By Joe Marconi
Shop owners, you have a little less than two months before the end of the year. And that means it's time to start thinkning about your Tax Planning for 2019. Don't procrastinate on this. Meet with accountant. Review the year, review profit. Consider things such as major equipmenet purchases and other major investments you made in 2019. Look at bottom line profit and determine if you set aside enough cash to pay your taxes come April 15, 2020.
One thing, Cash is King, So, before you purhase any major equipment before the end of the year, listen to your accoutant, not the Tool Sales-person. In many cases, it's better to pay some tax and hold on to cash for a rainy day.
A little planning now will save you big time in 2020, and also help you sleep better!
I'm looking at opening an auto repair shop with a partner who is the mechanic and possibly another mechanic. I will be the sole investor in the venture never before been in the auto rapair shop business. I will most likely manage the whole thing. I need lots of help.
How are mechanics paid?
How do I pay myself and recoup my investment?
Shop management software? Looked at MaxxTraxx, Alldatapro.
What types of insurance must I carry?
I've found a nice place with three bays to rent but will need to install lifts. Should I shop used or new?
Etc etc etc.
Thanks for any help you can offer.
I am looking to open up my new shop within 3 months and honestly feel a little in over my head, I’ve spent days reading on here and while it’s awesome I feel I need something more formal. The main 2 things I’ve found has been the RLO training course or the Ron Ipach fast lane training program. Has anyone one taken either of these courses or have a different one to recommend?
By Elite Worldwide Inc.
Let’s say you’re looking to hire a superstar technician. You find one who has a proven track record of success, and put them through a well-constructed interview process. You decide that the person sitting in front of you is the perfect fit, and you make them a formal job offer in hopes that they will agree to join your team. They agree, and for the first time in a while you’re able to sleep throughout the night, because you know you’ve done your due diligence, and have finally found the top tech you’ve so desperately been needing. All good so far, right?
Your new hire comes to work on Monday, and you’re off to a great start. And then…. it happens. Within the first few weeks you start to get the sinking feeling that you may have hired the wrong person. There’s no question that they can fix cars the right way, and they do it quickly. They also show up every day on time, and they keep their workplace clean. The problem is, they don’t follow your procedures very well. Your key employees are telling you that the new guy seems to complain quite a bit about meaningless things, and they’re sad to report that he’s not very social either.
You start to hope that he’ll either “adjust or come around”, or that he’s just dealing with some personal issues that will soon pass. But after a month or two you reach the inevitable conclusion – this guy doesn’t like to follow rules, he has an attitude that doesn’t fit well in your shop, and your other employees are not very pleased that he’s working with you. After many sleepless nights, you decide to let him go, and you start the process all over again.
Unfortunately, many shop owners live in this world of high employee turnover, or end up telling themselves that they’d rather keep someone who’s not a good fit than run the risk of simply swapping out one bad employee for another. If this sounds all too familiar to you, then consider this:
The trap most shop owners fall into is they hire people for what they know, and they end up firing them… for who they are.
To put it another way, shop owners often hire people for their skills, and they fire them for their behavior. So, the best-kept secret to hiring superstar techs and advisors? It’s going a step beyond learning about their skills and experience, and learning more about who they are as a person. As someone who has grown some of the most successful shops in America, I’ve learned over the years that in order to hire top employees that my entire team will really enjoy working with, I have to pay very close attention to their personalities and behaviors during the interview process. I do that to this day with Elite, and it’s been one of the most important keys to my hiring success. However, I also know that my perception of someone’s personality will only take me so far, so I have every applicant complete a 45-minute online behavioral assessment before the first interview. Here’s why.
An assessment can tell us whether an applicant has the propensity to follow rules, how social they are, their level of optimism, how open they are to constructive feedback, and a whole lot more. Not only do these assessments help us conclude whether the applicant is even someone we should interview, but they also give us direction on where we should dig deeper, and the questions we should ask during the interviews. For example, if the assessment suggests they are not very social, then you know you need to ask questions about how they worked with others in the past so you can discover if there were personality conflicts, ego issues, etc. If the assessment suggests they have a propensity to ignore rules and procedures, you can ask them specific questions about how they inspected and repaired cars, and how they interacted with the advisors.
So here’s what I’m going to ask you to do. First, think about the people you’ve fired. Hopefully it hasn’t been many, but I suspect you will discover that with rare exception, the reason you fired them had little to do with their skills, but was because of who they were as a person or how they behaved. Secondly, I’m going to ask that you accept the fact that there are many behaviors (and propensities) that will show up on behavioral assessments that you or I would never be able to detect during an interview, no matter how thorough we may be. And lastly, consider that if you do the math, hiring the wrong person is going to cost you at least $5,000.
If you now agree that you need to dig deep and learn more about who the person really is before you hire them, you need to do what Fortune 500 companies and the top shop owners in America do, and have every applicant complete a behavioral assessment before the first interview. There are many companies that provide such services, such as Predictive Index, Berke, and Myers-Briggs, to name a few. We use Berke, and have been quite pleased.
If you do begin assessing the people you may hire, then you have my promise: You’ll have a much higher probability of hiring the techs and advisors that your other employees will enjoy working with, they’ll follow your rules, and you’ll be able to go to sleep at night knowing you have an incredible team…of superstars.
“Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management courses. You can contact Elite at [email protected], or by calling 800-204-3548."
View full article
Similar Tagged Content
By Ron Ipach
CLICK HERE TO JOIN THE SUCCESSFUL SHOP OWNERS FACEBOOK GROUP
Could Auto Repair Flat Rate Be Dead?
TECHNICIAN shortage today is real. Last study that I saw said, for every eight shops that’s looking for a technician, there’s only one tech available so I know many of you watching this are experiencing that same thing. And I’ll also say one thing that I found: most technicians, when I mention flat rate, their cheeks kind of pucker up. They hate it. Why? There’s risk. They’ve been burned before. So often in the technicians starved market, what’s a shop owner left to do but put technicians on hourly or even maybe salary? And what that leads to is, really what I’m going to call an “uninspired performance.” Why? They get comfortable, they’re able to pay their bills without exerting a ton of effort.
So what’s a shop owner to do? The answer I’ve uncovered recently in my shop is to have a Win Number. For every single employee. See one of the truths I discovered in my 30 plus years of being a shop owner is that often we don’t get the most out of our employees because we never really sat down and told them what we expect. I know that’s been one of my mistakes.
So one of the things that I’ve done recently is I’ve given each employee a weekly Win Number, and that’s why it’s so important. For example, I recently sat down with each of my technicians and shared with them their Win Number. What do I mean by win number? What I expect out of them in parts and labor production for each employee. The numbers are based on my desired technician cost as a percentage of sales. It’s worked so well with my technicians that I now sent it out and established that win number with both my CSR and my service advisor.
I’ve got to tell you the results have been incredible. Not only are my sales and profits up through the roof lately, it’s led to believe it or not, happier employees. Why? They drive home at the end of the day or at the end of the week knowing that they hit their goals. Knowing that they’ve contributed to a successful week for the shop and that certainly led to a happier shop owner!
So, let me leave you with a question. Does each and every one of your employees on your team clearly know what you expect of them?
If your answer is not a resounding YES, it’s time to put a pencil to paper and figure out each team employee or each team members weekly and daily Win.