What are you doing to make 2010 your best
I know, I know, you think I am confused. Trust
me. I know we have three months until 2010 starts.
I suspect 2009 was not a great year for you. If
you want to change your results in the coming year,
now is the time to start planning. Have you started
on your budgets for next year? Done your financial
forecasts? Outlined specific programs to improve
your key operating metrics in 2010? You need to
start now to be ready to go in January.
Let me share with you a few steps that you can
take now to make more money in 2010:
1. Review your financial performance for 2009.
Compare 2009 month-by-month to 2008. Be sure to
include total sales, sales per salesperson, and
sales per day. Look for trends in expenses and
cost of goods. Taking a month-by-month look at
your metrics will help you identify which areas
to focus on in 2010. Review your operating metrics
also: How many cars did you buy per month? How
much did you spend buying cars per month? How much
were your expenses for each car you processed?
These are just a few of the metrics you should
consider as you look for ways to improve your results
2. Prepare a financial plan for 2010. Using what
you’ve learned, make a financial plan that has
metrics consistent with your forecast. For example,
you can’t forecast more sales if you buy and process
fewer cars at the same value. If you are forecasting
growth next year, prepare a bridge. Use a bottom
up budgeting process to make certain that you have
accounted for the relationship between your metrics
and are in a position to make the right decisions
based on the numbers. Learn more about bridge plans
and bottom up budgeting in forthcoming issues of
this publication or by visiting the recycling discussion
board at www.MrMissionPossible.com.
3. Involve your people: As you do your planning,
ask your staff to tell you what they think they
can accomplish in sales, dismantling, buyers, etc.
Make the 2010 plan their plan. Once they buy in,
you can get them energized to meet the goals they
have set forth for themselves. Have them tell you
what resources they need you to provide so they
hit their goal. For instance, sales will tell you
how much you need to spend on cars. Buyers can
tell you what they need to make sure they can buy
the required amount, and still keep cost of goods
within projections. Dismantlers need to tell you
what they need to be able to dismantle the cars
you buy. Make sure that you have considered the
best way to prevent your people from sharing teeth.
(Learn more about sharing teeth in a future issue
or on the recyclers’ discussion board.) Don’t forget
to include the people that will be delivering parts
to your customers in 2010. What do they need to
deliver on time to your newly added accounts?
4. Build accountability and monitor progress. Hold
a group meeting to communicate the objectives of
your plan and who is accountable for results in
each area. Cycle back and check for the deliverables
beginning in February for the January results.
If you would like to do even more to make 2010
your best year in business, join one of our Peer
Benchmarking Review Groups. You will be in group
with 10-12 other non-competitor auto recyclers
to compare metrics, sharpen strategic initiatives,
and share what works and what doesn’t in meeting
2010’s challenges. To learn more about participating
in a PBRG, visit www.MrMissionPossible.com.
Don’t forget to subscribe to Ron's
free monthly auto recycling e-newsletter, with
news and tips, register at www.autosalvageconsultant.com.
Remember, only you can make BUSINESS
Ron Sturgeon is past owner of AAA
Small Car World. In 1999, he sold his six Texas
locations, with 140 employees, to Greenleaf. In
2001, he founded North Texas Insurance Auction,
which he sold to Copart in 2002. In 2002, his book “Salvaging
Millions” was published to help small business
owners achieve significant success, and was recently
reprinted. In June 2003, he joined the new ownership
and management team of GreenLeaf. He also manages
his real estate holdings and investments. You can
learn more about him at WWW.autosalvageconsultant.com
He can be reached at 5940 Eden, Haltom City, TX
76117, firstname.lastname@example.org or
817-834-3625 ext 6#.