What You Can Do To Keep Your Business Afloat Amidst Global Economy Crisis
There are many things to consider in keeping your business afloat during such times
when the global economy is still trying to recover from its financial crisis. Here are some things that may be of interest to you that may be useful in getting through this:
- Know your numbers as well. Getting a sense of how your business doing also involves looking at the numbers and seeing how efficiently it is running. If there are savings that can be done by belt tightening, you can find them by looking at your expense sheet. More often than not, you can save money by at least 15% by cutting expenses in representation and travel. You can also cut your overhead by changing the salary scheme that will reward performance. Changing from fixed rates to commission on sales can be a scheme that can be easily adapted. Looking at other operations, you can even use this scheme on office operations as well. Another way to also save on money is to encourage telecommuting or working from home. By having people work from home at least once a week, you will also help them save money on commuting expenses as well as save money from your office overhead expense.
- Know how to use your finances. Knowing how money flows may also be good for you. Sometimes using other people's money helps. In Cardiff, for example, the ship building industry runs entirely on financing. As a custom, companies who order ships do not pay till the ship has been delivered to them and has been accepted. This poses a problem for the ship builders as the cost of construction of a ship is huge. Working with accountants from Cardiff, they are able to figure out the working capital for this project and source the funds for this task. Accountants from Cardiff are very much in demand because they also act as financial advisors and familiarity with dealing with contracts and financing for such boat builds makes them the best choice for such companies. In many ways, accountants will also give you a better idea on how your business runs. Some businesses are cash rich and very liquid but may have smaller profit margins and operate on volume sales. Others, like the ship building business, have greater profit margins but have long collection processes. These businesses need to be able to have bridge financing and access to cash to operate their business. If you know what type your business is, then applying the proper tools for it will optimize the business.
by: Steven Magill
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