Revise Your Payroll Cycle
Perhaps you currently pay your workers weekly – change this to biweekly. In case you currently pay them biweekly, change this to monthly.
You will not only have better cash flow but it’s possible that current payroll processing costs will be significantly reduced, more so if you have a large workforce.
Go Green And Minimize Wastage
Take all the necessary measures to ensure that energy costs are trimmed. Basically, adopt energy-efficient practices at your workplace.
Ensure that all lights are switched off when they are not required. All office equipment must also be unplugged at the end of the day.
40% of electricity consumption by home electronics happens when they have been turned off but not unplugged. The potential savings that you can make on costs of power are evidently quite significant.
The same measures should be taken for everything else including time. Enact a strict policy against lateness and inability to meet deadlines.
Cut Down On Travel Expenses
By taking advantage of technology you can significantly trim your travel budget. Have you considered video conferencing?
Again, do you really have to fly first-class? How bad can business class be?
Consider Making Changes To Your Workforce’s Employee Status
If you have hired your team on full-time basis you may want to consider making them independent contractors.
Assuming you have been honest with the team about the current situation they will most likely appreciate that they’ll still have jobs.
Their new status means the business will no longer have to pay payroll taxes and/or health insurance benefits, all translating into money saved.
Knowing how to stay afloat during hard economic times is crucial in determining whether your business will survive or go under. Has your business had to ensure such times? What was the crisis like and how did you pull through?
Find New Ideas For Profitability
This should also be done in collaboration with the staff. Now is the time to really brainstorm for viable ideas that can actually be implemented in the short-term to alleviate the crisis. Winning ideas should be well rewarded.
Rethink Your Positioning
Think about how you can uniquely present your business to the target audience.
What are some of the qualities you think that only your business can offer customers?
Re-position accordingly and let your customers and prospects know about the extra value they’ll get by doing business with you.
Make Your Turnover Rate Faster
Review your business operations to find out what practices are encouraging slow turnover.
Is it that your inventory lies idle for lengthy stretches? Find out if you can purchase less stock instead of tying down too much money at the expense of your profits.
Is it that many of your customers are simply taking too long to pay up? Perhaps offering attractive discounts for prompt payment will help.
Perhaps some of your products are taking too long to sell. Think about reducing package quantities, or end production altogether.
Negotiate Better Terms With Your Vendors
To secure better cash flow for your business engage your vendors and convince them to give you more time to settle your invoices. Use this cash to keep operations flowing.
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