remember what’s important. A special thanks to Brian Holthe, David Wagner and Matt Fanslow for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook Twitter LinkedIn Instagram Youtube Email Mobile Listening APP’s HERE Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE. Buy Carm a Cup of Coffee This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com
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