Know Your Strategy

I’m excited to present a slightly different style of article this week that I present at the end of this post. I’ll be doing more of these articles in the future and hope they prove to be a useful way to exchange information.

There has never been a greater need to develop a business strategy to determine the best path forward than now in the collision repair industry. The entrance of Wall Street money in the industry is causing rapid structural change. No longer is the collision industry just about fixing cars and minding your KPI’s.

The industry is maturing. As a result, business models are changing too. Think back a few years and a popular operational model in the collision industry was to build a big box, a huge box, a 100,000 square foot box and fill it up with the newest and shiniest equipment you could find. If you build it they will come was the thought behind such models.

That model is no longer in vogue currently. Now the predominant operational model is to go lean. Reduce overhead. Drive efficiencies. Reduce cycle times. Smaller is better, less waste, constant production. Triage is critical to convert large jobs to small jobs.

The reason I bring this up is to illustrate that operational models shift over time. And if you are not careful, it is easy to get swept in the latest fad and find you and your management team bouncing from good idea to good idea.

That is why I always prefer to take a more global data driven approach. There is no one right strategy. Understanding where you want to take your business depends on a myriad of factors that are unique to every business and every business owner. But understanding the big trends and the overarching options available to you allows a business owner to take advantage of trends rather be controlled by trends.

Understanding the larger context, whether you want to stand pat, grow, or sell, allows you as a business owner to better position yourself to determine your own destiny. Understanding your own core competencies allows a business owner the ability to choose how to best exploit a specific strategy.

There is a lot of change currently taking place in the industry. I’m excited to announce that through a partnership with ABRN I will be hosting short video blogs designed to dive deeper into the topics we talk about here on a weekly basis. These video blogs are designed to be short and easy to digest, but to also provide a bit more color to my weekly messages. The videos will be available at ABRN as well as on video section of this site.

Take a look. I am eager to know your thoughts. As always, if you would like to discuss any of these strategies in more depth please shoot me an email via my contact page to discuss further. I find the transformation in the industry truly fascinating and all communication is kept strictly confidential.

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Until next week.

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