The Shop Management Show, AutoLeap’s new podcast, is back to cover a key focus for every shop owner: cash flow in your business.Â
Why does your shop’s cash flow matter? How can you apply a business mindset to shop finances? What steps can you take to configure your shop’s bank accounts?Â
We discussed these topics in detail with an industry expert.Â
Recap from episode fifteen
In episode 15 of The Shop Management Show, I was thrilled to be joined by Chris Cotton, Owner of AutoFix Auto Shop Coaching.Â
Chris and I covered:Â
- Step-by-step advice for configuring your business bank accounts
- Key benchmarks for your shop’s margins
- Tips to adjust your shop marginsÂ
- And much more
Check out some highlights from our conversation.Â
The importance of your shop’s cash flow
There are always risks when it comes to managing your business finances. And pursuing alternative options like credit cards and secondary financing can lead you down a dark path.Â
Thankfully, there’s a smarter way! Effective cash flow management puts your shop in charge of its own destiny.Â
With your cash flow in order, you can feel empowered to make important moves. Maybe you want to:Â
- Buy new equipmentÂ
- Hire a service advisor
 - Upgrade your waiting area
These possibilities can become a reality once you learn the basics. And you can start down that road by completing an important first step – configuring your shop’s bank accounts.Â
How to configure your shop’s bank accounts
Chris encourages you to think of your shop’s bank accounts like the envelope system for personal finance. You have one envelope for your groceries. You have another envelope for your nights out. And on it goes.
It’s the same approach for your auto repair shop’s cash flow! Set up separate bank accounts for every finance bucket in the business. For example, the money that’s allocated for your shop’s sales tax will go into that specific account every month, without exception.
Here are the separate accounts you’ll need:Â
Closing thoughts
Download this episode for the complete picture on how to maximize your shop’s cash flow strategy.Â
Subscribe to the Shop Management Show today! The podcast is available on Apple Podcasts, Spotify and most popular streaming services.
