04.23.07
Improving Your Bottom Line
Money is often tight, particularly for entrepreneurs and small businesses just starting out. Having to watch every dollar and account for each expense is a must if you want to make it through those early lean years. However, no matter how careful we often are we seem to have instances where we find ourselves mispending our money. What do I mean? Well, we may order too much inventory, pay higher finances fees than we should, fail to bill clients on a regular basis, or maybe we just stick with certain suppliers even when they aren’t the most competitive.
There are however several things we can do reduce those unnecessary spending mistakes and keep more dollars for productive uses. First and foremost, we can develop an annual business and marketing plan. By knowing what you want to do in the upcoming year, you can better plan your expenses. You can also:
- Bill your customers on a regular basis
- Effectively manage your credit so that you know how much you are being charged in interest each month. Make a spreadsheet and track it so that you can become familiar with what you are paying.
- Pay your bills on time to establish a history of good credit. You can then secure better interest rates when you do borrow.
- If you carry an inventory, consider switching to a “just in time” inventory management system.
- Shop around periodically to ensure that you are receiving the most competitive rates from suppliers.
It may not seem like rocket science (because its now), but you will be amazed at how much you can potentially save just by implementing these few simple steps.
