by Barbara Weltman on August 14th, 2009
If your business is on the edge of disaster and you need to count every penny in order to survive (or you just want to run leaner and meaner so you can optimize profits), here are 30 ways to slash your expenses, conserve your cash, and weather this economic tsunami.
Payroll costs
1. Eliminate all raises and bonuses. While staff may have come to expect these annual payments, they prefer to have job security, something that can only be assured if you stay in business.
2. Eliminate 401(k) and other retirement plan contributions.
3. Reduce medical coverage. Shift more of... Read more »
by Steve Strauss on August 10th, 2009
Q: What is the best way to get out of my business? Long story short, I am a self-employed graphic designer. Business has slowed to a crawl, the bills have piled up, and my credit cards are getting ready to sue me. Please help.
Mark
A: I suppose it is not surprising that I am getting more and more questions like this every day. It used to be that small businesses were better able to handle a recession because other avenues were available to help keep things afloat – home equity, credit cards, SBA loans, etc.
Sadly, those options have... Read more »
by Larry Slusser on March 31st, 2008
Building a budget for your business will take time to put together. However, it can be easy to move away from following the budget. Below are some ways to help you stick with the budget you spent time developing.
First, if you have never done it before living within a budget can be difficult as well as educational. For instance, knowing how to reasonably trim your expenses, or how much of a cash reserve to keep on hand will take time to develop the skills. Learning along the way, adjusting when appropriate will become easier as you practice.
Next, you... Read more »
by Carrie Hinkel on March 11th, 2008
Most business owners don’t feel the need to have a “rainy day” or “emergency” fund until business is slow or an unexpected expense is incurred. Instead of having to scramble over some “fast cash” for the business, why not slowly build up a savings account that holds several months worth of operating cash? Even if your business is a start-up and you feel that every dollar is already spent before it’s earned, having a “rainy day fund” is a good idea – and you don’t need a lot of cash to start.
If money is tight, set a goal to... Read more »
by Veronica Stone on July 9th, 2007
When launching a new product or company, an entrepreneur must consider their biggest cost – the opportunity cost. Opportunity cost is an economic term that is defined as the cost of passing up the next best alternative when making a decision. For instance, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose for which the asset could have been used. In the entrepreneur’s case, this asset typically includes the entrepreneur’s time and money.
For an individual currently working in a corporate position, the opportunity cost of launching... Read more »