Ways to Fight Economic BS --Morgan
Also remember that all buying companies are concerned about the financial health of their suppliers. By continuing to market and maintain brand awareness, it makes your customers feel more secure about your company.
Reduce fixed costs. Get your team together to figure out what areas can be diminished or cut to create overall savings for your company. And leave no area of your budget untouched. In addition to reviewing line items, determine where you can cut back. Do your best to keep overtime expenses to a minimum.
Talk to your suppliers and see if you can arrange for discounts on ink, paper, equipment, supplies, etc. Remember that they are suffering, too—and may be open to adjusting their prices, just as you are lowering yours. If your distributors refuse to lower their costs, don’t be afraid to rebid elsewhere.
Review your accounts receivable. Cash flow is key in this unstable market. Do you have customers who take more than 90 days to pay their bills? Now is the time to be more discriminative in which jobs you accept. Be wary of clients who already have a slow payment policy, as this could even cause more problems with your cash flow. Also find out if offering discounts as incentives will help them pay faster, and keep you solvent.
Streamline administrative tasks. Take stock of your administrative operations expenses. Are all of your jobs allocated to the most efficient people? Is there software you can use that will not only make your project tracking easier, but will require that something only be entered once vs. three times?
Don’t be afraid to recreate job descriptions so that your organization becomes as efficient a structure as possible. And don’t forget to develop a scorecard to monitor progress and ensure that the desired results are being achieved.