It takes a lot of hard work to keep a business profitable, especially when the economy slows down. Here are a few ideas that may help boost your bottom line.
* Cash shortfalls. Make a quarterly cash forecast report. The report will allow you to foresee any cash shortfalls and reserve cash for your short –term needs. You might also want establish a line of credit before you actually need it.
* Labor expenses. A great asset to any business is a well-trained employee. Cross-training all employees can create a more efficient work force. Have each employee create a list of all their assigned tasks. This will also eliminate the expense of paying for unnecessary work.
* Resist lowering prices. As tempting as it may be to lower prices to attract new customers or improve sales you should resist. Although, it may be a better idea to find ways to improve your product or your customer service. This would help attract new customers and retain established customers.
* Inventory reduction. If your inventory includes slow-selling or high-cost items, consider making them special order items. You can create a tax deduction while freeing up valuable shelf space by donating obsolete inventory to your favorite charity
* Invest surplus. Keep most of your money in a business savings or money market account where it will earn interest until you need it.
* Examine your customer credit. By utilizing an accounts receivable aging report you can flag past due accounts. Follow up with a customer immediately when you spot a delinquent bill. Don't extend any more credit until the customer brings the account up to date.
* Don't pay too quickly. Use an accounts payable aging report to keep money in your account as long as possible. Take advantage of early payment discounts if it makes sense. Otherwise consider using the full grace period to pay your bills.
For more profit-boosting ideas, contact our office at (855) 594-3183 to schedule an appointment with our advisors.