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!
By Joe Marconi
Back in my day, you didn't get a lot of praise from your boss. And, you never really looked for it either. You did your job, and the only way you knew you were doing a good job is if the boss didn't reprimand you. It was different back when I started, 1974. Times have changed and the way we manage people has changed too.
If you want to motivate people, make sure you praise them when they do a great job. Be sincere and be honest with your praise. People crave positive feedback from their leaders. By giving praise often, your employees will feel good about themselves. Their self-esteem will get a boost and they will be more likely to repeat that great job again.
Now, this is not to say you should ignore when things go wrong. But make sure you give at least 5 to 8 "at-a-boys" to every one reprimand. Trust me, fill someone's emotional bank with sufficient "at-a-boys", and they will be more willing to listen to you when they drop the ball.
https://www.youtube.com/watch?v=H2pWeJGVgNs Fred Gestwicki, Jr, Fix-It With Fred, Canton, OH Gilda Dykman, Cars Automotive & Muffler, Redondo Beach, CA, with husband Michael. After 16 years working in the diamond industry, Gilda began her automotive career with Edelbrock in Torrance CA in their purchasing department. From there she joined in my husband's family business and have been there for 25 years. Russell Crosby is the owner of Russ’s Wrench Auto Repair located in Clinton, NJ. Listen to Russell's previous episodes HERE Key Talking Points
Technicians- you must be constantly growing technicians, hire out of local high schools/colleges and grow them. Apprenticeships are key. Shift mindset of the youth- open different pathways besides college education Don’t wait until you lose a technician to hire a technician- being heavy on technicians leads to other opportunities (satellite location, more efficient). It’s not a risk, it’s an investment. No one complains they have too many techs. Don’t be afraid to have conversations with other technicians- build trust, if it doesn’t work out they will find another job within a day Fear prevents you to go into a new world of greatness- changing positions isn’t comfortable but necessary to grow Emerging technology- the future is here, training for new EV vehicles, start a marketing campaign for new clientele and technicians. Educating customers that hybrids need repairs. Look into charging ports. This is your opportunity to gain lifetime clientele. Total lifetime spent- customer personal ARO. Motivation isn’t the bill today but the whole driving career. This is a service industry, not a repair business. What is your mission of the business? Investing in their car invests, in their community. Let them know what you do behind the scenes (helping the community). Put the plaques and newspaper clippings in the shop, Be proud and let your customers know. Be the inspiration. Change mindset- we are financial advisors to customer’s investments. Ask customers what their plan is for their vehicle, keeping it forever? Spare car? Are they looking for a new car and need advice? A special thanks to Fred Gestwicki Jr, Gilda Dykman and Russell Crosby 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 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.comClick to go to the Podcast on Remarkable Results Radio
Jeff and Donna Hazeltine- Owners of American Import Auto, Venice FL
Troy Vaninetti– Troy has been married to wife Kori for 27 years and has four children with one still living at home with one 15-month-old granddaughter. Troy started working in a Texaco full-service station at age 17 and progressed through the following: from service attendant, tire attendant, apprentice technician, lead technician, shop manager, to purchasing Graham Auto Repair in 2006. Troy knew the importance of having coaching he joined ATI in 2012 and increased his business revenue every since. Troy leased a six-bay building in Graham for ten years before being forced to build his own 7 bay building due to losing His lease in 2016. In his first full year in the new building, Troy doubled his annual revenue. Since then Troy has won the National Top 12 ATI awards in 2018,2019, and 2020. Capturing the number one National Top Shop Award in 2020. Now Troy is working on His second location in Yelm Washington. Listen to Troy's previous episode HERE
Key Talking Points
Losing 14-year employee-store had plateaued with the technician. It was difficult leaving the comfort zone to get to the next level. Had employee go through 2-year leadership class and join 20 group with no results. Are you ready to go backward to move forward? Started to build a team- hired shop manager and another advisor to buffer losing employee. The 14-year technician put his two weeks notice in to see if they would make him stay, but Jeff and Donna gladly accepted it. Also lost A tech to retirement at the same time- things felt like it was falling apart Donna saw the struggle the shop and Jeff were enduring and reached out for support from 20 group- Troy called Jeff and told him he was at the bottom but it was a turning point to restart the shop. Jeff had seen Troy go through twice as difficult issues with his shop and rise above. Jeff felt encouraged and revitalized. Started getting wins. Jeff had to let employees go that was not accepting of the change. Has all new employees. Jeff was the center of the business and was never able to take a vacation until now Biggest takeaways- get yourself in a 20 group and start building relationships with other shop owners. Own your dirt instead of leasing for business.
Thanks to Donna and Jeff Hazeltine and Troy Vaninetti 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. Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP’s HERE Find every podcast episode HERE. Every episode is segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch 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. The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, 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
Click to go to the Podcast on Remarkable Results Radio
By Joe Marconi
Got your attention? Please read on...
In case you were hibernating the last year and half, you had to notice all the increases around you. From food, gas, utilities, taxes, insurance, etc., etc., etc. Not to mention all the training and tool investment we must make from now on, to remain in the business.
I have been preaching this for decades: As an industry we don't charge enough, especially when it comes to labor.
While there are ways to increase labor dollars, for example: becoming more productive, making sure that we charge for complex testing and driveability; Base labor rates have to factor in as the most important KPI in your business.
Do the math, get help from a coach if you need help calculating your labor rate.
A real Down and Dirty calculation: If you have one tech and you pay this tech $35 per hour ($42 loaded), then this tech has to bill $140 of labor for every hour worked. ASSUMING THIS TECH IS 100% PRODUCTTIVE.
DISCLAIMNER: THIS IS A REAL DOWN AND DIRTY QUICK CALCULATION, SEEK ADVICE IF YOU WANT A MORE ACCURATE REQUIRED LABOR RATE.