As a shop owner, it is imperative that you work ON your business, and not IN your business. I’m sure you have heard this before, but what exactly does it mean? How can you get there? And why?
The difference between working on your business versus in your business is simple. Anything that is considered a job you would hire for is working in your business – working on vehicles, writing up tickets, answering phones, etc. Working on your business means creating systems, strategic planning, financial projections, and the like. When you get too involved in the day-to-day operations of your shop, you are unable to spend enough time trying to grow your business. The daily responsibilities of running the shop should be delegated to someone else so you have enough time to work on processes, education, financial strategy, and planning for the future.
In order to get to that point, you must learn to delegate. This can take time to find and hire trustworthy team members, but once you do, you’ll allow yourself the much-needed time to dedicate to growing your business. Sixty-six percent of new businesses make it to the 2-year mark, and only 30% make it to ten years. This is because new business owners don’t take the necessary time to brainstorm ways to move the business forward.
First and foremost, it is imperative that shop owners have a strong grasp on their financials. Not knowing where you stand on a monthly basis can lead to issues when you scale. When your sales increase, so does the amount of work. If you’re working IN your business, this will take up even more of your time, which can lead to margins slipping; gross profit being particularly vulnerable.
Looking at your financials regularly will help keep margins consistent and allow you to scale efficiently. Your POS software is one of the richest sources of financial information for your business. It’s the best reference point for a daily overview since it includes all your real-time numbers. However, take the time to really dig into these numbers each week. Make sure you are getting the margins you truly want to have. And once a month, take a look at your P or L statement. Compare it to the same month last year. Compare it to the goals that you have set and see where you can improve.
These are some good steps to take in order to transition to working more ON your business than IN your business. Of course, you don’t want to be completely hands-off. Make sure you take the time to walk around the shop. See how the team is doing; make sure they are happy both in their personal life and their shop life. Find out any issues that they might be having. These are the people that are taking care of your customers and putting food on your table. Check out this article for some tips on managing your employees and how to be a great leader: https://www.vehicleservicepros.com/shop-operations/service-repair/human-resources/article/21221281/top-tips-for-managing-your-employees?utm_source=MA+Service+Repair+Alerts&utm_medium=email&utm_campaign=CPS210505062&o_eid=3867J7878212G9R&rdx.ident%5Bpull%5D=omeda%7C3867J7878212G9R&oly_enc_id=3867J7878212G9R