By Kendall Rawls,

Director of Development,

The Rawls Group

Creating the Future You Want

Looking back over the past 24 months, think about all the changes we have experienced. As you do this, answer for yourself a yes or no if you were ready for or planned on having:

1. A global pandemic that shut businesses down and kept people at home
2. A supply chain dilemma wreaking havoc on inventories
3. A political environment so tenuous it's dividing thoughts on health and well-being
4. Dealership profits and values so high it's created insane buy-sell activity and rapid consolidation

If you answered yes to any of these, we need to have a discussion immediately. I want to get my winning lottery numbers in for the next big drawing. Joking aside, any one of the items above has changed the way we do business, and they have all dramatically changed the automotive retail landscape. And strangely enough, despite what is happening around us, most dealers are experiencing some of their best profits.

Record profits and valuations combined with the grind of doing business have many dealers considering selling to release family and business stress or growing to stay on top of the competition. We have been talking with many clients about what "the future" looks like, and we have been sharing with them that getting big OR getting out are not the only options. You have as many options at your fingertips as you want. It requires becoming clear about what you want, leaning on innovative and experienced advisors, and creative problem-solving.

Getting clear on what you want can be difficult, especially with 24-hour news filling your head with obstacles, doom, and gloom. As you take time to reflect, use the following questions to help you drill down. Suspend reality and the doubter voices that can seep into your head; there is no place at the table for them during this exercise:

1. 1. What is your vision for the following for the next five years:

1. Your role in the business
2. Size of business
3. What are some obvious revenue sources?
4. What are the innovative revenue sources?

1. 2. What are the known and potentially unknown obstacles getting in the way of your vision?

1. 3. What is your contingency plan if anything were to happen to you?

1. Who would lead the business, and are they qualified?
2. What resources would they need, such as training, support team, etc.?

1. 4. What is your contingency plan if anything were to happen to a critical leader you depend upon?

1. Who would fill their role, and are they qualified?
2. What resources would they need, such as training, support team, etc.?

1. 5. What is your vision for the organization's future–looking towards the next generation and business legacy in a perfect world?

1. Your role
2. Your family's role
3. Loyal key leadership role
4. Size of business
5. Business and community
6. Business culture

1. 6. What are the known and potentially unknown obstacles getting in the way of your vision?

1. 7. What are a few strategies to overcome the obstacles listed above?

We know nothing of the future or what tomorrow will bring. What we know is based on past experience. However, there is so much missed opportunity by only applying historical background to the present or future moments and thinking in a vacuum.

The pandemic, supply chain issues, and political environment have been a time of transition for all of us. Our environments have called for creative thinking, flexibility as leaders, meeting people where they are, and transitioning our stance to support instead of only pushing towards performance goals. Transitioning the business from one generation to another, scaling for growth, transitioning from son/daughter to boss, or transitioning perspectives to support employees are examples of evolving with change, also known as "succession."

When working with dealers, we find they have made assumptions regarding their strategic vision and what they think their family, key leaders, and emerging leaders want. And often, these assumptions are pretty far from reality, creating friction. To protect your future wealth and ensure you live the life you wish, you need to start communicating to remove assumptions and create clear expectations. Communication is key.

Working in a family business for the past 16 years, I know all too well that differences of opinion or past grievances can turn a casual dialogue into a roaring dumpster fire. Dialogue can be challenging, especially when communicating isn't a natural behavior or something commonly done in your family or business. Consider leaning on a facilitator until you become more comfortable with dialogue versus conflict in these situations. I often leverage facilitators and coaches to prepare for conversations that bring on anxiety and fear. Sometimes I leverage coaches and family business experts within The Rawls Group, and sometimes I leverage third-party experts for a fresh and, importantly, unbiased perspective.

Fundamentally, you must be willing to have a conversation with your family and key leaders about what you want and hope for the future, both financially and for the business, too. Finally, and probably most importantly, you need to listen, learn, and adjust as needed. Leverage help where you need it, as it is available. Don't allow the unknown to get in the way of getting what you desire.

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.