Growing Pains and How to Prevent Them

All businesses experience growing pains.  Usually growing pains are a good thing indicating that your business is growing and that you are ready for the next stage.  This of course depends on how these growing pains are handled.  In other words, how scalable is your business?

Most common areas of growing pains:

• Insufficient technicians for amount of work
• Insufficient support staff (clerical, service advisor)
• Insufficient space for work and/or personnel
• Insufficient capital

So, how do we avoid being caught with our torque wrenches down?

Step 1. Determine your benchmarks

When we first open our shops and begin repairing vehicles, we might be doing $5-10k per month and find it difficult to conceive of doing $50-100k of business or more.  Nonetheless, conceive it and plan for it.  Here are a few steps to plan for the future:

1. First, determine how much total revenue each technician can generate per month.  So, let's make a few assumptions (modify the numbers to suit your shop).  If your average Repair Order is $320.00 and it takes an average of 2.5 labor hours at $75.00 per flat rate hour to achieve this average and your technician can perform 9.5 labor hours per day, how many technicians will it take to perform $50k per month.  I know this sounds like a word math problem and that is exactly what it is.  So here is the formula to answer this question.
• 1 technician = 3.8 jobs per day (9.5 hours per day divided by 2.5 labor hours per job)
• 1 technician = $1216.00 per day (3.8 jobs per day times $320 average RO)
• 1 technician = $30,400.00 per month ($1216 per day times 25 work days per month)
2. Next, determine how many support staff you will need to support the technician to accomplish his best numbers.
• How many service advisors do you need to write 3.8 jobs per day?  A good general rule of thumb is 1 hour for a service advisor to write one repair order (including parts ordering time, customer support time, data entry etc.).
• 1 service advisor = 8 jobs per day at $320 per repair order
3. Last, determine how much space you need.  In order for 1 technician to complete 9.5 hours per day, how much workspace does he need?
• Can some work be done on the ground instead of a lift?
• Can you fit 1.5 - 2 vehicles in each bay?
• Can you add an external lift to expand beyond the walls of your shop?

Step 2. Plan for achieving your benchmarks

Once you have determined your benchmarks, plan for achieving those benchmarks and prepare in advance for that day.  Here are some less costly ways to support additional growth without breaking the bank.

1. Outsource some clerical tasks.
• Use a bookkeepping service for run of the mill accounting
• Hire a part-time receptionist/clerical.  High school or college students working after school are an excellent source.
2. Part-time technician support. 
• Hire a part-time individual to clean, remove wheels, run parts or restock shelves
• Begin training this person to be ready to step in to small jobs (brakes, oil changes, tune-ups, etc)
3. Help staff to be as efficient as possible
• Utilize a good software program (like Shop Boss Pro) to make advisors and technicians as efficient as possible.  Shop Boss Pro allows technicians and advisors to enter information into the program with no additional fees.  This means a technician can enter his "story" into the program without first writing it out on paper and then passing it to the advisor.  This makes both more productive.
• Use contemporary computers that don't crash every 5 minutes.  Time wasted waiting for a computer to reboot is time lost to productivity.  Dont step over dimes to pick up pennies.

With proper planning, growing pains can be looked forward to and not run from.  This will help you move from stage to stage in your growth pattern.

Good Luck and Keep the Wheel Spinning!

Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems. To do their part, Boss Software offers a very low cost version of their program for small shops and prices the software to help keep a shop in business.

Nothing Happens Until Something is Sold

It might be a cliche, but it is absolutely true.  While the old-school "Salesman" may not be everyone's favorite person, the ability to sell is critical to business success, whether in the Auto Repair Shop or in a Fortune 500 company.  Some people sell products, some sell service, but the Auto Repair Shop owner or advisor has to sell both.  Here are a few simple attitudes and techniques to help build your sales IQ.

Dont Be Afraid to Ask for their Business

One of the easiest ways to earn someone's business is to simply ask for it.  Whether you're talking to a friend or neighbor in the front yard, or to a customer on the phone, just ask for their business.  Phrases like "Stop by sometime and we'll give your car the once-over and an oil change for $29.95", or "I would love to earn your business and provide you with the best customer service there is" are simple ways to ask for someones business without sounding like a greedy schmo.

Sell Yourself

You are your own best product and service.  Customers can go anywhere and get an oil change or brakes replaced, but you have something more to offer.  Yourself.  No one else can offer you and your service.  Make people want to bring their business to you.

Make sure your prices are competitve...

but not the lowest in town.  If your prices are too low, people will not associate you with value, just cheap.  If your prices are too high, people will shop you to death.  So keep your prices fair, offer great service with a smile (might be kind of corny, but it works), and people will come back again and again.

The Consultative Selling Approach

Instead of approaching the customer with a "what can I get from them attitude", try a "how can I help you" attitude.  A great salesperson once said "You will only get what you want when you help enough other people get what they want".  If you approach customers this way, they will feel more comfortable and be more ready to spend their money with you

Good luck and keep the wheels spinning!

Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems. To do their part, Boss Software offers a free version of their program for small shops and prices the software to help keep a shop in business.

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Making Changes (and how to get everyone on board)

Making a change in a shop can be a difficult thing.  If you have people that have been with your for years, resistance to change is a given.  Some people like change (about 5%), some people hate it (about 5% also), but most people are willing to help an owner make changes if the process is done right.  Here are a few helpful hints for the next time you need to change things up a bit in your shop.

Plan the Change and Change the Plan

Planning your changes is critical.  Thinking through the process from all perspectives (yours, service advisor's, administrative, technician and don't forget Customer as well).  Will your change make things work better for everyone, or just one person.  What is motivating the change?  Does the change result in higher productivity or more income?

After planning the change, approach your staff will the following information:

1. The problem.  Explain in detail why you need to make a change
2. The solution.  Again, give them details about the change you are making.
3. Be ready to rewrite it.  Almost any good employee will feel more valued and respected if you bring them into the decision process.  Quite often they will have excellent input about the issue and be ready to assist in the change instead of resisting it.

Write it down

Most changes that small businesses make (and auto repair shops are no exception) is to begin making a change without knowing exactly how they are going to do it.  The process of writing it down (or typing it in a Word document) in a step-by-step fashion will help you to think through everything several times.  I have found many times as I write down a plan, that I realize something I hadn't thought of before.  This process will help you smoke out a lot of bugs in the plan.

Pick a specific date to make the change

When you (and your whole team) know when a change is going to take place allows everyone to prepare for it.  Getting ready for the change is at least as important as implementing the change.  Whether it involves new equipment, new software or just a new attitude, having time to prepare is critical to success.  Then make sure everyone knows.  Post it on walls, in the bathroom, on the computer screens, wherever you need to so that everyone knows when the change will take place.

Now Do It!

Nothing is more irritating than planning, getting input, writing it down and then never making the change.  Lack of follow through is the second biggest killer of good ideas.

Good luck and keep the wheels spinning!

Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems. To do their part, Boss Software offers a low-cost version of their program for small shops and prices the software to help keep a shop in business.

Shop Management Software - who is the best

When it comes to Shop Management Software, I might be a little biased, but I will try to approach this from the shop owners position and compare the top ones side by side.  Since I believe that our product, Shop Boss Pro is the best, I will include it along with Mitchell, MaxxTraxx.

First, the system requirements.  What kind of computer do you need to run these different systems.

Mitchell Manager Plus - Microsoft® Vista (32 bit), Windows XP, Windows 2000 SP2, Windows NT 4.0 SP6, Windows ME, Windows 98 SE Microsoft Internet Explorer 6 * Pentium processor or higher 128 MB of RAM (256 MB recommended) * 15" monitor with an SVGA of 1024 x 768 resolution with 256 colors * Inkjet or Laser Printer * High-speed connection (DSL, Cable, or T1))

Gulp!  Ok, thats alot to figure out.  How about...

MaxxTraxx - We recommend you have a computer running Microsoft XP or newer, a 2500 MHz processor (CPU), 3 GB memory (RAM), 80 GB hard drive, Super VGA or LCD flat screen monitor with minimum 1024 x 768 resolution, and a broadband (DSL or cable) Internet connection. MaxxTraxx Pro CE will run on a computer with 2 GB of memory, however, the performance will be noticeably slower.

Ok, that one is just as tough.  How about...
Shop Boss Pro - Any PC or Mac/Apple.  Even an IPad. 
Well, that makes it easier.  Shop Boss Pro works on anything with a browser.  It will work with Internet Explorer, Firefox, Safari, Opera and even Konqueror.  If you can view it on the internet and have at least a 7 inch screen, you can use Shop Boss Pro.

Ok, so what about features.  We'll skip the boring stuff (like customers, vehicles, etc because they all do that).  Let's look at productivity and helpful features like that.

Marketing
MaxxTraxx - reminders to send thank you cards.
Mitchell - unfortunately, their material says nothing about follow up
Shop Boss Pro - Automatically sends out emails at 5 days after service, 30 days after service  and 90 days after service.  You don't have to do a thing!  Plus, you can customize it any way you want.

Customer Confidence
Ok this is one is all Shop Boss.  With Shop Boss you can send out a text message or email with an update on the repairs.  The customer can click a link and view their repair order online!  Instantly!  Shop Boss will also let you attach photos to the repair order and the customer can view those online too!  Let's see the big boys tell you about that feature in their programs.

Ease of Use
While this is very subjective, I recommend you compare the ease of use with Shop Boss compared to any other program out there.  Most of the programs look like they were designed about 20 years ago.  And in some cases that's true.  Shop Boss is current, using the latest technology to deliver the smoothest operating Shop Management Software on the market.

Price
Sorry, but in this one, Shop Boss wins again.  Does any other program offer a free version for smaller shops?  Hmm.  What about paying less if you have a bad month?  Hmmmm.  Shop Boss does all of that.  You dont have to pay one flat price no matter how much you use it.  So how about real numbers.

Mitchell Manager Plus - $175.00 per month without Ondemand5 (for repair and estimating)
MaxxTraxx - $119.00 per month plus $9.00 for every computer you want to run it on.
Shop Boss Pro - Our pricing is based on your production.  Take a look below.

0-10 Repair Orders in a calendar month - $0.00.  That's right, its free.
11-30 Repair Order in a calendar month - $29.95.
31-55 Repair Orders in a calendar month - $69.95.
56 or more Repair Orders in a calendar month - $99.95

How can we offer a product that is easier to use and costs less?  Simple.  Our product runs on the internet, not on your computer.  So we dont have to send out thousands of CD's every time we want to update, we just do it.  And lets not forget backup.  MaxxTraxx offers monthly backup for your server for an additional $12-$46 dollars per month.  Pshaw.  Shop Boss Pro backs up your data everyday at no charge.  If they are going to offer a complete solution, they should start right here.

Well, I suppose I didn't stay very objective in this one, so don't take my word for it.  Try them out and see which one best suits you.  You can try ours out by clicking here - www.shopbosspro.com.  For the others, you'll have to wait for them to allow you to download and install and then hope it all works.

Good Luck and keep the wheels spinning!

Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems. To do their part, Boss Software offers a low-cost version of their program for small shops and prices the software to help keep a shop in business.

Business Plan - Fact or Fiction

Why do I need a business plan?  This is probably one of the issues most auto repair shop owners never consider.  I mean really, we can fix cars and people need their cars fixed.  Why does it need to be more complicated than that?  Well, if you aren't looking for big success as a shop owner, it doesn't!  But if you want to grow your business and continue to be in business 5 or 10 years from now, a business plan can help you lay the track for getting there.

The main point of a business plan is to help clarify a few things.  It doesn't need to be pages and pages of info, just a page or two can help get our thinking right.  A business plan should...

1. Define our market - if we specialize in BMW and Mercedes, then we need to know where they are and how to reach them.  It's not enough to say "Everybody has a car and everyone needs repairs".  This is true, but it's also true that they probably already have a shop that they take their car too.  So how do we get them to come to us?
2. Define our mission.  If your mission is to earn an honest living, then your mission statement could be something like "To provide honest car service at a fair price to my local community".  If you want to take over the city in auto repair, you statement could be "To become the largest auto repair shop in the area".  A mission statement simply defines what our shop is driving toward. 
3. Define how we get there.  What will be our path and what will be the tools to continue on that path.  If we start a journey in our car, but have no map, no destination and no money for gas, that could be a really adventurous trip, but not a very long one.  If your shop is in it for the long haul, a plan will help you get there.

Good luck and keep the wheels spinning!
Chris Boshaw is the Owner of Shop Boss Pro, a web-based auto repair software package for non-dealer repair shops. If your ready for the easiest to use shop management system, check it out at www.shopbosspro.com.

Staying Profitable in a down Economy

Staying profitable in an Auto Repair Shop in any economy can be challenging, but in a down economy, we have some extra work to do.  Many businesses fail because they fail to take advantage of current market conditions that can serve them well, whether business is booming or a bit on the slow side.  So what market conditions can Auto Repair Shop's take advantage of today?

One of the main principles we need to grasp to answer that question is this.  People still have the same basic needs when the economy is slow as they do when business is good.  Food, clothing, shelter and in today's busy world, transportation.  When things are good, we tend to buy new things to replace our old, slightly used stuff.  But when times are tough, we look for ways to save money without giving up our way of life.  So we look for ways to save with things like coupons, carpooling and fixing the things we have instead of replacing them with the latest and greatest.  Now that we have locked that little piece of information away, how can we use it?  Well, here are a few statistics that might suprise you.

The average length of vehicle ownership in 2002 was 38 months.  By the end of 2011, that average length of vehicle ownership was over 57 months.  We as a society are now keeping our cars and trucks for a year and a half longer than we did just 10 years ago.  Now I know I am preaching to the choir, but any car over 3-4 years old needs more maintenance and repair than a 1 year old vehicle. 
So, what can we do with this information?

First, let's be sure we offer competitive pricing compared to other shops (especially dealers) on scheduled maintenance, brakes, tires and oil changes.  These are items that every vehicle needs and they are substantially less than the price of a new car or a new engine.  They also provide excellent opportunities to earn customer trust and loyalty. 

Secondly, contact a local newspaper or radio station and offer a free service valued at say $200.00 to a needy person or family in the area.  For example, you could offer 1 free brake job per month to help those in need or perhaps a military family.  Now, before you start counting the cost, consider the revenue.  You will get free advertising on radio and newspaper with something that is community centered and promoted by the station.  Have them come out once a month to interview the customer you are helping and tell them why you are doing it.  A brake job on the average car won't cost a shop more than say $50.00, and you can't buy the kind of press and community goodwill.

Lastly, to make it during the slow times, you need to be lean and clean.  By this I mean that your shop needs to run at peak efficiency.  Not a drop of oil wasted, not an extra tool bought that you don't truly need and keep your monthly costs under control.  Consider everything from your shop management software to your dinner's out, to personal salary.  Look hard at everything and make sure you aren't spending a dime that you don't need to.

There is a quote I try to live by from fairly famous trainer, speaker and entrepreneur, Zig Ziglar.  It goes like this: "You will only get what you want in life when you help enough other people get what they want".

Good luck and keep the wheels spinning!
Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems.  To do their part, Boss Software offers a low-cost version of their program for small shops and prices the software to help keep a shop in business.

Follow up - the best advertising there is

As small business owners, we have a tendency to chase after the next big idea to get people in our shop (Yellow Pages, Newspaper, Mailers, etc).  After all, the more people that come in, the better the chance of success, right.  Not necessarily!  After all, it's hard to be financially successful doing $25 oil changes.  So where do we find a good source of customers that trust us and are willing to spend money with us?

The answer is so simple, it's easy to overlook.  Our current customers are our best source of new business!  Especially households that have 2 or 3 vehicles.  The customers that have already trusted us to replace their brakes will also trust us to replace a muffler, or a water pump or a horn assembly.  It just makes sense.

The obvious difficulty in getting these customers back is how to reach them.  Sending out letters can be costly, though this is an effective method.  It's also time consuming.  We could pick up the phone and call them, but that can be one of the most difficult ways of getting in touch.  Imagine you pick up the phone to call John or Mary and let them know you apppreciate their business and would like to see them come back and 5 customers walk in the door.  Tricky to make good follow up calls during business hours.  So what's the alternative.  MAKE IT AUTOMATED!

With good shop management software, you can schedule automatic email follow up to all of your customers.  Include a special offer of 5% off on their next visit and they will love to hear from you.  Everybody likes to save money.  Also, don't follow up just once and then forget it.  Customers should hear from you every 90 days or so to remind them of regular maintenance.

Following up your existing customers is the best source of business.  If every customer that came into your shop once came back again two or three times a year imagine how busines would grow.

Good luck and keep the wheels spinning!

Chris Boshaw is the Owner of Shop Boss Pro, a web-based auto repair software package for non-dealer repair shops.  If your ready for the easiest to use shop management system, check it out at www.shopbosspro.com.

21st Century Auto Repair Shop Management

Managing an auto repair shop in the new millenium can be a challenge for any shop, no matter what size the shop is.  When managing customer information, vehicle repair information and history, follow up and contacts or any other aspect of shop management, organization is key.  Many shops use computer programs to assist with this, but now there is a better way - Cloud Shop Management or CSM.

What is cloud computing.  Well, simple put it is the ability to use an internet connection to operate a given program.  The cloud is a representation of the internet.  So Cloud Shop Management or CSM allows shop owners to access a Shop Management System (SMS) via the internet

CSM allows a shop owner to gain access to their important management applications from anywhere.  Home, home office or even away from the office.  Good CSM providers will allow you to work from a laptop, Apple IPad or tablet PC, and eventually even smart phones.  And if your an Apple fan, good CSM systems will operate on any Apple Computer (IMac, PowerBook etc).

The biggest question most people ask is "What benefits are available in CSM compared to desktop applications".  We have found there are 4 major advantages for CSM over traditional desktop programs.

• Access the application from anywhere you have an internet connection
• Data for the application is stored in the cloud.  This means you never have to worry about backup or loosing data if a computer crashes at your shop.
• Disaster Recovery.  Auto repair shops are a fairly hazardous environment.  In the event of fire or a natural disaster, you can begin processing work orders by simple plugging in a new computer.
• Cloud computing offers features desktop application cannot or do not.  Abilities such as Text Message alerts to customers about their repairs, Email follow up and even allowing customers to view pictures of the work and their invoice online from any internet capable device.  This means you can attach pictures of the repair work to the work order, notify the customer via Text Message on their smart phone and the customer will be able to click a link to view the work order and the pictures of the repairs!

As with any cloud computing, an internet connection is required.  Some applications require a high-speed connection, while others will operate well with only a dial-up connection.  If you are considering using a CSM for your shop, be sure you have the following tools.

• An active internet connection.  If broadband (Cable, DSL, Satellite) is available in your area, you will get your best results with one of these type of connections.
• Have a backup plan if your internet connection dies.  Good examples are a dial up connection and/or a cellular connection.  Most areas of the country now have 3G or 4G internet connections via the cellular phone network.  Use a smart phone or 3G router to enable your internet connection in the event your land-based connection become unavailable.

CSM is certainly on the leading edge of the Shop Management world and will eventually replace the traditional desktop applications.  If your ready for the upgrade to the Cloud,  check out Shop Boss Pro.  The offer a fully featured CSM with prices ranging from free to $99.95 per month depending on how busy your shop is.

Good luck and keep the wheels spinning!

Chris Boshaw is the president of Boss Software Inc., the providers of Shop Boss Pro.  For more information or to republish this article, contact them at (800) 214-7051.