Every business I know has been through thewringer during the past two years. Sadly the goodtimes aren't returning any time soon. So I'vecompiled a list of some more creative andworthwhile ways companies can save money tohelp entrepreneurs keep afloat in spite of thechallenges.
● Do random expense claim audits.
Abuse of expenses is endemic, but if staff know that even their mobile phone bills arechecked occasionally, then they are less likely to take advantage. You should have very clearexpense policies, so fiddlers are not able to use confusion to get away with cheating.
● Buy second-hand.
We frequently buy reconditioned kitchen equipment for our restaurants. Do not hesitate tochoose used over showroom-new if it makes economic sense.
● Lead from the front about costs.
As a boss, you should constantly question costs and try to be seen to be abstemiousrather than extravagant – at least with corporate assets. If you are a spendthrift, you set apoor example that others will copy – with the company's money.
● Ask for early payment discounts.
If you have the cash, it might be a great way to improve your margins. If your suppliers areunder financial pressure, they may well agree a 5 per cent discount for swift settlement. Itwould take almost two years with current low interest rates to earn that much if you kept themoney in the bank.
● Understand what everyone does.
At least once a year, undertake a thorough analysis of all staff roles and try to work outtheir true productivity – and rationalise posts if necessary. Remember: no one ever tells youthey are underworked or that their contribution is inessential.
1 What is NOT the purpose of randomexpense claim audits?
A Preventing employees from taking advantage.
B Fiddlers may not easily succeed in this way.
C To examine their mobile bills occasionally.
D To cut costs in this aspect.
2 Which is NOT a creative and worthwhileway to help bosses save money?
A Choose used equipments as substitutes for brand-new ones.
B Set examples as an abstemious boss.
C Early payment to obtain discount
D Rationalize posts frequently.