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Save Your Business, Become a Miser
Step One To Saving Your Business
Times are hard and everyone is struggling, your on the verge of losing your business and searching for help. I'm in the same boat as you.
The first place to start is increasing your cash flow. Taking out loans and increasing your debt is not the answer.
Becoming a miser is:
1. Don't over purchase, buying in for a better price is nice, but does no good if you can't turn the merchandise in 3 weeks or less.
2.Only stock you best selling items, narrow out the dead/slow moving items.
3. Be in charge of your ordering, don't let the vendor spend your money.
4. Monitor your purchases for cost increases and adjust your inventory accordingly.
5. Analyze your customer traffic flow, put your labor hours where needed. Don't waste your payroll.
6. Hold off on paying your debts until the last possible minute, and talk with your creditors most will be happy to work with you.
Becoming a miser is not as hard as you think. Becoming a miser does not make you cheap or a scrooge. Becoming a miser in today's economy is a wise decision and may just be the thing to keep your struggling business alive.
A short story from my own Business: The cola company sales man comes in he lays out his pitch. "You can save thirty cents a case on 2-liters if you buy 50 cases." Now you may sell a lot or not but is it worth tying up $400.00 of your money to save $15.00. I would not think so. Now if the pitch was Buy 50 cases and save 3.00 a case for $150.00 you may want to consider this and run a promotion on 2-liter sodas.
Every Penny Saved Is a Penny Earned
Success wont happen over night. But Steadily you should see is becoming easier to pay bills and make your purchases. Speaking of purchases, you should be buying from the least expensive source of quality merchandise. A good example is of my own experience this past Saturday I was able to go to Sam's club, there I purchased the tobacco products for my store. Of all the combined items I saved about 63.00 buying there verses my regular distributor. $63 may not sound like a lot but do that times 52 weeks in a year. Some weeks may even be a bigger savings some may be a little less.
Another suggestion, run a contest with your employees set a base amount/quantity, who ever sells the most over the target goal wins. What can you give them you ask? A day off with pay. You work their shift and there is no cost but your time and if don't right a nice sales increase.