By Kendall Rawls, The Rawls Group
In the last two years, we have seen a significant amount of change. New legislation, tax reform, a bolstering economy and so much more have impacted the business environment. The one thing with change is that it is constant. Knowing this, are you prepared for the future and what change is going to occur?
A rhetorical question, but one that begs us to consider the importance of strategic planning, as it can prepare you for the inevitable ebbs and flows of the unknown. And if there is one thing the automotive retail industry understands, it is how change can positively impact your operations, if you have the right foundation in place.
It is no secret that The Rawls Group is a huge proponent of strategic planning. That includes not just envisioning and developing a strategy, but integrating the plan into your culture, tying performance criteria to achieving the plan, and actively reviewing your trajectory compared to available resources.
We believe it keeps you agile and in the ready position to tackle whatever may be thrown at you. Be it economic, political, regulatory, recruitment and retention, or process/procedure, if you actively participate in planning on an ongoing basis, you will be better prepared for the unknown.
For those of you who have yet to do any sort of planning, we could say you are in denial. Sure, the economy is thriving, and your dealership(s) are performing well at all levels. The future looks bright. However, to make this point simple, I will remind us of a time in which we did not see the tidal wave coming –2008. Dealers who lived through 2008 may still be experiencing post traumatic stress disorder.
For those dealers, and importantly the private equity firms and family offices that are newer to the dealership game, we remind you that history always repeats itself, in some shape or form. You not only need to have a strategic plan, it needs to be re-evaluated every three to five years so that plan can work for you versus against you.
Getting started is easy. The simplest place to start is identifying your vision for the future. If you already have a future vision, identify any elements that may have altered the original vision. Understand what motivates you to get out of bed every morning and take on the risk of the dealership business. Ask yourself if it is:
- Money
- Lifestyle
- Intergalactic take-over
- Making a difference in the community around you
- All
- Other
- None of the above
Whatever your motivating factor, tie it to your vision and mission. Once you have done this, analyze where you would like your business to be in the next three to five years. Are you looking to add more brands or stores, or to move out of the day-to-day and let someone else take the reins? Maybe you are considering what an exit strategy looks like with all the M&A activity in the industry.
The next step is to take what you have identified, document it, and share your goals with your leadership team. Working with them, you want to determine which goals are realistic, which are a stretch, and which would require a substantial shift in culture or business practices.
Then engage in a SWOT analysis. Discuss the strengths, weaknesses (internal influences), opportunities, and threats (external influences) impacting your business today as well that future vision.
You may feel that taking time out of running your dealership to plan for the future is not possible. Believe me, as a succession planner, I get it. “Doing” is much more fun than “planning.” But history has shown us that if you are not focused on preparing your business for the potential, probable and possible, then you are in denial because change is inevitable.
Proactively engaging in the strategic and succession planning process allows you to be at the forefront versus standing on the sidelines when change occurs.
Kendall Rawls knows and understands the challenges that impact the success of an entrepreneurial owned business. Her unique perspective comes not only from her educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit www.rawlsgroup.com or email info@rawlsgroup.com.
