Small Business Resolutions for 2001

The invoicing process of your small business should be accurate, efficient and take very little of your time. If it isn't, look at changing it.

You should be sending invoices out as soon as you can. You should be tracking them and sending reminders after thirty days. You should be keeping track of paid invoices and you should be depositing the money as soon as it is received.

If you're using a financial program to do this and it isn't taking much time, fine. If it is taking too much time or if you don't have a system which does this, set one up. It can be as simple as an invoice form in your word processor and folders for outstanding and paid invoices. For repeat customers, modify one of their "paid" invoices. Put the date in the file name and check the outstanding invoice folder regularly.

Of course, if you've done your database, you can use it to fill in names and addresses on your invoices and even keep track of sales but setting up that kind of system takes more database expertise than the average small business can handle.

5. Look at your recurring costs

The easiest way to increase profits is to cut costs and the easiest and most effective place to cut is in the recurring costs. Have a look at your phone bill, your stationary and office costs, vehicle costs, postage, electricity etc. Even a small cut in monthly expenses will add up and with new competition in the communication and electricity markets, you may be able to make some changes there.

Finally, a note on the coming year from a small business point of view. Prepare now for a possible slow down in the economy. You know what will happen. Your large competitors will drop their prices to keep their volume high and protect market share. They will lose money. They will cut customer service. A number of them will drop the businesses where they are losing the most.

This is always tough on small business but it is also an opportunity. Try to avoid dropping your prices and justify them with a higher level of service and value to your customers. Raise your profile and publicize your successes. From your customers' point of view, if you're doing well when everything else is going down the toilet, you must be pretty good. Do this and a couple

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