Part 3 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

• Don't fix what isn't broken; ask, "will this enhance the bottom line?"
• Repair services can cut capital costs in hard times; plan accordingly.
• Avoid brand names and list prices; consider used furniture.
• Purchase fixed assets from wholesalers / special discounters.
• Take advantage of purchase discounts.
• Consider buying government surplus equipment.
• Plan for replacement of capital assets; have a capital budget plan.
• Be sure insurance coverage is adequate.
• Be sure computers are backed up regularly with off premise storage.
• Be sure computers are insured for stored data, hardware, software and restoration.
• Use owner / employee-provided tools where appropriate.