Set yourself the challenge to become leaner
If you are not at the size yet to have your own in-house Finance director or CFO what can you do?
The best advice I can give is to set time once a year to review your costs. Think of it as a business diet. Aim within 30 days to address as many as you can. Any saving is important.
By addressing your costs, you help to improve not just your profits but also your cash flow. Plus I would add helps you keep financial stresses in check to invest in your financial wellness.
Below is a summary of the key areas to start:
You may already have great deals on some of your costs, but don't be afraid to look for new opportunities. There may be a change in your customer base or technology that helps you to reduce costs. This is particularly important with the last point.
This should not only be about cost-saving. A process review also has a positive benefit across your business.
By reviewing processes you can:
1. Address employee concerns about their roles
2. Review your supply chain
3. Review the quality of what you are doing
4. Reduce the time it takes to get a product or service to customers
5. Increase production for the same money
6. Save your own time wasted on things which can be delegated in order to focus on strategic decision making and finding new business
7. And of course, find ways to reduce waste and save money/resources.
It may seem extra work, but spreading out the task over 30 days can make it doable. Every penny counts in business:)
Also, by keeping on top of your costs, you are investing your time now to save far more in the future. I, unfortunately, meet too many companies that focused so much on selling that that ran up a huge amount of unpaid invoices and cash flow strains.
By running your business with a lean ethos you are improving your chances of weathering storms and making your business attractive to investors and make business lending more affordable.
If you need outside help to review your processes and costs do drop me a line.