Schmidt: Rewriting the Narrative: Embrace Profit as an Auto Shop Owner

The P word.

You’re allowed to be profitable. Say that aloud. “I am allowed to be profitable!”

There seems to be a gross misconception that auto shop owners should be martyrs and give away service under the guise of “being a good neighbor.”  I’m not sure where that ideology came from, but this false narrative needs to be swiftly re-written. While doing good for thy fellow neighbor certainly has its place, being a business owner—in any realm—should lead to profitability. Otherwise, what’s the point? Your blood, sweat, and tears go into building a brand and a team and being great at your craft. You should proudly reap the benefits from that. Think right now: Are you properly compensated as the person holding all the financial and public risk? If you are not, I hope this article sparks internal dialogue to push forward with a different mindset this year.

Lean on Financial Gurus 

First and foremost, if you don’t have someone guiding you through the financial land of business, please prioritize this immediately. Having trusted advisors is one of the most important facets of your financial success. In my shop, that is our CFO and CPA. These individuals are instrumental in leading the way for our personal and business financial fitness. They make sure payroll, taxes, and liabilities are buttoned up, and carve a path that allows us to take home a fulfilling paycheck as owners. Creating an established financial flow inside for your household is just as important as making sure your team has a paycheck each week. Don’t forget about you. This isn’t selfish. It is necessary. 

Know Your Numbers

Once you have trusted financial advisors in place, make sure you are holding your business to standards that are going to lead to profitability. Know your KPI’s. Is everyone on your team hitting their goals? Do they know the goals they need to hit? Are your techs turning times they are expected to turn? Is service managing the workflow and sales to allow techs to turn sufficient hours? Are parts arriving in a timely manner and being distributed correctly? Is your marketing working, and are there enough cars coming through your bays? You need to know these baseline movements in your business and measure whether they are successful because all these items affect profitability in some manner. To be profitable, you must understand what leads you to profit. It is deeper than just bringing in a car, fixing it, and sending it back out. You need to uncover and understand the nuances of your business.  

Get a Coach

If you don’t know the answers to these questions, it’s time to reach for a coach. This individual will develop your business acumen and help uncover and hold accountable the inner workings of your shop. Needing a coach is not a sign of failure, but more of a promise of futuristic success. Through the years, our coaches have been instrumental in each new level of success within the brand, which has led to established profitability. If you don’t know the path to walk for profits, find someone who does and walk alongside them a while. 

This is your life. This is your shop, your business, your brand, and your name. You had a dream to be the best auto shop owner you could be with the best shop around. You can’t do that without money, so you need to be profitable. Embrace the idea of creating profitability inside your business and make the changes needed to hit the ground running this year towards the P word: Profit.