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50 WAYS TO CUT COSTS AND INCREASE PROFITS
- Buy frequently used products in bulk.
- Whenever possible, fax it before you discuss
- Purchase a fax switch and remove the dedicated telephone lone.
- If you communicate by modem purchase a new one that speeds up communication.
- Monitor long distance telephone charges - include them in charges to customers or insure that they are included in overhead.
- Plan now to hire students in the summer or for peak periods.
- Ensure heating is turned down on week nights and reduced more on weekends.
- Turn off all unnecessary lights.
- Have office cleaning staff reduce visits to once every two nights instead of every day.
- Ensure faucets are not leaking.
- Turn down hot water settings 10-20 degrees.
- Retrofit toilet reservoirs to use less water per flush.
- Cut vehicle car washes to half.
- Ensure that postage for parcels is correct by using weigh scales.
- Encourage the reuse of newspapers, paper for draft copies, boxes, incoming Styrofoam packing for outgoing packages.
- Photocopy paper on both sides for client newsletters and other mailings.
- File taxes on time...consider municipal, provincial, GST, PST and Federal... to avoid penalties.
- Review subscriptions to newspapers and periodicals to avoid duplications...set up a procedure to distribute single copies.
- Use reusable interoffice envelopes and re- address rather than use new ones.
- Increase the deductibles on office business insurance policies.
- Negotiate for discount vehicle fuel through bulk buying or centralized purchasing.
- Consolidate credit card outstanding balances with a line of credit to reduce interest charges.
- Renegotiate your premises lease.
- Consider refinancing loans at old rates for new, lower rates.
- Review credit card membership costs and cancel redundant cards.
- Negotiate better deals on maintenance contracts such as grass cutting, window cleaning, carpet cleaning and uniforms.
- Entertain at your home or office rather than at restaurants.
- Encourage customers to pay cash rather than use charge cards.
- Pay bills that provide discounts on time.
- Use refillable cartridges for photocopiers or laser printers.
- Purge old files into cardboard storage boxes to free up space.
- Review heating methods used to determine if conversion to other fuels, different furnaces or suppliers would reduce costs.
- Review the effectiveness of advertisement in newspapers, trade magazines or monthly mailers. Is there a more effective, less costly means to reach your market?
- Eliminate bank account that are no longer necessary.
- Get your accounting up to date for tax planning for both company and owners.
- Ensure all withholding taxes for employees are paid on time.
- Review Workers Compensation rates. Be sure that adjustments are handled promptly to provide credits.
- Schedule regular maintenance on key vehicles, computers or other productivity enhancements to avoid expensive down time.
- Consider installing a telephone answering machine rather than an answering service.
- Inquire into government funding for training.
- Review accounts payable for large debit balances. Use the credit or request refund.
- Review vehicle usage for the next six months. For idle vehicles, investigate not renewing licenses and redefining insurance coverage.
- Review vehicle insurance policies and drivers' records. If high risk individuals are no longer driving, is a reduction in premium possible?
- Review inventory. Is it possible to use old stock that has been forgotten?
- Reduce rent and overhead by sharing space and facilities with a complementary business.
- Review mailing lists and remove customers that have not placed orders in the last 2 years or have moved outside your area of service.
- Plan service calls and drop in visits to customers to correspond with other visits.
- Combine small shipments/orders to take advantage of lower freight rates.
- On out of town projects, consider staying at non franchised hotels/motels. More than likely the rates will be lower than the corporate rate at major chains.
- Make production personnel responsible for quality control and routine maintenance.
Credit Repair Toolkit
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