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Page 1 of 2 U.S. shop owner Jeff Beavers was at a cross-roads. His 7-year-old company, Car Crafters Collision Repair in Blue Ridge, Georgia, had grown steadily to the point of having annual sales of just over $1 million – but was somehow losing money.
“I’d deposit $100,000 and write out checks for $101,000,” Beavers said. “I wasn’t getting anywhere. I had all this work, and we worked 11 or 13 hours a day but were still losing money.”
How to choose a consultant
• Ask for references. Any reputable, experienced consultant should be able to supply you with a list of current or former clients who they’ve helped with issues similar to those facing your business.
• Check for industry experience. Some consultants have or currently work within the industry, perhaps as a shop owner themselves. This may or may not make them more qualified to help you, but at a minimum it gives them some understanding of the industry. If they do not have such experience, ask why they feel they are qualified to consult in this industry.
• Be focused – and look for focused expertise. Before choosing a consultant, decide which two or three things you want to focus on improving in your business, the things that most keep you up at night. Then remember that some consultants are better experienced at focusing on the production end of a shop, while others are better at front-office issues (conflict resolution, systems and paperwork, leadership and communication, numbers).
• Don’t overlook the compatibility factor. Working with an outside consultant is more likely to succeed if you choose a consultant you respect, trust and enjoy interacting with.
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Beavers realized that if he was going to stay in the industry, he’d need help to improve his business. But, he wondered, is bringing in an outside consultant the right move? Where can you find a qualified consultant with the necessary experience and understanding of the collision repair industry? And will it be a worthwhile investment – or just more money sunk into a failing business?
To get a better sense of what shops might expect when hiring a business consultant, we tracked the experiences of two shops who sought out some outside expertise to help their business.
Growth in profit, not just sales
Chuck Zimmer said he vividly remembers his first impressions when he visited Noaker’s Auto Body in Duncannon, Pennsylvania, in the spring of 2005.
“I wondered: Why is this guy calling me?” says Zimmer, a trainer and consultant with the Illinois-based Masters School, which focuses on collision repair management training and consulting. “The shop looked real nice and organized. They had a computerized shop management system. The owner was a nice, well-spoken guy who knew the industry. Everything looked like they should be making good money.”
Those looks were deceiving, according to shop owner Bob Noaker. He’d launched the company as a one-man show in 1998 and although his sales had been rising rapidly – from $440,000 in 2003 to $820,000 in 2005 – he found himself, much like Jeff Beavers, not having any profit at the end of each year.
Noaker found a 4-day class at the Masters School helpful, but trying to determine which of the ideas and information to implement – and how – was a challenge. So he hired Masters instructor Zimmer to conduct a one-day on-site review of Noaker’s to provide some direction.
During such days at a shop, Zimmer says he talks individually with every employee in the shop. “I just ask them about how things work every day around the shop, what processes get followed, and they’ll quickly tell you what never happens or what is screwed up,” Zimmer said.
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