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From the stock market to the car market: Lessons on scaling a 13-rooftop auto group
Featuring Taseer Badar, Chairman and CEO of ZT Corporate
Welcome to another edition of expert insights from the Car Dealership Guy Podcast, an episode recap that breaks down the juiciest takeaways from the conversation.
I recently spoke to Taseer, Chairman and CEO of ZT Corporate, who discussed his entrepreneurial journey, including how President Obama "pushed him" into the car business. We also explored his M&A strategy, uncovered which brands are on his wish list, and revealed the tough realities behind employee layoffs.
1. Taseer’s professional background.
Taseer Badar took a non-traditional path to becoming a car dealer. Starting as a financial advisor for healthcare providers, he managed over 3,000 physicians and helped doctors build imaging centers, surgical hospitals, and more. His pivot into automotive stemmed from a commitment to diversifying investments during the uncertainties of Obamacare, in addition to leveraging his passion for cars.
2. From financial advisor to multi-industry CEO.
Taseer notes that his work in the healthcare sector set him up for success in the auto industry. Innovation and networking are key to making it both as a doctor and as a dealer. Taseer also learned invaluable lessons in communication from handling finances for thousands of clients that gave him the skills he needed to manage businesses in multiple industries.
3. Relationships are key to success.
Taseer’s foray into automotive began with a stroke of luck. He explains that he partnered with a Houston dealership’s general manager, who he happened to be good friends with, to purchase the store from the owner, placing him at the helm of his first auto retail center.
While it took some time for sales to pick up, he recalls that many of his first buyers were the doctors and business partners he worked with as a financial advisor. The fact that his first dealership acquisition and his first sales as a dealer were driven by his relationships solidified his belief that strong community ties are crucial to being a successful business owner.
4. While dealerships are a great investment.
Taseer views automotive retail as a "safe asset class," due to the strong long-term value of franchise dealerships, regardless of brand. Unlike other industries, where failing businesses can have negative returns, dealership franchises maintain resale value.
This perspective, combined with his focus on long-term community impact, motivated him to acquire 13 franchises across multiple states, with import brands like Toyota, Honda, and Mercedes as his core focus. However, he notes that no brand is off the table, with even struggling franchises like Nissan and Stellantis having immense potential.
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5. Fostering leadership in dealership GMs/employees.
Taseer believes that compensation is the most important component of building a successful dealership team, followed closely by respect. In order to build up strong employees, staff members should be incentivized through equity opportunities, with high performers handsomely rewarded and promoted into leadership positions. Taseer also regards dealership general managers as CEOs of their stores, which pushes them to take ownership and excel not just for the company’s gain but for their own personal gain as well.
“I consider every GM a CEO of their four walls. They need to handle their P&L, A to Z…I want them to feel like they're an owner.”
This also encourages long-term thinking rather than short-term gains. When it comes to finding the right candidates, Taseer prefers looking for industry outsiders and disruptors, who won’t bring any bad habits or outdated processes from previous years in the field.
6. Luxury service is the future of automotive retail.
Inspired by his healthcare background, Taseer introduced a “white glove” service model to his dealerships. He hired luxury retail consultants from popular brands to elevate customer service and training across his dealerships. This approach has already yielded results, with significant improvements in revenue, service, and customer satisfaction scores. With profit margins under pressure, Taseer believes the industry will need to embrace this high level of service in order to remain successful.
“We brought these [consultants] from ultra-luxury retail to go in and help do training. And they're doing that in the next phase of our staff and team. And I think you can see a noticeable difference in what they've already touched, including our CSI and everything. Our revenue's up 27%. Our units are up 48%. Service, 32%. Parts, 37%. We've got a lot more traffic. so a lot of things can fall through the trap.”
7. Tips for strategic growth.
Taseer targets rural markets and succession-plan opportunities when acquiring dealerships. While he looks for stores with strong track records, he also values middling or even underperforming stores if they have the potential for enhancement. In these cases, Taseer’s first step to turning things around is to involve the dealership in the community through events and charities followed by operational improvements.
8. Working with manufacturers as an industry outsider.
Despite being an industry outsider, Taseer successfully navigated approval hurdles with manufacturers like Toyota, despite its stringent vetting process. He attributes his ability to work with manufacturers to his track record in healthcare and finance, which he explains gave him enough credibility to earn automakers’ trust. When it comes to collaborating with coworkers in the dealership, Taseer notes that egos often get in the way of progress, requiring effective communication to navigate.
“Great people also have big egos. Big problem. So I got to get them to check their ego at the door…You got to get them to believe in the vision. And that tempers their egos. You know, the car business is high pressure. You got to show them that we're a family.”
9. Adapting to the future of automotive.
While some are worried that manufacturers will use EVs to implement direct sales and end the franchise system, he notes that franchise laws are too strong in the U.S. for this to happen. He also believes that while EVs may have different maintenance needs, they also present new opportunities for fixed-ops, especially if innovations such as robotaxis become more readily available from different manufacturers.
10. A vision for sustained growth.
Looking ahead, Taseer aims to continue expanding his dealership portfolio. He believes that his emphasis on people—hiring the right talent and fostering a family-like culture—will serve as the anchor for his growth strategy. By blending traditional values and work ethic with innovative practices and fresh perspectives, Taseer hopes to build even more success in automotive retail while leaving a legacy for future generations of dealers.
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