Eleven Money Allocation Tips for Small & Medium Business
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- alisterpaine
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In my last article I discussed ten growth factors for small and medium businesses (SMBs) during the recession, and as promised, this article discusses money allocation tips during the recession, i.e., where to cut back and where to allocate funds for best results. It will probably help if you read the last article before you read this one.
Get the best finance VP (CFO) your money can buy. Many finance VPs are glorified accountants, but you can’t afford this when times are hard. Your finance VP is a key executive and a huge factor in the health of your business, and needs to be strategic, creative, and an expert in cash flow management. Penny pinching isn’t necessarily a success factor during tough times. Your finance VP needs to know when to strategically invest in your business, when to shut the purse, and how to allocate your funds for best results.
Shed low performing business & product lines. Perform detailed analysis on your business lines and product lines, and either sell or shut down the ones with low ROI. You have better things to do with your money. This doesn’t apply to new operations that require more time to show returns.
Evaluate marketing and advertising costs. Marketing and advertising are major cost centers, so take a step back and reconsider the ROI on each aspect of your marketing efforts including print, email campaigns, trade shows, online programs, advertising (both online and traditional). Move funds into higher ROI activities and eliminate or reduce your lower ROI activities. Definitely look into social media. It’s here to stay, and as I mentioned in my last article, it will turn your marketing department upside down.
CLICK HERE TO READ THE REST OF THE ARTICLE: http://www.alisterpaine.com/findingmoney.html
Get the best finance VP (CFO) your money can buy. Many finance VPs are glorified accountants, but you can’t afford this when times are hard. Your finance VP is a key executive and a huge factor in the health of your business, and needs to be strategic, creative, and an expert in cash flow management. Penny pinching isn’t necessarily a success factor during tough times. Your finance VP needs to know when to strategically invest in your business, when to shut the purse, and how to allocate your funds for best results.
Shed low performing business & product lines. Perform detailed analysis on your business lines and product lines, and either sell or shut down the ones with low ROI. You have better things to do with your money. This doesn’t apply to new operations that require more time to show returns.
Evaluate marketing and advertising costs. Marketing and advertising are major cost centers, so take a step back and reconsider the ROI on each aspect of your marketing efforts including print, email campaigns, trade shows, online programs, advertising (both online and traditional). Move funds into higher ROI activities and eliminate or reduce your lower ROI activities. Definitely look into social media. It’s here to stay, and as I mentioned in my last article, it will turn your marketing department upside down.
CLICK HERE TO READ THE REST OF THE ARTICLE: http://www.alisterpaine.com/findingmoney.html
