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June 23, 2018
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Motor Mechanic

CLIENT

Motor Mechanic in the NSW Lake Macquarie region that had been in business for three years.

INDUSTRY CATEGORY

Automotive Repairs

EXECUTIVE SUMMARY

The business offers high quality mechanical services, specialising in Commodore timing chains and older vehicle carburettor repairs. The owner prides himself on a high-level customer service experience. But how do potential customers find out about these great offerings?

The owner had basically bought himself a job with a huge amount of stress. He was:

  • Getting paid less than he was when working for someone else
  • Wearing all the risks associated with owning a business
  • Responsible for the wages and safety of employees
  • Working long hours,
  • Taking all the paperwork home to organise, input and file
  • Unable to take time away from the workshop for family holidays

He seemed to have enough money to pay the bills but wasn’t really sure if his business was profitable or not. He was not at all connected with his numbers, just invoicing for work done and hoping there was enough money in the bank account to pay bills, suppliers, wages and superannuation.

In December 2016, when a Business Diagnostic showed more than $75k of potential profit leakage and $400k of potential growth opportunities, BSPA was engaged to help improve the profits, growth and value of the business.

SOLUTION

The implementation of the Business Success Program with a structured approach to business improvement was the foundation.

A Strategic Plan was developed focusing on:

  • Point of difference
  • Target market with graded customer groups
  • Financial goals – daily, monthly and yearly
  • Critical Success Factors
  • Key Performance Indicators
  • Systems – workshop and financial
  • Processes
  • A five-year financial plan

The initial quick wins proved very effective, focusing on increased revenue, increased productivity, and waste elimination.

Within months results were apparent, particularly in increased revenue. This didn’t necessarily mean charging customers higher prices; it was more about working with the right customers, the ones that didn’t cost the business money. If you are working on a car for 12 hours but can only charge for six hours, they are not the customers or jobs you want.

An Action Plan was developed so the owner knew what he needed to do each week to move towards his goals. Each fortnight, these goals were reviewed with BSPA at the business premises to ensure accountability, and for the BSPA partner to assist with tasks where required. From time to time throughout the fortnight, the BSPA partner checked-in to motivate the owner and make sure progress was being made.

The business diagnostic identified a number of important areas to focus on, including:

  • Identifying the ideal customer and targeting those customers
  • Measuring and reporting KPI’s
  • Ensuring all jobs quoted are profitable
  • Researching more suitable workshop software and accounting packages
  • Introducing an accurate monthly financial reporting system
  • Developing a marketing plan
  • Increasing the size of the team

OUTCOME

The major outcomes of the programme after only 12 months were significant:

  • Business profitability increased by approximately 70% (after investment in BSPA
  • More family/relationship time
  • Financial position was available, known and understood
  • The value of the business had dramatically increased

The business is now well positioned to commence working towards growth strategies.

Jason Manning
Jason Manning
Jason Manning is a cutting-edge Change Facilitator, Business Analyst, Leadership Coach and Business Growth Specialist. Jason is driven by the desire to see business owners earn what they want to earn, experience freedom in their business and create a lifestyle they have always wanted. The skills and knowledge he possesses allow Jason to provide business owners with the tools and the mindset they need to succeed. This is his legacy, what he contributes to the world. Individuals living to their true potential, integrated at all levels.

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