You are the owner of MIDTOWN MOBILE MECHANIC, a small, independently owned mobile auto repair service located in a mid-sized college town. MIDTOWN MOBILE MECHANIC has been in business for three years and has built its reputation on convenience, providing on-site vehicle maintenance and minor repairs for busy professionals and families in the community.
Currently, there are two full-time mechanics, plus yourself that oversee the workload. There are three fully equipped service vans. As the owner, you handle the scheduling, billing and customer relations yourself. MIDTOWN MOBILE MECHANIC averages 20-25 service calls each week, which is steady but manageable. Continued growth has come from word-of-mouth and local online positive reviews.
A month ago, MIDTOWN MOBILE MECHANIC signed a one-year service agreement with the large public university in the community to provide maintenance services for university-owned fleet vehicles, facilities and maintenance department trucks and campus security vehicles. The contract guarantees a minimum of 40 service calls per week, priority response time and fixed pricing for common services. The university invoices are paid on a net-30 basis. This contract doubles the workload and offers revenue stability and increased credibility. However, it also creates greater operational pressure.
You now face the challenge of rapidly scaling your business without sacrificing service quality or overextending financially. Your business partner wants you to develop an action plan that will cover the external planning considerations, complexity of business operations and risk management associated with each of the following:
- Staffing constraints
- Equipment and vehicles
- Scheduling and operations
- Cash flow management
- Customer satisfaction
