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Asset Value
At some point you're going to sell your business.  Presumably you would like to obtain the highest price for your asset and selling prices at most often determined as a multiple of earnings.  To increase the earnings of your business, and therefore the value of your asset you must have a business that operates predictably and maximizes profit opportunity.  Only businesses that have good business processes operate predictably and maximize profit opportunity.  Anything else is just good fortune.
 
   
   
   

Business Solutions
 

 
business process (biz' nis   pros' es) best practice (best    prak' tis)
1. a description of tasks and outcomes associated with a business activity. The business process is often drawn, depicting tasks, roles, resources and actions to be taken according to the business needs. 2.  a cookbook for running a business and reaching business goals defined in an organization's business strategy 1. a management idea which asserts that there is a technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other technique, method, process, etc. The idea is that with proper processes, checks, and testing, a project can be rolled out and completed with fewer problems and unforeseen complications

 Predictability is a virtue that is often overlooked and therefore undervalued.  As managers many of us thrive on crisis and the thrill of solving the next problem.  Often we do this because we believe it makes us necessary to the success of our business.  However, our collective goal as business owners is to have our businesses operate smoothly and profitability without us there.  You cannot accomplish this goal without well designed business processes.

If you would like to determine if you should consider re-evaluating your business processes take a moment and ask yourself a few simple questions.

1.  Does my business seem to have at least one daily crisis?
2.  Do I tell my friends "My people are idiots!  I don't know what my staff would do if I wasn't there every day?
3.  Do you ever wonder why you need all the staff that you employ?
4. Do you wake up at night trying to figure out all of the things you need to get done in the morning?
5. Do you honestly believe that you can go on vacation for two weeks and not call your business to find out how things are going?
6. Do you often have to intervene in resolving customer or vendor issues?
7. Does the same business event often result in different outcomes?

These problems are generally symptomatic of businesses that do not have well designed business processes.  The lack of optimized business process often causes management  intervention for common and simple problem resolution.  The job of senior management / ownership is to grow the business.  Having to routinely deal with these types of problems takes your focus away from your primary job.  How many times have you said to yourself,  "There just aren't enough hours in the day to deal with what I really need to deal with"?  If you're wondering why your business isn't growing here's a large part of your answer.  The vast majority of people that we speak to want their business to grow and not be the proud owner of a marginal business.  If that's what you want for yourself and your business it's time to get serious and at least consider operating your dealership in a new way.

For most of us 95% of the problems we address on a daily basis are the direct result of poor or non-existent business processes.  We rely on Sally or Bob to "know" how to handle a problem correctly.   However,  employees require a known structure that allows them to proactively identify a potential problem and react to the problem with an appropriate solution.  These solutions become part of your Best Practices/Standard Operating Procedures and you now have a known and prescribed way to handle everyday problems.  If you're a crisis junkie have no fear, there will be more than enough large problems for you to handle such as how you are going to get financing to expand your new building. 

Most of our staffs are well intentioned and want to do a good job for us.  However, if you have not given them the appropriate structure and environment to work in they will attempt to improvise solutions which potentially means that every time a problem happens you will get a different solution.  Because employees don't have the requisite knowledge or experience to solve all problems they will often create an inappropriate solution to a problem which then causes a new and bigger problem for YOU to resolve.  These employee improvised solutions cost you time, money, and often customers.

We have frequently observed that businesses with poor business practices attempt to solve problems by hiring more staff thinking that the problems are caused by lack of staff.  If you haven't created appropriate processes you have now created the worst of all worlds.  More payroll expense bleeding your business and more people "making up" solutions. 

Our team has been involved with the evaluation and creation of business process for dozens of years.  We can partner with you and your staff to create reliable processes that eliminate the chaos, allow you to focus on other aspects of your business, and improve your profitability.

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