Do you really know your business? To know your business you must know all the operating metrics as well the core of your business model. Business is part art and part science. Knowing the science part makes the art much easier. Many dealers are still operating under an outdated business model that can no longer be supported in any economy, especially the current economic conditions. The only way to change the outdated model is to ask more questions, better questions, measure everything possible as often as possible and then take action to improve every day.
Every question you ask about your business causes you to reevaluate your business. Most dealerships are good at working in the business but the great dealerships are great at working on the business. Most dealers are under the assumption that if everyone just does more, then the business will grow. The reality can be the opposite. You can be like a hamster on a wheel running harder and harder but getting the same or less results. In today’s marketplace, that outdated model will cause your business to be eaten alive.
In baseball there is a phrase used in coaching pitching mechanics called “slow to go.” In business the same analogy is true. You have to slow down to ask the right questions, evaluate the right things, think in different directions and take different actions to spped the success of your business. The days of showing up, advertising a lot and working hard as a model for success are gone.
The following are important metrics and questions to understand and take action on everyday that can lead to success.
The above questions are just a few of the questions you should ask every day. The days of being a good entrepreneur but just an okay business person are gone in the car business.
There once was a day where an auto dealer could possess a strong entrepreneurial spirit and skills necessary to start a successful auto dealership. A dealer can no longer run his dealership by the seat of his pants. Today he must also have strong skills at running the business day to day that involves utilizing data derived from good operational metrics and questions. There are a couple of old sayings in the car business. “The car business is a very forgiving business” and “Car dealers can make money in spite of themselves.” Both sayings are outdated and no longer true. If a dealer does not work harder on the business everyday than he does in the business, then he will quickly become a dinosaur.