Help i need shop keepers insurance now. I have no claims in the last 3 year and 1 for $400 5 years ago. We went thru a rough time and paid the premium on the last day of when they sent notce. They won't renew .on going through Keller Stonehenge for pen n national .I have a 2 bay shop for over 10 years what a shock
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!
What is best shop management software with a robust crm system?
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By Joe Marconi
Our industry has many shop owners well into their 60s and 70s, some even older. For many, they have taken a secondary role and have handed the business off to a younger family member. For others, they know that there are more years behind them then in front of them and planning their exit plan or succession plan.
A question for all the senior shop owners out there. What are your plans for future? Sell the business? Keep it in the family? Continue to work as long as your can? Or something else?
By Elon Block
I had a conversation with a client yesterday who just discovered he wasn't going to be able to
sell his business, at the number he hoped for.
A little background:
We have only been working with him for 4 months. The original plan was to help him increase
his sales and profits and improve his paycheck.
Basically, he wanted to put systems in place to accomplish the following things:
Increase the sales from $650,000 to a million dollars per year Maximize the gross profit Phase himself out of the day to day business operations He is currently one of the two service advisors and was in the process of interviewing
His goal for selling the business was 2019.
To make a long story short, two weeks ago, he found out that due to an unexpected
family situation, he must sell immediately.
He was shocked to find out that his business is not worth what he hoped to get out of it,
mostly due to a number of factors discussed in these articles:
The number one factor that decreased the current value of his business is described below:
To be valuable to a buyer, your business must be able to succeed and grow without you at the hub of all activities, and your employees must be more than mere spokes that cannot operate independently of you. And the more your customers need you and ask for you personally, the harder it is for you to scale back your hours, take a vacation or eventually sell your business.
Your business is significantly more valuable if you are successful at building a “brand,” not simply a place where your own reputation and your personal handling of customers is what brings them back. It’s the difference between thinking of yourself as having a “job” that requires you to show up at work to make money, versus creating a “business” where the brand is more important than the personality of the founder.
The majority of buyers who contact me don’t want to be a slave to the business and work every hour that the business is open. In fact, many buyers already own a business and are looking to supplement their income by purchasing an additional business where they will provide part-time supervision and marketing and business acumen. These buyers will pay a premium for a business that can clearly demonstrate its ability to run profitably without the seller as the critical hub.
It's interesting to see Art's current listings and see how the performance numbers
relate to the listing price for the businesses:
What are your thoughts on the sellability score Art talks about, in his articles?
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.