Every company needs policies and procedures in place, and certain tasks must be required and monitored. But, every process must root its purpose in a way that enhances the customer experience, rather than just a required company task. For example: instead of requiring a certain number of battery sales in a given period, it should be required that each customer vehicle have its battery tested when in for any service or repair. This is not only insuring that each customer is taken care of properly, but sales will occur as a result of the process rather than a focus on battery sales quotas.

This article was contributed by Joe Marconi. Joe is the co-founder of autoshopowner.com, and one of the 1-on-1 business coaches who helps shop owners through the Elite Coaching Program.

For decades I have admired Bill Gates of Microsoft, not only for his creativity and intelligence, but for his uncanny ability to reduce many business challenges to the simplest form. One example that had a powerful impact on me is when he said, “If Santa Fe Railroad would have recognized they were in the transportation business, and not the railroad business, today we’d have Santa Fe Airlines.” Ladies and gentlemen, when you think about it, what he said was truly profound. You see, at the time Santa Fe Railroad had the people, they had the systems, and they had the brand. Yet the leaders in that company were so conditioned to look at their business as a network of railroad tracks, they failed to look where they should have looked, which was up at the sky. Your business is no different.

For at least a decade now I’ve been hesitant to refer to businesses such as yours as auto “repair” businesses, due to the decrease in the number of repairs being performed relative to services. Today when I see facilities that are branded as auto “care” businesses, I again feel that same pause, and here’s why. Service intervals are constantly being extended, and as technology advances, and the vehicle manufacturing industry becomes even more competitive, it’s realistic to expect that there will be less services to perform, and that those services will continue to be done at less frequent intervals.

Now I am not suggesting that we’ll get to a point where vehicles will be repair and maintenance free, but there is no question that you will see the newer vehicles far less frequently than you have in the past. Can you make up for this deficiency through aggressive marketing campaigns that will bring in more customers? Of course you can, but if you are not careful, you will fall into the same trap as Santa Fe Railroad.

So here is what I am going to encourage you to consider. The single most valuable asset you have is your customer base, and what is truly priceless is their trust in you.  This is why I am going to encourage you to explore each and every opportunity to help your customers solve problems, and make their lives better in any way that you can.

In a blog post earlier this month I encouraged you to consider the trend in IVI (In Vehicle Infotainment) integration. This category includes accessories such as navigational systems, cell phone integration, MP3 integration, and communication systems. With Y gens as the emerging market, I am confident that there will be a number of opportunities for the service providers that are the first to capitalize on this market. Another opportunity I see is in vehicle appearance. I realize that services such as detailing would not be a good fit for many of you, or for many of your customers, but I do see a unique opportunity. You can target certain customers, provide them with a one-time deep discount so they can sample your services, and then possibly grow an entirely new service line. By the way, I am not suggesting that you’ll become a detailing company. Rather, I’m suggesting you may very well become a company that provides an array of products and services that do what vehicle repairs rarely do: make people smile, and help them feel really good about their vehicles.

In closing, I am going to encourage all of you to listen to the needs of your customers, and explore ways that you can make life both better and easier for them. Of course, you don’t have to take my suggestions, but bear in mind, if you keep looking at your business as a repair and service business, then there’s a good probability your business may ultimately join the ranks of Santa Fe Railroad.

For additional help building a more successful auto repair business, learn more about the 1-on-1 coaching and customized action plan offered through the Elite Coaching Program.

Now that tax season is over, many shop owners are looking to change accountants. So what are the questions you should ask your prospective accountants?

The bottom-line is that you should expect today’s accountant to be much more than a bookkeeper. Many do work to add considerable value. The trick is to separate the wheat from the chaff.

Like any relationship, it boils down to a compatibility of interests, experiences and outlooks. When you sit down in your interview ask the prospective accountants the following questions:

• Do you have your CPA? Business owners are often confused when it comes to the certified public accountant (CPA) designation. A CPA has surpassed accepted financial education levels, passed state-administered tests to prove competency and periodic re-certification exams. Certain situations, such as audits and many loan applications, require CPA involvement. Not surprisingly, CPA’s can charge higher fees than non-CPA’s. But there are a great many non-CPA’s who excel at small business accounting and financial and technology consulting. Again, getting to know them and your needs is the necessary first step.

• How many years have you been involved in tax practice? You want to make sure that you have an individual with some experience giving you advice on your business activities.

• How often do you enroll in tax courses? It is important to make sure that you have a person who is involved with continuing education.

• What kind of creative business advice will you offer me? A good accountant can handle data and numbers, but should also be able to demonstrate quick and creative business acumen. Ask the candidate to offer three quick ideas on how your business might be able to save money right now. Also, ask them for three examples of useful business advice they’ve offered to other clients that went beyond just tracking the numbers. While “creative accounting” is usually a negative, having a creative business mind can be a huge asset towards helping your company grow.

• Do you consider yourself to be tech-savvy? Small business accounting software has made powerful accounting tools available to everyone. But these accounting packages, most notably MYOB and QuickBooks, are only as useful as the person who installs them and runs the applications. Even if you are not a “tecchie,” do your homework to be able to determine whether the candidate understands the role computer technology plays in turning business information into business intelligence. For example, ask them how they will integrate your computer files with the technology in their office. What role will the Internet play in keeping in touch and interchanging financial information? Remember, your CPA bills you by the hour, so electronic transfers can cut down the time your CPA spends going through your financials.

• Do you have knowledge about my industry or field? If not, ask them to describe whether or not they think this is important for the services they will be providing to you. In some circumstances this experience may not be essential, but in others it will be, so talk this through during the interview process.

• As my business grows, how will your firm be able to help me? Ask for an outline in writing. Ask them to describe services they have provided to other clients that they have. You can learn a lot from an accountant that has helped other small businesses go through growing pains such as changing working capital needs, obtaining financing, raising capital or even selling their successful businesses.

• If my business goes through a growth period, how can I get additional financing so my business doesn’t go bust? Ask for specifics like which lenders will be ready to extend money and how long it will take to get the money.

• Who are your other clients? Imagine this scenario. You hire an accountant based on the assumption that he understands the basics of your business. Then, you find out that he’s never had a client like you before. Instead, he’s only prepared tax forms for wealthy individuals that don’t own businesses. Avoid that possible disaster by asking whom the accountant works with. If they are businesses that are similar to yours, that’s a good sign. In asking about their clients, you will also want to understand how busy they are and whether they have the time and resources to support you adequately.

• What are the primary services that you provide to small businesses? Are there other services they can provide like estate planning, gift planning, legal referrals, and other services?

• How do you calculate your fees? Ask the accountant what you can expect fees to be and whether he will guarantee that you will not exceed certain amounts that you agree upon up front. In a time-based fee structure, make sure to find out the hourly rate, as well as all fees for expense reimbursement. Find out now whether a simple two-minute phone call or a one-page fax means an hour of billable time. If that’s the case, run for the door.

• What can you do to reduce your fees? Listen to the answers you get, and determine if you will be able to keep your accounting costs down using the tips provided.

• Are you active in the local business community? Who do you know that can help me? Find out whether your prospective accountant can introduce you to people who might be useful to you, including prospective customers, suppliers, bankers, and investors. Since talk is cheap, take it one step further. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

• Why should I use you? As a final question, it’s always good to let the accountant make the case for why you should engage them.

This article was brought to you by Jim Murphy. Jim the leader of Elite’s prestigious Pro Service, a 20 group-like community comprised of 90 of the top shop owners in the North America. 

A number of years ago, the hockey great Wayne Gretzky was interviewed by Newsweek Magazine. The reporter asked him how he was able to score so well, when so many other talented hockey players weren’t nearly as successful as he was. He said his secret was that rather than skating to the puck, he would always skate to where the puck would be going. Although it was a lesson in sports, I looked at it as a lesson in business as well, and here’s why: If you want to build a great auto repair business in the coming years, you’ll need to look into the future, and then make sure your business is on track with offering the right services, at the right time. So consider this…

First of all, for those of you here in the states, you need to embrace the fact that regardless of how much we Americans love our big cars, the ongoing uncertainly in fuel prices, the uncertainty of our economy, and the inevitable inflation that we are bound to see will cause us to continue the trend towards buying smaller, more fuel-efficient vehicles. This is something that you need to consider in space planning, equipment decisions, technical training programs and marketing strategies.

Secondly, as I have mentioned in the past, with vehicles being built better than ever before, and with service intervals constantly being extended by the manufacturers, you will inevitably be seeing your customers less frequently. This means that you will need to do two things: You will need to bring in more first-time customers, and you will need to discover other profitable services that you can offer to your customers. When it comes to optional services, one of the things I am going to encourage you to do is consider the trend in IVI (In Vehicle Infotainment) integration. This category includes accessories such as navigational systems, cell phone integration, MP3 integration, and communication systems.

What I find most interesting is that it seems like the technology is well ahead of the auto industry at this time.  However, you can rest assured that in the coming years you will see more of this type of technology on vehicles, not less. The reason being, it is an integral part of the lives of our emerging market (the Y Gens), and there is no doubt in my mind that they are going to have an expectation that new vehicles will be able to provide these types of features. I am very confident that the manufacturers are going to find themselves in a position where in order to be competitive in the coming years, they will be forced to incorporate more IVI features into their vehicles.

So, where does this leave you? The shops that have the ability to install aftermarket IVI equipment, service this type of equipment, and provide unique and exclusive add-ons, will certainly have some amazing opportunities in the coming years. So, rather than trying to play catch-up, you should be leading. All that you’ll need to do is look into the future, and start your journey to where the puck is inevitably going to go. Planning on being in the right place at the right time worked wonders for Wayne Gretzky.  The good news is, it will work wonders for you as well.

For more information on how you can build a more profitable, successful auto repair business, take a look at Elite’s auto shop management solutions.

Since the summer of 1973, the year I graduated high school, until 1980, my goal was to become a world-class mechanic. On October 1, 1980, I put the key in the door to my own repair shop for the first time and was ready to rock the world. “Bring it on”, was my motto, “There’s nothing I can’t fix.”  Only to find that less than 10 years later I would be nearly broke; financially and emotionally.

The problem? I was a great mechanic, but not so great business man. While I could fix just about anything that rolled into my bays, when my business broke, I didn’t have the skills to repair the damage that would almost lead to my demise.

Failing has a great way of teaching us valuable lessons. I learned the hard way that the skills of being a mechanic have nothing to do with the skills of running a business. So, in the early 90s I switched gears and began my quest to learn the skills of running a business. I wasn’t totally ready to weld shut my tool box, but I knew that things had to change or I would not have a business to worry about at all.

Perhaps the hardest thing to change was my mindset that the business and its success were solely dependent on me. That no one could do as good a job as I could. I had this crazy idea that I was the best at trouble shooting, the best at repairing cars, the best at road testing, at selling, at speaking on the phone, at doing the books, even cleaning the bathrooms and fixing the roof.

To change meant that I had to give up control, hire and assign others to help and do the work that I thought could only be done by me.  Little by little I handed over the reins to others. As I hired new people, I wrote job descriptions, policies and procedures.
Specialized training was implemented to teach each person to be responsible for their particular position and slowly but surely, it began to work.  The tasks that I once thought could only be handled by me were now the responsibility of others.  We became more efficient and we were finally growing.

Then came another turning point.  Now that I was on the sidelines more, I could see things that I could not see before. This is where another awakening comes into play. I could clearly see when and how others failed at their jobs and I was not too diplomatic about how I told them how I felt. I managed my staff by the principle of “My way or the highway”. This, of course, was positioning my business on a collision course with disastrous consequences.

To make matters worse, I drilled into everyone’s head that the numbers and processes were crucial to our success and made it clear that everyone was responsible to maintain certain productivity and sales numbers. If not, I would have to replace them. After all, I had a business to run; and numbers and profits were the only thing that mattered, right?  Well, not exactly.

As I pushed for more sales and productivity, I also pushed my staff farther away. Morale was suffering and we had a tough time meeting our goals at times. No amount of reasoning could reach the minds of the people around me. Then it dawned on me that my focus was on profits and process, not people. My relentless stream of numbers, stats, systems, procedures and reports was compromising the spirit of my business. I had forgotten that you should never put profit before people.

I knew that we had most of the building blocks in place; the only missing piece was culture. I stopped holding “numbers” meetings and starting having “people” meetings. At these meetings I asked for everyone’s input and to tell me what was right with the company and more importantly, what was wrong. I listened and changed our focus from a numbers-driven business model to a people-driven model. Lifting morale and creating an exciting and enjoyable workplace was the goal.

It took months, but the turnaround was dramatic. I had to put aside my hunt to find mistakes and mishaps and began a new mission to find people excelling and catching people doing things right, not wrong. I started a practice at the beginning of each week, which I still do today, to create a written list of each employee and write next to their name, something that I could praise or thank that person for. Throughout the week, I will make it point to speak to each employee in a sincere and positive manner.

Soon, all the issues we had reaching our goals were vanishing. By taking care of people, by recognizing their hard work, by thanking people on a daily basis, we generated higher sales and greater profits. I learned that when people are recognized and feel that their contribution to the shop matters; things begin to fall into proper order.

I still work on the numbers, the systems, the policies, the procedures and everything else a shop owner needs to do. I set goals and establish deadlines. But, what I won’t do is forget about people. Helping people around me and getting others to achieve their personal success is my focus.  No one is an Island, and leaders need great people around them.  Do we still have challenges and problems? You bet we do. That will never go away.  But, we are far better off today than we once were.

As shop owners, our lives are filled with daily challenges, and maintaining a positive attitude tests our fortitude and character. There will be those days when you will question is it all worth it. After all, who gives us a pat on the back when we need it?  Remember, we have chosen a life to lead and help others. And while it may seem difficult to see at times, helping others prosper and making others feel good about themselves will truly become our own pathway to success.

This article was contributed by Joe Marconi. Joe is the co-founder of autoshopowner.com, and one of the 1-on-1 business coaches who helps shop owners through the Elite Coaching Program.

A few weeks ago I attended a business networking luncheon and overheard a few business owners having a heated discussion over the economy. They were discussing the economic climate as it exists today and someone made a comment that due to a variety of reasons, what we have today is the “New Normal”.  He went on to say that our best days are behind us and that we need to adjust to the ways things are today.

Not knowing what to say to this group, I kept silent.  I do realize that the past few years have not been a walk in the park, but to accept that things will never be the same as they were and because of that we should give up hope, is not only ridiculous, but self-defeating.   A defeatist attitude will in fact cause the very thing they probably fear the most; and that is, failure.

Let’s say a ball team like the Yankees fails to make the playoffs a few years in a row. Do you think the managers, players and coaches get together during the off season and tell each other; “Well, I guess we should accept the fact that we can’t win anymore, after all, this is the New Normal.”  On the contrary, no matter what kind of success the Yankees had last season, when the new season opens, their goal is to win the World Series.  And as business people, we need to think the same way.

Today is not like it was yesterday and tomorrow will not be like it is today, that’s called life. Nothing remains the same and what happens in the past does not guarantee tomorrow’s success or failure. Make today better than yesterday and work hard today to ensure that tomorrow will be better than today. That’s the only thing we have, our ability to not just embrace change, but to actually create it.

There will always be the naysayers. Those that say the world is against us, that there is some unknown force that stands in our way. Don’t listen to them; don’t get sucked into going down the path of mediocrity.  It’s a road with no future, a road littered with causalities. Accepting the “New Normal” is accepting your fate, and that means accepting failure. The truth is, your biggest obstacle to your personal success is the person you look in the mirror each and every day.

This article was contributed by Joe Marconi. Joe is the co-founder of autoshopowner.com, and one of the 1-on-1 business coaches who helps shop owners through the Elite Coaching Program.