I opened a recent national magazine and noticed the Go RVing advertisement by the RV Industry Association (RVIA). The ad was very nice and well done. No doubt, it's a good thing for the industry to do.

I then flipped on the TV and I saw a couple of commercials from local RV dealerships. The ads were themed as "Mega-Sale", and "Liquidation Sale", etc. These dealers are attempting to drive traffic to their dealerships by primarily leveraging price and availability/selection with their messages.

Advertising is an investment in the growth of your business. But unless you set clearly defined, measurable performance goals for new advertising plans, you’ll never know what kind of return you’re getting on your advertising investment.

As business advertising refocuses on Internet, social media and mobile advertising, RV dealers are finding themselves faced with myriad new advertising options with which they have no track record. Measuring the effectiveness of new media to achieve advertising performance goals ensures that your advertising dollars are being invested where they will do your RV dealership the most good.

One of the most important considerations for running any business is cash management. Without cash you can’t cover your floorplan payments, you can’t pay your staff, and it can make for some sleepless nights.

Without cash, your business cannot operate; it is therefore extremely important to take a look at how you currently manage your cash flow and consider whether there are any improvements that could be made. The key items to look out for are therefore:

• Inventory management
• Managing receivables
• Covering overhead payments

Inventory Management

Of the dozen RV manufacturers that have gone out of business in the past three years, I confess the one that I most hated to see close shop was Millersburg, Ind.-based highline fifth wheel maker Carriage RV, primarily because it had such a storied history and a reputation of making a high-end, quality product.

Many people were surprised last week when Mike Molino announced that he is leaving RVDA. The surprise is understandable. After all, Mike has been with RVDA nearly 24 years and has been the CEO for the past 16 years.

The news was not a surprise to the RVDA Board of Directors. Even though I’m no longer on the RVDA Board, I remember the meeting, almost five years ago, when Mike announced he would be leaving in the next couple years.

The Board developed a plan to review potential candidates and select a successor. Then came the collapse of the economy, and RVDA was in a state of stress. We knew it would be hard to hire a CEO during uncertain financial times.

As market conditions improve, it’s important to take note of survival measures initiated during the Great Recession period, recognizing that some have likely become “good habits” that RV dealers like me should maintain during better times ahead.

We were forced to cut back on expenses, reduce inventory levels, to raise and hold onto as much cash as possible when retail RV units sales slowed dramatically in most areas of North America by the end of 2008 and into 2009. Dealership staffing was reduced to the point where many dealers and their department managers began performing fundamental, essential tasks like service writing, inventory display, RV unit and accessory sales.

Creating a budget is not the most interesting thing you will do this year, but it is a great way to monitor performance, give accountability to staff, and help you achieve your long term goals. The first edition of my blog will discuss how a small amount of time spent coming up with a simple budget can improve the profitability of your dealership and will help your dealership achieve its goals.

The condition of the U.S. economy doesn’t concern me heading into the New Year as much as my need to regain pre-recession profit margins on RV unit sales and improve the dealership’s bottom line.

Sales volume was on the increase here in South Texas well before my dealership closed out 2011 as a mildly profitable year. Expenses remain at conservative levels, yet I plan to hire additional sales and service department positions in reaction to increasing lot traffic and higher service and accessory demand.

Sometimes business is just funny.

Earlier this year, I covered topics that are part of the traditional indirect lending process employed at dealers, including credit application and approval as well as contracting and funding. While best practices in these areas can help dealerships thrive, they won’t be nearly as effective if relationships with lending sources aren’t nurtured.

Ever wondered what lenders look for in their dealer relationships? What causes some lenders to stop doing business with certain dealers? Ever wonder why some lenders constantly enter and exit the market? Read on to learn what steps your dealership can take to solidify your relationship with your lenders.

1. The buck doesn’t stop until the deal has been funded