Taking a Good Hard Look at Your Business Model
by Joe Ocello
In today’s competitive marketplace, it is imperative that you regularly evaluate your business model for long term success.
Defining how and where you want your company to go is the beginning of your long-term goals. This means objectively assessing its strengths, weaknesses and adaptability to changing market conditions.
Every day as I visit shops or speak with owners and managers, I come across a few repetitive concerns. How do I get and keep employees? How do I increase revenue, and how do I cut costs? Let’s take a look at employee retention and accountability.
Education is number one, not only for yourself but for your employees. Did you know that statistics say you should be investing two to five percent of your annual profits for education? By doing this on a yearly basis, not only will you attract and retain key employees, you will also increase your ROI. Comebacks will decrease, profitability will increase, employee turnover will decrease, customer satisfaction will increase, and shop safety will increase. I’m sure you could add a lot more benefits.
I know some will say, “I invest all this time and money into a technician only to have them move on or get stolen by another shop.” I don’t discount this; it has happened to me over the years. This is why your relationship with your managers and employees is important. If employees are treated fairly and know they are an integral part of your team, they are more likely to stay and make a home with you. Make them feel like family because, in a sense, they are. Where would you be without them? Create events, purchase lunch occasionally, give them a shout out for a job well done or maybe a new tool. There is so much you can do with minimal expense. AASP/NJ can help. We have added so many new programs for both the mechanical and auto body division. Give us a call – really, I look forward to speaking with you!
Want to increase your ROI? Again, the statistics say 20 to 50 percent of your profits should be allotted to equipment upgrades, image upgrades, new business marketing and analyzing your cash flow. The list can be endless, but the bottom line is – change. New and improved. Look at the big box stores. They are always advertising the new this or that. Every time you enter a store, things are moved here or there. Add new services or products for your customers. Faster, easier and more personal service will keep your customers happy and coming back, time after time. Stay up with the current trends and advertise, whether digitally, via local media or you can even consider billboards. Get your name out there. The time and effort will be an astounding reward, both professionally and monetarily.
2026 is going to be a great year if you start your preparations now. Never ever get comfortable with your business and think it will just be status quo: “I’m a good technician, I’ve been here for so many years, and people trust me.” These are all good things, but they won’t always propel you into the future. Most importantly, please remember AASP/NJ is here for you. Our mission is to help you accomplish your goals and dreams. We have a vast variety of programs and resources to assist you. Check out page 13. Do not underestimate the power of numbers. We will always have your back, today, tomorrow and in the future here at AASP/NJ.
Want more? Check out the December 2025 issue of New Jersey Automotive!