What's on your wish list? Cut business costs to free up capital
Say you had $50,000 more budget to work with in 2011. What would you do with it?
When we talk about boosting profits through cost analysis, we are not talking about finding a few dollars and cents here and there. When savings can be 30 percent in a single category, expense reduction can translate into:
- Expanding or improving your work space
- Hire a much-needed employee
- Upgrading technology or equipment
- Making long-neglected repairs
- Improving your profit and loss (P&L) statement
Improving your balance sheet may be the best move if you are preparing to sell your company. It can also give you leverage when you talk with bankers about your company’s line of credit.
Large recurring expenses = potential for large savings
Of course, each company has a unique mix of costs. Depending on the type of industry you are in, your business' toner costs may be tens of thousand dollars a year. You also may have expenses such as linen and laundry or food service. On the other hand, you may have low or no shipping costs and merchant card services fees to pay.
Basically, if you have any large recurring expenses, it can pay to have a cost-reduction professional look over your company’s invoices and formulate a plan that will save you money. We get paid by retaining a portion of what we save you for the first couple of years, so we have the ultimate incentive to save you money: The better you do, the better we do.
You decide which recommendations to implement
At the same time, you remain in control. We put together a plan, but you have the ultimate authority about putting the plan into play. Once you give us the green light, we handle the negotiations and the transitions. We also follow up to make sure the vendors are delivering the savings that they promised.
You make a small commitment of time and pay nothing out of pocket.
2011 wish list
So what if you really did have $50,000 more budget to work with in 2011. What would you do with it? I’d like to hear about it -- please comment!
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