because they were working at another job, they would've been making more money, but they decided to do their business. So they haven't calculated the true cost,” she says. Richardson has been involved in entrepreneurship for 30 years, has owned eight businesses, and currently runs three. All have been in the area of financial literacy and empowerment. She rarely, if ever, consults with a business owner who knows what the return of investment is in their business. And yet, if the same business owner gave $100,000 to a financial advisor to invest, they would ask for the ROI. "But nobody asks themselves that as an entrepreneur. So, regardless of whether it's automotive or whatever it may be, that's probably one of the critical questions you need to ask yourself, because all of the decisions from that point forward are going to
be reflective of that decision." By looking at your business as an investment, she says, you won’t take it so personally. “It's a separate entity, and it's an investment, and you do what's right for the investment.” So, with that being said, let’s look at some ways to manage your financials. An Easy Fix: Technology Check-Up Michael Burca is the owner of MGB International and consults with businesses, including dealerships, on a wide range of matters. One area he finds many business owners – and not just dealers – skimp on is technology. "I think that the financial burden that businesses in general forget is their accounting systems. One of the things nobody does and the last thing they invest in is technology. Because they don't see it as a profitable division,” he says.
One of his largest clients won’t upgrade their computers. "It affects his finances, affects his payroll, affects his everything, because everything is computerized." Stop Ignoring Costs Richardson always starts at the bottom and works her way up. This means she’ll do annual planning with her clients first. She finds most SMBs are happy to typically operate at 1-3% net profit, "whereas their larger competitors and best in-sector performers are typically operating anywhere at a 25%-40% net profit." This large gap between the two allows the larger competitors to make use of the extra resources, by recruiting and retaining really good people, offering strong bonus strategies, engaging in strong marketing and advertising, and more.
BAD DECISIONS HURT MAKE GOOD DECISIONS. USE VVR. Making good decisions means changing the way you do things to improve your results. By providing third-party validation that the offer you’re making on a trade is fair, VVR’s Offer Sheet helps win more trades and improve customer experiences, helping you build trust and keep them coming back.
www.carproof.com/trust
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