WHY IT’S IMPORTANT TO HAVE AN EXIT PLAN FOR YOUR REPAIR SHOP

By David Rogers

Flip over the news…open your browser…switch over to talk radio…there’s a lot going on in the world right now.

  • Death of Osama bin Laden.
  • Gas prices.
  • Libya, Syria, Iran, Pakistan.
  • Japan’s earthquake and nuclear emergency.
  • NFL lockout.
  • Obama’s birth certificate.

Interest rates WILL explode upwards.  Inflation WILL continue to make your dollars worth less and less.  Small business loans WILL become incredibly hard to get.

This isn’t a political thing.  It’s not a matter of left vs. right or Democrats vs. Republicans.

This problem has been brewing for over two decades, and will ONLY go away if Congress cuts spending on Medicare, Social Security, and Medicaid (this video from Harvard economist Jeff Miron explains the problem in about one minute).

Unless you think that elected members of Congress are likely to do something that will make them lose their seats, this problem will get much, much worse before it gets better.

I’m not trying to scare you.  I’m trying to help you.

Yes, things are bad and getting worse for politically unconnected shop owners.  But they’re worse for those shop owners who aren’t paying attention, which is why YOU are already on the right track.

Now that you know the problem this country is going through when it comes to its debt, you know that it’s never been more important to…

 

STAY FOCUSED, DEVELOP SECURITY AND HAVE AN EXIT PLAN

 

What is your plan? Are you going to sell your business and retire?  Going to keep the business in the family?

Just like the country as a whole, kicking the can down the road for a few more years only makes the problem worse.  So…do you HAVE a plan?  Are you working towards it EVERY DAY?

If you’re just trying to take things one day at a time, you’re going to wake up one day and find it’s too late to get out of the game.

Here is what we’ve done and what we’re doing in our shop, and what we recommend to our clients:

  • Systematize all operations. The business value of a shop can be dramatically enhanced by solid, clear systems, policies, and procedures. Make your team accountable for following these.
  • Measure all-important numbers so they can be managed and improved. Without measurement of the vitals in your shop, you cannot manage them for improvement. Again, this is critical for your team to understand and make happen.  This starts with finding and using shop management software that allows you to easily measure your team, hold them accountable, and manage remotely in a few minutes each day.
  • Move toward total remote management. By installing the two items above along with a chain of command and clear expectations, a shop owner can move toward remote management of the business.  This will also multiply the value of the business and put it into a position that will allow you to own it as an arm-chair investment for many years past retirement age (if you so choose).
  • Build a dominating brand with higher-end customers. By dominating your market your sales can remain stable and even grow – even in very rough economic conditions. When loans become non-existent and interest rates skyrocket, you will have the cash flow you need to survive and thrive.
  • Seek good consulting, tax and legal counsel. Whenever you decide to sell your business, either through a third party, to family, or one or more employees, get good legal, tax, and strategic counsel. You can set yourself up for success or failure by the advice you seek and follow.
  • Focus on your plan and execute! Once you have all the components of your plan identified, do not let anything get in the way of moving forward and executing your plan. This is the only way you will ever be able to retire in the manner you deserve and desire.

If you keep your eyes on what’s important — the safety and security of yourself, your family, your employees, and their families — you’ll be much more likely to stay successful and exit on your schedule instead of hoping for the best.

If you have a question about how you as a repair shop owner can be planning for your future, give us a call at 866-520-3030 or fill out our contact form today!