Evaluate Your Business’ Health, Growth Options Now to Plan for a Successful 2014

LEAWOOD, KS (December 18, 2013) – Each year around this time you see a lot of articles from financial planners suggesting that the holidays are the perfect time to do an annual check-up on your investments.

For many small business owners (including body shop owners), the single largest investment they own is their business.  So what better time to assess your options than right now?

For 2013, there was a continuation of consolidation within the collision industry as more equity firms entered the fray enabling additional large MSOs to gobble up independent shops.  Add to this new insurance initiatives and mandates, and it’s enough to keep you up at night.  So it does makes sense to take a time out occasionally to assess your personal situation and make a conscious decision on how best to proceed?

“That’s why a thorough checkup to review your business’ health and outlook is critical,” said Dean Fisher, VP of operations for CARSTAR Auto Body Repair Experts.  “Now is the time to evaluate your goals as a business owner – whether to continue to fight as an independent business, sell out (and hopefully get a fair value) or join forces with a franchise network who can provide you with the resources, support, buying power and management expertise. “

Fisher offers key points to review in your year-end business checkup:

• Determine how you are delivering against core KPIs?  (Key Performance Indicators) like:
  • Cycle Time
  • Customer Satisfaction
  • Closing Ratio
• Evaluate what percentage of your business comes from insurance relationships
  • Is your business too dependent upon a single carrier?
  • Are there opportunities to improve other carrier relationships?
  • Ensure you have adequate insurance to protect the continuity of the business against a catastrophic event such as fire, theft or accident
• Measure the profitability of your business again past years to determine if it is increasing or decreasing.  And why?
• Establish hard targets and goals for the upcoming year:
  • Revenue increases
  • Margin improvements
  • Taking more time off
• Create a marketing plan to grow the business and a timeline and budget to implement
• Determine what investments in people, equipment or processes are needed in 2014
• Review your succession plan and put one in place if you don’t have one  (sooner or later you will want to exit the business)

There are options to consider if you find your business falling short of your goals in any of these areas.  An increasingly attractive option is to join CARSTAR, North America’s largest MSO network.

“I was involved with another well-known franchise system for over 10 years and the difference between CARSTAR and other systems out there is night and day,” said Jeremiah Graham, owner of Jeremiah’s CARSTAR in Oklahoma City, OK.  “After partnering with CARSTAR, I was approached by three different insurance companies to be on their DRP program within the first year.  For the first time in years, I feel like I’m being taken seriously in my market.  I really get the feeling that CARSTAR wants me to be successful and is standing behind me.”

Jeremy Orsky, owner of Coach and Collision CARSTAR in Cleveland, OH, shared a similar perspective on his experiences as a new CARSTAR member.

“As this year comes to a close, my staff and I reflect back on some of the accomplishments that CARSTAR has helped us grow through and we are excited to see what the New Year will bring,” he said.
CARSTAR will ring in the New Year celebrating its 25th anniversary in 2014.  It has more than 440 locations across North America, with plans to quickly surpass 500 stores as more and more business owners find it is the best solution for surviving and succeeding in the body shop business.  And should you eventually decide to sell, you are better position to command a premium valuation for your business.

“If you are doing a year-end review of your business and contemplating your next step, why not consider joining forces with CARSTAR, to work towards optimizing the value of your business?” said Fisher.  “Our national team is here to help you set the stage for success in 2014.”

About CARSTAR

CARSTAR Auto Body Repair Experts is North America’s largest Multi-Shop Operator Network of independently owned collision repair facilities with more than 440 locations in 31 states and 10 Canadian provinces. CARSTAR delivers national scale, consistently high-quality vehicle repairs, repeatable outcomes and the industry’s highest customer satisfaction ratings; all repairs are backed by a national warranty and service guarantee.  For more information visitwww.carstar.com. CARSTAR is actively seeking new franchisees.  Interested parties should contact Scott Robertson, Vice President of Development at srobertson@carstar.com or 913-948-5014.