Part 2 of a 3 part series

Warning Signs:

• Almost fully depreciated assets.
• Depreciation as a percent of sales significantly out of line with industry averages.
• Net sales to net fixed assets significantly out of line with industry averages.

Steps to Improve: EQUIPMENT

• Consider replacing fully depreciated assets to improve efficiency.
• Avoid costly equipment buying blunders.
• Be sure you really need it before buying.
• Sell off idle assets.
• Liquidate assets that are no longer essential.
• Sell off unneeded equipment, fixtures, furniture and supplies.
• Secure current bids for all major expenditures.
• Avoid fancy furniture and fixtures.
• Don't pay for quality where it doesn't count; ask how it helps the bottom line.