Amplify 2023 featured some great workshops to help shop owners get hands-on tips to grow their businesses. One of these invaluable sessions was hosted by Aaron Stokes, Founder of Shop Fix Academy. Aaron is a coaching expert with 24 years of automotive repair experience under his belt.
He has provided both one-on-one and peer shop management coaching to leading shops in Tennessee for the past seven years. Aaron also shares free advice on his exciting radio show, ‘Fixin’ Cars with Aaron Stokes’.
We put together a quick summary of “Getting into the Growth Mindset” by Aaron Stokes. Let’s get started!
» Want to grow your auto repair business? Click here to schedule a demo.
Key takeaways
Too long, don’t want to read the full scoop? Here’s a quick summary of everything Aaron touched on in 60 minutes of “Getting into the Growth Mindset”:
- The power of saying you can vs can’t
- What metrics help drive growth?
- How do you break down the average ticket?
- Why does someone else have ambition and not you?
- What is true leadership?
Survival without growth
Aaron started his session by drawing attention to core business goals. A popular one is business growth, but it’s not a priority for all shops. Many shop owners “wait for the right time to grow”.
The session argued that businesses not focused on growth won’t survive. It’s important to have a “growth mindset” to weather storms, beat competition, and keep a steady profit stream coming in.
So, what does that mean for your business? The first step towards owning a successful repair shop is always having goals to grow.
The power of saying “you can” vs. “you can’t”
The next step is aligning your mindset with your growth goals. This means always believing that you can overcome whatever comes your way.
Now, how do we do that?
Most new shop owners think they’re only fit to fight problems that are proportionate to their size and experience. Then, as their companies grow, they see that they can solve bigger problems.
This reinforces the misconception that you need to have been operating your shop for (X) number of years to truly grow and solve big problems. But the truth is that you’re still the same person.
What’s possible to solve for a bigger shop is also possible to solve for a smaller shop. It’s all about your determination and optimism. You need to say “You can” and you most definitely will.
“When you start to say the words ‘I can’ versus ‘I can’t’, then your vision changes from this level right here [to] up in the clouds.”
How do you plan for growth?
For auto repair shops, you need to look at two key metrics to measure growth:
- Car count
- Average repair order
These two numbers determine your business health and your goal is to focus on boosting these.
Many businesses focus on revenue growth. This, Aaron points out, results in working hard but not moving the needle enough.
Instead, when you focus on car count and average repair order, you’re able to see an incremental growth every month that results in greater profits by the end of the year.
How does that work?
When businesses focus on improving their services and marketing, this usually boosts the car count. Better services also translates into a greater average repair order value.
So, if your average repair order at the end of 2022 was $200 and the car count was maybe 1000, your revenue is $200K.
But, if by the end of 2023, your average repair order grows to $400 and your cars go up to 1200, your revenue becomes 400*1200 = $480K.
So, what’s that in terms of percentage growth? A whopping 140%!
If your average repair order grows over the year and so does your car count, you can beat the goals you set for yourself.
The power of ambition
From his experience, Aaron also spoke about meeting really bright shop owners that simply don’t have enough ambition to grow.
Most of these shop owners are great at what they do and have immense potential but struggle with self-belief.
But this self-belief is the backbone of business ambition. You need it to set healthy goals and grow your business. Without it, you’ll always need someone else to come bail you out.
“When you have a lot of self confidence, you are able to stand on your own. And you don’t care what other people think.”
What is true leadership?
Throughout the session, Aaron also emphasized the importance of leadership for growing a sustainable company.
But what is true leadership? It’s being available to do the hard work. It takes a lot of time and effort to move the needle in the beginning and true leaders understand this. Then, as we get into the rhythm of things, our shops continue to grow even with little effort on our part. That’s the beauty of consistency.
“What grows a company is crystal clear leadership. That’s what grows a company. And what is leadership? Leadership is availability.”
» Looking to transform your shop? Discover how AutoLeap can help.
Final thoughts
You can only achieve growth if you’ve got the right mindset and truly believe that you can achieve anything you set your mind to.
While this advice sounds cliche, it’s true for shop owners! After over two decades of experience in the industry, Aaron is a strong believer in constantly growing and setting high goals for your shop.
FAQs:
Yes, a recession can affect the automotive industry. This is why it’s essential to prepare a business plan and strategies to combat economic slowdowns.
The cost of fuel has gone up. Interest rates and inflation have also been on the rise. Without a comparable wage rise, these two factors can have a detrimental effect on the automotive industry.
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