In tough financial times, cutting budgets can be tempting and staying within them challenging. Where do you trim without impacting your product or your ability to serve your clients? Can cutting budgets in certain categories actually accelerate your financial issues? Here are some tips to stay within your company’s budget without risking your future.
Don’t Cut in Areas That Produce Income
For most organizations, most customers come from sales and advertising and promotion and sales. Firing your best salesman, for example, is hardly a way to move your company through difficult economic times. Likewise, slashing your advertising budget may actually enhance a downward spiral.
Instead, see if your top salesman’s compensation can be restructured to encourage more new sales or even include benefits like more time off or even company stock options. Rather than cutting advertising, talk to your vendors to find out how they can provide more for the same buck.
Create Incentives for Current Customers
You can turn your best customers into salespeople by offering them incentives for referrals. This can help improve sales with minimal expense or financial exposure.
Ask For Help From Vendors
Your vendors may be able to offer you more for less rather than lose you as a customer. This can include everyone from your cellphone provider, cable/internet and even suppliers. It can’t hurt to ask.
Review Your Operational Hours
Are there days or hours when you are open that are unprofitable? Are you still operating at the same hours you did years ago? Perhaps it’s time to reassess the times you operate.
Schedule a Business Insurance Review
You may find you can save money on your business insurance simply by scheduling a business insurance review and price quote. Our independent business insurance professional can review your coverage and your risks, and shop for protection that may save you money. Contact us today for your no-cost quote.
Avoid putting your business at risk by slashing expenses. Carefully and cautiously assess your expenses and use a scalpel, not a chain saw, when trimming budgets. You’ll be in a better position for recovery.