5 Ways You Should Be Working on Your Shop, Not in It

How are you spending your time these days?

If you’re like many shop owners, you can probably be found most hours elbow-deep in an engine doing what you do best—fixing cars and keeping them running smoothly.

But while it might feel good to be hands-on, it’s easy to lose sight of the bigger picture. You see, while you’re focused on that stubborn transmission or tricky electrical system, your shop—your business—is idling. And that could be costing you dearly.

It’s time to step out of the bay and into the office. It’s time to start working “on” your shop, not just “in” it. So, if you’re ready to switch gears, read on.

Switching Gears from Mechanic to Owner
Your first thought might be that there’s no time to step away from the garage—you already barely have time for lunch as it is!

Start by setting aside 30 minutes each day—maybe before you open or after you close. Use this time to focus on your business, not the cars in your bay. Once you start this habit, you’ll be amazed at what you can accomplish in 30 focused minutes. And before you know it, you’ll be carving out more significant chunks of time.

At the same time, start delegating some responsibilities and trusting your team. You can start by delegating smaller tasks. Provide clear instructions, and then let them run with it. While they might not do everything exactly as you would, learning to delegate responsibilities will free up your time to work on bigger things.

The final step is setting some goals and breaking them down into actionable steps. If you want more customers, consider starting a referral program or finally getting on social media. The key to success is defining concrete steps to accomplish these goals and assigning deadlines to ensure you reach them on time.

Work on Projects that Align to Your Goals
To achieve your shop growth goals, you must come out from under the hood and work on projects that actually move the needle. Setting goals and creating an action plan is more complicated than it sounds, because it requires you to step outside your comfort zone.

If you don’t know where to start, you’re not alone. That’s why we’ve come up with a list of five projects that you can focus on to improve your top and bottom lines.

#1. Crunching the Numbers
Knowing your numbers is key to running your business like a finely tuned engine. Trying to improve your business without looking at your finances is like fixing a car without opening the hood—you won’t get very far.

Profit and loss statements can show you exactly how much money you’re making and where you’re leaking cash. Plus, they can point you in the right direction. Maybe it’s time to adjust your labor rates or rethink your parts markup. Or you might discover that you’re practically giving away oil changes. But you won’t know until you take a deeper look.

Here are the metrics to track:
•    Review the profit margins on different services
•    Analyze your parts inventory turnover
•    Track your labor efficiency rates
•    Compare your pricing to local competitors

#2. Getting the Word Out
The best mechanics and the latest equipment are meaningless if you don’t have customers coming through the door. But marketing can be one of the trickiest parts of running a business—knowing where to focus is hard.

Discounting is the most common technique to fill the car bays, but you might kill your profit margins if you overdo it. Instead of printing more coupons, consider a broad range of marketing strategies to help balance the need to fill car bays with your target profit margins and financial goals. And find ways to support—rather than demolish—your bottom line.

Here are some strategies:
•    Start a customer referral program
•    Create a Google Business Profile and solicit reviews
•    Partner with local businesses for cross-promotion
•    Host a community car care clinic

#3. Streamlining Your Shop
Think of your shop’s operations like a drivetrain. Is everything running smoothly, or are some gears grinding in your process? If you’re like many small businesses, inefficiencies have slowly crept into your workflow, and it might be time to clean house.

Take a step back and watch how jobs move through your shop. Are there any bottlenecks or unnecessary steps? A more efficient shop means happier customers (who get their vehicles back sooner) and more profits (since you can increase your throughput). And you can even find ways to cut labor or parts costs during the process.

Here are some ways to streamline your ops:
•    Create standardized operating procedures
•    Optimize your parts ordering systems
•    Reorganize your tool storage systems
•    Digitize your human resources tasks

#4. Leveling Up Your Team
Your crew is the heart of your operation. Are you giving them the knowledge and tools they need to perform at their best, or are you taking them for granted? Are you focusing on both your technicians and your office and customer-facing people?

Investing in your team isn’t just about keeping them happy (although that’s important, too). It’s about building a team that can handle anything that rolls into your shop while keeping them happy and engaged to avoid job attrition. Plus, a well-trained team means you can step away from the day-to-day, knowing your shop is in good hands.

Here’s how to level up your team:
•    Schedule regular in-house training sessions
•    Pay for technicians to get certifications
•    Implement a mentorship program for new staff
•    Cross-train employees in different roles

#5. Investing in New Technology
The right technology can help supercharge your business and set it apart from the competition. On the other hand, old legacy systems can make it harder for employees to do their jobs and customers to stay in the loop with repairs.

Keeping up with the latest tech trends can be exhausting—and some trends aren’t worth following. On the other hand, ignoring technology could leave your business in the dark ages. The right tech investments can help make diagnostics more accurate, repairs more efficient, and customer experiences smoother than ever.

Some tech investments include:
•    Digital vehicle inspection systems
•    New car lifts instead of pits
•    Online appointment booking systems
•    New diagnostic scanning tools

The Bottom Line
Working “on” your business may not get your hands dirty, but it will help clean up your bottom line. And isn’t that worth trading a wrench for a keyboard for a few hours a day?

By following the tips discussed in this article, you can apply the same problem-solving skills you use in the shop to your business. And you’ll quickly see the benefits of taking a more strategic approach to your business, from better efficiency to increased profitability.

Your future self will thank you when your shop hums like a well-oiled machine. And eventually, this groundwork will help you when handing over the reins to a successor.

About The ATI Experts
ATI Experts is a team of experienced ATI coaches who collaborate to write industry articles. They leverage their extensive knowledge and proven success to provide actionable strategies for improving the performance and success of repair and collision shop owners.