Managing cash flow, building culture, and navigating the supply chain are key takeaways.
The past two years have posed unique challenges for many businesses with the pandemic in 2020 and 2021 and supply chain issues starting in 2021. As a result, dealers are looking for suggestions and solutions from their business partners. To get a better handle on that, CIT, a division of First Citizens Bank, reached out to companies big and small about the biggest challenges they faced in 2021 and what they did to overcome them.
The top answers in the survey were: Navigating supply chain constraints, retaining/hiring employees, cash flow, production/sales, and customer acquisition.
Navigating Supply Chain Challenges
The business leaders who responded to the CIT survey highlight several steps they’ve taken to address the past year’s supply chain issues:
- Plan inventory farther in advance
- Diversify sources of supplies
- Be flexible and look beyond your typical vendors
They also indicated it’s important to be honest about supply chain issues. Their recommendations include:
- Being service-focused and transparent
- Setting correct expectations
- Being willing to adapt
According to Michael D’Errico, director of sales office imaging for CIT, a division of First Citizens Bank, some businesses reported adjusting their business model and expanding their business reach and depth of offerings such as adding more products, software and services to address supply chain issues.
Retaining and Hiring Employees
The key strategies for retaining talented staff and hiring new employees include culture, considering adjustments, and cultivating relationships.
1.Culture
“Our respondents report that to keep quality employees and attract new ones, they’re focused on ‘culture, culture, culture’ in the workplace – from listening to your people, to challenging the norms, having an open mind, creating a vision, and pivoting when necessary,” said D’Errico.” Those who found success when addressing this challenge recommend being open and honest with your employees, learning about their needs and working with them to help meet those needs.”
2.Consider adjustments
“From pivoting to address the market’s demands to offering pay increases and stay bonuses for strong employees, our respondents recommend being willing to consider adjusting your business-as-usual routine,” reported D’Errico.
Recommendations include being open to offering contract-based and part-time employment options rather than hiring anyone who walks through the door because you’re short on help. “Market your available positions to attract individuals who want to be there and keep focused on retaining the strong employees you have,” recommended D’Errico.
3.Cultivate relationships
“Business owners who’ve worked to cultivate relationships with feeder organizations suggest the tried-and-true practice of making connections is as important as ever,” noted D’Errico. “Consider building rapport with community and technical colleges, local high schools, vocational ex-offender programs, and life training agencies that may be able to connect you with new employees interested in performing the tasks your business needs.”
4.Managing cash flow
From sticking to your budget to adapting to creative financing or money management options, survey respondents offered a list of recommendations to help power through challenges.
- Offer financing options to your customers.
- Put 10% of profits away for a rainy day.
- Accept offered SBA financing or lease offers.
- Shift investments to basic business and technology needs.
- Ask your customers to pay on time – and pay your bills on time.
- Maintain communication with your financial provider and seek help when needed.
“To sum it up, the message was, ‘The heart of any business is cash flow. If you have it, manage it well,’” said D’Errico
Advice for Any Situation
D’Errico shared additional advice gathered from survey participants.
“Never stop trying. Keep putting one foot in front of the other and moving forward. Even small steps can get you where you need to go.”
“Be patient and persistent and have a positive attitude.”
‘Keep your head up and keep moving forward.’”
Dealers interested in ways CIT could help them reach their business goals can explore the various options by visiting www.cit.com/business.
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