The automotive industry has always been a dynamic and constantly evolving sector. Industry experts Jason Stein, George Karolis, and Champ Rawls recently shed light on the growing importance of strategic business diversification in the ever-changing car business. As dealers explore new directions to safeguard against potential downsides, they emphasize the need for customized succession plans and the recognition that a one-size-fits-all approach no longer suffices. The speakers delve into the realm of diversification from both portfolio management and non-dealership opportunities within the automotive industry, underlining the significance of spreading capital and investing in innovative technologies.

Safeguarding Against Uncertainties: Exploring New Directions

As the car business faces unprecedented challenges, dealers are proactively protecting themselves against potential downsides. Stein, Karolis, and Rawls discuss how diversification serves as a shield against market fluctuations. By strategically exploring new avenues, dealers can insulate themselves from risk and ensure long-term viability. The speakers emphasize the need for tailored succession plans that align with the owner(s) goals and ambitions.

Beyond the Dealership: Diversification in Portfolio Management

The conversation delves into the crucial role of diversification in portfolio management. Dealers are now broadening their investment horizons and exploring opportunities beyond the traditional car business. They emphasize the significance of spreading capital across a range of investments to achieve a well-balanced portfolio. It is essential to identify and invest in emerging innovations and technologies that have the potential to revolutionize the industry. By diversifying their investments, dealers can mitigate risks and increase their chances of achieving long-term success.

Navigating Disruption: Exploring Non-Dealership Opportunities

The emergence of new entrants and disruptors in the automotive industry presents both challenges and opportunities for dealerships. Stein, Karolis, and Rawls discuss the growing interest among dealers in these disruptive products and technologies. They underscore the need for strategic capital investment in order to stay ahead of the curve. Additionally, the speakers emphasize the value of recurring revenue businesses and ancillary products related to the car business, such as car washes and warehouses, which provide stability and complement the core dealership operations.

Mitigating Risks: Adopting a Global Family Office Approach

Adopting a global family office approach is highly recommended to mitigate risk effectively. This involves going beyond diversification solely within the car business and implementing a comprehensive strategy that leverages the strengths of different business sectors and investment opportunities. By doing so, dealers can enhance their financial stability and sustainability in the long run. A key factor to consider is striking the right balance between risk and reward to create a diversified business ecosystem that can withstand the test of time.

Embracing the Exciting Era of Diversification

In an era of rapid change and disruption, the conversation among Stein, Karolis, and Rawls highlights the growing trend of strategic business diversification in the car business. Dealers recognize the need to explore new directions and investment opportunities to safeguard their future. Dealers can create a balanced and resilient portfolio by implementing customized succession plans, embracing innovative technologies, and adopting a global family office approach. The speakers unanimously agree that diversification is not just necessary but an exciting opportunity for dealers to thrive amidst the evolving landscape of the automotive industry.

This conversation is a part of the discussion 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.

How We Help You:

Are you struggling to navigate the complexities of strategic succession planning and diversification in the ever-changing automotive retail landscape? Do you seek ways to safeguard your dealership against uncertainties and explore new directions for long-term viability? Our team is here to help.

Contact us, and we can provide insights and resources tailored to your needs. Whether you’re looking to implement customized succession plans, explore non-dealership opportunities, or adopt a global family office approach, we can offer guidance and support to propel your dealership toward sustained success. Schedule a consultation with us today, and in just 30 minutes, gain valuable ideas to apply immediately to your business. Let’s navigate the exciting era of diversification together.

For more insight:

Visit the “Strategic Considerations in Automotive Retail” discussion page or select one of the additional episodes of the series below:

Resources

  • The Presidio Group: an independent merchant banking firm focused on mergers and acquisitions, capital raising, and investments in the automotive retail and consumer mobility sectors.
  • 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, and lifestyle, and ultimately achieving your vision.
  • Contact a Succession Planner: The Rawls Group 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.



Strategic Planning

The only constant one can plan for is change.  Strategic planning positions the business to address the probable, possible, and potential contingencies impacting business success. 

Click the following link for more drill down resources on Strategic Planning

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We can provide insights and other resources and assess whether it makes sense to work together. In just 30 minutes, you may gain actionable ideas that you can immediately apply to your business. Contact us via phone or email below, or fill out the “Ask An Expert” form.