Many shops have come to realize that most of their business is done at the front end of the shop. Because that's true, how well your office functions greatly determines your business success.
The first task in any front-office service industry is getting work through the door. After that, the next chore is keeping all that work organized, followed by collecting revenue and paying bills. Performing the actual service is last. You may be in the business of repairing cars, but your main business actually is attending to all the factors that allow you to do body work. Your front office is responsible for all this.
As part of any effective business improvement plan (the kind you probably should be implementing every year), it's time to take a closer look at your business front end and make some changes. Here are five sure-fire steps to get you on your way.
Step 1: Put a system in place
"But I already have a system," you say.
Really? Are the roles of your staff members meticulously spelled out? Do you have backups for these roles — people trained to take over duties should an associate become ill, go on vacation or suddenly leave? If someone met with your office staff and asked them to logically lay out the office business flow, responsibilities and location of key information, could they do that?The best office systems are recognized as systems. The best systems utilize employees who have been cross-trained on multiple duties. This way, should an employee miss work, your business doesn't miss a step. If you run a small shop with just one person on the office staff, train one of your techs on office procedures (don't rely on yourself when your office staff is out).
Regardless of how you divvy up responsibilities, be sure to offer as much training as possible and meet regularly with staff members to review your system. Ask for input on ways to improve it. Your staff members know better than anyone how to do their jobs. As such, they often have the best ideas on ways to increase productivity.
Another important part of your system should be documentation. You need to maintain accessible up-to-date documentation detailing how to use the various shop management and software programs you use and describing how to manage tasks involved in payroll, accounts receivable and payable, and other day-to-day chores.
One more important system factor you may not have thought about — always hire personable workers (at least get your office staff trained on customer service). Your office staff is the face of your business. This face either will help draw customers in and convince them to recommend your services later or send them away never to return.
Step 2: Upgrade your IT
All that information technology (IT) in your office serves one purpose — making you more efficient. Obsolescence and other factors can downgrade the efficiency of your office technology and sap money from your shop. You need not have the best, top-of-the-line computers, printers, fax machines and other peripherals, but you should possess current technology. Therein lies a problem. In a world of ever changing technology, what constitutes current?Obviously, if your equipment is turning yellow or bears the name of a computer company that no longer exists, it's time to upgrade. Other indicators are slow performance, problems that require frequent rebooting or issues that prevent you from upgrading or fully utilizing your shop management system. Check with your office staff and ask them for their input. Are they used to working with superior equipment in their own homes or elsewhere? Better yet, apply the rule many IT experts set for businesses: Upgrade your computers every three years, peripherals every three to five years, depending on use.
When it is time to upgrade (or if you're still debating whether to upgrade), be sure to hire an IT professional. Keeping track of information technology advances is a full-time job — a job few shops have the resources to afford. Contact a computer services company that has experience working with shops. A consultant will determine the best system for your needs and then build it within the budget you set. A consultant will recommend computer specifics such as memory, hard drive space and processor speed, which differ among shops based on need. The consultant will help you purchase the best performing, reliable system available. Consultants can discuss leasing programs that allow you to trade-in your system every few years for an upgrade. You'll definitely want to check into that.
A consultant also can set you up with the most reliable system possible, one with reliable network and Internet connections, with battery backups and other protections so it won't go down every time the power blinks. A consultant is important in this area because you'll have a known, valuable resource to turn to should you have problems or questions.
Finally, a consultant will set your shop up for the proper system backups. The most efficient way to store information is electronically. You'll want copies of this data archived in the event of a fire or some other event that might damage your system.
Consider these three tips to make the most of your IT setup:
1. Add another phone line. If you're sharing a line for your phone and fax, opt for a dedicated line for each. An extra line is a modest investment. Losing a business opportunity because a potential client wasn't able to reach you is expensive.
2. Purchase voice mail. This might seem obvious, but there are a number of shops that haven't opted for a proper answering service. Customers, especially the type who have just suffered through an accident and are anxious about receiving quality service, don't want to hear a busy signal or listen to a phone ring indefinitely. They'll take their business elsewhere.
3. Invest in a quality paper shredder ($300 and up). A good shredder will help you keep your office organized by eliminating the unnecessary stacks of paper that eventually build up. It also will help protect your business, employees and customers from identity theft and other scams that criminals run when they get their mitts on data with personal or company information. Why invest in an expensive model? The motors on cheaper varieties burn up quickly, which could mean stacks of paperwork and mail building up until you purchase another.
Step 3: Organize your information
The best office systems are the ones where information is best organized. The best way to organize and store information is electronically. Unfortunately, the collision repair industry is still paper dependent, so you'll need to maintain two information sets — one paper and one electronic. But the good news is you can use some of the same systems to organize both.Those systems should be based on how you search for information — by date, service number, client name, alphanumerically, etc. This varies from shop to shop.
For paper records, maintain adequate space. Files shouldn't be crammed together. When you start to run out of space, begin archiving older records that you don't need immediate access too. A number of small businesses offer archiving services.
Organizing your electronic records can prove to be a bit more challenging. If the root drive of one of your computers is a series of random files and folders, you need a better system. Again, organize based on how you search for information. This can get tricky since electronic files can consist of layers of multiple folders, each of which may need opened to be searched. Keep your system as simple and intuitive as possible. Label folders so they can be identified easily. Organize their contents logically. Your staff shouldn't have to pause to think or try to remember where information is stored. They need to be able to access it with ease, which translates into efficiency and improved productivity.
One more piece of advice: Don't let your paper records linger on desktops or work areas. As part of your office system, set guidelines on getting paper into filing cabinets as soon as possible. If you don't, the sort of clutter you'll build up will cut into your efficiency. Do you really want customers or anyone else who visits your shop to see a messy, disorganized office?
Step 4: Optimize your ergonomics
Mention ergo-nomics and most people in the auto industry probably think of Honda and the uncanny, intuitive way instruments and practically everything else are laid out in their vehicles. Honda discovered long ago that motorists would much rather turn their attention to driving instead of awkwardly searching for the controls to the windshield wipers or headlights. The company has been richly rewarded for this.Take the same approach with your office staff. Set up desks, workstations and work areas that best lend themselves to work efficiency. Work with your staff and find out how they believe your office should be organized. Obviously, any equipment or products they use should be kept as close as possible to the applicable workstations. Your staff shouldn't have to continually get up from their desks to take care of normal tasks.
Optimum ergonomics revolve around enabling an employee to focus as long as possible on a task without interruption. Even how desktops are set up should be carefully thought out. The location of telephones, computer keyboards and supplies should be set up so they don't intrude on one another. In the office itself, the location of equipment and records should give employees easy access so they aren't tripping over one another or having to wait.
There should be sufficient "people" space in your office. Just as you can't have technicians bumping into one another or fighting for space to do their work, your office staff needs elbowroom. Experts have found that humans are much more productive when they have work areas with sufficient personal space. If your office is cramped, consider enlarging it. If you're unable to do that, hire an architect or designer who can provide ideas on how to make the best use of your space.
If possible, always maintain an office or a private room. Since offices sit in customer areas, employees are subject to frequent interruptions. A private area can help them perform work uninterrupted. You also should have such a room to talk privately to employees, insurance reps and customers, away from the prying ears and eyes of anyone in your waiting area.
Step 5: Prioritize business planning
This step may sound like it should be a part of step one or not belong here at all. After all, business planning centers on the entire business with a special focus on how the business's key services are administered. Office services are part of this mix. Sure, they aren't the service being sold. But they make those services possible and both deserve and need a place in business planning.Too many shops make the mistake of viewing their offices as a pure expense, a necessary cost of doing business. Front offices are far more significant than that. Since most customer contact comes via the office, the front office needs to play a central role in any effort to attract more business. At the very least, your office staff should be well versed in your future plans. The office is where your revenue stream starts. Widening it begins with making changes at your doors.
Final word: The realities of change
Plans to install order or improve the order of a business practice often are plagued by a simple fact of life. Some level of chaos typically follows. Despite your best efforts to make any part of your business bulletproof to screw-ups or errors, some problem will rear its ugly head. Some unexpected headache will upset the apple cart you've so carefully loaded.
All that's to be expected. As you fine-tune your front office, remember that the steps you take won't head off every potential problem you might face. Rather, ongoing efforts to improve the front end of your business help erase the worst and most common problems. Following that, anything that should arise is just one of the many manageable challenges you answer every day. That's the main goal of every business improvement plan — making your business more manageable.
Tim Sramcik is a freelance writer who has covered the collision repair industry for more than seven years. He has received national and regional awards for feature writing from the American Society of Business Publication Editors. He also has 18 years of experience in the technical writing industry.
