Knowing your costs is CRITICAL. You must know your costs and where your money is being spent.
That is why working with numbers is very important.
Don't tell yourself you are not good at math. Mathematics is a learned skilled, and like any skill you become good at it with practice, practice, practice.
One thing that helped me work with numbers in my head, was understanding sequences, like a serial sequence 1, 2, 3, 4, 5, ..., or geometric 1, 2, 4, 8, 16, 32 (exponential growth) or 1, 1/2, 1/4, 1/8, 1/16, 1/32, 1/64, 1/128...(decay) or logarithmic 1, 10, 100, 1000, 10000, 10000.. you get the picture. If you can visualize this (google) sequences in you head, you can visualize growth and the growth of your business.
The same thing with markup and margin, learn percentages and how by moving the decimal point you can make quick calculations in your head.
Like I said, math is a skill and as with any skill you only become good at it with practice, practice, practice. Stay the course with your marketing, make your call, send your postcards, mail your offers.
Edit: just wanted to add, look for books that teach you how to work with numbers and do quick calculations in your head. Different people have ways of explaining the simple concepts that will make sense to you.
Edited by HarrytheCarGeek
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HarrytheCarGeek
You are right, they put food on the table.
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HarrytheCarGeek
I find a to-do list helpful to keep me on track. I plan my day the night before, I take a few minutes to visualize what I need to accomplish the next day and prioritize my list accordingly. At the beginning I would fail to consistently do this, but I stuck with it until the habit developed. Now it has become second nature.
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HarrytheCarGeek
One thing that gets in the way of our success is when we fail to learn new ways to do things, to improve things, to keep up with new processes and technologies.
When learning something new, don't rush to judgment, learn with an objective mentality to see if what you know has become obsolete and a new more efficient way has been developed. Senior managers are set in their ways and often refuse to learn how technology has advanced, shutting out new ways to improve their shop's performance and efficiency.
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HarrytheCarGeek
Set aside time to read and catch up on the latest industry news, always keep in mind the most valuable resource you have is your time.
Having said that, Andy Fiffick has a nice article on the December 2016 edition of Motor Age concerning multi-shop ownership. Excellent points made regarding why there is more multi-shop ownership on the collision side of the industry than general repair.
http://images2.advanstar.com/PixelMags/motor-age/digitaledition/12-2016.html#26
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HarrytheCarGeek
Ok, end of the 1st week of 2017!
You should have 40 plus sales calls made. One very important thing that we fail to notice is that there is a lag time between any campaign's execution and its results.
For example, you run a billboard, it may take up to two weeks before you see your first lead from the date the billboard went up.
The same with your sales calls, it may take a few weeks for you to begin to see results.
Then there is the other side of the coin, a campaign that has been run for a while may grow stale and fail to produce satisfactory results. This is why it is important for you to keep track of your campaigns. You have to measure your results.
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HarrytheCarGeek
Second week out of 52. Remeber tax season is just around the corner, the early filers should be getting their checks by February, if your shops are in a area that benefits from tax returns, you should be getting ready for the increase cash flow.
Make your calls, send your post cards, mail your letters... Plan, plan, plan, execute, execute, execute!
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HarrytheCarGeek
They say that every 1,000 mile journey begins with the first step. Keep making your calls, sending your post cards, mailing your offers.
Lead by example. Many junior managers suffer from Impostor Syndrome, that is to say, they may feel like a fraud or not qualified to lead in the position that they are in.
You can search more on that on google for your own edification. Here is a link for reference: https://en.wikipedia.org/wiki/Impostor_syndrome https://en.wikipedia.org/wiki/Impostor_syndrome
Anyways, the point is that Impostor Syndrome may prevent some of your junior people from pricing your jobs correctly, because it may lead them to under price your services.
Address this, and teach them that value has to be delivered to the customer with certainty and confidence, otherwise the customer may fear he is overpaying for the service.
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HarrytheCarGeek
Middle of the second week, we are in the first 1/3 of winter. Keep reaching out to people, make friendly calls, send post cards, mail offers. Keeping consistent is the name of the game. Sometime soon you will notice your mind and body want to divert, your mind tells you to keep the course and your body will want to put it off. It's then that discipline comes in handy, little disciplines and positive habits helps you keep the course.
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HarrytheCarGeek
In the shipping industry, UPS and FedEx consistently raise their prices every year, as you can see here:
http://imgur.com/FPaQB3x
http://imgur.com/FPaQB3x
You should consistently review your costs and increase your prices to stay profitable every year, this should have been done last quarter, but there is no better time like the present if you haven't done so now.
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HarrytheCarGeek
https://www.lojistic.com/pdf/UPS-Fedex-General-Price-Increase-History.pdf
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HarrytheCarGeek
As works is coming in make sure you don't drop the ball with your sales and maketing. If you want to avoid the seesaw of feast or famine you must stay consistent making your calls, sending your post cards, mailing your offers.
That way you avoid the lag in sales if you get busy and neglect your marketing while you are busy delivering your work.
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HarrytheCarGeek
So, it's the end of the second week. You should have 80 to 100 calls made, be it phone, post cards, what have you. As you can see, simple steps add up quick if you stay consistent.
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HarrytheCarGeek
Third week of 2017, this is the last week of the first month of Winter. Plan your week, make your calls, send your post cards, mail your offers. Stop by some of the local businesses and get a feel for the mood, but don't let negative and toxic people affect your perspective, take it with a grain of salt, stick to your plan and meet your goals!
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HarrytheCarGeek
The way to avoid the roller-coaster of feast or famine is to stay the course and not to neglect your marketing as you get busy with work. Prioritize, schedule the work as efficiently as you can, visualize the jobs and try to anticipate any snags that may lock a car onto a lift. For example if a car is getting a water pump done, does it require a gasket? Small things that can snag your process can be prevented with a little thinking ahead. Keep making you calls, sending your post cards, mailing your offers.
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HarrytheCarGeek
Profit is not a four letter word, it is not a dirty word. Know your costs, as you are getting ready for tax season, this is an excellent time for you to review all your expenses and see where your money is going.
Pay yourself first, if you are a smaller shop that has set a goal of a net $20K profit after taxes, open an account and begin depositing $500 a week. Don't touch this money unless you really have to. Once you have got used to it, you will see that if you stay the course you will be netting your profit, even after paying yourself a full salary. Make it a habit.
Remember, don't buy yourself a job, own a business.
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