It only took 30 seconds to level me. I went from being on top of the world to feeling like a mule kicked me in the stomach. And then … I had to tell my family the news.
It began as a single BHPH dealership.
Things started well. We were making millions. Funding discussions were fun. Roll up in my Rolex® and BAM! The deal was done. Then one day I was selling my receivables and the buyer made a proposition.
“There are 10 dealerships you should buy, and I’ll provide the financing.”
Of course, I said “yes.” I was making millions a year. Now I was going to multiply that by 11 and make even more. I thought I knew how to run a BHPH dealership. But I was wrong.
I was convinced it came down to one or two metrics. As long as I knew the value of my receivables, and managed the business well, everything would be fine.
But I started losing money. And it kept getting worse.
So, I got on the phone and asked Kip Cochran for an analysis. Kip is the best. He’s been in the BHPH business for 30 years. He can read paper like a monk reads ancient scrolls.
That's when I got kicked by the mule.
I double-checked Kip’s numbers. My hands started shaking. My chest collapsed.
Kip was right. I had been seduced into focusing on only one or two metrics. But those metrics only gave me part of the picture. And the next conversation … I delayed it for days. But eventually I had to tell my wife.
We worked through things. And she stuck by me.
But now I had to figure out how to do this right. That’s when it became clear. The fundamental way to run a profitable BHPH dealership relies on simultaneously managing five key metrics.
Discover how you can use these five metrics by completing the form on this page.