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 family-owned 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 18
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