REMAINING COMPETITIVE IN THE CAR BUSINESS Professionalizing the Family-Owned Auto Dealerships By Kendall Rawls, The Rawls Group The Importance of Professionalism in Family‑Owned Auto Dealerships In the current corporate landscape, family-owned enterprises are facing challenges as they vie for success against bigger conglomerates and nationally recognized brands. In the automotive industry, where consolidation is prevalent, family-owned dealerships are under significant strain to keep pace with their larger counterparts and stay relevant. One viable solution for familyowned dealerships to gain a competitive advantage is to adopt a more professional approach to running their business. The Role of Culture in Family-Owned Auto Dealerships Successful family-owned dealerships or auto groups often neglect formalities that can lead to problems such as nepotism, inconsistent policies and toxic family/business interactions. These issues can have a negative impact on performance and drive away valuable talent. Without top talent, family business owners will struggle to stay competitive, and the value of the business will decline rapidly. To remain competitive and grow the business, it is crucial to create an attractive culture that retains employees and customers while also performing well. The Unique Advantage of Family-Owned Auto Dealerships At the NADA 2023 “Growth Strategies for the Family-Owned Business” workshop, Champ and Kendall Rawls discussed a unique approach for family businesses to succeed. Rawls suggested keeping the “family” aspect in a family-owned business as it can provide a competitive advantage over private and public companies. Additionally, leveraging the existing name recognition in the community can be beneficial. To achieve success, it is essential to promote your dealership(s) as a local family-owned business while also incorporating the formalities of successful mega dealers and public companies. This approach can help maintain the family aspect while still achieving growth and success. Strategies for Professionalizing Your Family-Owned Auto Dealership Elevate the professionalism of your business by formulating, systematizing and transmitting your fundamental values. Construct a purpose statement, a future outlook and objectives and ensure that you and your team adhere to these indispensable principles. By applying this methodology, you can rest assured that your family enterprise will not only endure but also prosper. The Benefits of Professionalizing Your Family-Owned Auto Dealership To professionalize your family business, it is advisable to develop job descriptions for all positions, identify and adhere to core values, and establish standardized processes and procedures. This approach will result in increased efficiency and effectiveness in running your business and also position your business as one that values its employees and customers, thereby standing out in your community. “Professionalizing” your family business will mitigate emotional distractions allowing your people to focus on the purpose of their positions. By professionalizing your business, you are also building value in your business, which will support your long-term growth and succession strategy. I am extremely excited to share with you our passion for growing sustainable family businesses. Consider the following as it relates to achieving your family and business vision. 20 KENTUCKY AUTO DEALER
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