The competitive landscape for automotive retail requires dealers to think even more about competition and growth. Some think they need to get bigger or get out; however, the bigger question is, what will it take to corner your market and fulfill your strategic vision?
In Houston, for example, it will require much more than in small-town America. From Haig’s perspective, Pete Theil shares that if the goal is to compete in competitive markets, 10 locations with a diversity of brands will provide you critical mass to be a one-stop shop for customers as a transportation provider. The ten most common brands cover about 75% of sales, and with 10 locations, you should be able to sell fifteen to twenty thousand cars a year, providing scale to compete against the national competitors. In addition, the scale will allow dealers to recruit specialists such as new and used sales trainers, F&I trainers, Fixed Ops Director, a marketing department, and a CFO. By hiring specialists, you can outperform your local dealer competitor and the big national brands in your market.
In this episode, Pete Theil with Haig Partners and The Rawls Group’s succession planner Champ Rawls discusses strategies for dealers to consider as they future-proof their business.
For more insight:
Visit the “Future Proof Your Business” discussion page or select one of the additional episodes of the series below:
- Next Gen: Empire Builders Vs. Caretakers
- Delegating Day to Day & Remain in Control
- What Family Businesses Must Do to Compete Now & Into the Future
- Keep or Sell: Determining Your Best Strategy
- Uncertain Future: Better to Grow or Cash Out?
- Avoid Common Business Pitfalls
- Key Strategies for Developing Your Growth Game Plan
- Keeping or Selling: How to Build Value in Your Business
- How to Succeed Despite Economic Uncertainties
Resources
- Haig Report: Stay up to speed on the latest trends in auto retail, dealership values, and buy-sells.
- Automotive News Expert Q & A: Alan Haig answers questions in this Automotive News Buy-Sell Expert Q&A about how smaller automotive retail groups and independents can future-proof their dealerships.
- Buying or Selling Your Dealership: 5 Things You Must Consider
- Succession Readiness Survey: A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook, impacting business value, growth, lifestyle, and ultimately achieving your vision.
- Contact Us: We can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business immediately.
The Succession Planning Matrix
The Succession Planning Matrix
Many people put off succession planning because they think it means retirement, exit, and the end. However; succession planning is just the beginning. It gives the owner options in terms of what “their next” looks like, whether that be growth, philanthropy, or a new business venture. Our process focuses are addressing 10 key areas of what we call the Succession Matrix.
Click the following link for more drill-down resources on The Succession Matrix, or check out our Facebook post.
Sign up for our monthly e-newsletter to stay informed on how to overcome related succession planning issues.
We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.
