When difficult economic times hit, most businesses that were hanging on by a thread folded. The ones that remain have learned how to cope by making significant changes in their operations. Is there more than can be done? Certainly, there is always room for improvement.
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Now that businesses have taken every conceivable action to stay in business, attention turns to the little things. Taken together, these can help keep the wheels turning for a long period of time.
Avoid Hiring
Payroll is the biggest expense for most businesses. The need to bring another person on must be weighed against the expense. There is not only the pay, but also the benefits. And future consideration must be given to health care costs. That uncertainty alone makes it worth holding off on hiring. If you must have a real person to help you consider two alternatives: part-time help or contractor assistance. Neither of these require payment of benefits and you can terminate the arrangements much easier.
Watch Little Expenses
Every expense must be scrutinized. Right down to the utilities that you consume. If you own your own building, put in water-saving toilets. Make sure electrical items that are not necessary to run the business are turned off while you are done for the day or weekend. Turn down your water heater so that it supplies water temperatures that are slightly above warm. Shop for a new bank account that charges lower and/or fewer fees. Credit unions are a good place to look for that. Print fewer documents on your printers. All of these together make up significant savings to your bottom line.
Downsize major expenses
Is it time to move into a smaller space from which to run your business? Consider that rent payments often make up thousands of dollars per month. Calculate how much a move would cost you, and then compare that to what a smaller location would compare to your current rent. This would allow you to see how long it would take to make up that money that you spend to move and then begin to save over time. If you own or lease major assets, think about downsizing those or getting rid of some that you no longer use regularly. If you have vehicles, look into used versus new.
Implement Technology
There are two technology implementations that you should consider. First, is an 800 number and associated PBX (phone answering) system. These are so common today that most people do not mind using them. And, once they are programmed correctly, they allow callers to route their own calls and leave messages on voicemail boxes and send pages, etc. You can replace a full-time receptionist with one of these at a fraction of the cost.
Look into GPS Tracking systems. If you own assets that are used outside of the physical confines of your business, tracking them with these devices makes a lot of sense. Should you need to know where a vehicle is (for example), you can look it up on any Internet connection. If one is stolen, you can recover it quickly. Plus, your insurance company might provide a cut on your premiums.
All of the above are not hard to implement. It takes time and will power to make it happen. But, you can make it happen and that might be all it takes to keep your business solvent until better economic times bring more sales.
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