The first step in a business turnaround is to stop the losses from negative cash flow. One of the quickest ways to do this is to cut unnecessary spending. The following article will outline an effective method for driving out unnecessary costs.
Each month, both my mom and my dad analyze and write checks for the monthly bills together. It’s sweet and I guess could be romantic if you love accounting and crunching numbers.
Maybe one day when I’m married, my future wife will want to know and be personally involved in knowing where and how much we spend each month and what amount of this spending is unnecessary and can be cut. Hopefully she will be the frugal brunette type.
Reviewing every monthly business expense can actually uncover valuable information.
If you’re going through a business turnaround, it’s vital if you’re a business owner or CEO to pick a month or two and personally sign and review all the checks your company writes that month.
You’re probably saying to yourself “Thayne I don’t have time for that kind of that stuff” or “My accountant does a good job taking care of that task, that’s why I pay them the big bucks”.
Signing the checks yourself will more than likely open up your eyes and throw up many red flags and provide you with adequate cost reduction opportunities necessary during a business turnaround. In fact, the money you can save will more than likely surprise you.
For example, when you write the checks yourself you will often personally discover how much you are paying (or overpaying) for a particular product or service. Also, you might find yourself signing several checks for products and services that may not even be needed at all.
Think about that.
If you discover a payment that you find questionable, don’t be afraid to have someone verify and defend why you’re paying that expense. If it’s a good valid reason pay it. If it’s not, withhold your signature.
But chances are you won’t see these types of unnecessary spending when someone else writes the checks for you so here’s your assignment. Pick a month to personally review all payments and checks your company writes and make it a personal goal to try and write your name less that month and every month thereafter.
Haven’t you heard stingy is in?
Conserving cash is vital during a business turnaround and smart cost reduction gets you get there quickly. So personally review all spending and sign checks yourself. Drop unnecessary spending like a bad habit.
The next time I take a girl out on a date, I may just see if she will consider spending the evening helping me balance and review my bank statements looking for cost reduction opportunities.
In reality, I’ll probably just take her to dinner and a movie and end up overpaying for both but that’s another story.
My friend mentioned to me your blog, so I thought I’d come have a read. Very interesting insights, will be back for more!
lolol where’s a beer when you need one
lol am I missing something???
I never expected to get the comments and links I have been getting. I have a lot of fresh new content coming. Please tell your friends
Thanks!!