Service Stations or ‘Servos’ as we affectionately call them, are one of the few Successful Business Models available today – compared to many other Businesses. If you ask me every Service Station business makes more than enough money, better than most other businesses. If it doesn’t make good profits, then there are usually two main reasons:
- The owner (or operator) is running a wrong business model. For example; poor customer service, not properly trained staff, bad merchandising, poor stock management, no financial planning in total bad practice.
- They have Over Paid for the business or they have Over Stretched themselves by borrowing too heavily. Working capital is required to run a profitable service station.
How can we avoid these two situations?
- Regardless of whether you have been running the business for few years – or just starting out, it’s better to see through fresh eyes. Because we become ‘Store Blind’ when we are dealing with the store day in and day out.
- Well-trained staff with Great (not just Good) Customer Service practice is essential for any business to be successful.
- Effective merchandising & promotions to compete with competitors should be a part of everyday business to be ‘The Choice of Destination’ for customers. We have to keep in mind, there are many Service Stations from all different brands located near you and everyone is fighting for your customer, to stand apart you need to be the best. It is always worth to pay a professional to consult, re-structure or formulate a Business plan to specifically suit your Business.
- You must always consult an expert to value your business before purchasing (or selling) to ensure that the business that is being purchased (or sold) is being transacted for the right value.
- Proper financial planning is required to have enough working capital to run the Business smoothly, the last thing you want is to have a customer leave your store without the item he wanted. (The stock required to operate should always be maintained to optimum level). So get the business value checked to ensure that the business you are buying is priced correctly and you could operate without financial burden. If you are selling a business, you must also ensure that it is priced correctly so that you can sell it within right time, without risking “losing” the market. This simple check will avoid a world of stress and you can do what you should be doing; running a successful Business without stress.
Remember, “There is no such thing as bad business, it’s always the owner who is doing the business badly”. For Free Evaluation of you Service Station Business call – Karthik Arasu on 0422 310 325