4 operational essentials for business rebuilding

By Citizens Staff

As vaccination numbers increase across the country, businesses may experience an influx of new customers. PwC® research shows that consumers are open to fresh experiences: Over 30% of shoppers, across all age categories, have shopped with a greater variety of retailers in the last six months.

Fine-tuning operations and other company functions will position you to keep current customers happy and serve new markets.

Preserve cash

Even if you have already cut some costs, revisit all your expenses to determine how else you can reduce spending. Review everything from rent and insurance, to office supplies, software, consultant services, and memberships in professional associations. If you have any assets that aren’t being used, and you don’t foresee needing them in the future, you may want to sell them to free up capital.

Other options for cutting expenses may include:

• Closing under-performing locations
• Revisiting your financing terms for property and equipment loans or leases
• Consulting with your business advisor on tax and financial implications

Focus on customers

Listen to customers and show that you respond to their issues and input to help keep them loyal. If you are getting numerous requests for early morning or evening deliveries, but you’re only open 9-5, expanding your hours of operation may keep customers from migrating to your competition.

“Your customers’ behavior should always guide you,” says Paresh Mistry, Citizens Vice President/Commercial Relationship Manager.

Track their behavior and purchase trends so that you stay aligned with what matters. Knowing what they want will help you make your marketing dynamic and your company more responsive to their needs.

Determine where you need to improve

Identify business issues that may stall progress toward your goals by thinking about what held you back in 2020. Was it a cash shortage? Not enough time to focus on business priorities? Weakness in customer service? Or something else? Ask yourself tough questions about what the make-or-break areas are for your business. This will help you kick start momentum to grow. And, don’t be afraid to ask for help.

Monitor cash flow

A shortage in cash flow can happen to any business. Your bookkeeper, financial advisor, or tax resource can help you create cash-flow projections or help find a way to generate these reports on your own. If you sense a dry spell might be imminent, there are things you can do to better position yourself — including increasing sales initiatives, making sure you are billing accurately, updating your payment terms, stepping up collections, or pursuing financing.

“Look into whether you can secure better pricing on large expenses. Some businesses use a line of credit (LOC) to seize inventory pricing that is advantageous,” says Kerri Miozza, Citizens Vice President/Business Banking Market Manager. “If you can use the bank’s money to stock up and get a better margin on your sales, your bottom line is going to look a lot healthier.” (Click here for more from Kerri Miozza and Paresh Mistry on ways to rebuild business.)