• Wednesday, June 29, 2011
• Guest:  Roger Gelder, President, A Betterway Rent-A-Car Group 
• Listen to show.

Today’s guest is Roger Gelder, President of A Betterway Rent-A-Car Group, dba Budget Rent A Car.  Roger has vast skills, experience and insights to share with us about his company and career.   We will join Roger shortly. 

But, first we start today with our Business Tip of the week.  Let’s talk about team, management skills and the needs of a business during its normal life cycle.  We start by describing a normal business life cycle and how we change during the life of our business. 

1. FIRST STAGE – Infancy – Start Up – implementing an idea. 
   1. Have gone through pregnancy 
      1. Identifying the opportunity
      2. Testing the waters, talking to potential customers
      3. Identifying their needs
      4. Assuring ourselves that we can deliver
      5. Have figured out resources and money needed to begin 
   2. We are in our first few years of business 
      1. In the field taking care of customers
      2. Doing, doing, doing – often multiple jobs
      3. Small staff, all doing multiple functions
      4. Watch and manage by the checkbook
      5. Minimal administration/small dedicated group of employees 
2. SECOND STAGE - Toddler 
   1. We are walking 
      1. Customers are ordering in a recurring way
      2. Easier to plan our week
      3. Lots of energy used to do multiple tasks
      4. Opening up new customers and beginning orderly expansion
      5. Adding employees to service customer expansion
      6. Still managing by the checkbook.  Watch every deposit, know every invoice.  Approve all purchases, write all checks.
      7. Not paying attention to much else – training, administration, benefits 
3. THIRD STAGE – Adolescents 
   1. We are running - sometimes without focus, but lots of motion.
      1. Revenue is on an upward slope.
      2. Adding employees to cover multiple functions as it is getting beyond a small group – customer service, accounting and finance, outside sales, operations management and human resources. 
      3. More complex, more to manage – owners may have hard time making transition.
      4. Instead of being involved in all major decision, higher to delegate. 
      5. Have to look at reporting being there. 
      6. Begin with people development internally t keep continuity and growth. 
      7. Cash flow must be planned, ups and downs severe. 
      8. May need more complex finance to grow. 
4. FOURTH STAGE – Adulthood 
   1. Have learned and mastered awkward stages of adolescence and have a cooperative management team. 
      1. Plan well, have strategy and financial plans
      2. Manage and build people – HR Processes, train and monitor performance.
      3. Sales and customer support are operating together and well.
      4. Profits are good and growing. 
5. FIFTH STAGE – Complacency and Decline 
   1. Take success for granted.
   2. Assume the posture of “It will continue, no matter what.”
   3. Inject politics and deference into meetings and trappings.
   4. Not paying attention to the market, competitors or customers.
   5. “Entitlement” is part of the culture. 
6. SIXTH STAGE – Either reinvest or death 
   1. Classic growth cycle 
   2. Matrix of management skills needed different at any stage 

1. Entrepreneur
2. Producer
3. Integrator
4. Administrator 

Dysfunction/Out of Balance:

1. Fire Starter
2. Do or Die
3. Compromiser
4. Bureaucrat                     

Each stage needs different combo to be successful. 

• Stage One   
  • Entrepreneur and Producer / Up
  • Integrator or Administrator / Down 
• Stage Two       
  • Entrepreneur and Producer / Up
  • Integrator / Lateral
  • Administrator / Down
• Stage Three -    
  • Entrepreneur and Producer / Up
  • Administrator / Lateral
  • Integrator / Lateral 
• Stage Four 
  • Entrepreneur / Down
  • Producer / Lateral
  • Administrator / Up
  • Integrator / Up
• Stage Five
  • Administrator / Up
  • Integrator / Up
  • Entrepreneur / Down
  • Producer / Down
• Stage Six
  • Administrator / Up
  • Integrator, Entrepreneur, Producer – Gone

Bureaucracy takes over . Vision is lost. Politics rules over production. People infighting is predominant 

Where are you – do you have the right control for your state?

The Good 

• Banks are beginning to lend.
• New Capital is looking for deals.
• Economic activity is stable, if not robust. 

The Bad 

• Planning is hard to do with uncertainty.
• Long term strategy, tough, without certainty.
• Everyone seems to be in short term thinking. 

The Ugly 

• D.C. continues its partisan gamesmanship; Democrats want to raise taxes and continue spending; Republicans want to slash spending and no taxes; have walked away from table; 
• Childish activity; Needs adult leadership and involvement. 
• Problems are specific, solutions are too.
• Values must be decided, and then decisions follow.
• Everyone has to understand clearly why sacrifice will help.

I’m pleased to introduce our guest today, Roger Gelder, who has spent the last 30 years in the car rental business and will talk about this career and company.  Roger has been a permanent member of Budget Rent a Car Corporation Advisory Board and former President and longtime member of American Car Rental Association.To the best of our knowledge A Betterway-Rent-A-Car Group is the largest independent car rental franchise in the world. 

1. Tell us about your background as owner of Budget Rent-a-car/ how you built your career in this industry 
2. As the rental car market has evolved and adapted to our changing economy over the past few years, what trends have you seen? 
3. What is the impact of the trouble in Japan in the automobile industry?
   1. How has it affected new car availability?
   2. How has it affected the price of used cars? 
4. For a business owner, what is the most intelligent way of acquiring a fleet? 
5. How does Section 179/Expensing play into this? 
6. What trends do you anticipate over the next few years and how does the world follow suit?