This past year has not been great for many businesses and many are predicting drastic changes in the business landscape in 2012. Leonard Levey of National Cost Reduction Corporation has put together a list of the top five ways businesses can manage costs and improve their cash flow in 2012.
Review Your Business Plan
Chances are that most businesses don’t review their business plans as often as necessary. It’s important to change priorities in order to become or remain successful, so now is the time to go over the business plan and decide what needs to be changed.
Rekindle Relationships with Your Business and Social Network
Even if it’s as simple as e-mailing someone to wish them a happy new year, it’s essential to re-open any lines of contact that may have been lost. Many people are no longer at their place of business, so now is a good time to reestablish a connection. (They may even become a good source for your business!)
Institute New Measures to Assess Positive Performance
We’ve become so focused on how bad the economy is that we have forgotten how to measure the positives within businesses. Set benchmarks and clear standards to determine the effectiveness and efficiency of implemented strategies.
Cut Administrative Expenses and Supplier Costs
When it comes to non-labor, administrative costs, many companies are throwing away thousands and even millions of dollars every year. Call your suppliers to negotiate reduced pricing for expenses like utilities and freight. A 5 percent reduction here and a 10 percent reduction there can work out to huge savings for you!
Resolve to Improve on Weaknesses
Businesses know where they should improve, and rather than continuously saying what needs to get done, now is the time to actually do it. Take stock of all aspects of business operations and list areas you would like to change.