Croel: Your First-Quarter Game Plan for a Stronger Collision Shop  

The first quarter of the year feels different in a collision repair shop. The holidays are over. Winter weather may still be unpredictable, but the spring collision rush has not fully arrived. Phones ring. Cars come in. But there is often just enough space to catch your breath. That small window matters more than many owners realize. 

Q1 is not about scrambling for volume. It is about setting the shop up for the rest of the year. The decisions made in the first three months tend to shape everything that follows. When this time is used well, the year feels more controlled and less reactive. When it’s not, small issues tend to grow into major problems later in the year. 

The first quarter is the best opportunity of the year to plan, clean things up, and put the business on stronger footing before production pressure increases. 

Start with direction, not just to-do lists  

Before diving into estimates, staffing or systems it helps to step back and define direction. What does success look like this year? 

For some shops, it means better profitability. For others, it means less chaos, better cycle time, stronger leadership, or more time away from the shop. Some owners are planning for growth, while others are focused on stability after a challenging year. 

Q1 is the right time to get clear on that goal. Without it, everything feels urgent. With it, decisions become easier. Direction gives context to every choice that follows. 

Get a clear picture of financial health early  

Finances deserve early attention while there is still time to make changes. Many collision shops end the year busy and exhausted only to realize in January that cash flow feels tight, or margins are thinner than expected. 

This is the time to review profit and loss statements closely, not just total revenue but gross profit by department labor efficiency, parts margins, sublet costs, and overhead. Rising costs for materials, calibrations, and sublet work have made margin control more challenging across the industry. 

Cash flow deserves just as much attention as revenue. A shop can be full and still feel stressed if money is not moving smoothly. Q1 is the best time to clean up reporting, tighten controls, and make sure the numbers tell the truth. 

Shops that understand their financial position early are better prepared to make smart decisions throughout the year. Those that avoid the numbers often find themselves reacting under pressure later. 

Evaluate car count quality, not just volume  

The first quarter provides a clearer look at the type of work coming through the shop. When volume slows slightly, it becomes easier to see where time and energy are actually going. 

This is a good time to look at repair plan accuracy supplement frequency and cycle time trends. Are blueprints complete. Are parts delays causing backups? Are repairs flowing smoothly through the shop? 

January and February offer a rare chance to fine tune blueprinting parts procurement and repair validation steps before spring demand increases. Small improvements made now often prevent major headaches later. 

Q1 is also the right time to review DRP relationships. Volume alone does not guarantee profitability or long-term success. This is a good moment to ask whether those relationships support the shop’s goals or simply keep bays full. 

Address staffing and technician needs early  

Staffing challenges tend to show up clearly in the first quarter. Any turnover from the end of the year becomes obvious. Open positions strain production and stress the team. Skill gaps affect quality and cycle time. 

If the shop needs to hire, now is the time to start. Hiring early allows new team members to settle in before peak season. Waiting until spring often leads to rushed decisions and frustration on both sides. 

Beyond hiring, Q1 is a good time to check in with the current team. Are workloads balanced? Are expectations clear? Are technicians properly supported? Are there future leaders who could benefit from additional training or responsibility? 

Strong teams are built intentionally. The first quarter provides the space to do that work. 

Make training a priority, not an afterthought  

Training often gets pushed aside during busy periods. Then when things slow down, it gets delayed again. The first quarter is one of the best times of the year to invest in education. 

New vehicle technology, OEM procedures, and ADAS requirements continue to evolve. Certifications expire. Skills need to stay current. Reviewing the training plan early helps shops stay ahead rather than scrambling later. 

This applies to technicians, estimators, and managers. Leadership training is especially important for shops that are growing or managing multiple locations. Investing in people early pays off all year. 

Clean up processes before production pressure returns  

Operational issues are easier to address when the shop is not overwhelmed. Early in the year is the time to review estimating accuracy, production flow, parts ordering communication, and management routines. 

Are estimates consistent? Are supplements handled efficiently? Are vehicles moving smoothly through the shop? Are production meetings effective? 

Small inefficiencies that feel manageable in January often become major stress points later. Fixing them early saves time, money, and frustration. 

For multi-location operations, Q1 is also the right time to reinforce standard processes and expectations across all locations. 

Strengthen customer communication and experience  

Customer experience often improves when the shop has time to focus on it. The first quarter provides that opportunity. 

This is a good time to review online reviews for customer feedback and communication practices. Are customers clearly informed about repair timelines, delays, and insurance limitations? Are front office teams confidently handling difficult conversations? 

Clear communication builds trust. Shops that strengthen these habits early tend to see fewer issues and better referrals during peak season. 

Plan equipment and technology with intention  

Technology and equipment decisions feel less urgent early in the year. Shops can evaluate needs related to scanning and calibration, OEM compliance, aluminum repair, and refinishing efficiency. Planning early allows for thoughtful investments that support long-term goals. 

Rushed purchases later in the year are often more expensive and less effective. 

Set the leadership tone for the year  

The way leadership shows up in the first quarter sets the tone for the rest of the year. After a demanding year, many owners feel tired. Feeling worn down at the start of the year is completely normal, and the first few months offer a chance to catch your breath and reset. 

Clear priorities help leaders stay calm, and consistent expectations create stability for the entire team. When leadership feels overwhelmed, stress spreads quickly throughout the shop. 

Taking time early in the year to plan, review data, and set expectations helps the entire team feel more grounded. 

Step back and look at the bigger picture  

The first quarter is also a chance to reflect on the business as a whole. Is it profitable? Is it sustainable? Is it supporting the life YOU want to live? 

Growth without structure leads to burnout. Volume without margin leads to frustration. The early part of the year creates space to make adjustments before momentum takes over. 

Use the first quarter to get ahead  

The first quarter is not about perfection. It is about preparation. 

Collision shops that use this time to plan, hire, train, and clean up systems tend to feel more in control as the year progresses. Shops that skip this opportunity often spend the rest of the year reacting to problems that could have been addressed early. 

You now have the window of time to decide whether the rest of the year feels chaotic or controlled. Which will it be for you?