The Independent Garage Association (IGA) is urging garage owners to prioritise succession planning, as a vital component of business strategy.
Recently, the IGA has noticed an increasing number of independent garages that are navigating the prospect of closing, as there is no one lined up to take on the business when the current owner has decided to step away. Having a clear and structured succession plan is essential to ensuring a smooth transfer of operations and continued success. IGA also recommend getting this plan in place sooner rather than later.
The automotive market is currently in a constant state of flux. There are more challenges than ever, facing not just the aftermarket, but vehicle manufacturers and OEM suppliers. Pressures over emissions, and regulations concerning ADAS, mean many more new technologies are being added to vehicles.
This means that many independent garage owners are finding themselves at a crossroads when considering their future. Whether it is retirement, health concerns, or a desire to pursue other ventures, the need for well-thought-out succession planning is critical.
Bringing in the right person to take over the business early enough, means owners can ensure their legacy continues and their loyal customer base remains cared for.
“Succession planning is often overlooked by independent garage owners, yet it is a crucial aspect of business management,” commented Jonathan Douglass, Director of the IGA. “By proactively identifying and training a successor, owners can preserve the value of their business and provide stability for their employees and customers. Planning not only helps ensure a seamless transition but allows owners to retain valuable knowledge and expertise within their operation.”
Steps for succession planning
The IGA is encouraging all independent garages to begin the conversation about succession planning, regardless of their current stage of business. Some key steps include:
- Identifying Potential Successors: This can be challenging in a sector that has faced a shortage of young entrants for some years now, however, owners will already be aware of family members, existing staff, or external candidates who align with their vision for the business that they may want to consider.
- Training and Development: Providing mentorship and training for potential successors over a longer period helps ensure they are well-prepared to take over when the time comes.
- Documenting Processes: Creating operational manuals and guidelines can help maintain continuity and reduce knowledge gaps during the transition.
- Communicating with Stakeholders: Keeping employees, suppliers, and customers informed about the plan fosters trust and can ease concerns regarding the future of the garage.
- Consulting Professionals: Engaging with business advisors, accountants, and legal professionals can help navigate the complexities of the transition process.
The IGA states that it is committed to supporting independent garage owners on this journey, with a range of member benefits covering Business Services such as HR support and legal advice, along with a wealth of training opportunities.
Together with succession planning, the IGA is also able to help independent garages thrive in all aspects of their business by offering advice, information, and services which ensure that the independent service and repair sector can remain efficient and competitive in an increasingly complex business landscape.
