How To Cut Costs and Improve Cash Flow

In Go Broke, Die Rich: Turning Around the Troubled Small Business William Manchee makes a valid statement,  “Many small businesses are doomed from day one, not from competition or the economy, but from the ignorance of their owners . . . their destiny is already decided because they have no idea how a business should be operated.”
cutting costs, business plan, business coach, small business growth

Here are tips to cutting costs:

Reduce Staffing During Slow Periods

If possible, try to reduce the number of full-time staff you employ. Part-timers usually are not eligible for benefits and are accustomed to having flexible hours. If you realize that you are over-staffed during slower periods, it is easier to send part-time workers home because most of the time they are not salaried employees. Think carefully before you add a full-time worker. Assess whether you truly have enough work to keep that person busy for 35 or more hours a week. Please share. 

Sublet Office Space
If you don’t need a lot of room, see if you can rent space from another business that has an extra office available. Why maintain a lease of your own when you can sublet the exact amount of space you need–possibly at a reduced cost? Conversely, if you have extra space available at your own operation, see if someone will sublet from you.

Read more at Inc.

About

Jim Woods is president of The Jim Woods Group. A management consulting firm. Go here to see his work www.jimwoodsgroup.com. He advises and speaks to organizations large and small on how to increase top line growth in times of uncertainty and complexity. Some of his speaking and consulting clients include: U.S. Army, MITRE Corporation, Pitney Bowes, Whirlpool, and 3M. See more at his website www.jimwoodsgroup.com.

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Posted in Entrepreneurs, Entrepreneurship

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