Founding Partner of Titan Motor Factors, Damon Peacock, discusses the purpose of the company’s new project, which aims to put the control of newly founded motor factors into the hands of the people that run them day-to-day.
The Titan Motor Factors project has been designed to offer an alternative business model in the motor factor industry. The marketplace is dominated by North American-owned multinational corporations and multigenerational family businesses which offer limited prospects for progression, plus a limited income ceiling. One of the major boundaries to success in these organisations is the lack of a vested interest amongst key members of staff. Bonus structures, tight controls and rigid processes help to mitigate this risk, but they also encourage a pursuit of short term profitability over long term growth.
The Titan Motor Factors model is a simple concept, and it is based on providing a platform for the best people in the industry to open their own business, but with the peace of mind that they will be helped and supported throughout their journey. On first glance, the model can be viewed as a form of franchise, but in reality, it is more akin to a ‘John Lewis’ style partnership, in which equity is split between the staff, investors and advisors.
A revolution
The support, guidance and ongoing training from the Titan team include all aspects of business management, such as accounting, financial planning, sales, marketing, raising finance, operations, HR, health and safety, leadership, IT, forward planning, procurement, and stock control. The goal is to turn excellent managers and sales staff into fully-rounded business owners, who understand all aspects of how their company operates, and who have the self-confidence and independence to make key decisions.
There is the potential for this project to kick-start a revolution within the industry, with underappreciated staff deciding that they are tired of having no overall control in the running of their branch, and being fed up of working hard for profit that is often transferred to shareholders overseas.
The COVID crisis has reignited a ‘buy local’ mind-set and a return to a service orientated market whereby a customer is known by their name and not their account number. It is anticipated that the Titan model will be hugely relevant in the post- COVID marketplace, with a focus on relationships and the autonomy to make decisions locally for the benefit of all stakeholders.
The barriers to entry in this industry are often insurmountable to somebody wishing to go it alone. Our aim is to reduce these obstacles and make owning a successful motor factor achievable to hard-working professionals across the UK.
Teaching an old dog new tricks
Nicholas Mace, co-Founder, had this to say on the new project: “As an owner and Director of Titan in Avonmouth, the support my team has received on all aspects of running our business has been unbelievable. We have managed to outperform even our wildest expectations on turnover and profit, and that is due to having a highly motivated team, an excellent stock holding, and industry- leading marketing support. I have learnt more about accounts, administration and financial planning in the past six months, than in my preceding twenty years in the industry combined.”
