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Powersports Business • August 2024 • 13

BY BRAD STANEK AND PAULINA MATEL CONTRIBUTING WRITERS

Ask ten ‘ wealth managers ’ to define wealth management , and you ’ ll likely receive ten different answers , mostly centered around investing . However , in this article series , we aim to present an alternative , comprehensive definition on wealth management that encompasses a full spectrum of strategies which we call Advanced Planning . While proper investment consulting is crucial for generating portfolio returns , what if we include tax minimization , thoughtful estate planning , and wealth protective strategies as well , to propel your wealth forward ? We classify these strategies into four pillars : Wealth Enhancement , Wealth Protection , Wealth Transfer , and Charitable Giving . Join us for a four-part article series where we delve into strategies for wealth planning in each of these crucial areas .

WEALTH ENHANCEMENT : LEVERAGING YOUR 401 ( K ) PLAN

Numerous powersports dealers we engage with have established 401 ( K ) plans for their businesses yet haven ’ t revisited them recently . These plans serve not only as an excellent employee retention tool , but also provide tax advantages – such as tax credits , tax deductions , and benefits to the organization ’ s principals . Let ’ s take a closer look at the benefits they offer to owners , employees , and the company overall .

Employee Retention Despite historically low unemployment rates , currently at 3.8 %, many powersports dealers express ongoing difficulties in retaining and hiring new employees . Implementing a well-designed 401 ( K ) plan for your business can help establish a competitive employment and compensation package . In addition , providing a retirement plan can significantly alleviate employee financial concerns , particularly when it includes a 401 ( K ) safe harbor plan provision . But what exactly is a safe harbor provision ? A safe harbor provision usually entails a fixed , mandatory employer contribution that is typically 100 % vested . This aspect is particularly attractive to employees since it ensures that any employer match becomes fully owned by the employee as soon as contributions are made , as opposed to being invested gradually over time . Benefits to using a safe harbor provision include :

This aspect is particularly attractive to employees since it ensures that any employer match becomes fully owned by the employee as soon as contributions are made , as opposed to being invested gradually over time .

Simpler Plan Administration The safe harbor provision streamlines the 401 ( K ) administration for the company and its principals . When the plan is designed as a safe harbor , it is relieved of many of the intricate compliance and testing requirements associated with traditional 401 ( K ) plans . Maximum Contributions Allowed One of the significant advantages for principals and the company ’ s Highly Compensated

See Wealth Wisdom , Page 15

BY JOSH FERRELL , JENIFER GUINN AND LOGAN DeFELICE OF

Choosing the right Dealer Management Solution ( DMS ) can feel like a daunting task , especially when you ’ re juggling the day-to-day demands of running a dealership . With countless options available , each promising to be the best , it ’ s easy to feel overwhelmed . That ’ s why we ’ ve compiled insights from thousands of dealers across various industries to help streamline the decision-making process and ensure you select the DMS that best fits your needs .

While many dealers might focus on reputation , basic functionality , and cost when selecting a DMS , there are at least ten crucial criteria that deserve careful consideration . Each of these factors plays a pivotal role in ensuring the system not only meets your immediate needs but also supports your long-term goals .

Implementing a dealer management system is a significant investment of time , money , and effort . To ensure success , it ’ s essential to involve a cross-functional team — including the Dealer Principal or General Manager , department managers , and the accountant — in the evaluation and selection process . This collaborative approach fosters buy-in and enhances the likelihood of successful adoption .

10 CRITERIA TO CONSIDER :

FUNCTIONALITY

Start by outlining the necessary functionality for each department based on your dealership type . Smaller dealers might need less functionality depth , while larger ones may require advanced integration capabilities . Assess whether the software offers the required breadth and depth of functionality , a clean and intuitive user interface , seamless module integration to avoid redundant data entry , and overall enhancement of dealership efficiency . IMPLEMENTATION A well-executed implementation process is critical . Ensure the vendor outlines the implementation process clearly , including key milestones and assigned responsibilities . Check if they can provide a detailed step-by-step checklist and have adequate resources to execute the implementation promptly . Assess the experience level of the implementation team and ensure your data is clean and ready for migration . TRAINING Comprehensive training is essential for effective use of a DMS . Establish a plan for both initial and ongoing training . Inquire about the recommended

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training duration , available support programs ( onsite sessions , classroom training , or computer-based modules ), and associated costs . Also , consider options for extended training and any incentives for training completion . SUPPORT Evaluate the vendor ’ s support options , such as toll-free lines , webbased support , or email assistance . Check the customer support team ’ s expertise in areas like accounting , parts , and hardware , and whether they offer support during business hours that align with your operations . Assess the availability of live support and average hold times , as well as the provision of after-hours support for urgent issues . SERVICES Look for vendors that offer additional services such as advanced training , consulting , data analysis , and provision of office forms and supplies . Inquire about their ability to provide a comprehensive understanding of your dealership ’ s performance and facilitate comparisons with similar dealerships in different regions . TECHNOLOGY Understand the technology behind the vendor ’ s solution . Evaluate the stability , performance , and cost-effectiveness of the platform and architecture . Consider the system ’ s stability , speed , and support for modern databases to ensure it meets your dealership ’ s needs . VENDOR Assess the vendor ’ s financial stability and market presence . Investigate their operating history , market share , update frequency , and the number of developers dedicated to the product . Evaluate their adaptability to emerging trends and overall reliability . TIMING Establish a realistic timeline for the project , including key milestones such as vendor evaluation , selection , and project completion . Ensure the vendor can align with your timeline and that internal staff are available for the implementation process . Consider the best time for implementation based on your dealership ’ s schedule and seasonal fluctuations . COMPATIBILITY Evaluate the professionalism and courtesy of the vendor ’ s team . Consider how engaged customers are in influencing future product functionality and how effectively the vendor listens to feedback . Ensure the vendor collaborates with top industry partners and offers seamless integration with your dealership ’ s OEMs . COST Assess the total cost of implementation , including expenses for software , hardware , database configuration , maintenance , support , and training . Consider the software ’ s long-term impact on profitability and whether it offers room for upgrades and expansion . Ensure it aligns with your current operations and supports future growth .

SO , HOW DO YOU SELECT A DMS ?

Choosing the right DMS is a critical decision that can significantly impact your dealership ’ s efficiency and profitability . By carefully considering these ten criteria , you can ensure that you select a solution that not only meets your immediate needs but also supports your long-term goals . Remember , the right DMS should streamline your operations , enhance productivity , and ultimately drive your dealership ’ s success .

For more guidance and insights , explore the resources available on LightspeedDMS . com or contact our team for personalized assistance .