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.
Behind the Scenes / Virtual COO 