Collateral is something valuable you promise to the bank when you borrow money, so if you don't pay back, they can keep it.
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Hey, welcome to the Monday Minute from our friends at podium, quick reset to help you
lead better, think clearer, and build your relationship with intention.
But before we get started, make sure you have reviewed our newsletter.
Jeff, are you sign up for our newsletter because you better.
Yeah, absolutely get our newsletter.
I think I actually get it to three different emails.
So I'm not sure how that happened, but I like that you're accounting for more and more.
I like that.
But but the newsletter lays out a theme for the week, the why behind it and simple exercises
to help you get better.
What we're doing here, the Monday Minute is the mindset, the newsletter is the roadmap.
All right, Jeff, what we got this week, buddy?
Yeah, we're going to continue to build on the theme of building a dealership, right?
We're starting from ground one at week one, and we're going to go all the way through
52 weeks and get our dealerships completely tuned in.
So the next step after last week, we talked a little bit about having that pro forma and
building out your model.
Now, you know what kind of money you need to get this thing going, right?
That's kind of naturally the second question after you say, Hey, I want to start a dealership.
I want to sell cars for full time.
I want my own place.
Where am I going to get my money from from Uncle Jeff?
That's a good question.
The better question, Luke, is am I fundable?
Yep.
That's a better question to ask, right?
Am I fundable?
So there's a difference, right?
Funding a startup dealership isn't about chasing cash.
It's about building a case.
So when you do, you can sell yourself, right?
You may start with personal savings as most of us do, but very few of us can actually
scale that way unless you're, you know, I don't know, Luke and a trust fund baby or something.
You'll likely need a mix of a floor plan, maybe an SBA loan, maybe a line of credit,
or maybe even an investor, you know, family, friends, private money, those types of things.
And they don't want to just fund you based on your passion, right?
I mean, you think of any investment you have, you want to fund someone who's thoroughly
thought out the business model, the game plan, the roadmarks, the pro forma, what it looks
like after six months, eight months, 12 months.
So when you go into a lender's office and you talk to them and say, I want to open a
dealership, that's just noise.
Like that's just nonsense, right?
They're going to be like, oh, look, have fun.
You don't need me then.
Go hang out, open sign.
But you want to say is, Hey, I need $750,000.
Here's how 500,000 goes to inventory.
Here's another 150 that covers my fixed operating expenses for a while.
Here's a hundred thousand.
I'm going to allocate to marketing and setup.
And my break even is 28 units.
My projective adage gross is 2,400.
So here's my 12 month forecast, right?
You've got it thought out.
You know what you're presenting to them.
You have a funding package or document or idea.
And don't overlook specifically like industry specific lenders, right?
Floor plan providers, they understand our world.
The SBA approved banks have programs designated for small business operators like us.
Some states even offer small business grants, you know, most dealers never even bother to
look up what a small business grant would be.
So your job this week is to make a list of at least five funding sources, not just generic
whatever's, but real ones, right?
Know their requirements, know the credit score threshold, down payment,
inspections or collateral, right?
Yeah.
You love the C word.
So be ready for collateral and then level up your network.
That's probably the number one thing of all this.
For sure.
For sure.
Your network is your net worth.
Right?
For sure.
It doesn't always come from just knocking on banks.
It can come from other dealers who might want to fund you.
It can come from angel investors.
It can come from strategic partners like your neighbor or your rich uncle.
Who knows?
Yeah.
But here's the key.
Before you ask anyone for money, you got to have a tight pitch, Jeff.
You got to know what you're pitching.
So it's not 40 pages, man.
It's five clean minutes.
Here's the opportunity.
Here's the market gap.
Here's my competitive edge and here's how you're going to get paid back because that's
really what investors worry about.
Yeah.
I'm going to give my money back.
So it's confidence without arrogance, it's clarity without height.
And remember this, investors don't invest in car lights.
They invest in people.
And if you're the right operator they're looking for, they will invest in you.
Your character, your discipline, if you know your numbers, that's what they're buying.
They're not buying just to invest in the car lights.
So if you're serious about expanding or opening, you got to get organized.
You got to clean up your business plan.
You got to dial in those projections.
You got to strengthen those relationships in that network, sharpen your pitch because
funding doesn't go to the loudest voice.
It goes to the most prepared operator in the room.
So get prepared.
Yep.
Excellent, Luke.
All right, buddy.
Let's build this together.
Yes, sir.
About this episode
Discover how to secure funding for your car dealership by focusing on being 'fundable' rather than just chasing cash. The hosts emphasize the importance of a solid business plan, clear financial projections, and a concise pitch to attract lenders or investors. They discuss various funding sources like personal savings, SBA loans, floor plans, and private investors, while highlighting the value of industry-specific lenders and networking. The episode encourages preparation, organization, and confidence to convince investors that you're a trustworthy operator with a viable business model.
Welcome to the Monday Minute, brought to you by Podium — your weekly reset to lead better, think clearer, and build your dealership with intention. You know what you need. Now, where does the money come from?
In this episode, Luke and Jeff break down the difference between chasing cash and building a case. Funding a startup dealership is not about passion — it is about preparation. Know your numbers, identify your funding sources, and sharpen your pitch before you walk into any lender's office. Investors don't fund car lots. They fund prepared operators.
