SHOP MANAGEMENT Spring Semester 2010
Great Basin College1.5 Credit Hours
Instructor: Bret Murphy DT 203B E02
Philosophy
Student and instructor are working toward common and practical goals which are discussed at the onset. Student and instructor will be actively involved in the process of learning. Guidelines for the course are specified but latitude is given to explore new ideas and concepts. Learning is a change in one's behavior; the road to change is marked by the instructor, and the student's responsibility is to understand.
PURPOSE & COURSE GOALS
This course is designed to give individuals experience in the management of an equipment repair business. Basic business operations and procedures will be the main focus for this entrepreneur's course. Individuals will learn what forms are needed to start and run an equipment repair business, along with quarterly report filing information.
* Know fundamentals of small business operation.
* Know the procedures for acquiring a business license.
* Develop a mission statement for your company.
* Demonstrate the ability to calculate shop rate by budgeting.
* Demonstrate communication techniques for positive customer relations.
* Know current fees and able to calculate these fees for state industrial insurance, state and federal unemployment tax, and employee health insurance.
* Know competitors shop rates.
* Demonstrate the ability to calculate Nevada sales tax.
* Demonstrate the ability to apply concepts learned in class to class project.
* Demonstrate the ability to estimate repair bills by the use of a flat rate manual.
* Know the principles of credit card usage.
* Know fundamentals of your pay stub.
READING ASSIGNMENT
Students will be required to read one article related to small business operation. Reference to these articles will be used in the class project. Students will be asked to voice their opinion on issues researched in their article.
EVALUATION & GRADES
Project 30%
Final Exam 60%
Participation 10%
PROJECT REQUIREMENTS
Students will create a heavy equipment repair business budget using information gathered by each team. This project will be presented to the class and discussion will follow. The budget will include the following:
*Shop Rental Fees
*Wages for two employee; employee AA@ $8 dollars/hour; employee AB@ 15 dollars/hour
*Calculate State Industrial Insurance
*Nevada Sales Tax and Nevada Business Tax
*State and Federal Unemployment Tax
*Estimate Utility bills; electricity, gas, garbage, water, phones
*Business Insurance - including auto, garage keepers, property liability
*Employee Health Insurance
*Medicare and Social Security
*Shop Equipment; Rental or Lease
*Service Truck Expenses
*Develop a warranty policy based on 3 competitors warranty policies. This policy should include parts warranty.
*Credit cards.
*Advertising, Phone book, Billboard, Newspaper.
*Employee Training
*Computer and service manuals, bookkeeping software
*Freight Costs
*Professional Fees; Accountant, Bookkeeper
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All expenses will be based on a 40 hour week and 4 weeks per month. All calculation should be on a per month basis.
Each student will come up with a company name and mission statement.
At the completion of this project, students will be able to calculate shop rate, service call out rates, and identify profit margins. The information gathered will be analyzed and discussed so that suggestions may be made to increase profits.
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Business Terms
1)Invoices
2)Statement
3)Work Orders
4)Estimates
5)Profit
6)Depreciation
7)Taxes
8)Billable Hours
9)Customers
10)Accounts Payable
11)Accounts Receivable
12)Incentive
13)Employee Time
14)Overhead
15)Expenses
16)Income
17)Flat Rate
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18)Warranty
19)Come Backs
20)Marketing
21)Markup
22) Gross
21)Net
23)Vender
24)Amortization
25)Simple Interest
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Budget Sheet for Repair Business / MonthHeating
Electricity
Cellular Phones
Water/Sewer
Shop Rental/Purchase Price
Service Truck Purchase/Rental
Credit Card Charges
Shop Equipment
Office Computers & Software & Service Manuals
Advertising, Phone Book
Advertising, Bill Board
Advertising, Newspaper
Advertising, Internet
Business, Insurance AGarage Keepers@
Auto Insurance $500.00 Deductible
95 Ford F-350 1 ton 4x4
90 Ford Ranger 4x4
Competitors pricing & Warranty Policy
Employee A Cost/Month Pay/Hour------>$
Gross Pay ------>
Social Security ------>
Medicare ------>
Unemployment ------>
SIIS ------>
Health Insurance ------>
Vacation/Sick Leave ----->
Retirement ------>
Bonuses ------>
Employee B Cost/Month Pay/Hour------>$
Gross Pay ------>
Social Security ------>
Medicare ------>
Unemployment ------>
SIIS ------>
Health Insurance ------>
Vacation/Sick Leave ----->
Retirement ------>
Bonuses ------>
Shop Purchase/Rental
Freight
Professional Fees
Nevada Business Tax
Employee Training
Business Licence
Cost Per Month to Operate Business ------>
Owner gross Pay Per Month------>
Shop Rate Per Hour ------>
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