Research shows that 90% of small businesses close their doors because of poor cashflow.
Here’s five ways you can increase cashflow for your workshop in 2021.
Manage your parts inventory in one central system
Many workshops still continue to record parts inventory manually. The problem managing parts inventory is there is a high risk of error. Even the slightest mistake could cost your workshop thousands.
Managing your parts inventory through a workshop management software will eliminate the risk of common stock management error. The benefit of using a workshop management system for parts inventory is - when a part is purchased, the system will automatically update stock numbers without the need of human input.
Evaluate Supplier Accounts
One of the biggest drains on workshop cashflow is paying too much for your parts. Many workshops use the same supplier that they have been using for years, but that doesn’t mean you are getting the best deal.
Ensure you are shopping around for the best deal, follow up with your current suppliers and see what type of reduction they can give you.
Focus on getting repeat customers
40% of workshop customers are repeats. If you don’t have a plan in place that retains your existing customers, you could lose thousands in recurring revenue every year.
Follow up with your customers, send automated SMS and Email reminders, let them know their car is due for a service and any promotions you be running. Using a workshop software like Workshop Mate, you can completely automate customer reminders.
Integrate your accounting with your management software
Using multiple systems to record your business financial information will increase your accountant fees. The more time they spend trying to find important information, the more you will pay, simple! A solution for workshops is integrated accounting.
Integrated accounting is the combining your business accounting to your workshop management software. Your data is synced two ways from one program to the other instantly and accurately – removing the need for manual data entry and the risk of error – ultimately cutting your bookkeepers time.
Grow your online presence
Let’s face it, there isn’t a day that goes by where we don’t use the internet or social media to research for things we want to buy. Last year 72% of workshop customers used Google when looking for their next mechanic. The opportunities are massive. If you don’t have a website, you could be losing customers daily.
Here are some of the essential platforms you need online:
- Workshop Website
- Google Business Listing
- Facebook Business Page
- Bing Place listing
- Yelp Listing
Having your business visible online will help customers find your workshop when they search for a local mechanic in their area.
Where Workshop Mate can help?
Workshop Mate by Jeal is a simple and adaptable workshop software solution that simplifies and automates the day-to-day tasks of running a mechanical workshop.
Get all-in-one quotes, invoices, barcoding, parts inventory, automated reminders, service history, job allocation, tracking, Xero/MYOB integration, and more to help you run your workshop efficiently.
It’s never been easier to start! Click the button below to start your 14-day free trial of Workshop Mate.