Improve Bottom Line Profitability (Part 4) by Robert Finkelstein

Have you started implementing any of these cost-saving strategies? Of course you have. Who wouldn’t want to improve their bottom line profitability.

I mentioned previously in Part 3, the concept of virtual communications – allowing your employees to work remotely, which could save you a great deal on office space alone. Let’s dive into another couple of virtual ideas.

10. For years, I’ve been using GoToMyPC.com, which allows me to access my office and home computers remotely from my laptop…anywhere in the world. Great program and inexpensive. Another wonderful tool is GoToMeeting.com, which allows you to invite others to view a presentation or demonstration on your computer. You want to save money on travel and hotels, conduct a few meetings like this and you’ll be very happy. There’s always Skype.com, another great tool for chatting, talking or video calls…for free! Give it a try, you’ll always find me on it.

11. Finally…a virtual assistant. If you’re not really familiar with the concept, Wikipedia defines it as “an entrepreneur who provides professional administrative, technical, or creative (social) assistance to clients from a home office.” If you’re in need of someone to help you with emails, online filing, proofing, writing, you can pretty much name it, this is great way to go. I know people who have used the same VA for years. There are so many companies out there. You’ll have to do your research to see which one provides the services appropriate for your company. You can also use Social Networking websites to get some recommendations. I’ve personally used is Elance.com, which allows you to offer up a single project to be bid on by professionals looking for extra work. Nothing’s too small or too big…and you can save a fortune here too.

Please let me know if this has helped get you thinking, and if it has, start implementing. You’ll thank me all the way to the bank.

If you have any questions or comments,
please write them below or email me at Robert@RobertFinkelstein.com.

Improve Bottom Line Profitability (Part 3) by Robert Finkelstein

I trust by now you’re thinking a little more about that bottom line and how you are able to cut your expenses. At a seminar I attended last weekend, the speaker clarified the old adage, “Don’t work harder, work smarter.” He took it one step further…”Work right.” It might seem like the smart thing to do, but you must take the time to analyze whether or not it’s the right thing to do for your business.

Here are few more great tips to help you grow that bottom line while reducing your expenses.

7. Go Virtual. If your operating expenses are through the roof, and maintaining an office for you and your team is becoming an increasingly financial challenge, consider virtual communications. You know your team, and if you feel that they’ll still be productive working outside the office, then telecommuting might be a great idea. Trust me, they’ll love the work/life balance that it can provide.

8. Buy, don’t rent. This is kind of the opposite of the one above. Just something to consider, if you’re in a different financial position. If you do own a building or are considering buying one for your business, you might want to rent out some of the space. Use what you need, and then have your tenants’ rent help cover the mortgage. Another great advantage here is that you’ll be building equity in your business assets.

9. Drop ship. In my last position as VP of Operations for a sporting goods manufacturer and distributor, we rented a huge distribution center (DC). Working with the big box giants like Target and WalMart meant keeping a lot of product on hand and staff to manage daily shipments. When we were able to restructure our deal such that we could drop ship product directly from Asia to their DCs…wow, what a savings…not to mention, one less headache. Keep in mind, you need to be partnered with vendors to trust and are very reliable, because you’re reputation and account are on the line if they don’t deliver the goods. Errors in shipments will cost you a fortune in “charge backs.” The retailers have strict rules regarding all aspects of logistics and they impose serious fees when you don’t comply. Making mistakes will quickly eat up what you’ve saved by drop shipping. Take your time and do this right, and you’ll be very pleased with how it can positively impact your bottom line.

I’ll have a few more tips tomorrow. Keep working out your expenses and you’ll be in great shape.

If you have any questions or comments,
please write them below or email me at Robert@RobertFinkelstein.com.

Improve Bottom Line Profitability (Part 2) by Robert Finkelstein

Hopefully I’ve got your mind thinking, “Sell, Sell, Sell…and Save, Save, Save!” Celebrate all the great sales, but keep that bottom line in plain sight. If ever it gets obstructed, good luck staying profitable.

So let’s continue with more cost-cutting tips.

4. Networking. Never underestimate its power. Face-to-face marketing/networking beats traditional paid advertising…if for nothing else, it can be free. If you can create good rapport with potential buyers, you’re leaps and bounds ahead of trying to convince someone through an impersonal ad. Find out where to go…and go there. Don’t forget about social networking via the Internet. The only cost here is time…but it can be very effective.

5. Receivables. Simple math here. If you have to pay your vendors before your vendors have to pay you, you’re going to have serious cash flow problems. When I worked for a distributor, we had to pay our manufacturer net-30 (basically, 30 days after receiving the product.) Our big box retails clients paid us net-90. My six-year-old son can tell you that won’t. You must negotiate terms that are mutually beneficial. If you can’t, then you need to evaluate why doing that business makes sense. Sometimes it does, but only you can determine what works best for your company.

6. Mileage. Instead of a car allowance or a company car, reimburse employees for mileage. For example, here in California, the current reimbursement rate is $0.55/mile. This can add up, so again, you’ll have to determine what’s best for your company. If you are tempted to go the mileage reimbursement route, you’ll save on insurance, and maintenance, among other unexpected costs.

At this rate, you’ll be buying a larger piggy bank in no time.

If you have any questions or comments,
please write them below or email me at Robert@RobertFinkelstein.com.

Improve Bottom Line Profitability (Part 1) by Robert Finkelstein

Sales are up! Time to celebrate! Not necessarily. Just because sales are soaring, it doesn’t mean the company’s profitable. When expenses are not well managed, they can eat up your sales in no time. If the company’s not profitable, future growth is highly unlikely…and staying in business will eventually become a challenge.

In the next few blogs, I’ll offer tips that can help you keep expense down and improve you bottom line (in no specific order).

1. Business Insurance. You gotta have it…but at what cost? Shop around, know your needs, and do a cost/benefit analysis. Rates are very competitive. Don’t buy more than you need. You can always add when the business justifies it.
2. Employee Insurance. If your company can afford to provide this benefit, when it comes to your staff, give them options. This is an important benefit and you don’t want to be perceived as cheap. If money is tight, provide an allowance. Contribute what you can to their insurance costs.
3. Subcontractors. The advantage of using subcontractors is that you only have to pay for the labor you need. When you don’t need them, you’re not paying for bench warmers. The big savings here is also on payroll tax and insurance.

In the meantime, keep selling…and start looking at cutting these costs. More tips tomorrow.

If you have any questions or comments,
please write them below or email me at Robert@RobertFinkelstein.com.