Strategic-Planning category archive

Businesses may go bankrupt due to several factors, but one of the biggest reasons is the failure to control their finances. It goes without saying that without enough money in the bank, a business cannot survive and cash flow problems brought on by poor cost control are one of the fastest ways that a business goes under. Organizations are continually looking for methods by which to lower costs, especially in these tough economic times. Any business can attempt short term recovery methods to get back on their feet or to maintain operations by attempting the following practices:

Utilities – Don’t miss out on savings by neglecting to compare your current gas and electricity providers with other carriers. Using a broker will provide a wide range of tariffs, enabling more savings opportunities. This requires little effort and can lead to big savings. If you choose to switch providers, be aware of the proper time to provide a cancellation notice to your current provider so you do not get locked in to another long contract.

Outsourcing – Areas of the business such as IT, HR, and finance may be outsourced in order to reduce costs. Manufacturing, distribution, customer service, and marketing may also be outsourced to places such as India or the Philippines depending on the industry.

Banking – Remember that your bank charges are not fixed in stone. There are a number of areas where banks profit from your business and you should look to minimize these. For example, what interest rates are you being charged? What are you receiving for any accounts in credit? Lots of banks have different levels of clients, and paying a higher monthly fee may result in a lower cost overall through reduced transactional fees.

Business Rates – The rates that your business pays can be challenged every five years and you shouldn’t assume that they won’t change. You can challenge this yourself or use a specialist consultants. If using a consultant, ensure that they don’t charge an upfront fee. What you want is to only pay them a charge that relates to the savings that they make for you.

Telecoms – Due to the deregulation of the telecom market, your business has plenty of choices. Big brand providers can save 10% off line rental with ease. More savings can be found on call charges. In addition to making apples to apples comparisons, be sure to closely review any contract lengths.

Office Stationery – Combining suppliers and invoices not only enables savings by purchasing from one place, it also increases your ability to negotiate. This ability increases if you are part of a buying group. By monitoring your own usage and limiting the number of authorized reordering personnel, you can reduce costs. Using your own products can lead to 25% savings.

If there is one thing most small businesses can agree on is that time equals money. Small business owners are in a position where they have to be a jack-of-all-trades, often spending most of their day wearing different hats. This is the nature of the small business and while expected is not always the best way use of time. In order for a small business to be successful and remain competitive in an industry, there must be designated time for the owner to focus on growing and building the business. In many cases small businesses fail as a result of being unable to handle emergencies or other situations that are simply beyond the control and expertise of the owner.

Any business that relies on technology, which covers almost every business operating today, can benefit from managed services. Managed services providers understand that not every business has the ability to pay for an internal IT department which can be very expensive yet necessary to ensure all aspects of technology are supported. Without this backup, many small businesses find themselves in a position where they have to foot a very expensive bill to recover from a disaster or emergency. In other situations, using out-of-date or ineffective technology is simply a waste of both time and money on the part of the small business.

Here we look at how small businesses can make the most of their time and money by hiring a managed services provider:

* Focus on running the business- One of the major benefits of outsourcing your technology needs is that the owner and employees of the company can focus 100% on their individual duties to keep the business moving in the right direction. This is the most valuable use of time for all parties involved, instead of hours or even days lost when trying to deal with technological issues that in house employees are not trained to handle.
* Offer expert advise- There are many small businesses that simply do not know what they need to improve the functionality of their business. The old adage, “what you don’t know can’t hurt you” does not apply in all cases. By consulting with a managed services provider you may discover areas of your business which can be improved that you previously thought were working “just fine”. Expert advice may be able to help you improve the efficiency of your business while positioning you better within the industry.
* Support when you need it- Managed services providers are not only there in the event of an emergency or recovery but also provide monitoring which can invaluable in preventing problems before they can impact the business.

It is important for every small business to carefully examine their technical needs in order to see what services will be most beneficial to the company. Managed services providers can offer services that not only reduce technology costs over time but also improves functionality which in turn saves time. When this balance is achieved a small business is in the perfect position to thrive and grow.