You don’t have to wait for acrunch to take tighter control of your cash flow. Here are a few non-intrusiveways to make cost control a year-long exercise:
• Discontinue outsourcedservice, such as cleaning, travel agency or bookkeeping, for a couple ofmonths. If you find you can live without it, keep it cut.
• Cut supply costs – paper,towels, office supplies, etc. – by buying in bulk instead of when things runout. And you don’t need top-shelf pens, multi-colored markers, and sticky notesof every size and color.
• Track all variable andfixed costs for a month. Then, don’t spend a dime on variable expenses thefollowing month. See what you’ll save, and what you can live without.
• Get your collection andbill-paying systems organized. Collect payments within 30-60 days, and considerdiscounts to customers who pay within 30 days. Deposit checks daily. Pay yourbills as late as possible, unless a discount is available, and consider payingelectronically so they can be paid literally at the last minute.
• Don’t overhire. Maximizeeach employee’s efforts.
• Turn out lights inunoccupied or unused rooms. Install energy saving lights where possible. Makesure computers and copiers are turned off each night. Put a lock on thethermostat to prevent constant adjustment. Add blinds or curtains to reduceheat in the summer and retain heat in the winter.
• Watch insurance costsclosely, and make sure you’re getting the best possible rates. And, make surethe policies you have are necessary.
• Avoid long-term spaceleases with a high penalty for breaking the lease. And, if practical, make sureyou can sub-lease the space. That could be an invaluable source of cash andreduced costs if things get tight.
Click here for more ways to boost your shop’s financial health.
– Source: Tire ReviewBusiness Toolbox
