Ways companies stretch financial resources trim cash outflow.
Ben Franklin put it well when he said, "a penny saved is a penny earned." Indeed, in today's world, anything a company does to stretch its financial resources can mean less dependency on banks or other sources of capital. We surveyed business owners about what they've done to trim cash outflow, asking them to estimate the dollar savings. Below are some of the highest-yielding ideas we heard.
Company Technique Savings Accurate Information ServicesSouth Plainfield, N.J.
Founders skipped salaries for 18 months; company negotiates extended vendor-payment terms
Dickens Data SystemsNorcross, Ga.
Got customers to pay 30% to 50% of contract price up front
Improved cash flow by $200,000 to $250,000/ month
Acquires production equipment and office furnishings at auction or by bartering
$800,000 over the past 6 years
PDQ Printing & SignsLas Vegas
Barters printing for radio advertisements
$1 million over the past 10 years
-- Researched by Michael P. Cronin and Christopher Caggiano