Business Management Consultant
Mission
Increase dealership revenues and profit through selling more cars, labour hours and parts whilst maintaining positive cash flow and customer satisfaction.
About
Martin Olver is a trusted Business Management Consultant whose aim is to provide in-depth expertise and experience to many automotive retail dealerships.
This consultancy service is unique in its approach and each strategy is highly considered and tailored to the needs of the business. Martin scopes out and defines the problem at hand, sitting with key business stakeholders to understand the what, why, how, before moving onto analysing the commercial and financial data available. He then uses this knowledge to map out a business strategy, with a main focus of revenue generation.
Martin understands the pressures, constraints, limitations of the industry, which in turn allows him to reach an implementation strategy that will be effective and efficient in achieving key business objectives. This includes liaising and dealing with banks, finance companies and other key stakeholders.
This consultancy service is client focussed and results driven, creating a positive impact together.
First, we make it work. Then we make it last.
The Consultancy
Service
The challenge to maximise profit, whilst preserving cash, is ever present in all discussions. This consultancy service is based on experience and understanding of factors that impact profit and/or cash flow, working with dealer directors, management and staff to formulate, agree and implement solutions and actions to be achieved within an agreed timetable.
Profit Improvement
The methods used in profit improvement have been developed over many live business cases and are based on the principles of marginal gains. For example, a £10 improvement in profit retention on 500 vehicles equates to an additional £5,000 of gross profit.
We work together to define what improvement to the processes and showroom system can be made in order to yield that £10, which may come from small improvements to the sales process i.e. paint protection, accessories etc.
Inevitably, we also review the expenses in detail to ensure that costs are justified throughout the business and are in line with Key Performance Indicator (KPI) comparisons. An example of an expense KPI is the expense percentage of gross profit in each Department as well as Overheads to Total Turnover.
Processes
The processes of the business can, over time, become “vague” relative to what was originally intended when they were first implemented. For example, the Showroom control system can be operated in different ways by each sales executive and that means data not collected correctly, as well as reporting of activity being inaccurate.
It is important to ascertain what is actually happening and then apply what should be happening.
Return on Staff
The correct staff structure is a key business parameter and we examine the structure in detail to understand that the structure has the right numbers of people, in the right places and with the right skills to do their job efficiently and effectively.
It is important to understand the training plan and also what training is still required and over what period of time.
During the staff structure discussions we look at the returns that the business achieves from the staff e.g. new and used retail sales per sales executive, hours per technician, parts sold per parts person and turnover and profit per employee.
Productivity
How effective is each Department in their productivity and are they maximising the opportunities?
We look at areas such as:
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Market share by postcode, taking account of distortions in the territory
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Opportunity in the car parc
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Used vehicle stock profile corrections which can lead to improved used car sales and profit per unit
Liquidity
An overriding consideration in all discussions is the liquidity of the business and the efficient use of Working Capital.
The motto of “Cash is King” has always been important but, following the economic disruption caused by Lockdowns etc it has never been more relevant and business critical than it is today.
All decisions taken, following our consultation process will always take account of the cash impact and the difference between creating a cost or an investment in business development.
How it works
Define
Define the problem
How will it be measured
Agree on what will be considered a success.
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Profit
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Increased volume
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Increased market share
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improved cash position
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Timescale.
Measure
Use appropriate and relevant Key Performance Indicators (KPIs) as a measurement to formulate a strategy and benchmark performance at review stage each stage.
Analyse
Understand the root causes of current performance:
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Poor management skills
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Staff retention issues
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Not adhering to processes
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Cash constraint
Improve
Identify and agree potential solutions to address the root causes.
Prioritise those solutions through time limited action plans.
Control
Check that the improvement actions have met the objectives.
Evaluate and redefine as necessary.
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