Mastering Management

Jan. 1, 2020
Again this month, we present some of the best business management ideas and concepts from consultants, trainers and shop owners. Feel free to send in your own success stories and tips! See the Brain Trust box for details.

1 Staying Tuned to Your Customers

THERE ARE A NUMBER of things your customers look for when choosing a place to take their vehicles for repair. If you know what they're looking for ahead of time, you can attract more new customers to your bays.

First, according to the Automotive Service Association (ASA), is the facility neat and clean, and are employees genuinely concerned with customers' questions? Also, when hiring and training your techs, be sure they share with customers information on tools and equipment used, showing the drivers that your shop is up-to-date.

Other things your customers are looking for that you should know about are credentials, such as ASA, National Institute for Automotive Service Excellence (ASE), the Inter-Industry Conference on Auto Collision Repair (I-CAR), Automotive Management Institute (AMI) and Better Business Bureau membership. Written estimates are key, and if you can provide a warranty, that is even better.

2 HELP WITH THE DREADED T-WORD – TAXES

The Small Business Resource Guide 2008 CD-ROM from the Internal Revenue Service (IRS) is designed to help small business owners comply with tax laws.

The CD covers a broad range of topics from starting to closing a business. Throughout the CD, you will find a wide variety of Web links to various government agencies, business associations and IRS organizations. Additionally, the "Rate the Product" survey feature is your opportunity to suggest changes for future editions of the Small Business Resource Guide CD.

3 Don't Let Your Marketing Slow With the Economy

BUDGETS ACROSS THE aftermarket are tightening just like your customers' wallets. While spending money on the proper tools and equipment is very important to keep them coming back to your shop, marketing also is imperative to keep — and draw new — customers.

A study by Penn State's College of Business states that a period of recession, which many believe the country is in, is a good time to increase marketing, not decrease it.

The study found that businesses entering a recession with a pre-established strategic emphasis on marketing, an entrepreneurial culture and a sufficient reserve of under-utilized workers, cash and spare production capacity were best positioned to approach recessions as opportunities to strengthen their competitive advantage.

Companies that increase marketing during hard times — when competitors are cutting back — can generally boost both market share and return on investment.

But that doesn't mean you need to spend more. Just be smarter and make sure you're hitting the right markets. The Automotive Parts Rebuilders Association offers six suggestions to make this happen.

  • Go online. The high cost of postage, paper and printing is one reason to turn to the Internet as a selling partner, rather than the post office. Also, the affordable cost of online marketing, the ability to communicate with customers on a one-to-one basis, faster results and better tracking capabilities are good reasons to go online, and e-marketing is also more environmentally friendly. Keep in contact with your customers to remind them of upcoming appointments or maintenance opportunities via e-mail.
  • Search for media deals. During an economic slowdown, paid advertising rates often decline, as media outlets start to feel the pinch. So you may be able to negotiate a great deal on space. Consider opportunities for barter transactions. Perhaps a couple of oil changes could be performed after hours in exchange for ad space.
  • Don't forget public relations. A public relations campaign can complement a marketing campaign at a reasonable cost. By using certain Web channels to distribute press releases, you can get information out to more readers and get listed on search engines.
  • Anticipate customers' behavior. Will your customers look for quantity discounts, postpone purchases, negotiate for lower prices or trade down to less expensive products and services? Tailor your promotions and marketing messages accordingly. Emphasize reliability, quality and value.

4 SBA makes it easier to learn about loans

THE U.S. SMALL BUSINESS ADMINISTRATION (SBA) has modernized its Standard Operating Procedure for lender and development company loan programs.

The revised document, SOP 50 10, has been cut in length from 1,000 pages to 400 and is more logically organized, the SBA says. The SOP is directed to SBA's Lenders and Certified Development Companies and is streamlined and more user-friendly.

In addition, the SOP has been updated to be an electronic document using Internet hyperlinks to take the user to the most recent editions of relevant regulations and forms.

"Re-writing an SOP doesn't sound glamorous, but it is one of the most important tasks we have undertaken to improve our relationship with lenders and enhance delivery of our loan products," SBA Administrator Steve Preston says. "The previous SOP was long, complicated and outdated, and lenders cited it as a major impediment to working with SBA. We hope the new document will make it easier for lenders to understand our programs and use our product."

The new SOP is divided into three sections: Lender and Certified Development Company Participation criteria, 7(a) Business Loan Program and 504 Certified Development Company Loan Program.

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