Independent garages planning closure due to lack of succession planning

The Independent Garage Association (IGA) has noted an increasing number of garages looking at the prospect of closure due to a lack of succession planning.

The IGA is urging garage owners to prioritise succession planning “sooner rather than later” as a vital component of their business strategy.

As the automotive landscape evolves, many independent garage owners are finding themselves at a crossroads when considering their future.

Whether it’s retirement, health concerns, or a desire to pursue other ventures, the IGA said the need for a well-thought-out succession plan is critical.

Jonathan Douglass, IGA director, said: “Succession planning is often overlooked by independent garage owners, yet it’s a crucial aspect of business management.

“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.”

The IGA encourages all independent garages to begin the conversation about succession planning, regardless of their current stage of business.

IGA’s key steps for independent garages 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.