Ready for a Clean Start in the New Year?

College students who choose a cheaper school over an expensive private one will start life after college with little or no debt and less stress. Companies need to do the same. Businesses with excess are like college graduates with big student loans. Regardless of the results you saw in 2011, you can start the New Year with as few burdens as possible.

Companies working to clean the slate for 2012 will feel like the college student with no debt and have more energy to conquer whatever comes their way. They do this by getting rid of excess, including customers. Don't know where to begin? Here's help. Start at the top and work your way down. It's OK to skip one or two or three. Try to do the easy ones first so you can celebrate your progress and let the sense of accomplishment carry you the rest of the way.

Recycle old equipment

Computers, laptops, copiers, fax machines, phones. Maybe some still work and you keep them just-in-case. That day never comes or by the time it comes, they're obsolete. You could try selling them, but will you get around to posting an ad? Give yourself a deadline for posting the ad. If you don't meet it, get rid of it.

Tighten inventory

While you want to carry everything your clients need, some of those less profitable items aren't worth having just-in-case, which isn't the same as just-in-time inventory. Sitting on the shelves, they gobble profits.

Find more cash in your business

Of course, you're trying to land more clients and that brings in more cash. However, you may have cash somewhere in your business right now. Here is a series of articles on ways to improve cash flow.

Take care of uncollected accounts receivables

You're still hopeful the customer will come through, so you let the A/R stick around. This is baggage you don't want to have come January. Put a stop to getting paid late. Write it off, work with a lawyer to write letters, contact customers one more time or hire a collections pro to help at least get some of your money. 

Shed customers

This one deserves an entire article. Oh, wait ... there is one. :) Why you should fire clients explains how it'll help your company improve its focus and productivity. In short, employees will be happier not dealing with difficult clients and you can concentrate on what you do best.

Deal with unproductive employees

Unproductive employees hold everyone back. Don't start the year with this baggage. Counsel the employee or look for another placement that might work better. Firing, of course, is a last resort.

Do some or all of these and your business is guaranteed to start the New Year in the best shape possible. With no baggage pulling you down, you improve your chances of having a more successful year and maybe even grow your business. 

What tips do you have to shed excess? What other ways can you begin a New Year on a strong note?