Example-BizGrowth-Plan

CARVE OPERATIONS
Business Growth Plan Example
HILL COUNTRY MOTORS
Growth Opportunity Analysis
December 2025
Prepared by Carve Operations
Growth Potential
Based on industry benchmarks, we've modeled three growth scenarios for Hill Country Motors:
1
Industry Average
Competitive metrics
Additional Annual Gross Profit: ~$475,000
Additional Est. Net Income: ~$165,000
2
Above-Average (Top 25%)
Top 25% on key metrics
Additional Annual Gross Profit: ~$890,000
Additional Est. Net Income: ~$355,000
3
Top Performer (Top 10%)
Best-in-class execution
Additional Annual Gross Profit: ~$1,340,000
Additional Est. Net Income: ~$590,000
These opportunities don't come from selling harder or charging more. They come from operational improvements: better lead response, higher customer satisfaction, more repeat business, and lower acquisition costs.
YOU'RE ALREADY ABOVE-AVERAGE IN ONE KEY AREA: Your used car department generates 92% CSAT and 38% repeat purchase rate vs. industry averages of 85% and 28%. You know how to create happy customers. The opportunity is applying that same discipline across the dealership.
Key Terms
Your Goal
Owner capacity reallocation — transitioning from hands-on used car buyer/closer to business operator, enabling the dealership to scale beyond founder dependency.
Scale the used car department's customer-first approach across the entire dealership. The formula works: high satisfaction drives repeat business, which drives profitability. The challenge is applying it consistently.
Digital Marketing & Lead Analysis
Data Period: Q4 2025
Campaign Performance
Third-party leads (CarGurus, Autotrader) are expensive at $199/lead and difficult to track to actual sales. These leads are often low quality - we don't know how many became showroom visits or purchases.
Paid Traffic: Where Is Your Money Going?
CONCERN: Only 25% of paid traffic is reaching your core service area. Meanwhile, 45% is going to areas that generate only ~10% of actual sales. Some conversion activity may be fraudulent - this is a common issue with broad geographic targeting.
Traffic Breakdown by Location
Comparing Paid (Google Ads) vs Unpaid (Organic + Direct) traffic:
Core Service Area (Lakeway, Bee Cave, Dripping Springs)
Outside Service Area (Requires Validation)
Notable Findings: Question: Do customers actually drive from San Antonio or Dallas to buy from you? If not, this is wasted spend.
The Full-Funnel Opportunity
Right now, you're fishing in the middle of the funnel with limited visibility. The opportunity is building awareness before they're ready AND staying connected after they buy.
Used Car Department: The Model
This is what's working - the formula to replicate across the dealership.
The Value Disparity
41% of your units generate 55% of your vehicle gross profit. Used cars aren't just profitable - they're your competitive advantage.
Used Cars vs New Cars: Full Comparison
Customer Satisfaction (CSAT)
Used Cars: 92%
New Cars: 84%
Industry Avg (Used): 85%
Repeat Purchase Rate (5-year)
Used Cars: 38%
New Cars: 22%
Industry Avg (Used): 28%
Referral Rate
Used Cars: 24%
New Cars: 12%
Industry Avg (Used): 15%
Service Return Rate (Year 1)
Used Cars: 58%
New Cars: 41%
Industry Avg (Used): 38%
Gross Profit per Vehicle
Used Cars: $3,800
New Cars: $2,200
Industry Avg (Used): $2,800
Value Multiplier
Used Cars: 1.73x higher gross
New Cars: Baseline
Industry Avg (Used): —
Why It Works
Owner involvement in inventory
Right cars for the market - personally selects inventory, knows every car.
No-pressure sales approach
Trust = higher CSAT - transparent pricing, no haggling games.
Quality focus
Fewer comebacks, happier customers - rigorous inspection, issues fixed before sale.
Service handoff
Higher service return - personal introduction to service team.
Follow-up
Relationship, not transaction - owner personally checks in at 30 days.
THE VIRTUOUS CYCLE: High CSAT (92%) → Repeat Business (38%) → Referrals (24%) → Lower Acquisition Cost → Higher Net Income → Reinvest in Quality → High CSAT...
Finance Team: Customer Fit Focus
The right finance process matches customers with products they need - which builds trust and drives repeat business.
The Right Metrics (In Priority Order):
Finance Customer CSAT - Did we find the right solution for them?
Cancellation/Refund Rate - Did they regret the purchase?
Complaint Rate - Were there problems with the process?
Attachment Rate - Are we offering products customers value?
Current Performance
Insight:
Used car customers have highest finance CSAT (91%) - same pattern as sales
Manager A's approach mirrors used car philosophy: right fit, not maximum sale
Manager B has 3x the cancellation rate (11.2%) - suggests pressure over fit
12-point CSAT gap between managers = process/training opportunity
This isn't about selling more finance products. It's about matching customers with the right products - which actually increases attachment because customers trust the recommendation. Manager A proves this: higher CSAT AND higher attachment.
Sales & Service: The Foundation
While used cars drive profitability, the overall sales and service operation provides the foundation. Both must work together.
Customer Tiers by Deal Size & Retention
Note: "High-value customers have the highest service return rate (62%). Pattern: Quality customers → Quality experience → Service relationship → Repeat purchase."
Service Department
Quality is strong. The opportunity is volume and acquisition.
The Good News: Service Quality
Your service department delivers quality work. Customers who find you, stay with you.
The Challenge: Sales-to-Service Handoff
65% of your service revenue comes from conquest customers - people who didn't buy from you. That's good hustle, but it's expensive to acquire. The easier win is converting more of your own sales customers into service customers.
Salesperson Performance
Connecting sales behavior to long-term outcomes.
The Metrics That Matter
Salesperson Retention Performance
Note: Industry benchmark: 35-45% Year 1 service return is average, 55%+ is top performer. Your 30-point range (28% to 58%) signals inconsistent customer experience worth investigating.
The Compound Effect
Sarah's customer lifetime value:
Initial sale: $2,240 gross
Service (5 years): $4,375
41% repeat purchase: $860 (pro-rated)
28% referral: $600 (pro-rated)
Total: ~$8,075 per customer
Lisa's customer lifetime value: ~$4,825 per customer
"Sarah generates 67% more lifetime value per customer than Lisa - not because she's a harder closer, but because her customers are happier, come back for service, buy again, and refer others. What does Sarah do differently? Is it trainable?"
Data Gaps
Growth Opportunities by Effort Level
The following deliverables map to the growth opportunities identified. Effort level indicates complexity, not timeline—actual delivery depends on budget and your team's availability.
Quick Wins
Some Assembly Required
Investment Required
Automation vs One-Time
Each deliverable above can be produced in two ways:
THE REAL QUESTION: Who will do this work, what are you paying that person, and when will it get done? Automation creates systems that scale—and that don't depend on remembering to run a report.
Recommendations
Immediate Actions (No Cost)
Pull service return data by salesperson - See who's creating long-term customers
Audit 50 recent "walk-in" leads - How many actually researched online first?
Shadow Sarah for a day - Document what she does differently
Short-Term Opportunities
Standardize sales-to-service handoff - Introduce service advisor, schedule first appointment
Implement consistent CSAT measurement - Same survey, same timing, track by person
Review PMax geographic targeting - Tighten to core service area
Pilot Facebook awareness campaign - Test top-of-funnel for 90 days
Growth Investigations
Body shop / collision center feasibility - $500K-1M revenue potential, high margin
Service capacity analysis - Can you handle more volume?
Second location feasibility - Replicate the used car model elsewhere?
Ready to discuss these findings and explore next steps?
Carve Operations
Info@carveoperations.com