“‘Profits are the reward of doing a better job’ D. Blakely
If your business is short on cash, losing money, and you are struggling to keep the doors open, here are your options: a reduction in expenses, an ultra-conservative approach to your cash flow and a determination to boost sales, or close the doors.
Your immediate goal must be survival. The first step in doing so is to reduce expenses. And it is difficult compared to the excitement of expanding. It is like the medieval practice of bloodletting – painful, but considered at that time to be vital to the patient’s survival. No business survives on sales volume. Get profitable and your problems will go away. ”
– I follow this stategy in my personal life, too. Every six months I look at all of my expenses and determine what I can cut, reduce in cost, refinance at a lower rate, etc. I recently even refinanced one of my cars at Capital One Auto Finance. In the not to distant past this was unheard of, but by being aware of financial circumstances and new trends I was able to reduce expenses. Just think, cutting a hundred dollars a month is like giving yourself a $1,200.00 raise with little or no effort. In your business it should be the same. Always think ahead and try to react before you get into a tough situation. It works for me. -ed.