Many owners struggle with the point of “managing” their business as they really have not been able to truly understand what in fact they should be doing in a management function. Management is a “position” within the business and has key responsibilities. Here are 2 checklists to guide your function and if in doubt on any points, get into a shop management business class to understand with clarity, managements role today in a successful business.

BUSINESS FINANCIAL CHECKLIST

- Complete a Year-end Bankers analysis and the Return on Investment form.

- List the business strengths and weaknesses.

- Prepare a written plan to eliminate the weaknesses and turn them into strengths.

- Adjust the computer software on the front counter to track the recommended revenue categories required today in order to analyze the business properly.

- Establish and set the gross profit percentage return for each revenue category.

- Adjust and implement the maintenance, diagnostic and reflash door rates according to formula.

- Using the “Pricing for Profit” formula, calculate the number of customers the business can afford to lose in worse case scenario at the new door rates.

- Establish internal accounting/bookkeeping procedures to track recommended revenue and expenses.

- Establish an internal monthly operating statement procedure.

- Review inventory and set up the process to track and measure inventory turns by category and line as recommended

- Review all account receivables and complete a profit analysis on each account. Bring A/R into recommended guideline.

- Complete the personal breakeven form to establish desired personal net monthly income.

- Complete a Business Operation and Profit Plan with daily sales objectives to net desired objectives.

- Calculate average billed hours per invoice. Review increases required to meet objective.

- Calculate current number of tires sold per hoist and revise procedures to meet the objective.

- Calculate the current shop site efficiency.

- Calculate the requirements to achieve 80% shop site efficiency.

- Calculate the potential diagnostic hours currently available in your shop.

- Review front counter processes, capturing and documenting the technicians time to achieve the maintenance and diagnostic billed hours objectives

BUSINESS OPERATIONAL CHECKLIST

- Check Management’s attitude on a daily basis. Focus on being positive and determined to be the best you can be.

- Set up a meeting with the bank account manager to review business results and the business plan.

- Define in writing the value the shop offers its customers and clientele.

- Hold a staff meeting to explain the new business philosophy (clients versus customers), the shop strategy to deliver the value and retain clients, the business team concept and what’s in it for them.

- Hold individual staff reviews to re-enforce the staff meeting and define the expectations of each staff member to complete their role as part of the total team.

- Report daily to the staff reviewing the business objectives and the progress being made as each month moves forward. (i.e. billed hours per invoice, shop efficiency, sales compared to profit plan)

- Review vehicle inspection and documentation procedures.

- Subscribe to all necessary websites that enhance the business in terms of operational measurement, information and on-going knowledge.

- Review front counter processes for invoicing such as proper detailed explanations on invoices, printing of current and future maintenance service intervals, monitoring client counseling procedures and pre-booking the next service interval.

- Review outside and inside shop appearance and atmosphere as it pertains to client perception. It is all about the client’s experience while on your shop property. Design a Client Perception check list that is reviewed monthly with the staff.

- Meet with the shop’s main parts supplier to review the business objectives, strategy and how you and the supplier can work together to achieve a win/win business relationship.

- Complete individual staff reviews every six months

- Review monthly key business and technical articles in the Aftermarket journals

- Meet with the business attorney to discuss and complete a Power of Attorney form.

- Meet with the business accountant to discuss and prepare a baseline succession plan.

- Review annually all insurance requirements for the business and personal needs such as liability, life and disability income supplement.

- Meet every 6 months with the bank and submit a report on the business progress.

As you can see, the shop business today is far from a “Trade” concept and truly is a “Profession.”