Makamba Online will focus on trimming the unnecessary fat from your business. Entrepreneurs and small business-owners sometimes face a tough period, like, a year or two.
Cash flow, experts warn, is likely to be the biggest storm that small business-owners will have to ride out, but if you get it right, there’s no reason why you won’t be able to successfully overcome this potentially fatal problem. Deciding how much whether to make small adjustments or eliminate an entire department or function requires a delicate balancing act.
Run a detailed expense report that will break down every subset of the business so that you are able to determine the exact cost of each aspect of your business.
Cost-cutting for tough times
First make sure you have a true reflection of the cash flow status of your business. Many business-owners manage their finances via their bank account, but this gives a very short-term view of cash flow. Getting into the habit of doing a cash flow forecast is extremely useful. It will help you identify areas in your business where expenses can be trimmed down.
Your business might have changed over time, meaning that values might need to be adjusted, you may be over-insured and thus paying inflated premiums or you might find that some policies have become redundant.
As a small business-owner, it’s highly unlikely that you are debt-free. It’s a necessary evil for growing a business. Consider reviewing all of your outstanding debt and consolidating to save on interest rates.
Small business-owners can cut costs by cutting down on meetings or more realistically, by suggesting meetings via Skype or conference call where possible. This way, you reduce travel expenses (petrol and maintenance) by cutting down on travelling and the cost of hiring meeting facilities.
Author: Staff Writer