He and Sunil Patel started Tekmetric in 2016, and today, it’s become the preferred auto tech software in the auto repair industry.
Prasanth’s success prompted Authority Magazine to contact him for an interview on the formula for scaling success.
Below are just a few excerpts of Prasanth’s interview with Ken Babcock (CEO of Tango), along with bonus content for any entrepreneur seeking to scale their business.
Scaling with People
Let’s look at each component.
The Right People.
First, you have to have the team that serves your company the best.
At Tekmetric, we learned this the hard way. We had a phenomenal idea — but our first team wasn’t comprised of exactly all the people we needed.
And that meant we failed in the first round. It was disappointing, but we learned a valuable lesson, and the next round, we hired people based on the talents we knew we needed. It was the right move, and it set us in the right direction toward success. In fact, many of the team members from this second group are still with us today.
Tekmetric’s People Today: The Best Support in the Industry
Today, Tekmetric has a growing team of people working in various departments, such as customer support, sales, product development, and human resources.
Walk into our Houston headquarters, and you’ll see people from all backgrounds catching up on their week, discussing the next product update, or talking about the future of our company over a cup of coffee.
A large portion of our team works remotely. We have employees across the United States, including: </p><ul>
Cleveland, OH
Washington, DC
Denver, CO
San Diego, CA
But no matter where our team members are, one of the big things they have in common is that they’re passionate about providing Tekmetric’s customers with the best experience and support possible.
Our support team in particular is easy to get in touch with.
Customers don’t have to spend hours listening to annoying “waiting” music on the phone or anxiously sitting in front of their computers for a response to a support ticket.
The Tekmetric support team acts to get questions answered quickly and any issues resolved fast.
After all, auto tech software needs to move at the pace of the auto repair industry—fast—and support is an important part of that process.
Having the idea is great; getting it right as you grow is vital. You may not have the details fully fleshed out, but you must know what you want to do and the tools you need to get there.
I’ve always said, if you have a goal in mind, and you don’t know how to get there, then you’re doing something right.
If you do know how to get there, you’re not thinking big enough. Think long and hard about what you want your business to look like.
Once you figure out those initial steps and orient yourself in the right direction, you can think ahead to challenges like growing and scaling.
Tekmetric’s Direction Today: Driving the Auto Repair Industry Into the Future
The Tekmetric team keeps a close eye on what’s happening in the auto repair industry so that we can stay one step ahead when it comes to driving the auto repair industry into the future.
For example, Tekmetric listened to its customers’ desires for a true two-way texting feature, which enables shops and their customers to communicate more seamlessly than ever before.
Tekmetric also frequently adds to its list of integrations with industry-leading tools so that shop owners can set up workflows that work best for them.
And Tekmetric listens to what shop owners, technicians, and service advisors are saying, taking their feedback and suggestions into account.
We know that we cannot do this on our own, and respect the contributions of people throughout the industry.
Scaling Your Finances
As you scale your business, be intentional with your finances.
When you start making profit, don’t take that as a sign to relax financially. You need to find the right balance. The biggest thing at Tekmetric has been knowing when to expand and take on extra resources.
A lot of companies start with an idea, raise a ton of capital and try to build something gigantic, and they don’t move strategically.
Before you scale, look at your resources: are you using funding efficiently?
Are your people paid too little, or too much? I think about it like a car — I wouldn’t put it on the road with no gas or unaligned tires. The same applies to your company and its resources.
Tekmetric’s Finances Today: New Funding, New Horizons
As Prasanth told Authority Magazine, we’re always intentional about our finances. Ultimately, financial intentionality from the get-go is what enables us to get the right resources in place to offer shops auto tech software that doesn’t break the bank with astronomical pricing.
Part of our financial strategy includes securing funding. In December of 2021, we raised a fresh round of funding from Susquehanna Growth Equity (SGE).
We’re using our funding to scale by adding more people to our engineering and technical teams. We’re also going to enhance our product, so it continues to meet the needs of shops as the industry evolves.
We are grateful to connect with such excellent funding partners and the opportunity to fund our next stage of growth.
Preparing for Growth
Inevitably as you’re scaling your business, you’re going to hit a roadblock. Expect roadblocks. You have to be okay with this, and you need to be prepared to pivot, realign and take on a new plan.
That might mean a project takes another quarter, or that you lost a deal because you couldn’t deliver results.
For Tekmetric, sometimes a feature doesn’t go as planned or is released late. We might have a big enterprise client that’s upset with us because they’re not getting the results they want.
Having a stomach for those things and realigning as needed is crucial. Not everything goes perfectly as planned, and that’s part of the scaling journey.
Tekmetric’s Preparation Today: Work Hard, Play Hard
We’ve come a long way as a team since the early days of our business. Now that we have a large team, we’ve put an even greater focus on learning and training—both internally and externally.
We hold in-house product training sessions to make sure everyone across the company understands our auto tech software and the people we serve. Understanding the ins and outs of the software is what enables each member of the team to do their best work for our customers.
We also train people externally, encouraging them to get professional certifications in their fields.
We’re always on the lookout for the best talent. Our people and culture team actively seeks new talent to bring to Tekmetric.
By retaining and hiring people at the top of their game, we’re ready to pivot at a moment’s notice. If something doesn’t go as we expected, or we want to see something exist that doesn’t exist yet, we roll up our sleeves and build.
We work hard, but we play hard, too. Throwing some fun into the mix is a vital reason why we’re able to adapt and respond to challenges so well. Our weekly breakfasts are a popular tradition.
Every Wednesday, people at our Houston headquarters and San Angelo, TX office mingle and munch on whatever is on the menu (which can range from delicious donuts to breakfast tacos… after all, we’re in Texas! Breakfast tacos are a must).
People also hang out for lunches, happy hours, local events—they just want to connect with the people they work with each day.
Persistence During The Growing Pains
Finally, don’t stop challenging yourself and looking to build your business. Success is the result of a journey, not a result alone.
Being an entrepreneur is a journey, and it’s always evolving.
Your business is not a standstill component — it’s a growing entity that needs to be nurtured. It’s a journey that keeps growing and evolving, and it keeps getting nurtured.
You have to enjoy the process and create new goals to maintain your progress, even as you reach old goals.
Tekmetric’s Persistence Today: One Mile at a Time
Our philosophy is that good auto tech software needs to evolve with the times.
We didn’t just create a stagnant product that we sell to shop owners year after year. We’re always striving to iterate and innovate; we want our existing customers and the new shops we get in front of to have access to the best of the best features.
That’s not to say we haven’t hit some speed bumps along the way.
A few flat tires are a part of life. But we work through those challenges as a team because we have the end goal in sight: driving the auto repair industry forward one mile at a time so shop owners can provide world-class service to their customers and provide great lives to their team members.
When it comes to efficiency in an auto repair shop, a technician’s expertise and performance are paramount. The service advisor might be the face who interacts directly with vehicle owners, but technicians are the eyes and ears – the “pistons” – that run the whole system. As a technician, your ability to complete your day-to-day jobs efficiently and effectively is crucial to the shop’s overall performance.
Using data can help you maximize your own profitability as well as the shop’s. From identifying the problem to performing the diagnosis and completing the repair, data can significantly elevate your performance. Simply put, when you accurately and comprehensively leverage the data available through a system like Tekmetric at every step of a repair, you are going to perform more efficiently – to the benefit of the shop and your own career.
Concern: Ensure accuracy with data to identify the problem
When a vehicle is brought in with an initial concern, data can help you better respond to the customer’s needs communicated by the service advisor. By intentionally reviewing the data collected by the service advisor, you can better understand the reason the customer has brought the vehicle in for repair and ensure your diagnosis can uncover the true cause of the problem.
With Tekmetric, your job board and all the data it includes is your key to success. In fact, you can consider it your “digital clipboard,” as it includes all the details you need in one place. The job board shows approved estimates as well as completed work – so it’s your window into how efficiently you are addressing customer concerns, bottlenecks in the repair process and more. This tool enables you to follow up on questions or additional details so your service advisor can communicate with the customer. This in turn drives efficiency within the shop as you can ensure the customer’s concern is addressed promptly and correctly.
Cause: Utilize digital tools to make the correct diagnosis
Once a problem has been identified, you can also leverage data via digital vehicle inspections (DVIs) to document diagnoses and show the exact cause of the problem. This includes making thorough notes, including photos and videos and showcasing other issues you find that could need additional repairs. By leveraging digital tools to complete thorough inspections, you can become a diagnostic wizard, solving problems faster and more efficiently. This not only translates to happier customers who get their cars back sooner, but also lets you sell more work, boosting your productivity and earning potential.
The most important part of the digital vehicle inspection is clear photos and videos. By including the right number of photos in your inspection, you can educate your customer on their vehicle’s performance. However, be sure not to overwhelm the customer with information. Tekmetric has found that 6-8 photos on average is the sweet spot, although this may change with your customer base.
A detailed DVI complete with photos allows the customer to review and approve the jobs they need the most, while planning for repairs that may come up in the future. As a result, you can educate the customer on the cause of their concern, share additional details if needed and simplify the communication process for you and the service advisor – ultimately increasing the average repair order (ARO).
Correction: Control the tempo of the shop’s workflow during repairs
Now that you have identified the problem, it’s time to complete the repair. As you work through your repair list, you can also use key metrics and information available on your job board to ensure you – and the shop overall – are working efficiently. For example, you can follow up with your service advisor on jobs you have inspected but are not approved for repairs. This helps drive the shop’s efficiency, so you can complete the work and get the car out of the shop to move onto the next one.
The other important aspect of the repair phase is collaborating with other technicians to better leverage each technician’s unique strengths and weaknesses. For example, if your specialty is brake replacements, you can work with your team to ensure you work on brake-related repairs. This helps streamline those repairs to you – the expert – so you can complete them faster and at a higher quality. In turn, the shop streamlines its overall processes, leading to more profit for the shop and for you.
Technicians are a critical part of a shop’s operations – but your role is not just limited to the actual repair. You can become even better in your role by using data throughout the customer experience: from the initial problem and diagnosis until the customer walks out with a fixed vehicle. In fact, utilizing data from the minute the customer walks into the shop leads to better diagnoses and more successful repairs. Learning how to use data correctly can help you perform at a higher level, ultimately increasing the profitability of the shop and growing your own paycheck.
Repeat jobs are common in auto repair work. How often does a customer walk in and ask for something common like an oil change or a tune-up? Or does your shop specialize in one type of vehicle, and you're constantly handling the same repairs?
What if we told you we could help you build those most common repair orders in a matter of seconds? That way your service writers can focus on providing amazing customer service every time.
Because let’s face it, regardless of the job, your customers are relying on your team to provide the same quality experience they're used to in so many other industries. And if you own multiple shops, then your customers are expecting you to provide the same quality of service at each location.
Canned jobs make it easy for your shop to not only save time when building estimates and serving customers but also make it easy to provide a consistent and smooth customer experience -- in the end making your shop even more money by boosting your shop's average repair order.
With a complete view of how all your shops are performing and access to the tools needed to make changes quickly, shop management systems help run your shop with smooth and agile business operations, provide a consistent experience for customers, and ultimately maximize revenue and support your shop's growth.
Features such as unified reporting across all your shops and shared customer history work to create seamless processes for managing your business as a centralized organization.
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