CFO Tip #8 – Look for Distributions
Sales forces are expensive. Marketing isn’t free. Are there other distribution channels that you can utilize where you may receive lower margins, but will severely decrease your overhead? Remember our mantra, Cash is King. Freeing up overhead means more money in the bank. Your growth rate may slow down a bit, but your long-term outlook will be dramatically improved. Don’t be afraid to make game-changing decisions if your books are solid and it changes your long-term outlook for the better. This may be a move you should have made long ago, but were too comfortable to make the jump.
CFO Tip #7 – Evolve Your Business
The cool thing about an economic change is that it forces us to adapt. Companies had the luxury of taking their time in switching from paper to radio, and again from radio to television. But now the next change is to the internet and I see companies everywhere who are still relying on the Yellow Pages. How’s that working out for you? Don’t answer that question without considering where your company COULD be if you used some of the new financial, marketing and management tools available today. The Yellow Pages may be helping you pay the bills, but your company could be seeing a 300% increase if you evolved your business a little. It’s time to start thinking out of the box.
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