You can never examine your business too much. Here are some areas that are worth thinking about, which could make a huge difference to your company’s profitability.

Look at your purchasing department. Obviously, you can improve cash flow by ensuring you do not carry unnecessarily large supplies of anything, but there can be far greater savings to be made. Look around to see if there are companies who need some of the same supplies as you. Provided they are not direct competitors, look at the possibility of combining your purchasing power to attract economies of scale and drive down costs.

In fact co-operation with other businesses can be beneficial in other ways. For example, you may supply different things to the same businesses. You could introduce each other’s business to your customers.
Look at diversifying. You already have many resources in place such as premises, staff and equipment. A brainstorming session can come up with some surprising ideas. Keep an open mind and seriously consider all options.

Focus for a time on your biggest overheads. Do you really need all that office space? What else is out there? Review utility bills and make sure you’re getting the best deal. Similarly, although usually harder to change on a regular basis, is your bank really looking after you?