Ever wondered if your automotive service shop is running at optimum efficiency? Efficiency is key to running any business. Here are three tips to maximize efficiency.
Tip 1: Establishing an Operating Budget and Turning a Profit
Getting down to basics – your monthly budget. What does it cost to operate your business on a monthly basis? This includes recurring costs such as rent, utilities, payroll, insurance, etc. Other variable expenses include marketing to acquire new customers, building maintenance and improvements, customer amenities, etc. And many more. The key is to understand what these costs are and strive to turn a profit each month. If your total revenue exceeds your operational costs (after you pay for parts) by at least 25%, you have a solid foundation to build on.