Car Wash - Summer 2018 - 61

BLOCBERRY/SHUTTERSTOCK.COM

Preparing For A Sale

* Resolve outstanding issues such as unpaid
accounts receivable, debt, lawsuits and environmental hazards.
* Demonstrate that accounts receivable can be collected.
* Prepare historical and projected financial statements.
* Provide a convincing business plan for the future.
* Secure beneficial relationships with suppliers and customers.
* Get the premises in good shape.
* Sell old inventory.
SOURCE: U.S. SMALL BUSINESS ADMINISTRATION

there's a rule of thumb that 10 years out,
you need to start thinking about it. Another
rule of thumb came from Chris Cecil, who
is part of the Vanderbilt family and runs
the [wealth advisory firm] Biltmore Family
Office. He said the time to start thinking
about transitioning is the very moment
the last transition occurs. Yeah, I just got
in, but now I have to start thinking about
how I'm going to get out."
Eric Giltner, senior area manager for
the U.S. Small Business Administration
working in Grand Forks, N.D., said that
in the next 10 to 15 years, approximately
70 percent of privately owned businesses
- worth an estimated $10 trillion - will
change hands, and the outlook for the next
generation isn't so great.
According to the nonprofit Family Firm
Institute, 88 percent of family business
owners believe the same family or families
will control their business in five years, but
only about 30 percent of family businesses
survive into the second generation, 12 percent into the third generation and 3 percent
into the fourth generation. Poor succession
planning is a major reason for those high
failure rates, Giltner said.
"Succession planning takes much longer
than the average person realizes," he said.
"I've seen it over and over where a guy is
a couple of years away from retirement,
or maybe something has happened in the
family and he needs to sell right now, and

he has this vision of being able to sell the
company quickly, and he's in for a surprise."

LEARNING THE
INS AND OUTS

That long-term approach has been
embraced at the Lubbock, Texas-based
car wash equipment distributor Lone Star
Car Wash Systems, owned by Clay and
Kelli Wilson, who are both in their 40s.
Only one of their three children, 25-yearold Kati Wilson Wright, is involved in the
business, overseeing all of the company's
parts ordering and marketing, but they have
hired her husband, Brandon Wright, 27,
as director of operations. (Read a profile
of Kati Wright on page 99 of this issue.)
Kati Wilson Wright said the need to plan
for succession years in advance was driven
home in a frightening way last October,
when her parents attended the country
music festival in Las Vegas where a gunman killed 59 people and wounded hundreds more. She said the idea of losing her
parents reminded her that she was only one
tragic day from having the business in her
hands, so it's important that she understand
every aspect of it.
"I've been working to get a grasp of all
the different services and offerings that we
have as a company to better understand it
as a whole," she said. "My parents aren't
old by any means, so they'll be working
for a while, but they are trying to teach

DEVELOPING A
FINANCIAL PLAN TO
REDUCE PERSONAL
EXPENSES AND
BUILD CAPITAL
CAN MAKE THE
NEXT-GENERATION
BUSINESS OWNER A
MUCH BETTER BET
FOR BANKS.
us through experience what this business
is about so that when they do retire, they
can either pass it down to us or we can
purchase it."
Giltner said that since the main thing
that determines a business's value is its
financial performance, car wash operators
planning for succession should take a close
look at the bottom line and their business
practices. He said many small-business
owners look to show essentially no profit
so they can minimize their tax obligation,
but the expenses used to offset profits in the
books make a business seem less successful
and unattractive to potential buyers.
Giltner said one plant nursery owner
he consulted had his wife's parents on the
company's health plan, and a restaurant
owner he consulted was paying his wife
a $30,000 salary even though she rarely
worked there.
"So, right away, there is a big chunk
of money going out that went to their

SUMMER 2018 | CAR WASH MAGAZINE | WWW.CARWASH.ORG

61


http://WWW.CARWASH.ORG

Table of Contents for the Digital Edition of Car Wash - Summer 2018

Letter from the ICA
Meet the Board
By the Numbers
Overheard Online
What Makes a Good Leader
Harnessing the Power of Diversity
Be the Best Servant Leader You Can Be
Coaching Them Up
Passing the Torch
Celebrating ICA’s Emerging Leaders
VNTYPL8
Marking a Milestone
The Car Wash Show 2018
Car Wash Show Australia Prepares for Fall Show
Kati Wright, Lone Star Car Wash Systems
Take a Tour: Snap Clean Car Wash
Automotive Technology
Regional Update: Western Carwash Association
"The How of Carwashing"
Blast from the Past
Download It!
Marketing Minute
Top Tweets
Ask Champ
Advertiser Index
5 Things
Car Wash - Summer 2018 - Intro
Car Wash - Summer 2018 - bellyband1
Car Wash - Summer 2018 - bellyband2
Car Wash - Summer 2018 - cover1
Car Wash - Summer 2018 - cover2
Car Wash - Summer 2018 - 3
Car Wash - Summer 2018 - 4
Car Wash - Summer 2018 - 5
Car Wash - Summer 2018 - 6
Car Wash - Summer 2018 - 7
Car Wash - Summer 2018 - 8
Car Wash - Summer 2018 - 9
Car Wash - Summer 2018 - 10
Car Wash - Summer 2018 - Letter from the ICA
Car Wash - Summer 2018 - 12
Car Wash - Summer 2018 - Meet the Board
Car Wash - Summer 2018 - By the Numbers
Car Wash - Summer 2018 - 15
Car Wash - Summer 2018 - 16
Car Wash - Summer 2018 - Overheard Online
Car Wash - Summer 2018 - 18
Car Wash - Summer 2018 - 19
Car Wash - Summer 2018 - 20
Car Wash - Summer 2018 - 21
Car Wash - Summer 2018 - What Makes a Good Leader
Car Wash - Summer 2018 - 23
Car Wash - Summer 2018 - 24
Car Wash - Summer 2018 - 25
Car Wash - Summer 2018 - 26
Car Wash - Summer 2018 - 27
Car Wash - Summer 2018 - 28
Car Wash - Summer 2018 - 29
Car Wash - Summer 2018 - 30
Car Wash - Summer 2018 - 31
Car Wash - Summer 2018 - Harnessing the Power of Diversity
Car Wash - Summer 2018 - 33
Car Wash - Summer 2018 - 34
Car Wash - Summer 2018 - 35
Car Wash - Summer 2018 - 36
Car Wash - Summer 2018 - 37
Car Wash - Summer 2018 - 38
Car Wash - Summer 2018 - 39
Car Wash - Summer 2018 - 40
Car Wash - Summer 2018 - 41
Car Wash - Summer 2018 - Be the Best Servant Leader You Can Be
Car Wash - Summer 2018 - 43
Car Wash - Summer 2018 - 44
Car Wash - Summer 2018 - 45
Car Wash - Summer 2018 - 46
Car Wash - Summer 2018 - 47
Car Wash - Summer 2018 - Coaching Them Up
Car Wash - Summer 2018 - 49
Car Wash - Summer 2018 - 50
Car Wash - Summer 2018 - 51
Car Wash - Summer 2018 - 52
Car Wash - Summer 2018 - 53
Car Wash - Summer 2018 - 54
Car Wash - Summer 2018 - 55
Car Wash - Summer 2018 - 56
Car Wash - Summer 2018 - 57
Car Wash - Summer 2018 - Passing the Torch
Car Wash - Summer 2018 - 59
Car Wash - Summer 2018 - 60
Car Wash - Summer 2018 - 61
Car Wash - Summer 2018 - 62
Car Wash - Summer 2018 - 63
Car Wash - Summer 2018 - 64
Car Wash - Summer 2018 - 65
Car Wash - Summer 2018 - Celebrating ICA’s Emerging Leaders
Car Wash - Summer 2018 - 67
Car Wash - Summer 2018 - 68
Car Wash - Summer 2018 - 69
Car Wash - Summer 2018 - 70
Car Wash - Summer 2018 - 71
Car Wash - Summer 2018 - 72
Car Wash - Summer 2018 - 73
Car Wash - Summer 2018 - 74
Car Wash - Summer 2018 - VNTYPL8
Car Wash - Summer 2018 - 76
Car Wash - Summer 2018 - 77
Car Wash - Summer 2018 - 78
Car Wash - Summer 2018 - 79
Car Wash - Summer 2018 - 80
Car Wash - Summer 2018 - 81
Car Wash - Summer 2018 - 82
Car Wash - Summer 2018 - Marking a Milestone
Car Wash - Summer 2018 - 84
Car Wash - Summer 2018 - 85
Car Wash - Summer 2018 - The Car Wash Show 2018
Car Wash - Summer 2018 - 87
Car Wash - Summer 2018 - 88
Car Wash - Summer 2018 - 89
Car Wash - Summer 2018 - 90
Car Wash - Summer 2018 - 91
Car Wash - Summer 2018 - 92
Car Wash - Summer 2018 - 93
Car Wash - Summer 2018 - 94
Car Wash - Summer 2018 - 95
Car Wash - Summer 2018 - Car Wash Show Australia Prepares for Fall Show
Car Wash - Summer 2018 - 97
Car Wash - Summer 2018 - 98
Car Wash - Summer 2018 - Kati Wright, Lone Star Car Wash Systems
Car Wash - Summer 2018 - 100
Car Wash - Summer 2018 - 101
Car Wash - Summer 2018 - Take a Tour: Snap Clean Car Wash
Car Wash - Summer 2018 - 103
Car Wash - Summer 2018 - 104
Car Wash - Summer 2018 - 105
Car Wash - Summer 2018 - Automotive Technology
Car Wash - Summer 2018 - 107
Car Wash - Summer 2018 - 108
Car Wash - Summer 2018 - 109
Car Wash - Summer 2018 - 110
Car Wash - Summer 2018 - Regional Update: Western Carwash Association
Car Wash - Summer 2018 - 112
Car Wash - Summer 2018 - "The How of Carwashing"
Car Wash - Summer 2018 - 114
Car Wash - Summer 2018 - 115
Car Wash - Summer 2018 - Blast from the Past
Car Wash - Summer 2018 - 117
Car Wash - Summer 2018 - Download It!
Car Wash - Summer 2018 - Marketing Minute
Car Wash - Summer 2018 - 120
Car Wash - Summer 2018 - Top Tweets
Car Wash - Summer 2018 - Ask Champ
Car Wash - Summer 2018 - 123
Car Wash - Summer 2018 - Advertiser Index
Car Wash - Summer 2018 - 125
Car Wash - Summer 2018 - 126
Car Wash - Summer 2018 - 127
Car Wash - Summer 2018 - 128
Car Wash - Summer 2018 - 129
Car Wash - Summer 2018 - 5 Things
Car Wash - Summer 2018 - cover3
Car Wash - Summer 2018 - cover4
Car Wash - Summer 2018 - outsert1
Car Wash - Summer 2018 - outsert2
Car Wash - Summer 2018 - outsert3
Car Wash - Summer 2018 - outsert4
Car Wash - Summer 2018 - outsert5
Car Wash - Summer 2018 - outsert6
Car Wash - Summer 2018 - outsert7
Car Wash - Summer 2018 - outsert8
Car Wash - Summer 2018 - outsert9
Car Wash - Summer 2018 - outsert10
Car Wash - Summer 2018 - outsert11
Car Wash - Summer 2018 - outsert12
Car Wash - Summer 2018 - outsert13
Car Wash - Summer 2018 - outsert14
Car Wash - Summer 2018 - outsert15
Car Wash - Summer 2018 - outsert16
Car Wash - Summer 2018 - outsert17
Car Wash - Summer 2018 - outsert18
http://www.nxtbook.com/naylor/ICWQ/ICWQ0218
http://www.nxtbook.com/naylor/ICWQ/ICWQ0118
http://www.nxtbook.com/naylor/ICWQ/ICWQ0417
http://www.nxtbook.com/naylor/ICWQ/ICWQ0317
http://www.nxtbook.com/naylor/ICWQ/ICWQ0217
http://www.nxtbook.com/naylor/ICWQ/ICWQ0117
http://www.nxtbook.com/naylor/ICWQ/ICWQ0416
http://www.nxtbook.com/naylor/ICWQ/ICWQ0316
http://www.nxtbook.com/naylor/ICWQ/ICWQ0216
http://www.nxtbook.com/naylor/ICWQ/ICWQ0116
http://www.nxtbook.com/naylor/ICWQ/Euro-International
http://www.nxtbook.com/naylor/ICWQ/ICWQ0415
http://www.nxtbook.com/naylor/ICWQ/ICWQ0315
http://www.nxtbook.com/naylor/ICWQ/ICWQ0215
http://www.nxtbook.com/naylor/ICWQ/ICWQ0115
http://www.nxtbook.com/naylor/ICWQ/ICWQ0414
http://www.nxtbook.com/naylor/ICWQ/ICWQ0314
http://www.nxtbook.com/naylor/ICWQ/ICWQ0214
http://www.nxtbook.com/naylor/ICWQ/ICWQ0114
http://www.nxtbook.com/naylor/ICWQ/ICWQ0413
http://www.nxtbook.com/naylor/ICWQ/ICWQ0313
http://www.nxtbook.com/naylor/ICWQ/ICWQ0213
http://www.nxtbook.com/naylor/ICWQ/ICWQ0113
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0412
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0312
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0212
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0112
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0411
http://www.nxtbook.com/nxtbooks/naylor/ICWQ0311
http://www.nxtbookMEDIA.com