Company Rescue's Guide to Cost Cutting

In a time of crisis it’s vital to your company’s survival, that ALL non-essential costs are slashed.

I know how difficult it is to let “Marge” or “Reg” go, he’s been with you for years; or “Paul” who arrived last year, or that whole department set up for that exciting new project that never floated off the ground. But you must take steps to preserves your business now. That may mean letting people go.

Read on for CompanyRescue Top Tips, From The Turnaround Experts!

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Our TOP 20 Cost Saving Rules and Cashflow Tips.

Common sense says: only following one tip won’t work, using as many as possible will; the truth is the solution will come from a mixture of cost savings, driving marketing and sales, SHEER HARD WORK and a bit of luck thrown in, then you can start to control your cash flow problem.

We are still in or just emerging from a serious recession now in the UK, are you prepared? If not follow this guide and you will be better able to cope.

1. You must set up a daily cashflow to control all cash in and out; this my help protect you from wrongful trading, as it stops bounced cheques. If you don't have a daily cashflow forecast click here for your free copy (downloads Excel spreadsheet) or email Keith Steven ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) now or call KSA on 0800 9700 539 FOR YOUR FREE DAILY CASHFLOW MODEL.
   
2. Make sure that all purchases are approved by you as MD/FD/Operations director/Owner, partners. You should sign all cheques or approve all BACS/CHAPS payments in writing.
   
   
3. No purchases are approved unless signed by you, which will make “them” produce a purchase order. Then you can check if they are doing their job, is the price fair, are they and your supplier ripping you off, or are they just lazy and not getting the business best value?
   
   
4. No petty cash is drawn from the bank unless you personally go and get it… makes you question what every pound is spent on when people ask for cash won’t it?  By the way you get out of the daily grind and time to think.
   
   
5. Review all expenses claims by the staff; reject all that are not really necessary. If you get complaints or murmurings (they may be too scared to act professionally and debate with you), then meet with them and explain the position.
   
   
6. Remember survival is KEY, if you lose people or profits that’s’ not vital, CASH IS KING for now. Profits will soon flow from very tight cashflow management. If people sue for unfair dismissal, get help. KSA may be able to kill off their claims with straight talking. Or perhaps a CVA can kill these claims too.
   
   
7. Ask every supplier for a review of their prices, can they cut you a better deal? Ask them too for a few extra weeks payment grace, or ask for regular monthly payments
   
   
8. Ask the landlord for a breather on rent. Can you please pay monthly not quarterly for a while? This helps cashflow. It actually puts you in arrears technically, but that’s ok at this stage. Most landlords are very keen to retain their tenant in these terrible recessionary times.
   
   
9. Ask your accountants to accept monthly payments. If your accountancy fee is £10,000 pa then ask to pay over say 10 months that’s £1,000 per month.
   
   
   MANAGE cash £VERY DAY! Get your free cashflow model here. It may be that you need someone to do your bookkeeping for you.  Have a look at our page on bookkeepers here
   
10. Get someone else’s view; do you have a trusted friend or mentor? If so talk to them about your business, actions and get them to sanity check you. They may suggest cost savings.
    
    
11. Do you need that company car; can you use your own and give it back? It may save you a lot of personal tax too.
    
    
12. Can you sell any assets, will it raise cash? Make sure they're not owned by a leasing company first. Shop around for the best deal.
    
    
13. If you are factoring or invoice discounting, ask your factors to cut their costs, only drawdown funds weekly.
    
    
    1. Using your FREE daily cashflow model will of course help in this. CALL NOW FOR YOUR COPY 0800 9700539
       
       
    2. This can save hundreds of pounds a week.
       
       
14. Cut ALL overtime to the bone, why do you need it? Is your production planning so poor or weak? If you need more people hire them, at lower rates.
    
    
15. If you need to make redundancies and cannot afford them, use the DBIS (DTI) Hardship Scheme.
    
    
16. Ask HMRC for a Time to Pay Deal, use our programme here is you don't know what to do.
    
    
17. Use the internet to buy or price everything; you can get fantastic value over the net.
    
    
18. Work all hours, to build the recovery plan and set out the Time To Pay Deals with TAX AND VAT if you cannot pay tax debts on time.
    
    
19. KEEP MINUTES or notes OF ALL DECISIONS. If you’re a partnership or sole trader KEEP NOTES.

As we said we get paid to do this stuff for companies large and small. The same process every time, it works and it will work for you.  Take no prisoners, work hard, manage cashflow and you will hopefully lead your business out of the dark times.

See new page here - Ten Top Tips to Manage Cash Flow problems

If you have already cut costs, but you need help now, please call 0800 9700 539 for quick accurate advice on your options.