Building Your Future with an Auto Shop Management System
As much fun as it is to fix cars while delegating tasks to auto shop management system, the shop where you wield your wrenches may not be part of your life forever.
A report by Wilmington Trust has discovered that COVID-19 has led some entrepreneurs into a ‘rush to retire.’ Whether you’re feeling burned out, or it is simply retirement time for you, an exit plan with a favorable sales price for your shop can fuel your retirement.
Without a plan, you could lose the value you have built up over the years. Here, we’ll walk through a plan to transfer your hard work, customer relationships, tools, and processes to the next generation.
Get up to speed with industry-leading technology
Make it easier to showcase your shop through the use of real-time labor guides. Having auto repair software with ordering and payment integrations allows for full transparency for prospective buyers to easily see how your staff drives revenue. As an added bonus, a well-oiled business doesn’t need the previous owner to be there to succeed.
The Wilmington Trust report also says that business owners’ recent investments in technology, such as contactless payment systems, have paid off. Fifty-three percent saw valuable ROI in terms of cost savings.
ABC: Always be crunching (numbers, of course!)
A potential buyer will want to follow the revenue and profit numbers. When you have the right shop management system set up, those figures are right at your fingertips.
Set up a time with your accountant or financial advisor to conduct a business valuation so you know how much your shop is worth. This appraisal will help you to translate the value of your shop to buyers who may be shopping around. This exercise can also reveal some metrics you need to improve before listing your shop. Focus on your gross parts calculator and eliminating any debts first.
Build your A-team
You want the best from each member of your team, whether they are working the front desk or rebuilding transmissions. By tracking each person’s performance with a shop management system, you can easily identify the rock stars.
Sharing Shop-Ware metrics will also paint a picture for your staff as to what you’re accomplishing as a team. One thing’s for sure, a productive and happy staff is an asset to your business.
Whether you’re looking to sell to a family member, a long-time employee with a head for business, or an automotive repair chain, build in lead time. The sooner you identify the potential buyer, the sooner you can gauge if they are the right fit.
Get out of your comfort zone
Getting involved in the community or an auto shop association will build your network of people who may be interested in your shop. Your aftermarket peers can also save you from making hard-earned mistakes.
Additionally, you never know who may have an interest in your shop (or have a connection to someone that is interested). Expanding your network can open up new opportunities.
Finally, always run your business with one eye on the present and the other on the future. Yes, short-term successes win the day, but you’ll also take great pride when you see your shop thriving long after you hang up your tire gauge.
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