From the Magazine: Scaling up

In the entrepreneurial landscape, the sight of a one-person operation thriving speaks volumes about determination and adaptability.

Great news: If you’re paying the bills and keeping the doors open, then you are doing OK.

But — and this is a big ‘but’ — as a one-person show, you are in an all-eggs-in-one-basket situation. That includes if you have the support of a partner or family member in the business — the rise and fall of the shop rests on your shoulders.

This is a constant source of stress many of my clients face. They’ll also tell me early on in our meetings that this is not what they signed up for.

Here’s the truth of the matter: It’s simple economics. You have complete volatility in your business. If you close for the week — whether you want to go off for training or you get sick — there is no revenue. And there’s nothing worse. We all know what it’s like to work through injuries because the work has to get done.

If the above sounds familiar, consider that it’s time to think about moving to the next phase of your business: Expansion.

It’s not an easy road to travel. But by undertaking a few practical strategies for scaling up your solo business and unlocking new levels for you and your family, there is a path towards success.

Evaluation

The first step is to evaluate your time during a typical month. What adds money to your bottom line but you’re not very good at doing and spending more time than necessary?

There will be lots of “experts” telling you to analyze your business from all sorts of metrics and make business plans out of your ears.

From experience, by the time you get home after serving your customers all day, the last thing that you want to do is build a plan or stare at numbers that nobody ever taught you how to understand.

My advice is to not worry about any of that. Just look at the hours sold per day and the gross profit that you are making. That’s the start. As a single operator, if you’re not making 8 hours per day minimum, then you are spinning your wheels on other stuff. It’s time to change what you are doing.

“You don’t have to do it all yourself. Your existing customer base constitutes a priceless asset that can propel sustained growth.”

Path

The first step created a gap analysis. In its simplest form, it shows where the path to expansion might be. Look at the potential for replacing you for the tasks that waste time so that you can focus on what you do for the business. What are those roles? What are the tasks associated with it? This will tell you the type of person you need in your shop.

So that means you need to find someone with experience in that role. Emphasis on ‘experience in that role.’ Simply put, you don’t have the time to train a new person in what they need to do.

But remember, you are going to need to train them on your way of doing business. This means daily communication to go over the operating processes you already know in your head. People are not mind readers.

Upgrades

As your solo venture expands, so must your facility and resources. Invest in upgrading equipment and tools to support heightened demand and production capacity. But equipment purchases must make business sense. Don’t go all-in for a piece of equipment that you are going to use once.

You might need to enlarge your physical space by leasing a larger garage or new commercial property to accommodate your growing operations. It also might be as simple as taking a good look at your facility and giving it a coat of paint to elevate the look and feel for your upcoming larger customer base. As a first step, this makes a world of difference.

In order to pay for this, you need to upgrade and broaden your customer base. Extend your market to propel growth.

Invest in targeted marketing and advertising endeavours to reach your demographics and generate leads. This can be done on social media channels such as Instagram or Facebook. It might be pairing up with local businesses to offer your services to them and their customers.

You don’t have to do it all yourself. Your existing customer base constitutes a priceless asset that can propel sustained growth. Foster customer loyalty by delivering exceptional products, services and experiences. Nurturing robust relationships with your customers cultivates brand loyalty and advocacy, aiding long-term growth and profitability.

Have your customers be your promoters by posting about their experience on Facebook and tag you, for example. Google Reviews are also important. Do not underestimate the power of this step.

This is a very look at a complex subject. But if you’re struggling with your current business, then looking to expand could give you more of that satisfaction you desired when first starting out.

Greg Aguilera is a director of IAC Canada, an organization dedicated to the management development of  repair shops in Canada. He can be reached at greg@intautoconsulting.com.

This article originally appeared in the June issue of CARS