We are introducing a new format to our Show Notes and Broadcasts. We received feedback our podcasts are too long (average 26 minutes). The shows have been restructured into 13 minute segments - each with a specific objective. Segment 1: What the show will cover and why it is important. Segment 2: What do you need to know to take action. Segment 3: How do you apply it and the tools available, and Segment 4: Tips and Insights from our experience. Thanx for the Feedback and keep it coming.
What are Today's Topics & Why is it Important?
Although today's show is on reducing costs as found money, the reality is a business can be viewed as a bank - where is the money waiting for somebody to claim it?
Places to Look for Cost Reductions:
Knowledge to Take Action
Short Term Focus
View this as triage. What is the current situation? Where are you hemorrhaging money, customers, employees etc? What is the root cause of the bleeding? Then fix it! We always start with finding the money laying around - inventory gathering dust, missed accounts payable discounts, and the lack of cost controls. Our experience is the first time you aggressively go after these issues will add 10-20% more cash. We use those dollars to help fund cost reductions in production, marketing, sales, and people.
Long Term Focus
Once we have righted the ship and making a profit, the focus shifts to our journey and the first port of call. The near future includes scalability - when growth starts what is getting in the way and how much money will we need. Part of the money issue is the source of funding - are we going to pay for this out of sales or look for capital investments? Beyond the near future is looking at the external environment for threats and opportunities. What is coming down the road we should prepare for before it arrives?
What You Need to Do
Fixed and Variable Costs
And never forget how you got here, how serious it became, and how hard it was to dig out. Make frugality one of your operating principles.
Next Show: Your First Real Budget
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