Many small businesses look to laying off employees when the business gets into trouble. Though the move does cut expenses, it also cuts valuable manpower and could leave the business ill-equipped to compete when the economy turns around. Forbes suggests 14 cost-saving measures to boost the cash flow but preserve the company identity and reputation.
- Share office space with other businesses
- Barter more, use currency less
- Use group purchasing
- Ship lightweight packages whenever possible
- Stop buying what you can get for free
- Work fewer but longer days to save on utilities
- Use free conference calling
- Encourage entrepreneurship by helping workers start non-competing businesses, instead of laying them off entirely
- Convert to energy-saving light bulbs
- Take advantage of Section 179 tax deductions for equipment
- Become as paperless as possible
- Don’t overheat your facilities this winter – dress warmly
- Give more vacation time instead of bonuses or raises
- Switch to reusable supplies
Source:
Forbes: Creative Cost-Cutting Tactics for Small Biz
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