9d • Sales Level
Bottlenecks
What is a bottleneck?
A bottleneck (sometimes called a constraint) is the part of your business that is stopping the business from flourishing.
Bottlenecks typically happen in one of four areas of the business:
Attraction
Conversion
Delivery
Collection
The primary reason for locating bottlenecks is to increase cash flow in the business.
Once you identify a bottleneck then you must take ACTION to remove it.
They don't have to be big steps. It's an ATOMIC idea.
You start making small improvements, and removing these bottlenecks which can result in massive changes within your business.
How can you find a bottleneck?
First you need to consider what you're trying to achieve and what is preventing you from achieving it.
This could be simply looking at what you're currently doing and why can't you do any more of it?
The Attraction Bottleneck
For a sale to happen, you must have won a customer. That customer has found your garage in
some way. In most cases we don’t know how, they just appear, this is an ACTION you can take
today, start asking and recording how your customers find you.
The conversion Bottleneck
If you ask garages their conversion rate as a percentage?
Most will tell you nearly everyone who gets in touch with the garage turns into a sale.
Most business owners, I speak too, think they're amazing at converting.
Sadly. It isn't true. When you start measuring. You start to find out that actually the conversion rate
isn't as high as you thought. ACTION point to start MEASURING conversion rate.
The Delivery Bottleneck
When it comes to delivery the bottleneck is the ability to complete the work.
What is preventing you from repairing the vehicle in a professional manner without undue delay.
That is the delivery bottleneck.
The collect bottleneck
If you are invoicing immediately after the work is completed and only release the vehicle once it has
been paid for then the collect bottleneck isn’t much of a problem.
But if you are a sole trader and you have a row of cars to do, the phone's ringing and you need to
order parts. It's easy to forget to do the invoice when you finish the job, therefore the invoice doesn't
get done until the following day, which means it doesn't get sent until that afternoon, which means
that you get paid two days after you completed the work.
Larger businesses can have a Collect bottleneck if they are doing trade work. The vehicle arrives,
you do the repairs, the vehicle is picked up, you invoice the company and they pay within the terms
agreed.
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Bottlenecks
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