sewer tie in southeastern, ma - In business there is one rule that absolutely cannot be violated. That simple rule is "Do Not Run out of Money." A violation of that simple rule is like getting a "RED Card" in soccer; you are out of the game with no chance to re-enter and play again. So what can you do about that? As an owner, now is the time to review all monthly recurring costs. I was speaking to a friend of mine who is a fellow business owner and he got out his current AMEX statement and highlighted all the charges that were absolutely not a necessity.
Better Expenditures Review - I cannot tell you how many stories of employee theft we have seen in the past 4-5 years. In articles we have read, the annual amount has been quoted at $600 million on the low side just for the construction sewer tie in southeastern, ma industry. I was a CFO for a company and my own controller cashed stolen paychecks to the tune of $50,000. You know what he said when we caught him? "I deserve it because the owner made $500,000 and that isn't right, because it did not leave enough for bonuses for us." As individuals cope with foreclosures, mounting credit card bills or a spouse's job loss, they may turn to your assets to survive. It is a small percentage of people that will resort to this but you can protect yourself. We just helped a client prosecute an individual who misappropriated almost $150,000 over a six month period.
Better Collections - Build into your proposals incentives for prompt or early payments. Review your aging regularly, not just when your bank balance starts to dwindle. Assign this to one person as their primary responsibility. We would also suggest that it may make sense to outsource this task. Another crazy suggestion is to take credit cards. Yes, there is a fee associated with doing this, but the older a receivable gets the smaller the chance of collection. How many balances in your aging right now are either uncollectible or have been sent to an attorney for collection efforts? Offer a discount and accept payment by credit cards, the owner will like it because he will get bonus points for free travel or gift certificates.
Benefits - When was the last time you took competitive bids on your health insurance? What if you could lower your monthly cost by $200-400 per employee? You need to get going on this now. Large companies change often. A large hospital is getting another provider which will be their third in the last four years. It is very important that you do this annually. Yes, I know that you like and trust your current insurance broker. You bid jobs competitively every day, why shouldn't your carriers.
Technology - If your software solutions are more than 4 or 5 years old, it may be time to look for another solution. Don't buy just because it is newer; buy because it will yield a very attractive Return on your Investment. We have been involved in some situations where the ROI was as little as 4 months.
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