Working to maintain adequate business performance today while endeavoring to grow to keep up with rising costs can be a business owner's toughest struggle. The greatest challenge in achieving both goals can be in deciding which areas of business need special attention for the moment and how to give that attention adequately.
The performance of any business largely relies on maintaining balance in a combination of 4 key components: skillful staff, adequate work environment and equipment, efficient resources in vendors and effective financial management. Having any one of these four out of alignment is tampering with the potential our business has to meet expectations.
Although financial management was listed last, it was the first on the list in opening the doors of your business and mine, too. Some may argue that skillful staff (beginning with their own expertise) was the original key, but, money was the resource that funded the tools to attain that expertise. Vision always precedes financial investment and financial investment always precedes expertise. Basically, we haven't experienced too many adventures in our past that didn't somehow, at some point, involve money.
Something I share with colleagues and students regularly, having learned it years ago in considering my customers and the goals I had for them and me, ''Without money, nothing happens and without customer satisfaction, nothing happens for very long.'' Attaining both is so crucial to the success of any business that I continue to emphasize the importance of both priorities - we must have money and we must have customers.
Several times each year, in a variety of locations, I present a training course that keys to analyzing the profit structure of the independent repair shop. Shop owners are given individual attention during the course as we work through the financial structure of their business. It gives each an opportunity to define their expectations for their business and explore its potential based on the current performance of key components. Plugging certain information about the shop's performance into formulas that help owners calculate their alignment within its present structure will reveal any that need special attention to improve. Of course, step two is the other half of our ultimate goal for this course for these shops, deciding the strategies for achieving that improvement. For each shop owner there, the areas needing attention will different.
One common misconception always confirmed at the start of this course is the belief shared by the majority attending that 'shop rate equals true flat rate'. As owners plug real information into key formulas, the greatest percentage of them continue to be enlightened by the difference in what they've believed the business performance has been and what it truly is. That's usually the bad news. The good news comes when they see how do-able the needed changes are for them to make a difference in how their business responds to their efforts.
If your business continues to fall short of profiting enough to meet the demands of expense, you may want to take the time needed to make these same simple calculations about it. I have the worksheets available to assist you by calling my office, 888/338-7296.
Do you need to revisit your business structure and explore the areas that appear to be burdening its profitability? To help you decide, consider the following statements and mark each True or False.
T F I accomplished all that I set out to last year.
T F My business performed the way I needed it to these past 12 months.
T F The business provided all that was needed to each shop member.
T F I did not struggle to pay the bills again.
T F I did not lose good employees to others willing to provide benefits that I could not.
T F I did not lose money on misdiagnosis from lack of updated equipment and training.
T F The climb to pull ahead does not seem to be constantly uphill no matter what changes I make.
T F I was not forced to put needed savings and investments on hold another year.
As you ponder solutions to the challenge of your business performing to your expectations, remind yourself of this fact: just as life's experiences help define the things that we cannot count on, they also educate us about the things that we can. Unfortunately, many of the things that we learn we can count on are truths that simply confirm that some challenges will always be exactly that! For those truths, we must learn to accept them as such and work to convert a seemingly negative impact on our business to one that is positive, instead. For instance, several truths that experience teaches us is how we can depend on the vehicles we service becoming more complex but customers not understanding that complexity; how costs will always increase year after year to produce the same work; how finding and retaining good employees will always consume a fair amount of our energy and always for the sake of our customers and business goals; how the level of stress in owning a business may fluctuate bad to not-so-bad but will never go away completely (and the list goes on!).
This seems like the appropriate spot to pose the most important question: Are you fully prepared to consider every change that you learn your business needs to see or would you rather try to stay comfortable with the idea of skipping some of the changes needed to see if that will do? Remember, we talked about this in the beginning, how it's up to you, and here's the defining question.
To some, the word, CHANGE, congers up an ugly picture but, for the auto repair industry, the reality is this: the one thing that has remained constant is change and so must we. If fact, this industry changes at a rate so rapid that we hardly have time to catch up! There's not time enough to be paralyzed with the idea of 'wish I could make more money at this, I know I’m worth it. I’m dedicated, compassionate, and really want everyone to win, me included'. We have only enough time to understand how imperative it is to have good, working knowledge of our business and its operating costs and acting on that knowledge.
Today, equally as important as the technical side of business is the educated understanding of the money side, too. No guessing or assuming or conveniently hovering just above or below your competitor's price, hoping to make enough money to pay your own bills. When it comes to meeting needs fully, the basis for our increase must always begin with an accurate minimum and you may be surprised at what you need every month just to keep the doors open.
I recommend that you calculate your shop rate at least 4 times a year or any time you make a major purchase. Calculating correctly can be tedious but never really difficult, and always be honest and accurate with your numbers or risk not making the money you need and deserve! Again, I will be glad to help you with the formula for determining true Flat Rate by simply calling me at 1-888-338-72966. Please call to schedule a phone consultation.
Full details about ESI’s Professional Business Development training and support programs can be visited at www.esiseminars.com, dedicated to teaching specific strategies that assist professionals and their workstaff in achieving maximum business growth. Renowned instructors and industry consultants, Maylan Newton, Ray Kunz and Ray Warner, are available to bring courses to anywhere in the nation and can be reached by calling 1-888-338-7296; FAX 805-526-3254, E-Mail maylan@esiseminars.com
Tuesday, December 16, 2008
Friday, December 5, 2008
ARE ALL EMPLOYEES CREATED EQUAL?
Just as important as acknowledging that 'all men are created equal' is acknowledging that all employees are not, or, at least, not where skills and job performance are concerned. As job success relies largely upon the success of technology and equipment provided by people seeking to customize for the individual yet diversify for the majority, ‘accomplishing’ can be a test more often than a task. Anyone who works with equipment where the word 'leads' actually refers to that which connects them to the ability to do the job knows both, the good and bad of the meaning of the term 'hi-tech'. Whether perched in front of a sewing machine or a computer monitor, today’s employee is either, directly or indirectly plugged into hi-tech maneuvering somehow. It’s no wonder the frustration for both employers and job seekers trying to find the perfect fit.
It’s been said that employees are like street cars..... if one doesn’t work out, just wait a few minutes and another will be along shortly. I say that good employees ARE the streetcars carrying the rest of the employees who are mis-matched for the job.
Choosing and placing the right person for the job will always be a great challenge but can and must be done. If your ‘search in progress’ has you butting your head against the wall, don’t give up so easy. Refine your focus to easier separate 'qualified' from ‘not’.
Remember to always have minimum production goals and expectations for every position. Be sure to explain their detail to your applicant BEFORE you do the hiring. This helps eliminate disappointments from poor performance that you might otherwise have.
RULES FOR HIRING A GOOD EMPLOYEE
RULE #1 Don’t allow desperation to force you to hire the first 'warm body off the street'. Desperation must always give way to the greater priority, finding good help!
Yes, with costs in training and paying for mistakes that can happen with new personnel, we’d all like to score the best person for the job the first time around. But, those chances are slim. Just like building quality into anything, it takes time to build a good, workable team. Rely on your patience and take the time needed to make right choices. Hits and misses are a natural step in the process but be patient-your team will come together.
RULE #2 You should always be recruiting qualified employees, always looking to replace the weakest performer in your business. Remember, the right person comes along rarely, in fact, usually when you’re not looking. Don’t let the right employee leave.
RULE #3 Keep the interview process in balance, neither rushed nor lengthy. Review the application thoughtfully, considering several issues:
A) Was the app filled out completely and, if information is missing, why?
B) Did anyone witness prospective employee filling out the application or was it ready in advance, just submitted? It’s important that the applicant be able to read and write and this is one way of knowing.
C) Are there gaps in their employment history and, if so, what is the explanation?
RULE #4 Don’t be afraid to want to know what you need to know about the person. Keep in mind that priority is to employ someone qualified to help maintain and grow your business to the fulfillment of your goals.
A) Because particular questions cannot be asked of neither, applicant nor former employee, have a list of questions written down so that you don’t miss anything as you stay within the limits of the law. Don’t rely on memory.
B) Listen more than talk. Remember that the idea of the interview process is not to tell the applicant what you know, but to find out what he or she knows including their priorities, goals and expectations of your business. This information will explain a lot more than what you may realize.
C) Arrange for qualified applicants to have lunch with the rest of the team, without owner or manager. Make sure team members know what can be discussed and what can't.
RULE #5 Don’t hire people who don’t have good job references. Make a list of reasonable minimums acceptable in references based on qualifications the job needs and don’t allow desperation to adjust it.
Always verify references both, job-related and personal. I am often amazed with the information I receive about the person in doing this so don’t miss this step.
Remember, there’s a difference between not having good job references and having bad ones. Of course, you wouldn’t hire someone with a bad reference, but, would you bring someone aboard who doesn’t have good ones? If you can’t get good references from former work sources, you only fool yourself hiring the person anyway.
Someone who appears to have had problems on every former job will, most likely, be a problem for you, too. Chances for a good choice are better when at least 75% of their references are favorable.
Rule #6 Ask about work habits
According to the standards your business dictates and what the applicant’s position requires, define good work habits. Ask about the applicant’s work habits with former employers.
Pay attention to the applicants' body language, what they are wearing and the condition of the vehicle they drive. This will give you insight to their self esteem and professionalism.
Rule #7 Be prepared to provide adequate training
It’s human nature to believe a little better of ourselves than what’s true. Be prepared to benefit only about 60% of your new employee’s claims of abilities and ready to provide training to bring them up to 100%.
Ask how he or she feels about further training. You should have a minimum number of training hours recommended and arrangements available for each position. Training is not an expense, but an asset to your business.
Rule #8 never believe that any one particular person can save your life
Although one employee can certainly impact your chances for success, never, can one, alone, provide it. Counting on someone else to do just that is never wise. You must choose each employee based on both, the idea and the environment of 'team'.
Sharing responsibility of interview and choice with co-workers should be an asset to the tasks.
GOOD LUCK
ESi has a great hiring resource available in our Automotive Business Survival Kit.
Just as important as acknowledging that 'all men are created equal' is acknowledging that all employees are not, or, at least, not where skills and job performance are concerned. As job success relies largely upon the success of technology and equipment provided by people seeking to customize for the individual yet diversify for the majority, ‘accomplishing’ can be a test more often than a task. Anyone who works with equipment where the word 'leads' actually refers to that which connects them to the ability to do the job knows both, the good and bad of the meaning of the term 'hi-tech'. Whether perched in front of a sewing machine or a computer monitor, today’s employee is either, directly or indirectly plugged into hi-tech maneuvering somehow. It’s no wonder the frustration for both employers and job seekers trying to find the perfect fit.
It’s been said that employees are like street cars..... if one doesn’t work out, just wait a few minutes and another will be along shortly. I say that good employees ARE the streetcars carrying the rest of the employees who are mis-matched for the job.
Choosing and placing the right person for the job will always be a great challenge but can and must be done. If your ‘search in progress’ has you butting your head against the wall, don’t give up so easy. Refine your focus to easier separate 'qualified' from ‘not’.
Remember to always have minimum production goals and expectations for every position. Be sure to explain their detail to your applicant BEFORE you do the hiring. This helps eliminate disappointments from poor performance that you might otherwise have.
RULES FOR HIRING A GOOD EMPLOYEE
RULE #1 Don’t allow desperation to force you to hire the first 'warm body off the street'. Desperation must always give way to the greater priority, finding good help!
Yes, with costs in training and paying for mistakes that can happen with new personnel, we’d all like to score the best person for the job the first time around. But, those chances are slim. Just like building quality into anything, it takes time to build a good, workable team. Rely on your patience and take the time needed to make right choices. Hits and misses are a natural step in the process but be patient-your team will come together.
RULE #2 You should always be recruiting qualified employees, always looking to replace the weakest performer in your business. Remember, the right person comes along rarely, in fact, usually when you’re not looking. Don’t let the right employee leave.
RULE #3 Keep the interview process in balance, neither rushed nor lengthy. Review the application thoughtfully, considering several issues:
A) Was the app filled out completely and, if information is missing, why?
B) Did anyone witness prospective employee filling out the application or was it ready in advance, just submitted? It’s important that the applicant be able to read and write and this is one way of knowing.
C) Are there gaps in their employment history and, if so, what is the explanation?
RULE #4 Don’t be afraid to want to know what you need to know about the person. Keep in mind that priority is to employ someone qualified to help maintain and grow your business to the fulfillment of your goals.
A) Because particular questions cannot be asked of neither, applicant nor former employee, have a list of questions written down so that you don’t miss anything as you stay within the limits of the law. Don’t rely on memory.
B) Listen more than talk. Remember that the idea of the interview process is not to tell the applicant what you know, but to find out what he or she knows including their priorities, goals and expectations of your business. This information will explain a lot more than what you may realize.
C) Arrange for qualified applicants to have lunch with the rest of the team, without owner or manager. Make sure team members know what can be discussed and what can't.
RULE #5 Don’t hire people who don’t have good job references. Make a list of reasonable minimums acceptable in references based on qualifications the job needs and don’t allow desperation to adjust it.
Always verify references both, job-related and personal. I am often amazed with the information I receive about the person in doing this so don’t miss this step.
Remember, there’s a difference between not having good job references and having bad ones. Of course, you wouldn’t hire someone with a bad reference, but, would you bring someone aboard who doesn’t have good ones? If you can’t get good references from former work sources, you only fool yourself hiring the person anyway.
Someone who appears to have had problems on every former job will, most likely, be a problem for you, too. Chances for a good choice are better when at least 75% of their references are favorable.
Rule #6 Ask about work habits
According to the standards your business dictates and what the applicant’s position requires, define good work habits. Ask about the applicant’s work habits with former employers.
Pay attention to the applicants' body language, what they are wearing and the condition of the vehicle they drive. This will give you insight to their self esteem and professionalism.
Rule #7 Be prepared to provide adequate training
It’s human nature to believe a little better of ourselves than what’s true. Be prepared to benefit only about 60% of your new employee’s claims of abilities and ready to provide training to bring them up to 100%.
Ask how he or she feels about further training. You should have a minimum number of training hours recommended and arrangements available for each position. Training is not an expense, but an asset to your business.
Rule #8 never believe that any one particular person can save your life
Although one employee can certainly impact your chances for success, never, can one, alone, provide it. Counting on someone else to do just that is never wise. You must choose each employee based on both, the idea and the environment of 'team'.
Sharing responsibility of interview and choice with co-workers should be an asset to the tasks.
GOOD LUCK
ESi has a great hiring resource available in our Automotive Business Survival Kit.
Thursday, December 4, 2008
Interesting Article on Advertising
Hello Everyone,
A client sent me this link and I thought it had an important message, please take a minute to follow this link and read the article written by Robert Kiyosaki, author of the Rich Dad series of books.
I don't feel you have to have the biggest ad, but you need to put your name in front of your clients and potential clients consistently. Top of mind awareness is crucial. This is not the time to be lowering or eliminating your advertising budget. Be on the offense not defense when planning you advertising strategy
Please plan on joining us in January for a brand new advertising and marketing seminar. Call for details.
As always please call if we can be of any assistance to you.
Thank you to John @ Orinda Motors for finding and sending this to me.
Have a great holiday season.
Maylan
Please follow this link:
http://www.entrepreneur.com/magazine/entrepreneur/2008/november/198022.html
A client sent me this link and I thought it had an important message, please take a minute to follow this link and read the article written by Robert Kiyosaki, author of the Rich Dad series of books.
I don't feel you have to have the biggest ad, but you need to put your name in front of your clients and potential clients consistently. Top of mind awareness is crucial. This is not the time to be lowering or eliminating your advertising budget. Be on the offense not defense when planning you advertising strategy
Please plan on joining us in January for a brand new advertising and marketing seminar. Call for details.
As always please call if we can be of any assistance to you.
Thank you to John @ Orinda Motors for finding and sending this to me.
Have a great holiday season.
Maylan
Please follow this link:
http://www.entrepreneur.com/magazine/entrepreneur/2008/november/198022.html
Wednesday, November 26, 2008
Communication is the key to successful shop managment
Educational Seminars Institute (ESi) Provides Automotive Management Solutions for all types of Repair facilities located across the USA.
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The one thing that all the repair shops I visit seem to have in common is the lack of effective communication. This lack of communication affects everyone from the technicians to the customers. As the owners and managers we can’t understand why our employees can’t read our minds. We expect certain things to be done in a certain way but we never communicate what we want done or how we want it done.
Our expectations are not met because we do a poor job of explaining what we want. For any shop to be profitable we need open honest communication from all parties involved. The technicians need to feel comfortable in speaking their minds on any subject. The managers & owners have to take this information as business and not take it personally. The number of employees that will not speak honestly to their employers is astounding. When ask why the employees will not talk with the boss most feel that they are not listen to or their ideas taken seriously.
I feel their are four basic reason most people will not speak up and voice their opinion or ideas.
1. The fear of being wrong. Most of our employees have a low self worth and for years have been told they are not smart enough or talented enough to be successful. Most of our employee have great ideas but feel we will not be receptive to their ideas.
2. The fear of ridicule . if the employees never express their ideas no one can ever belittle them. It is human nature for everyone to desire acceptance from our peers.
3. The fear of being found incompetent. By expressing their thoughts and ideas some employees are afraid that they will display the limit of their knowledge. Many employees project a higher level of knowledge than they really posses.
4. The fear of confrontation. If the employees speaks up and the owner or manager disagrees with the statement. The manager or owner then belittles the employee or raise there voice to over power the employees by intimidation.
So many times our idea of effective communication is to yell or intimidate our employees into our way of doing things. Most cases they haven’t met our exceptions because we haven’t communicated our expectations.
We have address some of the ways we don’t communicate well let’s discuss ways to communicate better. One of the best ways to establish good communication is to hold regular scheduled meetings. Some shops have a meeting every week others BI-weekly some monthly. The main thing is to meet on a regular basis. This meeting has to be a non confrontation type. Open honest communication will improve the relationship between you and your employees. Write down all the main points of each meeting and then report on the outcome or decisions made at the beginning of the next meeting. Be sure to give consideration to all ideas and comments. Have the employees research and present their findings for any equipment’s or suppliers they may want or need.
Any rules, regulations or policies you want your employees to follow must be in writing. Any verbal instructions you give an employee the most effective way to be sure that the employee understands is to ask the employee to repeat your instructions in their own words back to you. Remember that your instructions must complete and concise. Do not rush the instructions. When possible give the instruction in writing. Be sure to include the time frame to complete the task and the source of any additional information they might need.
Be sure to provide POSITIVE reinforcement during the task.
Remember that as the leader of the business YOU must accept partial responsibility for any problem in the shop mostly due to poor communication.
Please let me know if I can help you with any of your Shop Management Issues
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