In the last article written for my Used Car Business Development Blog;
I explored how the teams used car businesses are going to have to build has changed, in terms of the experience and skills-sets required to be successful; I have no doubt that 95% of those running used car businesses (either independents or those aligned to a new car franchised dealership) will think that I am wrong and/or misguided, in terms of the issues explored in the article above!
And that’s fine, I know as they do, that (deep down – if they are honest with themselves) this is not the case; in reality they are hoping I am wrong because “More Of The Same” is as far as their strategic thinking and acceptance, ambition and acceptance of change can go! There is also the fact that, and as Ann Landers observed;
“Opportunities Are Usually Disguised As Hard Work, So Most People Don’t Recognise Them!”
So this post is not for the 95%; my purpose in life is not to work with hostages, to educate and change the opinions of those who can’t see change coming, so therefore prepare for that change; no! This article (as all my articles are) is for the 5%, those curious enough to challenge their thinking, (not bury their head in the sand hoping all their problems will go away), and begin to start the planning process for the once in a generation opportunity that exists in used car markets at the moment.
So without repeating the content of the last article (those interested in the issues explored can follow the link to the article above) I wanted to begin to explore how those looking to build the teams and strategic alliances required, are going to have to open their minds to different ways of working; depending on the used car market they are operating within.
And the used car market you inhabit is key, as this will determine your margins, therefore the professionals you can hope to attract to your business. This understanding will be important because your business is no different to any other, in terms of the “Laws of Attraction,” and with used car businesses falling into two categories; those that enjoy the margin to operate an “Excellence in Execution” trading model and those that don’t, this understanding will be critical, in terms of how you plan for used car retailing in 2023 and beyond.
Why? Well because it will determine what change can be planned for, and how that planning is undertaken. All used car businesses face a battle for used car stock over the next 3-5 years, (and then probably thereafter), and the strategy for used car stock acquisition will be different for each used car market. In general falling into 2 categories, those with the margin to attract the best professionals and those without.
And this poses some problems for those without the margins required to attract the best talent to their business, because they have a different used car stock acquisition business and used car business to build. Their business will need to build the hybrid used car stock acquisition business (the business mating the benefits of tech to the right professionals) very differently, and far more reliant on tech; because this is the market they inhabit.
It’s not that they couldn’t be far more successful with the right used car stock acquisition professionals and initiatives, they could. Unfortunately they won’t be able to attract and/or afford proven used car stock acquisition professionals. So these businesses will need to develop them over time, knowing full well that this will need to be a continual conveyor belt of development; once successful, the individuals being developed will probably leave and chase the bigger rewards elsewhere.
Setting up and building this used car business and the associated used car stock acquisition business, is a totally different process in reality, to that involved with more lucrative used car markets; those where margins are bigger, so therefore are the possibilities. And this in turn leads to different approaches, in terms of how you build the teams you are going to now require.
Those used car businesses without the margins required and also the market opportunity for increased margins (more on the opportunity for increased margins in a bit) will have to continue with a traditional employment model; that is what the professionals attracted to their business will expect.
But for used car businesses operating in more specialist and profitable used car markets, those enjoying the margins associated with an “Excellence in Execution” trading model, the traditional employment model won’t work in the future; and it is the people owning and running these businesses that will have to open their minds to different ways of working, if they are to attract the used car stock acquisition talent they need.
To help the owners of these businesses to understand this, let me give you an insight into the mind-set and the professional life of the successful used car stock acquisition professional. Hopefully this will bring understanding and increase the chances of building the strategic alliances you are going to need.
Successful used car stock acquisition professionals are highly skilled professionals and very much in demand; they are already self-employed and probably building and running multiple business, in differing commodities sectors.
In order to be successful they will have already built the team and the operational systems required for their own business, so can make their team available as an outsource resource, direct to your business in any strategic alliance that can be agreed, but a word of caution. These professionals, those whose experience you require, are already successful business professionals themselves, so in terms of any discussion, do not treat it as an interview.
Treat any future discussion on a “Peer to Peer” basis and happy in the knowledge that if the professional concerned is in discussion with you and your business, then they will have already completed an element of due diligence on you and your business; if they didn’t think there was potential then they would be sitting down with you in the first place. Try not to understand the business of used car stock acquisition, as they will not be looking to understand yours, there is no requirement; if you were capable in the regard, you wouldn’t need their services and if they wanted to own the complexities of running a used car retailing business, then they would already be doing so.
This discussion should be conducted on the basis of two business owners (both who need each other) having an open discussion to explore synergies and the potential collaborate; that said, be prepared to some challenging questions. They will need a forensic understanding of your business, the ambitions, the ability to keep retailing increased levels of used car stock, the level of your personal ambition and the funds available for increased used car stock holdings.
From there a proposition will be made and at this stage it is important that you put envy aside; as much as this may never be known, it in on some circumstances, so never look at what this costs. These professionals know their worth (they have already established it) so in reality, and as much as this won’t happen, unless you offer a package of six figures plus (including all the tertiary benefits associated with professionals of this capability) for successful delivery, you will never employ these professionals.
Besides, these strategic commercial arrangements will be success based, you won’t be paying basic salaries and/or offering any of the associated costs, so my advice would be to focus on the used car stock that is being made available to your business, at prices and in volumes that you are incapable of delivering yourself.
These professionals have the skills to do what you can’t, target the most profitable markets of used car stock supply, offering direct access to the used car stock holdings you require to grow and prosper, in the used car markets of 2023 and beyond; the used car stock holdings belonging to the customers of your competitors. Try to remember at all times, that if you could build this business you would have already done so; and that even if you knew how to build the used car stock acquisition business required, you will have to develop the individual s required to deliver on that aim.
So this process of building the strategic commercial alliances you require will be a very different process to that of employing a suitable candidate for a role within your business.
Now I appreciate that for 95% of those reading this, the trading environment and exploratory process outlined above are bewildering and fanciful; I experience this a lot, and sadly I can’t (so don’t) work with hostages.
However, for the remaining 5%, those identifying that something needs to change in their used car retailing operation and those curious about how this can be achieved? Those who are ambitious, capable of opening their minds and taking their strategic used car business development thinking on the journey required, I would say this.
In the used car markets to come, those with used car vehicle parks of 680,000 less vehicles, (in terms of available stock), my question would be; how well set up is your business to survive?
In truth the vast majority aren’t. It is the inconvenient truth of our times that you can have the best people and operational procedures imaginable, but if you don’t have the professionals required to secure used car stock holdings in the volumes and at the prices required to remain profitable? Well it is all likely to be for nothing.
I have observed how the used car stock acquisition landscape has evolved during the last 12-24 months and I promise the vast majority reading this, you will not be ready for how the acquisitions landscape has evolved. To the point where (as mentioned above) all those relying on the used car stock acquisition initiatives and skills of the recent past, will be left floundering.
For these businesses, those reactionary businesses still only purchasing stock on a hand to mouth basis and in the moment, (from the “Just In Time” market), it will become a challenge to acquire used car stock at the prices (and in the volumes) that ensure your business remains profitable.
But there are others, albeit very few, those who (like me) spent the lock downs monitoring used car markets and rewriting previously very successful programmes of used car stock acquisition, from the ground floor up, in order to develop the programmes and initiatives required to ensure that used car stock holdings are being secured for future markets right now. And via campaigns and initiatives that will leave the competition with years of work to catch up; even if they can find the skills required already within the four walls of their business?
The used car stock acquisition expertise now required to secure success can’t be taught via any training programme, it is too fast moving a discipline and covering too vast an array of skills-sets. So in reality successful used car stock acquisition now necessitates that you build the team required; one possessing the level of expertise outlined above. Although, and as explored in this article, the market value of the skills involved can render this process too financially restrictive; there are too few genuinely capable used car stock acquisition professionals around, so for the moment those days may be over.
Most will probably have to enter an environment of strategic alliances via success based commercial arrangements, with the few proven and genuinely successful used car stock acquisition professionals. Provided they can open their minds to the new ways of working required by these capable professionals, those whose expertise is required?
At the moment I am working with two businesses, building and delivering the used car stock acquisition programmes they require; having made a commitment to work with three at all times. So for those grasping the seriousness of their current situation and wanting to take immediate action, I will be working with another business over the next 12 months, in order to deliver the used car stock acquisition expertise and initiatives required, for that business to survive and prosper in the used car market to come.
Should you wish to explore synergies and the potential to collaborate in this regard, please do not hesitate to contact me via LinkedIn, so we can arrange a mutually convenient time for an exploratory call.
Andrew.
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