By ASOG Podcast
Looking through the videos taken at #aapex and #sema. This event is simply can't-miss.
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.
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/carm
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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
This forum will outline the steps that I took the past three and half years, working toward my exit strategy. I will outline each step, each week, to give you information that I know you will find informative and useful. Please note, these steps are the ones that I took, and your situation may differ. However, you will find so many similarities, that I am sure you will obtain a ton of great information. Ok, here we go...
STEP 1 - Get Your Business Ready to Sell Today
You are never too young to begin thinking about your retirement or sale of your business. Work hard on your business to get it to run on its own. For quality of life, and to grow a sucessful business, requires having the right people, the right systems, a knowledge of the numbers, and a plan. Also, the more you are removed from the day to day operations, the more sucessful you will be and the more your business will be worth to a potential buyer.
Here's another important reason to get your business to run on its own: A health crisis may leave you sidelined for months or longer, or may even leave you disabled to a point where you cannot perform the necessary duties as a shop owner. We all have heard of shop owners that either became seriously ill, were in a bad accident or passed away, leaving the business in a state that it cannot run by itself. Or, not worth much because the shop owner did not take the necessary steps to build the business correctly and not having clean and accurate financials.
Begin today to start thinking about your business and when you want to sell, have family take over the business, or other options. Start getting all your financials in order, set your long-term goals, work on your business plan, review and refine all your systems and procedures, and talk to your family about your long-term plans.
With each step, you may need help from either an accoutant, broker, attorney, or a business coach. Please don't make the mistake of thinking you can everything on your own.
That's it for today- Next week I will discuss The Importance of Having Clean Financials and Showing a Profit
Thank you and Stay Tuned!
We used to get paid for used motor oil (pre-COVID19). However, lately we are being charged for pick up and transport. We go through approximately 500-700 gallons per month.
Do you guys currently get paid or are paying for used motor oil and oil filter pick up? Our shop is located in Texas.