The global recession and credit crisis have cut too many of our businesses, we are all in need of cash. Businesses need to go back to the basics in times like these, and you must contact that has seen you, where you were before the current environment. Unfortunately, it's time some of the ways the fringes bleeding and steeling cash flow from the core of our business scrap. It may be time to go back to basics and concentrate. Below is a list of 10 action itemsthat in these economic times, can help put money back into the bank and have your company ready for the next opportunity comes, it.
1. Focus
2. Get back to basics
3. Scrap projects that are marginally
4. See how we pay our employees
5. Check out our variable costs
6. Negotiate with creditors
7. Negotiate with suppliers
8. Fire marginal customers
9. Create a sense of urgency
10. Communicate your plan to your team, suppliers and friends
Focus morebut especially when times are hard. This is no time to try out wild ideas and money. This is a time to be sharp like a laser and focus on how to make money. Fore ask what in the bacon, which is repeatable and what your company is known. Concentrate on the customers that matter and perhaps even those who do not have the fire. It is a time for your business of waste and marginal opportunities to circumcise.
Get back to basics "is another way of saying to concentrate, toBut it goes deeper. You start your business or company on an idea which made the generated income, and money. Have expanded over time, taken on new projects, and have tried different things, some good and some not so good. It is time for your company to check and see what is not the payment of dividends. This can be a difficult task because they are emotionally involved with our ideas, but it's time to go back to the essence of what made you to decide where youare.
Scrap marginal projects is a different form of concentration and back to the basics. Any company that does not do the last few years about exactly what they started doing. You try to explore new things and expand and new ideas. These economic times will require you to projects that bleeding and / or cash will not return, what your core business is scrap. The problem is that even if a project is a great idea and can can finallyWork that you need capital to execute it properly and this is a time to save and build your cash. They know that even though a project may not bleeding, it bleeds cash resources and focus from the core of your business, that's what you should be focused on the right side now.
Our employees are our greatest asset. Most companies have a core group of employees that are critical for success, and this group produced every day. However, you may have expanded andhave brought in some marginal people who are draining the resources of the company. You can marginal producers, their compensation may be that they use up resources from the rest of the group. It is time to examine how these people are compensated to the view when they should be there at all.
Our variable costs are numerous, and our benefits, we provided our employees, some of these may be. It may be time to look for any cost, which is not resolved to. It is time to makeDecisions on the payment for certain things and cut costs by shifting our business to our suppliers, our employees or, to them all removed.
It is time to get a look at our debt and seek to negotiate more, and / or discounts. The whole world right now and the one sure way of putting more money in your balance sheet is squeezed to force your creditors. This may of course a sensitive issue, but it might be worth a try.
Our suppliers are in the same boat as ourcompany. They need to be in step with you and know that you are looking to lower inventory, increase inventory turns, get longer terms, and generally improve working capital. If you go deeper into your vendors organization beyond the sales guy who calls on you, like the CFO, or the CEO they may have ideas and may be able to help you come up with solutions that will put cash in your pocket. These people are your partners and they win if you win, so do not be afraid to engage them in helping you with your goals and objectives.
Some customers cost money to do business with. You know this, and unfortunately this is no time to familiarize yourself with marginal customers. This is a time for the customers prune, the life drain from your company and focus on customers that make you money. You will be amazed at how this energy and put money back into your organization.
Create a sense or urgency of now. You can leave these things until tomorrow. Although itSigns of recovery in our economy, economists say all that we are a long way, and nobody knows what will happen tomorrow. If you save money today, act now and do not refuse.
Communicate your audience and your goals for your team, your suppliers and your friends. Let the world know what you are doing and what you want to accomplish. They have some great people and if they know what they are promoting you on the pitch and come with their own ideasand this becomes a domino effect. Do not forget to have a few days or weeks, you have focused on a marginal project and the team had focused on, and suddenly you realize that you do not have the money to have it take off. The team must be aware that priorities have changed and you are building cash and scrapping everything that does not work, help us focus this goal.
In conclusion, you will be with the cards that you dealt with dealt with, and unfortunately are the daysdifferent today than it did a few years ago. However, it is a good idea to action items at least once a year anyway. All entrepreneurs exploring and trying different things that they believe will help the company, and at least once a year you should take a step back and look at these projects. All businesses need money to operate, but in these economic times, it is essential to try and build up a cash reserve. The banks are not lending and that has an enormous waveinfluence with our suppliers and customers, so unfortunately we have really focused on the essentials. If you are the target of money in your account to communicate the purpose of making, and lead the team, you will raise money and build your cash.
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