Top 10 Actions Small Businesses Take to Stay Competitive

  Top 10 Actions Small Businesses Take to Stay Competitive

Business Wire

NEW YORK -- December 13, 2012

Change and reinvention are a continuous process for many small business owners
as they remain competitive in a tough business climate, according to the
Citibank® Small Business Pulse survey.

Some changes are big – like a product overhaul. Or they can be small, such as
doing additional research or increasing face time with customers.
Nevertheless, the Citibank Small Business Pulse survey revealed specific
actions that small business owners take on a regular basis to remain
competitive. They are:

#1: Do your research and get educated.

While 88% remain up to date and knowledgeable about their business and
industry, they also pay attention to market changes in order to remain
competitive.

“Many business owners focus on their skills and industry knowledge,” says
Jerome Byers, Head of Citibank Small Business. “To find truly new business
ideas, often the best sources are from other industries and markets. When
seeking new answers, all business owners are your peers.”

#2: As always, work hard, be diligent and do what needs to get done.

Perhaps one of the easiest identifiers of a business owner is their sense of
dedication and willingness to dig into all aspects of the business. One sign
of that commitment is their inability to take a break; 53% didn’t take a
vacation last summer.

“Small business owners don’t stop when the clock strikes 5:00,” says Byers.
“But it’s also important to know when an outside resource can do something
better and faster and offer new ideas and approaches based on their
experience.”

#3: Update or upgrade technology.

Close to 70% of respondents have updated or upgraded their computer systems,
with 51% proclaiming a major technology change to their business operations.

#4: Know your clients.

Sixty-seven percent of those surveyed said they have increased face time with
customers to keep their business thriving in today’s economy.

“Small businesses thrive on deep customer relationships,” Byers notes. “Face
time isn’t just client service. Those relationships contribute to staying
educated about your market and can be the source of ideas. A conversation
today can be part of your business plan tomorrow.”

#5: Keep a close eye on cash and budgets.

Many small businesses are budgeting conservatively and pocketing cash reserves
as a cushion. Their caution stems from experience, as 58% say a major
challenge to running the business in the past few years has been having enough
cash. Most small business owners (73%) handle their own cash management and
feel like they have it under control.

#6: Be involved.

Whether it’s the 51% who built a network of suppliers and partner companies
around the business, or the 47% who became more active in the community and
other local organizations, small business owners understand the value of
investing time in the community.

#7. Be prepared.

If the economy were to face another downturn, 80% of survey respondents feel
prepared to weather market weakness. In previous Citibank small business
surveys, small business owners said they took actions such as reducing costs,
renegotiating contracts and operating leaner.

#8: Plan ahead.

Among small business owners, 27% can predict their cash standing four to six
months into the future.

“Future thinking and proactive planning is critical,” says Byers. “The enemies
of long-term success can be complacency over current success or paralysis over
a tough situation.”

#9: Stick with your aspirations.

Business owners bring their hopes and dreams to life when they start out,
tying business to their personal sense of success. Statistically, 63% say they
are living their dream and 75% would do it all over again despite the
challenges.

#10: Market, market, market.

Over half (53%) have increased their own social media and online advertising
in the past year; 54% invested in website improvements and search engine
presence.

About the Citibank® Small Business Pulse

This Citibank survey was conducted via telephone August 9, 2012 – August 30,
2012 by Abt SRBI Research and Public Affairs among a national random sample of
750 small business owners/operators, age 18 and older throughout the United
States. Oversample interviews were conducted in New York (200 interviews) and
California (200 interviews) markets. The margin of error for the national
sample is approximately +/- 3.58% and +/- 6.93% for New York and California
over samples. Surveys are subject to other error sources as well, including
sampling coverage error, recording error, and respondent error.

About Citi

Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook:
www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Copyright © 2012 Citigroup Inc.
Tags/Keywords:
Citi, Citibank, small business, CitiBusiness, Citibank® Small Business Pulse

© 2012 Citigroup Inc. Citibank, N.A. Member FDIC. Citibank and Citi with Arc
Design are registered service marks of Citigroup Inc.

Contact:

Citibank
Catherine Pulley, 212-793-1401
Catherine.Pulley@citi.com
or
River Communications
Michelle Howard, 914-686-5599
mhoward@riverinc.com
 
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