Checklist Cost Reduction Cash Flow Tactics

Cost Reduction/Cash Flow Tactics

Examine every component of your business. Identify those areas that tend to drag the rest of the business down. Focus on these and establish methods to improve these areas.
Review all expenditures and question what, how and why. Rethink every expenditure.
Make a dollar or percentage goal for cost reduction and specify the time frame when you will meet this goal.
Meet with suppliers and vendors. Discuss the options you have to reduce costs. Analyze these options and implement those changes that fit your business objectives.
Establish a forum for employees to offer their cost reduction suggestions. Use a suggestion box or identify someone in human resources as a liaison to receive ideas. Use rewards or recognition to encourage employee participation.
Examine your labor costs. Can you reduce overtime? Do you have materials ready and on the job when workers arrive at the work site? Do you plan the work to be efficient? Identify areas that can be improved and work on them
Meet with your insurance agent and review your insurance policies. Determine ways to control costs. Comparison shop to see if you can find similar coverage at a reduced cost.
Review your cash management policies. Establish policies that offer incentives for fast payment of bills. Also take advantage of early payment discounts that benefit your cash management position.