Posts Tagged ‘cost cutting’

Don’t Let Vendors Become Complacent

If you are diligent you will likely find that you can get better deals from your vendors than you are led to believe. Read the rest of this entry »

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Shop Around to Find Quality Insurance for Less

Do you find your business’s insurance cost getting more expensive each year with no better coverage and perhaps less? Beware of complacency. Read the rest of this entry »

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Discretionary Spending

When discussing discretionary spending it may be a little more complicated that it first appears. In the posting Analyzing Expenses we discussed three categories of expenses – fixed expenses, variable expenses, and semi-variable expenses. This posting involves semi-variable expenses, but with a bit of a nuanced approach. Read the rest of this entry »

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Does a Part-time CFO Makes Sense?

First let me make a disclaimer, I am a Part-time CFO so I have a business interest in this idea. Regardless, that really has nothing to do with whether it might be right for your business.

Some Initial Acknowledgements

As a Part-time CFO I’ll be the first to acknowledge that employees are necessary for most businesses. In fact, in my role as a Part-time CFO or Controller I rely heavily on a company’s employees, while at the same time helping them to become more effective and efficient. With that said, let’s take a look at why you may be better off with a Part-time CFO.

Mindset

You may be thinking I’m referring to the mindset of the Read the rest of this entry »

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3 Ways to Cut Costs

A recent article about cost cutting and some of the reasons the process failed struck me as useless as far as providing real guidance on cutting costs. The focus seemed somewhat generic with such observations as:

  • It’s getting harder to cut costs (No kidding? Companies have already done significant trimming in response to the economy. But, how does knowing it is harder to cut costs help?)
  • It is difficulty to maintain cost cuts. (Again, no kidding? Although a few suggestions were offered, there was really nothing new that didn’t itself present something else to be maintained)

So, let’s take another look.

Is That Really Needed?

The one helpful thing this article did offer was the old idea of Read the rest of this entry »

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Outsource and Save

There is a tendency for business owners to try and do it all. Often that is not the best use of resources. In a previous posting Spend Wisely – Go Part-Time I talked a little about the financial advantage of outsourcing. In particular I compared my experience as both an employee and a part-time CFO/Controller. In this article I looked mainly at two things; cost savings and best use of talent. Now let’s consider other benefits to using outside resources.

First Things First

Just to summarize, the first point previously discussed had to do with having a highly skilled employee spend most of their time on tasks that really did not require their level of expertise. In the second point an example Read the rest of this entry »

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Fixed or Changing?

You probably have heard the line from Gertrude Stein, “A rose is a rose is a rose” which we take to mean “things are what they are.” For example, when traveling from destination A to destination B, A will remain A and B will remain B. How we travel from A to B may change, but we are still trying to get from A to B.

What Does This Have to Do With Business?

In business it is important to know what is fixed, what changes, and what seldom changes. An unchanging aspect for business would be something like Read the rest of this entry »

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Have a Lean Business

Have you ever tried to lose weight? If so your experience may have ranged from easy to difficult. When it comes to reducing costs a business may have a similar experience. By costs I’m referring to both product cost and expenses. Why do some businesses find it easy to reduce costs while others struggle and eventually stop trying?

Think Lean and Communicate It

Like losing weight reducing costs starts with Read the rest of this entry »

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Cut Costs Wisely

Many companies have experienced or are continuing to experience a decline in sales. For many it has been significant. Without adequate sales, it is a struggle to cover costs and be profitable as well. Some companies have addressed this by borrowing more. While there may be some situations where this is necessary, many times it would be better to cut costs and manage assets and liabilities more effectively. Remember, those loans will have to be repaid at some point and this can place a heavy burden on a company.

There is a Downside to Cutting Costs

You may have decided to cut costs (expenses and asset purchases) as a way to address the decline in business. Good. That is one of the first and more effective things you can do. But, you need to cut costs wisely. For example, Read the rest of this entry »

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3 Reasons Prices Will Increase

As you know, even though the price of things is driven down as competition and sales increase, that is not the general trend. Yes, this will continue to occur, but over time prices increase. Here are 3 reasons prices will increase.

Healthcare

As the Patient Protection and Affordable Care Act (Obamacare) takes effect, with full implementation in 2014, there will undoubtedly be Read the rest of this entry »

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