Topic for discussion: What are the benefits of joining a trade association?

Answer: Lupe mentioned one of the biggest benefits. You can rely on your trade association, if it meets your expectations, to predict industry trends. Looking around the corner is critically important to Lupe; he can't afford to be overstocked on tomorrow's hoola hoop.

Sophisticated market research and predictive analysis are important tools in any industry and, by banding together in the form of a trade association; small businesses can contribute to a pool of dollars that funds a targeted effort for their specific industry. Lupe also mentioned the value offered by the training provided and the opportunity to network with other businesses of the same industry.

Topic for discussion: Can you get the same benefit from local memberships in Chambers of Commerce, Rotary or Elks, local industry trade groups? Wouldn't that be more cost effective?

Answer: Probably not. It would be cheaper, for sure, but not more cost effective. National organizations attract better speakers and generally offer better training. They have a bigger budget, collecting dues from businesses nationally, and can plan more elaborate events.

From a networking point of view, your fellow attendees will be a lot more open with you in sharing their good ideas when they know you are not competing with them for customers. Automobile dealers probably recognize this fact better than anyone.

General Motors actually puts together "Twenty Groups" composed of twenty dealers, from different parts of the country, selling the same make and model cars. Each member takes turns hosting a meeting in their city. Prior to the meeting, the members submit detailed operating and financial information to their General Motors coordinator. When the dealers get to the meeting, they are given a report ranking them by various statistics, everything from number of car sales per salesperson to average dollars per repair order.

The dealers who rank high on the list counsel the dealers on the bottom of the list, providing them with advice on how to improve a specific aspect of the business. When they move on to the next ratio, the first may be last and the last, first. Mentor and student roles swap as the meeting progresses and everyone benefits. This could never happen in a single market where all the dealers are competing for the same customers.

Remember Lupe's comments about the value his mentor had brought to his business, particularly in his counsel on inventory mix? Lupe's mentor is from North Carolina. No doubt he enjoys the relationship as much as Lupe does, and he is not at all threatened by a competitor in Texas.

You think about it: Who is already doing what you want to do? What is keeping you from asking that person to mentor you?