Stretching Your Business Dollars

Stretching Your Business Dollars Image

Every business knows that in order to have financial success, cash flow is a must. However, sometimes things get tight, and when this happens, it is critical that your business knows how to stretch the funds that they do have, to cover things until cash flow is up and going again. The following is a look at a few ways you can go about stretching your business dollars further:

Set goals

The first thing is that you have to have some goals for the money you have available to you. What do you want to accomplish with your available funds? Are they needed for overhead costs? Or can they be used for something more, like marketing, product development, etc.? The goals you set for your funds will dictate in a large part how they are used, and if you want to stretch those funds further you need to have clear goals outlined for their use.

Capitalize on people’s strengths

Many companies make the mistake of hiring outside firms to take care of things that inside people could be doing. This is not a wise use of funds. Poll your employees, it might surprise you to learn some of the things they are good at and capable of, and that you could be taking advantage of. For example, maybe someone on your staff dabbles in photography as a hobby, and has the equipment and experience required for the photos you need for your website, brochures, etc. Using their skill, rather than hiring outside the firm is a good idea. This idea can be applied throughout the company. Capitalize on your employee’s strengths, and use them to their best advantage.

Be smart about overhead costs

One of the biggest mistakes companies make is having high overhead expenses that are unnecessary. Unless you are entertaining clients in your building, for example, you do not need a fancy address, or a showy lobby. Your money could be better spent elsewhere. Be careful about waste, and do what you can to cut back on your overhead costs, so that you only have necessary expenses.

Reduce and simplify plans

Stretching your business dollars further by cutting out the fluff. You do not need to have complicated plans that require a lot of money where a simple plan will work equally as well. Evaluate your various processes, and reduce and simplify where beneficial, helping you free up money for other, more worthy areas within your business.

The key to stretching your business dollars further is to simply be more conscious and aware of every penny required to run your business, every dollar spent, and how it is spent. It may surprise you how many dollars are wasted on simple things, and that by cutting back in some areas, and funding others, your money becomes more productive, goes further, and have better value.

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