Pub. 19 2020-2021 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 19 new jersey auto retailer W W W . N J C A R . O R G inventory is difficult to acquire at an affordable price, many dealerships are branching outside of their normal shopping radius. Consider exploring different purchasing options. • Work with lenders and ask for forbearance or payment plans for outstanding loan balances. • Discuss options with your manufacturer to loosen restric- tions on parts and core returns. • Increase your cash position by reviewing receivables. Work to minimize balances in Contracts In Transit, Accounts Re- ceivable, Incentive Receivables, Finance and Insurance Re- ceivables, and Warranty Claim Receivables. These balances should be reviewed regularly to expedite collection. This may be an ideal time to reevaluate dealership lending practices. • Reduce personnel expenses by hiring smart and maintain- ing talent. When your employees are engaged in their work, it can directly impact the bottom line. Department heads should be empow- ered to support and encourage employees during these stressful times. Employees may be feeling the stress under new working conditions, altered home lifestyles, and other adjustments. Is your dealership providing information to your employees timely and effectively? It is helpful for most employees to cope with change when they feel they are included in the loop. Ensuring your employees have leadership contact is more important than ever and a crucial tool in stressful times. Leaders should be widely visible and accessible. In addition to supporting employees, managers should continue to meet regularly to discuss the current state of the dealership. Each department manager should maintain a close pulse on the profitability of their department. In addition to fiduciary responsibility, the department managers must be aligned and able to answer questions that relate to COVID-19 and today’s business environment. Employees will likely have questions and, if exposed to conflicting answers, may become anxious. The COVID-19 pandemic has placed department managers in critical positions. It is up to these leaders to cultivate a positive post-pandemic work environment where employees will thrive. As employees settle into the new normal, they may develop a false sense of security as it relates to the transmission of COVID-19. Many folks have short memories. Leaders must monitor the behavior of employees and confirm all individuals adhere to CDC guidelines and the restrictions placed on social distancing, mask-wearing and hand-washing. Without proper oversight, both customers and employees may become uncom- fortable. Leaders in the dealership must actively engage in compliance to avoid unnecessary consequences. Hire smart! Experience is important but isn’t everything. Expe- rience comes with additional costs. More and more companies now hire fresh college grads and train them. It may become more cost-effective than hiring an experienced individual when filling some positions. For critical work scenarios, you may have no other option but to consider an experienced hire. When considering fresh talent, not only do you gain a monetary advantage, but you may also benefit from having an enthusiastic employee who is up-to-date on the latest technology, openmind- ed and eager to learn. The Bottom Line: There will be tough times ahead for dealers across the county. The steps you take now will better position your dealership as this global threat stabilizes. While it’s hard to predict what the future will bring, dealers who plan strategi- cally and take action now will have a better chance of reducing financial setbacks. Christine Andrews is a consultant at WithumSmith+Brown, PC. Her responsibil- ities include evaluating and critiquing safeguards and expense controls in deal- erships and establishing internal controls that lead to more secure methods for safeguarding dealership assets. She can be reached at candrews@withum.com . When your employees are engaged in their work, it can directly impact the bottom line. Department heads should be empowered to support and encourage employees during these stressful times. Employees may be feeling the stress under new working conditions, altered home lifestyles, and other adjustments. Is your dealership providing information to your employees timely and effectively? It is helpful for most employees to cope with change when they feel they are included in the loop.