In a recent conversation focused on Succession Planning and Strategic Considerations in Automotive Retail, with Jason Stein from Flat Six Media, George Karolis of The Presidio Group and, Champ Rawls, a Succession Planner with The Rawls Group, Rawls shed light on the essential metrics and considerations that auto dealers must prioritize as they strategically plan for the future. Rawls emphasizes the importance of brand mix and advocates for a holistic approach to planning. Alongside brand mix, Rawls encourages dealers to contemplate factors like geography, choosing between community-focused ownership, and expanding across different platforms. He acknowledges that these strategies may not be suitable for every dealer. Furthermore, Rawls underscores the significance of people and investment in effectively implementing these plans. With the right team and adequate capital, dealerships can achieve sustainable growth and long-term success. While facilities and other factors are mentioned, the central focus remains on people and strategic decision-making. By analyzing key metrics and meticulously planning, auto dealers can maximize the value of future years.
Rawls emphasizes the importance of brand mix and a strategic approach to planning when considering the key metrics and considerations for auto dealers.
Champ Rawls: “When you think about the key metrics and considerations that a dealer should really think about as they strategically plan for the future, obviously, brand mix is important, but it’s the holistic approach that matters. It’s about what you’re doing and where you want to go.”
Rawls proceeds to highlight the significance of geography in the strategic planning process and prompts dealers to evaluate the benefits of diversifying brands based on market fluctuations.
Champ Rawls: “Geography is huge. Why would your next purchase be in another domestic brand when you can diversify? One brand may be up while another is down. It’s also about deciding whether you want to own your community or have platforms in different places. However, it’s important to note that these strategies may not be suitable for everyone.”
Rawls underscores the pivotal role of people and investment in successfully executing strategic plans and achieving sustainable growth.
Champ Rawls: “The key metrics really start with the strategic plan you’re pursuing. Additionally, we haven’t discussed the importance of people and investment. Facilities and other elements are important, but without the right people to drive growth and without sufficient capital, sustainability becomes a challenge.”
While facilities and specific elements are briefly mentioned, Rawls reiterates the paramount significance of people and strategy in driving success.
Champ Rawls: “If you do not have the right people to grow or if your success relies on one person, it’s not sustainable. Focus on the people and strategy. Once you dive into those aspects, you’ll uncover the metrics that will make the next ten years as valuable as possible.”
Champ Rawls’ insights highlight the key metrics and considerations that auto dealers must prioritize as they strategically plan for the future. By embracing a holistic approach, carefully assessing brand mix, and evaluating factors like geography and choosing between community-focused ownership and expansion, dealers can position themselves for success. Rawls stresses the indispensable role of people and investment in effectively implementing these plans, underscoring the importance of assembling the right team and securing adequate capital. By diligently analyzing key metrics and planning comprehensively, auto dealers can pave the way for continued success into the future.