My friend is crazy about fast cars; like stupid crazy. He constantly says, "You either get more horsepower or lighten the car."
I drive a Geo Metro, but his point is well taken, moreover, it resonates in the business world.
As a business owner you are trained each year to increase your revenue, to make more money... the Wall Street mentality.
But, maybe, instead of spending all of your time thinking about how to increase your revenue, you think about cutting your overhead.
This is a great lesson to be learned.
We are all focusing on how to increase our revenue when all we have to do is cut our overhead or to watch our "Ps" and "Qs," as my dad used to say. Focus on the efficiency of how your business is run and you will lower your overhead and thereby increase your profit without ever increasing your revenue. Things like:
• How much am I paying for copy paper?
• How much is trash removal per month?
• Can I refinance my business loan for better terms?
It is my opinion this should be done every year to simply keep your business running efficiently.
In a stable business environment, or especially a downturn, this can be an extremely helpful technique to lighten your overhead and increase your bottom line without adding horsepower.