Searching out an auto repair shop coach

July 29, 2014
A big step, which today many progressive shops don’t talk too much about, is the understanding of having a personal business coach and mentor working behind the scenes with them on their business.    

There are shop owners across North America who have worked diligently on their business for years compared to in their business as so many owners have found themselves trapped.

These silent minority owners understand the difference between cost and investment into the business and that working on the business means that net income is a word they embrace. The business must provide a professional income for their own family and their staff, build a great loyal clientele and customer base as well as develop a historical record that the business has a progressive system in place to sustain profitability and grow through on-going evaluation procedures so it can be sold (succession) down the road.

Everything appears to be on track for those progressive shops, but how can an average shop reach that level when the path for the next five years is far from crystal clear? 

Perhaps you are one of those shop owners who is ready for the next step in your business.

The next step, which today many progressive shops don’t talk too much about, is the understanding of having a personal business coach and mentor working behind the scenes with them on their business.    

This is and should be a very humbling step and process to go through. It is very private and confidential; it is personal; it is focused; it makes people throughout the shop accountable. Everything is measured monthly in the business, and most important, if you truly are an entrepreneur capable of taking direction from proven processes, it brings incredible results.

A professional coaching and mentoring service is not something you just sign up for.  It is service that you must apply for.  This is not a program about volume, it is a special relationship of absolute trust and clear communication.

The best quality and proven coaching and mentoring services specialize in the independent automotive aftermarket service shop business. That is their only industry sector. They evaluate the business continuously viewing the business from the outside, including at 5,000- and 10,000-foot levels, that is required today to see how the auto care industry is evolving and what issues will affect their clientele.  The business coach supports the owner completely through open accessibility as well as provides the necessary management and staff business training to move things forward.

The coaching/mentoring service has a procedure and process for their new potential clients to take before they are even accepted as a client, because it will be a three- to five-year contractual relationship.  In all cases there will be a minimum prerequisite of having attended certain business courses they put on within the past year and a half to ensure the owner has an thorough understanding of today’s business realities and how they are going to approach the business.  It also always will involve a complete in-depth analysis of the business’ financial statements for the past two to four years. 

The reason for this is because the service company wants to know that a minimum of an additional $75,000 to $100,000 in gross profit per year is buried in the current business which, when pulled out, provides an excellent return for the business for the fees being invested for the service. Also interviews with the owner and spouse are completed to ensure the owner and spouse are committed to the business changes that the coach knows will be required, and most importantly, that the coach/mentor and owner’s personalities can work together. Too many shop owners think the coach will “do it for me,” which means they don’t get it, compared to the understanding of what the owner is really looking for which is “what should I do, where do I direct my time and efforts and how do I do it” to get the results?

The service is very in-depth, but when you think about it, the coaching/mentoring service must be in-depth as running a professional automotive service shop is the most complex retail business in the marketplace today.  This is why a quality coaching/mentoring service can be in the area of $2,500 to $3,000 per month for a three- to five-year term. Most shop owners would automatically say, “I can’t afford that,” but that means the owner is not thinking like an entrepreneur and has closed the door before even looking into the next room.

When the coaching service is a quality service, their fees turn out to be equivalent to a low cost part time employee. The better coaching services actually, through a contract, guarantee a 2.5 to 3.0 times return on the annual investment each year the client is making. That is why quality coaching demands a rigorous initial investigation as it should be. Volume programs are not the answer today in the long run.

The coach/mentor is not going to take the shop on if the service does not provide a proper financial return.  No business coach will accept a client that is set up for failure, and that is why they are very specific as to their processes of evaluating potential clients. An entrepreneurial thinking shop owner understands that and will be looking for the return for the investment to be made before the service is going to be accepted. The business coach is looking at the owner’s capability, attitude of being able to do what he/she said they would do as well as the true desire to grow their business.  You can have all the systems, procedures and quality advice available to you, but if the owner can’t follow through with his/her responsibility and do what they said they will do, the coach will not allow that owner onto his team.

Once the business coach has at least six and maximum of eight clients, he or she will organize a confidential focus group because then like mind-set owners can get together, with the coach as the facilitator, to share valuable marketplace experiences and information, evaluate each others businesses using the same measurement criteria (comparing apples with apples) and analyzing internal business processes.  This provides more accountability of each member to ensuring things are on track to getting done. Talk is cheap; it is the results that are important.

The aftermarket must move into the 21st century and start embracing modern techniques and services that moves their business forward.  The shop owner no longer can do it all him/herself or operate on his/her own, like being on an island, thinking they know it all and are aware of all the changes coming down the road that will affect their business. This is an in-depth profession today, and the business capabilities must be put in place to ensure the success of the enterprise.

When you are ready for a true coaching business system, take the time and compare each offering in writing. Finally always have your lawyer review and advise you of the contractual arrangements you are about to enter. This is the right way to do business, totally open, up front and in print.

So I ask again, are you ready for the next most important step in your business to ensure its survival and prosperity?”

Slow down and investigate the opportunities.  It might be the best exercise with your time that you ever do for yourself and your business. 

About the Author

Bob Greenwood

Robert (Bob) Greenwood, AMAM (Accredited Master Automotive Manager) was the President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry utilizing the Internet environment. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada in Georgian College located in Barrie, Ontario, Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in Colleyville, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation. The Automotive Management Institute’s Accredited Automotive Manager designation is the first business management accreditation exclusively for the automotive service professional. To date, AMI various programs have attracted more than 212,000 enrolments throughout North America. 

Greenwood died on Sept. 9 in Surrey, British Columbia, Canada, from a heart attack. He was a regular contributor to Motor Age magazine and will be greatly missed. See some of his recent work here:

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