If your company took a hit because of
COVID, it's not uncommon to still be digging yourself out. In fact, even
multi-million-dollar industries suffered the rippling effects of closures and
are still trying to recoup their losses. Rebuilding from scratch, or even if it
seems like that, doesn’t need to be complicated. All you need is a concrete
plan and the desire to succeed. In this post, we’ll go over some of the best
ways to bring your business up to speed and head into 2023 on a lucrative note.
The first step in getting your finances
back on track is contract review. Regardless of type, you need to ensure
you’re not paying for products or services you could get for less. Review all
current contracts with vendors before resigning. You also need to compare
shop and compare what you’re paying to what similar vendors are currently
offering. It’s not uncommon to find other vendors offering the same product
line or service for a lot less than you’re currently paying. If it’s is the
case, you have two options. You can negotiate your current contracts or let
them know that you won’t be resigning when it ends.
As a business owner, you need to keep daily
operations running smoothly. That means everything from how payroll is
completed, to the way you keep track of your drivers must be on point. If you run
a fleet, the best way to cut costs and keep them safe is with GPS technology. This
high-target technology allows you to track deliveries in real time without
having to pick up a phone. It also gives you a bird’s-eye view of how your
employees are performing when you’re not around. Incorporating GPS into your
new structure can also help you save money as well. Having it installed can
ward off expensive litigation costs if any of your drivers are involved in an
accident.
Even successful companies have debt they
may want to reorganize. If that’s the case, you need to identify which debts
you want to restructure. This could include rent, equipment costs, credit card
handlers, and external vendors. Keep in mind that it’s not always the most
expensive debt that needs to be changed. Even smaller, less costly bills or debts can
be reworked or eliminated entirely. Your goal should be to free up money to
improve overall cash flow.
Once you identify your pain points, you
then need to think about a repayment plan that will benefit your business overall.
It’s not uncommon for companies to rework their finances only to fall short of
being able to pay the new payments. This can then lead to a breach of contracts
with external stakeholders and in the worst-case scenario, legal action. After
all, is said and done, you need to make sure the repayment method you choose is
one you can stick with. Also, make sure there is a clause in any new contracts
you sign that clearly states that there is a bit of wiggle room for another
round of negotiations if you’re unable to pay. This way, you’ll have an
opportunity to rework your payment schedule without penalty.
How you hire is just as important as who
you hire. The process of hiring
new employees comes at a cost, so it’s important to minimize costs
throughout the process. Look for ways to speed up the search and onboarding
process to save money. That may include hiring an agency for the initial
screening or actually doing it yourself. The same holds true for training.
Online training courses are far less than in-person sessions. You may also want to
implement a buddy system for new hires for job shadowing purposes.
Depending on why you want to restructure,
you might want to consider downsizing. Note, that this doesn’t always mean firing or
laying off your employees. There are ways to attract
and retain talent so that you are not constantly experiencing turnover. It
can be as simple as switching physical locations, doing tasks that used to be
performed externally internally, or retraining current staff instead of hiring
new ones. This will look different for everyone, so don’t compare your business
needs to others. The goal is to improve the overall flow of your daily operations
while saving money and scaling upwards.