37. Get reacquainted with your inventory. What with warehousing, handling and insurance, inventory carrying costs often exceed 25 percent per year, says Collins. To recoup some of those expenses, present the product in a different light: "Restaging an old product is usually less expensive than introducing a new one," says Weinrauch. "Often all that's needed is to update its image, make improvements or create a spinoff."
38. Junk it. Get rid of unsold, damaged or returned merchandise at year-end, advises Holmes Crouch, author of 18 tax books. Advertise a year-end "fire" sale and save the advertisement for IRS documentation; then whatever you don't sell, give to the dump and get a receipt. "The lower your year-end inventory," says Crouch, "the higher your cost of goods sold-and the lower your reported net income and taxes."
This article was originally published in the February 1997 print edition of Entrepreneur with the headline: Savings Plan.
Life insurance as low as $14/mo for $250,000 or $21/mo for $500,000 of coverage. Contact MetLife®
Comments: