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One Shop, Two Shops, Three Shops, Four...Posted 6/15/2001By Rachael J. Mercer
Effective management is key to success in your shop, whether you are the owner, operator or manager of one shop - or multiple shops. Without effective management, straightforward leadership and the “people skills” necessary to reach both your employees and customers, you will work harder and longer with less success. The management skills you need for managing or operating multiple shops are not unlike those that you need to operate one location. However, there are some items to take into consideration prior to taking a leap off the high dive into multiple shop management. Location You must also consider the proximity of the location of your shops. If this is your second shop and you operate these shops in a town that is extremely large, the trips between shops may become burdensome if the shops are located across town from each other. By the same token, you might not want to operate two shops with one right across the street from the other, no matter how large the city. Furthermore, if you live in a smaller town or rural area, you might experience a heavy volume of mechanical repairs because of the service you provide. For this reason, opening a second shop might be good. Your second shop should be easy for customers to access, and it should be easy for you to commute between shops as needed. Management The goal of opening a second location would be to increase your business, but don't open it at the expense of the first location. If opening a second shop inconveniences your current customers because you can no longer look after the first location like you should, or because the service at the first location declines, then you may cost yourself more business than it's worth. Bill Filley, ASA's Mechanical Division director, says, “If you're going to succeed, it is important that you have proper procedures in place because you can't be in two places at once. You are forced to make a structure (in your shops) that will run without you.” If you bear the dual role of shop owner and manager, then your duties can be neatly cut out for you, in that establishing an operating system is important. You bear both the everyday burden of managing as well as the overall responsibility of owning and operating. Whether you own or manage multiple shops or a single location, establishing a system that runs without you is important and essential for effective management. Besides, who wants to be forced to be at the shop every waking hour? It is important for your system to allow some management from afar, which requires prudent delegation that allows others to step in should you be absent.
Navin Bhatia, president of Hill Country Oil Inc., San Antonio, Texas, operates nine service centers as part of the Valvoline Instant Oil Change (VIOC) franchise system. In hiring efficient, qualified and responsible employees, he says, “Running multiple centers puts more pressure on you to recruit and train and retain qualified people. On the plus side, however, having multiple locations also affords operators flexibility with staffing, as it provides the ability to move employees to meet the needs of several locations.” Upon opening his second location with his partners, Filley would drop in from time to time to help out, but he found that the management system in place was actually disrupted by his presence, despite his good intentions. He recognized this and has since said, “The sweetest sound I heard was when my manager said that when I was there in the shop, trying to help, that I was a hindrance.” Brian Bona, owner of Bona Brothers Auto and Paul's Pro Auto, said, “Before opening a second [or multiple] location, it's important to ask yourself if you're mentally and physically free from the first shop.” Without the time and effort, in concentrated proportions, that is necessary for opening a second or multiple location, the new location may flounder, and you may lose business and experience new problems at the previous location. It's important to have all your “ducks in a row” at the first location prior to opening or exploring the opening of another location. When it comes to management, Bhatia says operators must have an adequate infrastructure in place to manage, operate and own a multi-unit system. “I recommend developing an organizational hierarchy so a multi-store area manager can manage several stores, if payroll permits,” says Bhatia. “Area management is essential to uphold the decentralized management system necessary for multi-unit operations. At the same time, the fact that many key day-to-day decisions should be made at the store level requires empowering employees as much as possible.” Software and Other Management Tools Filley also credits participation in a management group as a source of helpful information in running multiple shops. Filley said his involvement in Bob O'Connor's Bottom Line Impact Groups has provided him with a network of other owners and managers who experience similar problems and are able to offer experience-generated advice. Furthermore, membership in national associations and participation in the programs that are offered at the state and affiliate levels are important to effective management, and to learning about new management techniques or tools. And, the management seminars at the International Autobody Congress and Exposition (NACE) and at the Congress of Automotive Repair and Service (CARS) can generate valuable help as well. Whether you are considering opening a second location or - like Bhatia - you are moving on to your ninth or tenth location, the considerations for opening multiple shops are often very similar to the decision-making processes that occurred prior to opening your first location. Bhatia advises, “Opening a multi-unit operation is quite similar to opening a single location. Since each location exists in its own micro market, the two- to three-mile draw area surrounding the center, the operator needs to research every characteristic of the market before opening, particularly the existing demographics and growth potential.” Filley admits that the planning prior to opening their second location was inadequate. He said, “We are still trying to make the second location grow, since we just plunged in without much planning and we had to learn as we went. It's not a good way to choose.” When considering owning or operating multiple shops, hopefully these tips will make your decision easier. Business ventures are often well advised when they are well thought out, well planned and well directed. But impulse decisions are often more dangerous to your first location than if you had just stuck with one location in the first place. And, surely, you want to keep your first location just as successful as you want your multiple location to become.
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Copyright (c) 1996-2008. Automotive Service Association. All rights reserved.
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It is important that your shops have reliable employees and those who are responsible for specific tasks within your organization. Without reliability and a fully staffed location, you will be pulled from one location to another, which will cause stress for you and your employees, and could inhibit your ability to provide customer service and timely repairs.
