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Increasing Your Bottom Line Even In Challenging Times Focus On Your Foundation

Nov 23, 2009

 

Is a 10% loss the new "breakeven"? Many companies have recently experienced a significant reduction in sales and the natural reaction to cut costs.  However, the timing of the cut-backs has left many businesses in a less then favorable situation. How do you bring the business back into balance - aligning costs with revenue without limiting your ability to grow?  The answer is to understand how to optimize the key fundamentals of your business that allow you to increase your bottom line!

If you have recently cut back or made changes, now is a perfect time to get a business check-up.  B2B CFO® partners offer a free business check-up to provide you with a confidential written report of our findings and recommendations.  With fewer resources you need to operate more efficiently and implement the proper tools to manage your business to increase your profitability. 

Here are key suggestions to improve the fundamentals of your business:
 
·         Monitor cash flow - CF projections are essential to successfully managing your business
·         Develop business dashboard reports - know the drivers of your business and watch them
·         Evaluate your Pricing structure - have you incorporated all aspects or just product cost? 
·         Recalculate your overhead rate - recent cut backs may make you more competitive
·         Re-negotiate price and terms with your suppliers - better price equals greater margin
·         Build in controls to safeguard your assets - don't assume it can't happen to you!
·         Consider outsourcing: financial services (CFO), accounting staff, payroll, marketing & web design for significant savings and the flexibility to adapt to change (grow and contract without long term obligations)


Sound business fundamentals are not only cost focused – but customer focused as well.  Successful companies are taking advantage of this economy to grow their business and expand market share.  While your competitors are cutting back and have limited resources to grow, take advantage of the opportunity.  Now that you have improved your cost fundamentals – grow your top line.  Identify your target market, know your customer, differentiate yourself and aggressively go after new business.


Here are key suggestions to enhance your sales strategy:

·           Identify your target market and know your customer needs!

·           Determine profitability by customer and by item to assist in decision making  

·           Differentiate yourself, know your competitive advantage

·           Identify the areas where you are most profitable – uncover target areas

·           Build your brand and stay relevant in your target market

·           Focus on building your market share in your targeted growth areas where you are most profitable and can win new business

 

Take advantage of your competitors cut backs in marketing and advertising by knowing your business and customer fundamentals!

Outsourcing is a great option to expand with the flexibility to grow and contract as needed.  Outsourcing provides a higher degree of expertise at a lower cost than hiring.  In a smaller company it is even more critical as outsourcing internal functions allows you to get out and grow your business, which is what you do best. 

 

History shows that recessions are followed by periods of expansion. Take advantage of the economic downturn to get back to basics and optimize your foundation. Your efforts will pay dividends - the market share you gain today will grow significantly as the economy improves.

 

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A collection of books from B2B CFO® to help any business succeed. Read the first chapter from books, including the Wall Street Journal’s book, for free.

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