To increase your cashflow, you need to see where you can save. Three of the top cost savers are either ignored or not thought about. The three areas you need to consider for cutting costs for your restoration business are:
- Smaller Office Space
How To Lower The Rent On Your Restoration Facility.
These days, the downturn in real estate values can give you leverage in renegotiating your rent. But don’t wait until there’s only a few months left on your lease to start the process. Shop around for better deals at least a year before it’s time to renew and let your landlord know you’ll consider one of these alternatives unless you can renegotiate your current lease. If your landlord refuses to renegotiate, it’s time to think about ditching the big office or warehouse.
Downsize Your Office or Warehouse
You’ll be surprised to learn how much profit is bleeding away by maintaining unneeded office space. More often than not, you can cut space by as much as half if your square footage is used more effectively. Assign office space based on workflow rather than status. Set up cubicles based on work groups and utilize common work areas. Ditch the big warehouse in exchange for portable storage that’s used only when you need it and as you need it.
Consolidate Your Workforce Or Outsource Specialities
If you really want to find ways you can start cutting costs for your restoration business, start looking at your staff. There are many specialities that can be outsourced. When you outsource specific duties such as bookkeeping, payroll, human resources and marketing, not only do you save on taxes and benefits, you also save space. If you have employees that are not working at full capacity, either consolidate positions or start outsourcing where you can. You will find that your staff will become more efficient as duties are either streamlined or outsourced. The office space can downsize due to the elimination of certain positions. And finally, more money is being put back in your pocket.
It’s a hard decision and many folks don’t like the word “outsource” but think of it this way: Yes, that one staff person is losing their job, but someone else’s job is being secured or created by outsourcing.
Take a hard look at your current situation and see if you can benefit from these three cost savers. If you need more ideas, be sure to download our CashFlow 911 guide and get the full scoop on how to increase your cash flow.