2. - Do a complete expense evaluation.
   Take a critical look at expenses like insurance (all policies, business and personal), supplies, phone costs, interest, taxes (see items 3 and 11), labor, etc. Almost everything can be reduced. A thorough evaluation can change the entire profitability of a business.

   Are you accounting for all of your expenses? For too many small business owners, out-of-pocket petty cash disappears from the information stream, and the tax deductions are lost forever. Keep track of cash spent on tolls, parking, newspapers, magazines, books, taxis, phone calls and the like by paying what you can by check or credit card. For items that require cash, pay yourself back every month by writing a check from the business account to the personal.

4. - New business development costs.
   Advertising, marketing, public relations and new business activities are critical elements for any business. Evaluate your return on new business investment. If existing programs are working, increase them to get even more business. Be open to trying avenues you thought were only for big companies, like Yellow Pages or 800-numbers, and don't be afraid of new ideas for small companies like web sites or classified ads in national publications.

5. - Take Inventory
   If you have inventory, you need an annual inventory evaluation, regardless of volume. Evaluate turnover of individual items or product groupings and develop an inventory turnover ratio to compare numbers from one year to another. Discontinue slow-moving items and replace with profitable ones. Stock that does not move at all takes up space and costs money. Return it for a credit, give it to a charity for a deduction, or throw it out.

6. - Evaluate profitability of relationships with clients and customers.
   Clients who take up too much time or are slow paying cost money. Change the relationship and/or raise their fees to make them profitable. For instance, clients who don't pay on time should only get services after paying in full, in advance. If they value your product or service, they will stay and become profitable. If not, they leave and you can pursue clients who are profitable. Make the decision to manage your business and not be managed by clients.

7. - Get organized and focused.
   Install a new bookshelf, throw out old, outdated books, papers and files: all the things you thought you'd review in your spare time. Maintain required tax files and financial data, but get rid of what you don't need and organize what you do.

8. - Get new input from a fresh, outside source.
   Read a new business book, listen to new audio tapes, get a business sales coach - implement something new to keep you and your business evolving in a positive and progressive way. The new adage is "If you keep doing what you've always done, you'll get what you've always gotten."

9. - Have a business conference with your accountant.
   Accountants can and should do more than your taxes. They already know the business and have the data to give you a fresh perspective. Discuss this in a formal planning meeting to evaluate where you are and where you're going, not when they come in to do payroll and have a few spare minutes. They see trends among their own clients, and will be able to give you in-depth insight into expense reductions, marketing strategies that have worked well for other clients in similar situations, etc.

   Also, ask your CPA about cost accounting. Do you really know what it costs you to do business? Traditionally done in manufacturing settings, cost accounting will tell you what your profitability levels are - or point to pricing changes you need to make. Small business owners often overlook this valuable tool.

10. - Open the floodgates to cash flow with credit cards.
   Small business owners are wrong to think that this only makes sense for bigger operations. The costs for machine lease or purchase and fees become insignificant if paying by credit card makes it easy and fast as possible - and more comfortable - for customers to pay you. Shop around for different credit card companies, because rates and service fees vary.