Leadership Principles for Successful Shop Owners

Although our goal is to help you determine the best ways you can enhance your auto repair shop profit margin, we’re still going to shoot straight with you: opening a shop isn’t easy.  You’re going to have to put in some hard work, but exceeding your goals will be well worth it. Along the way you’ll learn new things through trial and error and encounter some unexpected challenges, but who doesn’t when they step outside of their comfort zone, pursuing something they’re passionate about?

One question you may have is, "Is it even a good time to start an auto repair business?" That's a tricky question to answer. Coming off the heels of a pandemic in an economy that has seen better times might scare any new business owner. But remember, some of the most long-standing businesses were started during economic recessions.

Although there’s been better times to start an auto repair business, your shop can still be successful. And it’s clear that the demand for automotive repairs isn't going anywhere.  

Take a look at these statistics on the latest automotive repair trends:

1. In 2022, there will be an estimated 76 million vehicles aged 16 years or older in the United States.
2. It’s estimated that by 2022, 18% of American households will use an auto repair service at least once a year.
3. The number of vehicles on the road that are 12 years or older is anticipated to increase by 15%.
4. In the past decade, the average length of time that drivers own their automobiles has increased by 60%.

As you can see, the need for vehicle repairs will likely increase due to the fact that drivers are choosing to stick to their trusty ol’ vehicles rather than opting for a shinier new ride. But regardless of whether the auto repair industry’s profit trends are growing or plateauing, making smart business decisions will not only prepare your shop for future transformation but also help your shop survive disruptive trends in the future.

Let’s get to boosting your shop’s short and long-term profits.  

We’ve listed each of these tactics in the order you should take during each of your business growth phases: the seed stage, the start-up stage, the established stage, or the expansion stage. The order of these 10 tactics does not determine their importance; each tactic complements one another to put your shop in the fast lane to success.

Fast Facts

• ‍Industry size and past growth: The U.S. auto mechanics industry is worth more than $68 billion in 2022 and has seen steady growth the past five years. ‍
• Growth forecast: The U.S. auto mechanics industry is projected to experience continued growth in the coming years and expand by more than 10% by 2026.
• ‍Number of businesses: As of early 2022, 264,121 auto mechanic businesses operated in the US.
• ‍Number of people employed: As of early 2022, the United States auto repair industry employed about 561,359 workers.

“If you are interested in picking up a new hobby like boating, you’ll do everything you can to learn more and more and more. Why can’t you do that with your auto repair shop?

Is it because it’s boring?

Is it because it’s not the same?

It doesn’t excite you as much as your hobby would?

If you take a second and stop to think, you’ll realize you can have any hobby in the world if you focus on your repair shop and get it to where it needs to be.

There is no waiting for the right person to walk through the door. There is no waiting for the right technician."

"It has to happen right now, today."

Tekmetric Co-CEO and Co-Founder Sunil Patel recently joined Kelsey Outram on the LIFT Your Shop Podcast to talk tech, mentorship, and transforming your auto repair business.

From medical school to law enforcement, Sunil tried his hand at a variety of fields over the years, but eventually all roads led him to founding Tekmetric with Prasanth Chilukuri in 2016.

Tekmetric quickly became the preferred shop management system in the auto repair industry.

And if you ask Sunil why, he’ll say it’s all about mindset.

If you’re a shop owner who has been feeling stuck, here are six steps you can take to shift gears.

1. Define Your Goals

“When you really set your mind to something, it subconsciously changes how you behave as a human, as a person. And you hone in on what you’re trying to accomplish and you accomplish that task.”

Here are some examples of goals you might hear people talk about in the auto repair industry:

• “I want to make one million dollars in revenue this year."
• “I would like to add another bay to the shop by the end of the year."
• “I want to open another location in 2023.”

What do these goals all have in common? They are specific, achievable, and easy to track.

In the same way that it’s difficult to plan a vacation without having a travel destination in mind, it’s difficult to achieve a goal if you never set one in the first place.

Knowing where you want to go is the first step toward figuring out a roadmap to get there.

2. Accept That Change is Part of the Process

“Forget about the technology and software and all that for a moment, and ask yourself this: Are you happy with where you are today running your shop? And if the answer is no, then dig deeper.”

Whether your shop is looking to switch parts suppliers or invest in a new shop management system, change can be intimidating.

Many shops experience growing pains, but keeping an open mind is essential to driving your business forward.

Were you looking for a vendor to reorder carbon copy auto repair receipt templates when you found this blog? Maybe you’ve already spent a few hours at your computer, searching for the right auto repair receipt template. But none of the templates you’ve seen looks right for your shop. It’s hard to find a perfect fit. You need a template that is fast to fill, inexpensive, flexible enough to work for any sale, and easy for you and your customers to understand. That’s a tall order.

But all too often, standalone templates fail to meet the complex business needs of modern auto repair shops.

You have already made positive changes toward getting organized by searching for and maybe even trying out a variety of new templates. But what if you could save time and improve accuracy with a system that did all the work of writing and tracking receipts for you?

Think about how you currently find the information you need for your receipts and fill them out. Maybe you use carbon copies. Maybe you type the receipts out. But you’re probably getting the information from your invoices, which themselves reflect estimates. That’s three documents to write per customer, which can quickly add up to a lot of time spent on paperwork.

Auto repair shop management systems are capable of populating receipts with payment information and prices from estimates and invoices in seconds to create consistent receipts and a more positive customer experience.

We know that change can be hard, but it’s worth it.

Let’s analyze some of the ways your current auto repair receipt templates might be holding you back and how an auto repair shop management system can improve your customer experience, simplify work at the shop, and lead to more business growth for you and your team.