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Joe Marconi

COVID-19 Making Tough Management Decisions

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New York Governor announced yesterday that the stay-home order will remain in effect until May 15th.  With so many consumers not driving and so many businesses closed; sales will be a struggle for the next  4 weeks or more.  Many Auto Shops across the country will be in the same boat.

Ok, that's the bad news.  The good news is that you are a shop owner, and no stranger to making tough decisions and finding solutions to the most complex problems. I know this is different, but truth is we are all learning together, and we will beat this.

With that said, you will be called upon to remove the emotions from the situation and make the decisions that are best for your employees, family and for the business.  You will need to look at your average sales and projected near-future sales and adjust your payroll accordingly.  I hesitated for a few weeks, but then made the tough decision to cut staff to get my payroll in line with current sales. It had to be done.  

You will also need to look at each line on your Profit/Loss statement and see where you can shave any expenses. Even a few percentage points can end up saving a lot of money at the end of the month.

Lastly, have daily meetings and let your remaining staff know what you are doing. Let them know that the number 1 goal is the health and welfare of everyone. Number 2: Ensure the business thrives, not just survives.

You are tough....now go make those tough decisions! 

 

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