Pub. 2 2019-2020 Issue 4

25 ALY_NY-1953_AllyAccelerationAd_SinglePage_7.5x4.625_r2.indd 9-14-2020 10:23 PM Olivia Konys / Olivia Konys 1 Saved at None from UNRNYC0751-OKonys by Printed At ©2020 Ally Financial Inc. ALY_NY-1953_AllyAccelerationAd_SinglePage_7.5x4.625_r2.indd 1 9/15/20 5:50 PM bundling services for a lower price. Simple things to manage include software programs, dealer management systems, and memberships. When was the last time you renegotiated these contracts? While reviewing contracts, it’s good to check cancellation policies in case you need to make changes quickly. Adapt for the Times As you scan your invoices, you may also find that you’re paying for services that you don’t currently need while facing new pandemic-related costs — like enhanced cleaning. One way to combat this is by pulling the cost from areas of your business that might not be as critical. For example, food and beverage in your waiting room may have been important in the past, but a better investment today may be the trust that comes with a clean dealership. Restart the Engines and Look to the Future After having a better understanding of the current state of your finances, develop a plan that can continue to grow with you well beyond the pandemic. Reviewing your expenses at a set time every year — or even every month — can help you continue to build strong financial habits for your dealership and keep your budget from slipping through the cracks. When your dealership is making money, it’s easy to get too comfortable. The current economic environment should remind everyone that effective expense management might The table-top exercise of reviewing all your bills may involve several staffers, but oversight is key. You know where the buck stops and someone who understands the big picture has to make difficult choices, prioritize expenses and identify savings. seem like a simple task during the good times — but can be crucial to how a business survives a difficult stretch. Use the next few months to establish strong expense management practices to help protect your business be ready for any opportunities that may lie ahead. 3