Small auto repair shops are often in need of new equipment and space, but the business owner will not always realize that in due time. If you have more business than your current operation can handle, or if you are having to turn down potential business because it is outside of the small unit’s present capacity, then treat this as a sign that it’s time to expand the auto repair shop beyond its current size. To do it in the most profitable way possible, take a look at these few tips we have for you today.
Identify the Points of Investment by Talking with Your Workers
Considering that car repair work is a technical, niche field, it is important to not just consult with your managers, but also with your core level employees before making any major investments. For example, they are the most likely to be able to tell you exactly which modern equipment and supplies the shop is lacking right now, or how many additional workers are required to help in managing the auto repair shop’s present and potential business opportunities with greater efficiency.
Understand the Negative Implications of Being Overwhelmed
If there’s more business than you can handle, that’s mostly good news. However, there’s another side to this story. Every time a company has to turn down present/potential clients because they do not have the capacity to accommodate them, they are losing business. It’s not just a temporary effect either, given that those potential clients will almost certainly be snatched up into a long-term contract by one of your competitors, establishing themselves as the more capable auto repair shop.
It’s a long-term, if not a permanent loss of business, every time you are overwhelmed and have no option but to turn business opportunities down. On top of that, it also affects the company’s reputation as an SMB. The repair shop will be marked as a low-powered, poorly manned, small-time business with limited capabilities. Even if you do expand, later on, that reputation and the previously lost clients might make it increasingly difficult for such an expansion to be sustainable in the future.
Expand Before that Happens
As should be evident from the previous point, an auto repair shop owner must act and expand their business capabilities before actually experiencing and failing to capitalize on a surge big enough to cause the aforementioned problems. All those marketing expenses you made will also not have any ROI when the shop and your staff are already overworked with their present load of car repair work.
Now, as we are discussing small businesses and not large enterprises, it is likely that you will need financing to support the necessary growth for your car repair facility. Pay a visit to advancepointcap.com and get the best possible quote for your auto repair shop loan. This move will ensure that the shop can handle more business, while avoiding the exorbitant rates of interest which business loans are generally offered at.
If you think your small auto repair shop is ready to expand, make sure you take these tips onboard.
