We are in desperate need of techs. I tried Indeed and was very dissatisfied with the "talent" they sent us. I am considering Find A Wrench they post on Indeed as well as Zip Recruiter and some 90 other companies as well as social media. Has anyone tried them or ACT Auto Staffing?
By Joe Marconi
There is a lot of talk these days about the Electric Cars, and no doubt they will become more and more accepted during the next few years.
All car makers are investing big bucks into EV's and battery technology. While we are a ways away from EVs becoming mainstream, what are your plans to prepare for this? How do think the EV will change our business model?
Key Talking Points
Joe’s Garage AAPEX 2021- a playground for the automotive industry with lifts and hands-on engagement Right to repair- allows for the bidirectional access of data for vehicles in a standardized format. Get the diagnostic information from the vehicle. Lawsuit ensued. A federal bill will push the automotive Right to Repair. It’s not the independent vs dealership, it’s about equal competition and allowing the consumer to choose Subaru- disabling Starlink system which is now evidence Automakers have 270 lobbyists, the automotive aftermarket has 9 Changing driving habits but the miles driven is still increasing- more dependence on the vehicle, automobility EV growth- 280 million vehicles in operation, it will take time to shift, EV’s still require repairs Ecommerce- expectations have increased, data and business technology has leveled up and activated the industry to improve Don’t be afraid of the future Repairact.com allows email to be sent to your local representative 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
Bill Hanvey, President and CEO of the Auto Care Association. Bill is engaging the automotive aftermarket to get involved in letting your legislators know the issue about data. Your help is needed to help in amending the right to repair legislation. Learn everything you can about this fight to amend the right to repair legislation. Ownership of Vehicle Telematic Data Must Flow to the Vehicle Owner. Bill leads the strategic direction of The Auto Care Association’s 3,000 members and 150,000 companies representing automotive manufacturers, distributors, and service providers. Find Bill’s other episodes HERE.
Paul McCarthy, AASA President.Paul has over 23 years of experience in the automotive industry. Prior to joining MEMA, Paul led the Automotive and Industrial Products Strategy Practice at PricewaterhouseCoopers (PwC). He consulted at dozens of automotive suppliers, eight of the top ten global automakers, and at private equity firms and financial institutions. His past leadership roles include heading PwC Germany’s Automotive Strategy advisory practice and leading global forecasting and analysis for a prominent vehicle forecast service, Autofacts. Paul has an MBA from Duke’s University’s Fuqua School of Business. Find Paul’s other episodes HERE.
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By Joe Marconi
One of the lessons from COVID is for repair shops to have a strong cash reserve. Shop owners need to budget their money each week, and allocate money to different bank accounts, such as payroll, operating expenses, taxes, etc.
Another account I would recommend is to have a Cash Reserve account, where money is allocating each week, and not touched unless their is a emergency, such as an economic downturn and or if an economic emergency occurs in your area or with your company.
While no one could have predicted the affects from COVID 19, I think we can all agree that being cash strong is a viable strategy.
You should have anywhere from 3 to 6 months of covered expenses in a separate bank account. I know, I know....it's a lot of money. Start slow and build each week. Anything set aside is better than nothing.
Of course, to have a reserve means that you need to have the profit to put away. Right? Well, another reason to know your numbers, revisit your pricing and make sure your labor rate is enough to support your payroll, operating expenses and have enough left over to set aside money for the unexpected.
Trust me, you'll be glad you did.
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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.
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
Exit Strategy-Step 4- Hire & Retain Great People
Your personal talents and skills will only get you so far in business. If you rely just on what you can achieve alone, you will eventually plateau and never achieve your potential in business. The fact is that in order to achieve your personal success, you need great people around you. Having a strong team promotes greatness, This is because of the exchange of great ideas and also due to the different strengths people bring to the organization.
Look for superstar employees. You may have to pay them more, but they are worth it because of what they bring to your company, and great people create great companies.
Now, your job does not end once you hire the superstars; this is when you job begins. You must do all you can to retain them: Coach them, mentor them, let them spread their wings, and empower them to take ownership of their positions.
You success is dependent on the success of others around you. A business, built and run with superstar employees, will be more attractive to a potential buyer and add much needed profit to the bottom line, while you're in business.
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
Exit Strategy-Step 3: Establish Your Goals
It's no secret that having clearly defined, written goals, sets you apart from other business people. You will achieve greater success, have less stress and build greater wealth for you, and for your family.
Start today; create your 5 year, 10 year, 20 year plan. Be specific about what you want to accomplish. And commit to these goals each and every day. Don't worry about life's obstacles and challenges that may throw you a curve ball. Having goals is far better than not having goals, and those goals can be adjusted along the way.
With regard to your retirement, give a lot of thought to your future, and what that looks like. And create a goal for that too. It may seem far in the future for many of you reading this, but trust me, time goes by fast and preparing now for the sale of your business or succession will pay off.
Remember, build your business as if you are selling it tomorrow, and you be more successful while you own it, have more options in the future, and your business will be worth more when the right time arrives.
Stay tuned for Step 4!