MARCH JULY 2022 2021
FUTURE RIDE ALPINE A4810
CAPRICORN
Stars STREAMLINING CLAIMS FOR MEMBERS New Repairer Networks!
TOP 5 FINALISTS ANNOUNCED
July 25-26
THE TIGER KINGSWOOD Charity, children and challenges.
Go on, you earned it.
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CONTENTS David Fraser Group CEO
CEO’s message
We regularly hear how good competition is for business. Economic theory tells us it encourages businesses to produce their goods or services more efficiently, to continue to improve in order to attract customers and grow market share and profitability. But competition isn’t the be-all and end-all. Cooperation, though talked about far less often, can do every bit as much as competition to contribute to the success of any business. Capricorn is a prime example of this. Our Members — business people with shared interests — pool their collective power together. By working together, we create economies of scale that reduce costs and boost profitability, just as competition does. Collective membership enhances the individual. We often hear the phrase “competition is healthy”. While this is true, competition by its very nature also involves friction. It involves winners and losers. On the other hand, as a business mechanism, cooperation has a natural advantage: trust. You’re working with other businesses, rather than against them, to achieve your common goals, in your joint best interests. There are many reasons for competitors to cooperate. At the simplest level, it can be a way to save costs and avoid duplication of effort. Of course, in the automotive industry we actually see cooperation happening a lot. If a vehicle repair is too big or too risky for one repairer to manage, working together with another workshop may be the only option available. So, general repair workshops often sub work out to a specialist repairer (for example, automatic transmission work, wheel alignments, or electrical work). Yet at other times these businesses may also be competing with each other for the same customer. Cooperation is all about working together when it’s in your joint best interests — and it works most effectively when both parties feel they are receiving a benefit and risking nothing. That’s where the value is created. There are massive opportunities in cooperation, but when you’re used to thinking about the workshop down the road as a competitor it can be hard to get your head around the idea of cooperating. Ultimately, getting the right mindset requires choosing the right people. Cooperating with your competitor doesn’t come naturally, but if you’re prepared to think differently and give the risks and rewards careful consideration, you may well get an edge over those stuck thinking only about the competition. Because it’s not just competition that’s good for business, cooperation is good for business, too.
JULY 2022
4 Events In Your Area 5 Streamlining Claims Calendar of events
for Members New repairer networks
6 Xmas in July Two day sale
8 Alpine A4810
Hydrogen-powered Supercar of 2035
10 New Zealand 5000 Tasman Cup 38 years between a win!
12 The Tiger Kingswood
Charity, children and challenges
14 Automechanika Frankfurt
The international automotive aftermarket is back
16 Rising Stars 2022 18 Preparing Your Top 5 finalists announced
Yours in cooperation,
Business
How to sell your business
David Fraser Group CEO
20 Your Most Important Asset And how to protect it
All information, material and content in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information in this edition of Ignition you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Any opinions expressed in an Ignition article are those of the relevant individual author and do not necessarily reflect the opinions or views of Capricorn. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including without limitation, any third party authored article or supplier advertisement in respect of which Capricorn merely acts as conduit) included in this edition of Ignition. To the fullest extent permitted by law, Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: i. reliance on any material in Ignition; or ii. any inaccuracy, error or omission in any material in Ignition.
C A P R I C O R N I G N I T I O N J U LY 2 0 2 2 3
NEWS
CALENDAR of events Western Australia
South Australia
FUTURES COLLIDE II 16th August 2022 GALA DINNER & TRADESHOW 29th October 2022
GALA DINNER & TRADESHOW 5th November 2022 CEDUNA MEMBER NIGHT 28 September 2022
Queensland
Victoria
FUTURES COLLIDE II 19th to 20th August 2022 GALA DINNER & TRADESHOW 8th October 2022
GALA DINNER & TRADESHOW 12th November 2022
New South Wales GALA DINNER & TRADESHOW 19th November 2022
Capricorn DINNER & TRADESHOW
Login to capricorn.coop today and select Events to register your attendance. For further information please call our Events team on 1800 327 437 or email events@capricorn.coop
Calling all
Member Rides
Get your ride featured! Send us an email to ignition@capricorn.coop and let us know about your project car! Don't forget to send us some good quality photos too! 4 C A P R I C O R N I G N I T I O N J U LY 2 0 2 2
IT’S 9,000 PLUS AUTO REPAIRERS... ...who have each other’s backs
Join us!
Capricorn Members can access mutual protection that unlike profit driven insurance, is owned by and run for, the same auto repairers who are part of it.
Find out how you’re better off with Capricorn Risk Services. 1800 007 022 | info@capricornrisk.com | capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).
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Breville The Smart Grill Pro
FUTURE RIDE
ALPINE’S HYDROGEN-POWERED SUPERCAR OF 2035
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We were promised zeppelins. For years science fiction writers had made it clear the future of travel would be filled with hydrogen-fuelled airships, floating over our cities like giant, inflatable cigar tubes. It never happened. Where did it all go wrong? Frankly, the Hindenburg disaster of 1937, when a hydrogenfilled blimp burst into flames, killing 35 people, probably didn’t do much good for the reputation of either zeppelins or hydrogen. Since then, we’ve really only flirted around the edges of using hydrogen as a fuel source — even at ground level. There are very few hydrogen-powered vehicles available on the market today, and very few of the ones that are available (the Toyota Mirai and the Hyundai Nexo) are on the roads globally. But as the world turns away from fossil fuels and searches for greener ways to get around, could hydrogen make a comeback? Alpine seems to think so. They’ve released designs for a two-seater concept car, the Alpine A4810, which they say would be powered by hydrogen. The vehicle was designed by Masters students at the Europeo di Design (IED) school in Turin, Italy. The students were asked to design a “super berlinette” for the year 2035. They came up with the A4810, a super sexy supercar that’s a little over five metres long, 2m wide and 1m high, with a 2.7m wheelbase. It has an aerodynamic silhouette, inspired by Formula 1 race cars. “The bi-tone colours, matte black and carbon fibre highlights create a bold contrast with each part of the car, making them stand out according to their function: aerodynamic, mechanic or merely formal,” the company says. Why A4810? It’s a nod to Mont Blanc, which at 4810m is the highest mountain in Europe. (Perhaps that’s symbolic of the hill we have to climb to make hydrogen power commonplace?)
Being a concept car, there’s no information about power beyond the promise of that hydrogen powertrain. But expert observers have noted the design features twin exhaust outlets at the rear of the vehicle, which suggests Alpine envisages a hydrogen combustion engine, rather than hydrogen fuel cells powering electric motors. Alpine says the A4810 would be a high-performing vehicle in terms of both actual performance and environmental impact — a “light, yet powerful and agile” vehicle. It may yet be environmental factors that push hydrogen forward once again as a fuel for the future. Hydrogen does away with some of the disadvantages that currently exist with electric vehicles. You refuel in just a few minutes with hydrogen from a pump, just like a petrol car, so there’s no long recharge wait as there is with EVs. It’s also better for the environment than lithium-ion batteries, used in EVs, which generate several tonnes of carbon dioxide per battery during the lithium mining process. That’s the case even if the electricity the EV itself uses is 100% renewable. According to one report, if the hydrogen used in a vehicle like the A4810 were to be generated from renewable resources (for example, biomass), the lifetime emissions for that vehicle could be as low as 60g/km (compared to around 100 to 130g/km for an electric car). Clearly, neither the technology nor the infrastructure exists yet to make hydrogen vehicles commonplace. But many manufacturers are looking at it, experimenting with it and developing technology around it. While the A4810 might not be a vehicle we’ll ever see on a test track, let alone on our roads, its design is a clear indication that Alpine (and the next generation of automotive designers) think hydrogen needs to be part of the transition to clean energy. The future might not have zeppelins, but it might well include hydrogen.
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38 YEARS BETWEEN DRINKS FOR FORMER NZ CHAMPION By Paul Marinelli
It was indeed a very long time between drinks for the fastest qualifier and winner of the opening New Zealand Formula 5000 Tasman Cup Revival Series race held at the exciting Taupo International Motorsport Circuit on 15 and 16 May 2022. The victory went to Lola T332 driver Kevin Ingram at Taupo’s third and final round of this outstanding New Zealand racing series, that brings back the super-fast and thunderous open wheelers that dominated the global racing scene during the 60s and 70s. This historic domestic motor racing series has captured the imagination of race fans, teams and drivers from New Zealand and all over the world. Almost four decades had passed between wins for Ingram, which has to be some kind of global motor racing record. “That’s right,” the now retired former small-business owner said after his breakthrough win in the highly competitive historic New Zealand-based single-seater motor racing series. “It has definitely been a while.” “I won the New Zealand Formula Ford championship series title in 1983, but it would have been the year after that when I won my last race. That was 1984, which makes it 38 years! “So yes, I suppose you could say that it has been a long time between drinks!” Ingram said.
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It was certainly a real red letter day for Ingram who reprised his early career nickname “The Feilding Flyer” by also setting the event’s pole position lap time of 1:26.550 seconds (just over a second quicker than the mid-1:27 second laps set by joint preby Paul Marinelli event favourites Steve Ross from Dunedin in his McRae GM1 and Aucklander Grant Martin in his Talon MR1/A). Ingram’s long-awaited return to the podium brings to mind some other major timeframes between wins for motor racing drivers who, like Ingram, may have believed that they would never walk onto the top step of a winner’s dais again. Recently retired world champion driver Kimi Räikkönen from Finland holds the distinction of having the longest timeframe between his first win and his last in Formula One. He won his first Grand Prix at the 2003 Malaysian Grand Prix and his last at the 2018 United States Grand Prix — a span of 15 years and 212 days between the two! Italian Williams team driver Riccardo Patrese holds the record for the longest period of time between two race wins in Formula One, with more than six and a half years between his victories at the 1983 South African Grand Prix and the 1990 San Marino Grand Prix. Italo-American motor racing royalty Mario Andretti also had to wait a long time between drinks following his maiden Formula One victory at the 1971 South African Grand Prix and his second
win which came five years, seven months and 18 days later at the 1976 Japanese Grand Prix. He would go on to become the Formula One world champion in 1978 and he continued to race at the very top level in both IndyCars and Sportscars for two decades. Interestingly, Andretti’s 1978 Dutch Grand Prix win was the last Formula One race victory by an American driver. Now that is going to be a very long time between drinks when the next American Formula One race winner comes along. Given the discussions taking place in the sport at the moment, it may be an Andretti-owned team that will make this happen. Australia’s Supercars Championship has also seen some major delays between wins for some of its most notorious star drivers. The most notable was the delay leading up to Paul Morris’ 2014 Bathurst 1000 victory, which came 13 years and 88 days since his last win in the series. Legendary Australian racer Colin Bond also had to wait a long 11 years and 258 days between wins during his career, and New Zealand born superstar Jim Richards endured an 8 year and 109 day delay between victories. He was closely followed by Lee Holdsworth whose Bathurst 1000 victory last year came 7 years and 243 days since his last trip to the top step of a winner’s podium. If there is an important moral to this story, this is it — never give up!
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THE TIGER KINGSWOOD: CHARITY, CHILDREN AND CHALLENGES
There was a time when Michelle and Jarrod Bell thought their 1975 HJ Holden Kingswood wagon might be cursed. The owners of Eureka Truck Repairs in Gundagai and their three children were 65 kilometres into a 2000-kilometre charity drive in March this year when they suffered the first of three mishaps in one day.
“He took our kids in his brand new Landcruiser until we sorted the windscreen out,” Michelle said. “They sort of bailed on us and said, ‘yeah, we’re not coming in the car’, so that was nice of them.”
The bad luck started with a smashed windscreen shortly after they’d left Dubbo, the starting point on the four-day drive through regional New South Wales.
The kids, aged six, nine, and eleven eventually came back when they ran out of juice for their electronic devices. Their chargers were in the car, after all. But they had to wait—because the dramas weren’t over for their parents. After the windscreen had been sorted in Gilgandra, their five-speed HJ started losing power between Walgett and Lightning Ridge, their first stop for the night.
“I reckon it was a rock from a car, but not the car directly in front,” Michelle said. “We honestly didn’t even see it. It just scared the crap out of us.” Michelle and Jarrod’s three young kids abandoned their parent’s tiger-fur-covered Kingswood wagon and jumped in with one of the organisers of the charity drive.
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Thinking the carburettor was to blame, they started taking it apart only to realise that the fuel line was kinked. With that sorted, they were back on the road. They blew a tyre about 20 minutes later.
No windscreen, in the dark, more than an hour late for dinner and with an old jack that wasn’t up to the job. Luckily the charity drive’s support vehicle was following closely behind. With the tyre sorted, they finally made it to dinner nearly two hours late. Thankfully that was the end of their bad luck. The rest of the charity drive, which raises money for the Royal Flying Doctor Service and helps local businesses, was plain sailing. The four-day charity drive started several years ago as a warmup event for its organisers before they took part in the much bigger Outback Car Trek, which also raises money for the RFDS. Michelle and Jarrod are keen to join the Outback Car Trek, which is why they bought their HJ a few years ago, but Michelle isn’t ready just yet. “I’m one of those people who can’t leave their kids with anyone yet,” she said. “When they’re a little bit older, we’d like to leave the kids with mum and go on the big one.” Michelle and Jarrod, a diesel mechanic, started Eureka Truck Repairs in Gundagai six years ago, after Jarrod realised the town and surrounding area needed his services. They sponsor the local rugby league team, the Gundagai Tigers, which is partly why their HJ is covered in tiger fur. “It’s like their mascot,” Michelle said. “We take it to their footy games and it’s got sirens and hooters on it. The kids love to climb it and pat it. It’s pretty fluffy. Everyone pulls up and has photos with it.” But the other reason is for a bit of feline fun on the charity drive. “We go with a bunch of people and they’ve got a bunch of dog cars covered in dog fur,” Michelle said. “We stuck some tiger fur on it (the HJ) and now we just have to keep it dry so it doesn’t rust out underneath.” Michelle said their HJ was the “sister” car of the previous Kingswood they had: an HQ sedan. The HQ and HJ had belonged to two friends who had taken them on the KidsFix charity drive. Michelle and Jarrod bought the HQ first, but stayed in touch with the owner of the HJ because Michelle preferred a wagon. When they sold their sedan, Michelle contacted the owner of the HJ, who reduced the sale price from $11,000 to $6,000 because he knew they would also be using it for charity. Despite the wagon’s shaky start on its first charity run this year, Michelle is confident it can handle the bigger and longer Outback Car Trek. But that’ll be in a few years, when she feels more comfortable leaving the kids with her mum. For now, the HJ spends most of its life supporting the local rugby league team. It’s a perfect fit, as the Bell family loves its rugby league, especially the youngest son, Jakeb, who plays for the Gundagai-Adelong Tigers under 7s side. “We bought him new footy boots last weekend and he’s been sleeping with them,” Michelle said. “He’s a bit of nut case,” she laughed.
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AUTOMECHANIKA FRANKFURT The international automotive aftermarket is finally getting back together in frankfurt in september, and then every second year thereafter. Numerous leading companies from over 60 countries have confirmed their participation at Automechanika Frankfurt, and recent statements by major industry players have underscored Automechanika’s significance as the sector’s most important international meeting place. The Automechanika Innovation Awards have also received a record number of submissions and, as in-person networking is more important than ever, there will be additional networking lounges available. Other key focus areas include automotive logistics, sustainability, training, professional development and recruiting. Be it electromobility, connectivity, autonomous driving, or digital solutions for workshops and car dealerships, manufacturers and suppliers in the automotive aftermarket have a wealth of new products and innovations on tap for the upcoming event. Olaf Mußhoff, director of Automechanika Frankfurt,
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is delighted with the positive feedback from the sector: “I look forward to seeing numerous international key players and trade visitors from all around the world back here in Frankfurt. It is a longawaited opportunity to do business in person and enjoy an up-close experience of new products and live presentations. We have created new formats for the occasion and put important trend topics on the agenda.” No other trade fair covers the entire value chain of the automotive aftermarket like Automechanika Frankfurt. A veritable international Who’s Who of the industry get together at the Frankfurt exhibition grounds to showcase their latest product innovations in a variety of categories, including accessories and customising, body and paint, car wash and care, diagnostics and repair, and dealer and workshop management. There will also be the entire spectrum of parts and components for cars, motorcycles and commercial vehicles, as well as a plethora of companies showing off their latest developments in the electronics and connectivity area.
Peter Wagner, managing director of Continental Aftermarket and Services, explained: “There is no doubt that Automechanika is the industry’s leading trade fair. This is where strategic discussions are held at the highest level – something that is finally possible again. That’s important because the aftermarket is changing faster than ever. Whether it’s connectivity, data access, e-mobility or sustainability – there is a lot to talk about!” New players will also be at this year’s event, such as eBay Germany. Managing director Oliver Klinck said: “As the leading online marketplace for car parts and accessories, eBay is delighted to be presenting the E-Commerce Lounge at Automechanika for the first time this year.” Today more than ever, the focus is on innovations and trends, and it’s not just the exhibitors’ stands where these can be found. The “Innovation4Mobility” showcase presents pioneering solutions for connected vehicles and climateneutral mobility. Another highlight will be the products honoured at the Automechanika Innovation Awards, as
more products have been nominated this year than ever before. Show director Olaf Mußhoff said: “This sends a strong signal and shows just how innovative the industry is – something that is especially important with the current situation.” Mußhoff is also planning a forum focusing on automotive supply chain management, an area where the industry urgently needs greater dialogue and new ideas. Attracting young people and talent of all ages to the automotive aftermarket is another area where action is needed. That is why the fair’s management has put training, professional development and recruiting at the top of the agenda. Special events for students and newcomers are planned, as are accident repair management workshops and training for professionals. The industry’s new “Talents4AA” initiative will be shining a spotlight on employment and career opportunities at the fair.
At the FIA Smart Driving Challenge sub-event sponsored by Automechanika, which takes place in advance of the trade fair, the focus is on driving in the most sustainable and resource-conserving manner possible. Anyone who drives and also owns a smartphone is free to participate. The goal is to collect as many points as possible through intelligent and environmentally-friendly driving. The winner will be announced at Automechanika Frankfurt. Frankfurt is undoubtedly the place to be in September for anyone with an eye on the future – and that should be all of us! See you there.
Sustainability is also a key area of focus, and it’s the second time that Automechanika will host “Remanufacturing Day”. The event, which is held in collaboration with the international Automotive Parts Remanufacturers Association, takes place on 14 September and features experts presenting the latest developments in remanufacturing and the circular economy. The topic will also be present in the exhibition halls, with a special green remanufacturing logo identifying those exhibitors offering products and services in this area.
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RISING STARS ANNOUNCED
After another difficult year choosing the best from the best, the Rising Stars top 5 finalists have been announced. As in previous years, we read so many nominations of apprentices who are already acting as leaders in their workshops. We heard from many Members, incredibly impressed with their apprentices who have been taking on advanced jobs normally reserved for qualified repairers. Others were also stepping up when it counted, running the workshop on their own in times of crisis. And we were inspired by the many nominees who have overcome difficult circumstances to stay dedicated to developing their craft and repaying the faith their workshops have shown in them. Again, the outstanding passion and commitment to customers shone through brightly. It’s incredibly heartening to see such a high calibre of nominations, and it’s fantastic news for the industry to see so many promising technicians becoming ready to lead the industry in the future. Rising Stars Judge and Capricorn CEO Automotive, Brad Gannon, stressed the value of supporting apprentices.
“Completing an automotive apprenticeship is no easy undertaking. The qualified technician shortage highlights how important it is to train the next generation and support our apprentices, creating a pipeline of talent for the future. “Capricorn Rising Stars is an easy way for Members to show their apprentices that they have a bright future ahead of them, to maintain their passion for automotive and keep them committed to a long career in the industry.” However, there can only be 5 finalists. We are proud to announce the following finalists for the 2022 Capricorn Rising Stars competition: Jackson Vogelsang, Chelsea Bowers, Harrison Oastler, Jessica Smith & Marama Thompson. Stay tuned for the August edition of Ignition for the overall winner. Capricorn would also like to thank our program sponsors — Castrol, Repco and The Workshop Whisperer — who kindly donated some generous prizes for the winners and their nominating workshops.
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MEET THE TOP 5 FINALISTS
What their employer had to say:
What their employer had to say:
What their employer had to say:
Jackson has a great work ethic and is willing to take on any challenge and will often stay back late or work on a Saturday to get a job finished.
Chelsea consistently proves to us that she is dedicated, hard-working and thoroughly passionate about the automotive industry.
Harrison is an outstanding employee showing a great attitude and eagerness to always learn.
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His skills and abilities are extremely developed and we are very grateful to have Jackson within our team.
He sets a high standard for all apprentices and even his trainers have commended him on his outstanding ability.
She takes initiative in finding and scheduling extracurricular training to broaden her knowledge base and improve her mechanical skills and understanding.
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What their employer had to say:
What their employer had to say:
Jessica has definitely shown us that girls do belong in the workshop.
Marama is a super star. Her mechanical aptitude is the best I have seen in my 16 years in the trade.
She puts in 100% and has given us faith that there are still hard working youth willing to get their hands dirty, learn a trade and take pride in their work.
Her customer service is second to none, she always shows up early and is one of the last to leave, and she is always willing to learn and better herself.
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Preparing your business for sale by Geoff Mutton Whether you’re winding down ahead of retirement or changing business direction, selling your business will be a life event that can have a major impact on your financial security. The process of selling a business can be broken down into two very distinct phases: •
Phase 1 - preparing the business for sale
•
Phase 2 - listing the business for sale and completing the transaction
Getting the business prepared for sale can help the sale process run smoothly as well as give the best chance of getting the price you want. So, if you’re thinking of selling within the next three years, start planning right now. Here are steps you should consider taking: Talk to your accountant Your first point of call should be your accountant. Organise a meeting and let them know of your plans. All Accountants have been through this before with other 1 8 C A P R I C O R N I G N I T I O N J U LY 2 0 2 2
clients and they will be able to provide practical advice. In addition, they should advise you about tax considerations, help with preparing a financial statement and put you in contact with solicitors and business brokers. Talk to a business broker Some people prefer to sell their business on their own, but experience tells us that a business broker will make sure there are no pitfalls or traps when the sale gets to the pointy end. It is recommended you talk to a couple of brokers well in advance, to allow plenty of time to form a trusting relationship well before the sale. Just like accountants, brokers will have lots of advice, so you need plenty of time to act on their suggestions. Remember, you will still most likely be working in your business, so making time for these sessions is very important. Get financial statements in order The first thing any prospective buyer is going to want to see is the financial statements of the business, and not just the last financial year. They will want to see the last three years at a minimum. This is why talking to your accountant
well in advance of actually listing the business is so vital. Spruce up the presentation You wouldn’t sell your house with junk lying around and paint peeling off the walls, so don’t try and sell your workshop while it’s looking neglected, like a bomb has hit it. Give the workshop a spring clean, get rid of excess junk and make it look as inviting as possible. A fresh coat of paint is cheap and can do wonders. Update the procedures manual Taking over a business is extremely daunting, so the more documentation that exists on how the business is conducted, the more appealing it will be to a prospective buyer. At the very least, a procedures manual will be essential, so if there isn’t one already, add this chore to your list of preparations for sale. A procedures manual contains things like a list of preferred suppliers, security and alarm details and many other simple things that have been taken for granted over the years. A potential buyer will be able to visualise themselves operating the business just by the detail contained in a good manual.
Get the customer database in order The customer database is the most valuable asset of the business, so make sure it is up to date with as much information as possible. The database must contain full name, address, mobile number and email at the very least. The database must be easily accessible to a new owner. A buyer might think twice if they discover that the database resides in an old MS-DOS system that can’t be sorted or exported to a modern platform. Formalise all agreements Make sure all employees have up-to-date and signed job agreements or contracts. This doesn’t mean that employees can’t leave, but it shows good management that will be appreciated by a buyer. Significant trade or fleet accounts should be formalised and documented. Check lease security The last thing a potential buyer wants to do is relocate the business within the first year or two of taking over. Check on the lease expiry dates and if they are within a year or two of term, negotiate with the landlord and solicitor to have leases extended, to give the new owner some reasonable security. If a long lease is already in place, let the landlord know of your plans because it is likely that the landlord may need to consent to an assignment of lease for your business premises to the purchaser. While a landlord cannot typically hold up consenting to an assignment of lease without a valid reason, it’s a good idea to keep them in the loop. You might even know the potential buyer History shows that the majority of small business sales are to someone already known to the business, like a competitor, an employee, a family member or an industry contact. If you have someone in mind, get on the front foot and delicately approach the idea. An employee might not be financially able to buy the business today, but with forward planning they may be ready in three years. Selling a business is a key milestone and life event. Executed properly it can set you up for a comfortable lifestyle and create a better financial future for you and your family. Therefore, it’s critical to get the right advice and start planning early to ensure you make the most of this opportunity.
This article does not, nor is it intended to, constitute legal, financial or other independent professional advice. Please consult your professional adviser before relying on any information contained herein.
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BUSINESS BUILDING
Protecting One Of Your Most Important Assets Every business owner knows how important it is to insure key assets such as buildings, plant and equipment. But what about your business’s most important asset — you? Your personal wellbeing is your livelihood. How would you and your business be affected should something happen to you, leaving you incapacitated and unable to work for weeks, or even months? Capricorn's State of the Nation 2021 found that 16% of businesses have only one staff member and 17% have a total of two staff. This means it is extremely important to protect yourself in case of an accident. Before illness and accidents happen, you can take sensible steps to protect yourself financially from the expenses and inconvenience they can cause. While worker's compensation covers your employees if they are injured or become sick at work, there is no such compulsory protection for business owners. A prolonged period without income could have a serious impact on your family, savings and lifestyle. This is where personal accident and illness cover comes in. It can protect you against lost income while you can’t be at work, and also help meet any medical expenses and rehabilitation 2 0 C A P R I C O R N I G N I T I O N J U LY 2 0 2 2
bills. This allows you to concentrate on getting better without the stress of having to worry about your personal finances. Depending on the type of policy you choose, personal accident cover may also compensate you for pain or suffering resulting from your accident, and for any inability to do things after your accident that you could do before. In the event of a serious, disabling accident, cover may extend to additional expenses such as alterations to property or vehicles and ongoing care costs. Capricorn Risk Services can help you access Personal Accident and Illness policies from specialist insurers. And best of all, policies that provide some protection re-lating to income for small business owners may be tax deductible, so ask your financial advisor to be sure. If you don’t already have Personal Accident and Illness cover, talk to your Capricorn Risk Services Account Manager about getting a quote. You owe it to yourself.
PREFERRED SUPPLIER PROFILES
CORGHI NATIONAL corghi.com.au
10
SPOOL IMPORTS
YEARS PREFERRED SUPPLIER
QLD spoolimports.com
NEW
PREFERRED SUPPLIER
15
YEARS PREFERRED SUPPLIER
WOODVILLE AUTO WRECKERS SA/NT woodvilleautowreckers.com.au
Woodville Auto Wreckers has been operating since 1992 and today they employ eight staff who are specialised in all general parts of auto dismantling and have a long history of providing excellent customer service and providing quality second-hand parts for their clients. Their sales staff have extensive experience within the auto recycling industry. Woodville specialises in quality second-hand parts to suit late model vehicles. Previously they were known as a Honda specialist, but today they cover all makes and models for a diverse market. They set themselves apart from other businesses with their comprehensive stock range and customer service backup to support their clients’ needs with every transaction.
In 1947, brothers Erminio and Remo Corghi began to reap the rewards through building radios and inventing a special hunting lure with a tape recorder. Six years later, in 1954, Corghi Electromechanics was founded. Since then, they invented and patented the world’s first tyre changer, which was a brilliant way of penetrating the market. Today Corghi is the absolute leader in the Italian market and a world leader in the vehicle assistance equipment sector. They provide industry-best service and sales, tyre changers, wheel balancers, wheel aligners and hoists. The brand and machines are trusted by the most well-known workshops in the country. Being the manufacturer, they sell and support with passion and pride and back up their brand. Corghi takes every business personally because they care.
PRODUCTS THAT WORK VIC/TAS ptwaus.com
2
YEARS PREFERRED SUPPLIER
After more than 20 years in business, Spool is now importing and selling parts on eBay to multimillion-dollar businesses with relationships with some of the largest aftermarket manufacturers in the world. With the core business of engine parts, Spool’s emphasis has been on doing a few things and doing them well. With the renewed emphasis on trade, they became a Capricorn Preferred Supplier. Spool has been selling their own brand of Spool H-Beam and I-Beam Conrods and Billet Crankshafts, and many of Australia’s fastest Barra and JDM engines have Spool components in them. They can also help design and commission custom CPCarrillo pistons or conrods for almost any engine configuration. Spool only represents time-proven products and their staff are knowledgeable, with hands-on experience building high-performance engines and racing them.
BAXTERSMTQ NATIONAL baxtersmtq.com.au
100% Australian owned, PTW™ is a leader in the development and manufacturing of specialist products within the automotive service and repair industry. Operating from their office and warehouse facility in Melbourne, PTW is well-positioned and structured to meet your workshop requirements. PTW offers a range of professional-quality parts, tools, and equipment to automotive mechanical and refinish professionals across Australia. PTW stocks and specialises in the following brands: STRETCH® CV Boots, Rakboots™ and installation tools; PTW Wipers Chemicals, Parts and Service products; PTW Tools™ hand tools, pneumatic tools and abrasives; NORMFEST® German chemicals, service, cleaning, and maintenance products; and Whirlpower® hand tools. STRETCH universal fitting CV Boots, Rakboots and PTW Wipers fit over 98% of passenger vehicles.
19
YEARS PREFERRED SUPPLIER
BaxtersMTQ leads with their extensive range of genuine original equipment and aftermarket auto electrical and charging, lighting, switching, air conditioning, turbo, and diesel fuel injection products for commercial applications in Australia. BaxtersMTQ is committed to bringing value to their customers by working closely with manufacturers and clients to provide expert technical knowledge, service, and solutions, far beyond the supply of products alone. Not only are they the only accredited warranty and service agent in Australia for many leading brands, but their insights are sought in the pursuit of quality improvements and the development of new products. With 45+ years’ experience BaxtersMTQ is a wholly owned subsidiary of the publicly listed Bapcor Limited, Australia’s leading provider of automotive aftermarket equipment and services.
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LITTLE WAYS TO WOW YOUR CUSTOMERS AND BUILD LOYALTY If you’ve been running a mechanical workshop for any length of time, you’ll know many customers don’t really understand their vehicles in any great depth. That’s why they come to you – you’re the expert, the person who is going to fix their problem and get them back on the road. That creates a huge opportunity to “wow” and impress your customers. You can really make someone’s day (and create a loyal customer) just by doing something that, for you, is very ordinary. How do you create a “wow” moment? It’s all in the details! Below are some examples of simple ways any workshop owner or manager can elevate their customer service but, first, let’s quickly explore what we mean when we say “wowing” customers. Customer service expert and New York Times bestselling business author Shep Hyken in his article “Wow is in the details” said “wow” levels of customer service and experience typically fall into our laps in the form of complaints or problems we can resolve – or isolated opportunities to just do something special. They can be “above and beyond” and over-the-top customer experiences.
it’s just a little above average. The key is consistency. Without that, there is no predictability, and that leads to a lack of confidence.” What does “amazing” your customers on a daily basis look like? Well, it’s a little bit more than providing free wifi and coffee in the waiting area. These days customers pretty much expect that as a minimum. Here are some ideas you can introduce as part of your ordinary, daily service that will help create a wow factor for your customers. If you’re already doing some of these, then great – you’re on the right track: •
•
So what we’re really talking about here is “amazing” our customers on a day-to-day basis. “Amazement is the consistent and predictable above-average experience that a customer receives from a company or employee,” Shep said. “And sometimes 2 2 C A P R I C O R N I G N I T I O N J U LY 2 0 2 2
•
Detail the car after you’ve serviced it. Customers really notice and appreciate getting into a clean car, and this can be a huge point of difference between your garage and your competitor’s. At the very least, return the car cleaner than it was when it arrived Walk the customer to their car, or bring the car to them. Compared to giving the customer their keys and sending them out to find their car in the car park, this gesture feels like VIP service. Even just holding the door open for them makes a great impression Give the customer your time at drop off and collection. When you
send a customer away quickly it can feel transactional, rather than like you care about them and their business. Spending 10 minutes running through the repairs and answering questions is often an excellent investment. •
Remember and use names. The sweetest sound to any person is their own name, so make an effort not just to memorise names, but use them. (Some people nickname their car, so you can even ask them for their car’s name and use that, too!)
•
Insist your staff say hello. Often your team will be out in the workshop and won’t see the customer, but if they do (for example, if they’re walking through reception or the car park) then they should say a cheery hello and “how are you?” It makes a memorable and positive impression!
•
Thank the customer for their business. When you farewell the customer, shake their hand and thank them for their business.
Take some time to think about what kind of detail you could introduce to enhance your customer’s experience. It doesn’t have to be a grand gesture, just one that makes the customer feel like they’ve received special service.
N R O C I R P A C
LAST MONTH'S ANSWERS LAST MONTH'S WINNERS 1st Prize - 4,000 points JJM Auto Service 2nd Prize - 2,000 points The Hub Automotive
Email your answers to ignition@capricorn.coop before the 25th of July. Winners will be selected by a lucky hat draw of correct entries. Please ensure you include your Member number and email address when submitting your entry.
WORD Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!
PARTS PREPARING STARS IGNITION SUPPORTING FINALIST MOBILITY KINGSWOOD
CHAMPION STREAMLINE POWERED GALA GROW COLLECTIVE NETWORK
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