Financial Engineering Top 20 + 5 Ways to Cut Cost without Cutting Pay or Chopping Heads

Financial Engineering Top 20 + 5 Ways to Cut Cost without Cutting Pay or Chopping Heads: (detailed video at here)

1. Issue Shares instead of Borrow

(If borrow, get an interest-free loan from shareholders and directors, convert the loan to preference shares. Issue derivatives)

2. Rent premise/asset with an option to buy (ask for lower rental plus lower price)

3. Re-look at your Balance Sheet – are they really assets? (Assets must have cash inflow and will increase in value)

4. Move operations or HQ to places with lower or zero taxes eg the Cayman Islands

5. Profit Sharing instead of Bonus for staff

6. Use OPM other than creditors

7. Hedge your purchase cost

8. Use online more

9. Split your company into many to take advantage of zero or lower tax

10. Change accounting policy to be more in-line with industry (e.g. lengthen depreciation years, capitalize IP, amortize R & D)

11. Sale and lease-back premise/asset (rental is tax-deductible, lease payments are not – Tax Shield)

12. Value-Added Concept for all work

13. Challenge everyone to cut cost by 10% or cut their pay by 20%

14. Do Cash business (take advance from customers, pay suppliers on credit, buy on back-to-back LC)

15. Ask for discounts from suppliers for earlier payments, and stretch others to pay for it

16. Incorporate inventory obsolescence into the cost of sales, and charge them against salespeople commission

17. Increase Inventory Turn

18. Package more services into your product and use creative services to earn more

19. Look into your existing assets: are thy relly assets or liabilities? For assets, re-finance to cut interest cost

20. Profit-share with your suppliers, customers and even the government

21. 80/20 Rule for everything: focus on the 20% of work that produces 80% of the profit

22. Financial analysis to ensure your company is efficient financially

23. Keep more scores

24. Use zero-based budgeting

25. Regular new ideas from everyone

For the complete 2-hours video course on Financial Intelligence, visit www.udemy.com/financial-intelligence

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