So, everyone is trying to figure out ways to handle the down-turn in the economy.
I figured perhaps I should, as a consultant to many of my business clients, publish a list of the ideas that I have seen for keeping your business afloat in these times.
1) Are you overstaffed? Many people, when times are good, fail to look at their human capital expenses. They are paying huge medical premiums, paying their staff at salary raises that were put into place in boom times, and are failing to look at the business' real need for the staff person themselves. Be careful that you only have on staff those people that you need!
2) Owner's, what are you doing? Are you doing the work in the business, or have you stepped back and let your managers run the business. What about some of the actual technical work? Have you thought about your own time and if your time would be a good contribution to the output of your company?
3) What about your banking and financing? Many businesses have thought about calling the banks and credit card companies to see if they can get better payment terms, or rates. But have you thought about calling your vendors? Can you switch from a Due on Receipt to a term of 15 or 30 days out?
I will post some more ideas in my next blog post, but thinking about it this way - As Dan Kennedy says - when times get tough, think tougher - have you sat down and figured out the possibilities? What would happen if you had to fire your secretary today? Who would handle her job? And when you figure out the answer to that, is that answer better than the way you are currently running?
Thoughts to get you going in the morning,
Shauna~ Your Tax Goddess.
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