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Running
a tight ship is an important part of keeping your business afloat amidst the
tumultuous economic tides of today’s business world. Assessing your cost
containment strategies now can help sail your business into the future.
Preserving
and assuring a vital cash flow is essential to growing your business. The
best place to begin is tracking and analyzing basic financial data. Be sure
you make a point to look at your books on a regular basis or review your
statements from your accountant. If you do not understand something or
notice an inconsistency, do not hesitate to ask a question. Remember, this
is your money. You have every right to know exactly what is happening with
your cash flow and your business.
If
you need to make some immediate changes to improve your cash flow, consider
making any regular payments early if a discount is offered for early
payment. Implement check verification/guarantee services or a collection
agency to reduce bounced check fees. Consider buying only used furniture and
machinery. Always, avoid
impulse buying by waiting three days before acting on any purchases.
Set an example for your staff and do your own phone and paperwork.
Whenever possible, get competing bids for products and services and
don’t hesitate to negotiate. Run through your costs and see what can be
reduced or eliminated.
For
long-term containment, consider tracking your costs by work order or job
cost. This lets you prepare an income and expense statement for each job
rather than losing details in the overall picture. Be sure to audit major
operating expenses regularly. Consider working with other shipping,
telecommunication and service providers who may offer you a better deal.
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