Cash falling through the cracks? By evaluating existing systems and practices, cash that could fall through the cracks can be recovered and channeled back into the company.

It's hard to imagine anyone who isn't watching his or her expenses today, as avoiding the issue could have adverse effects in business, as well as personally. Unfortunately, even those who monitor their costs closely can still find themselves on the losing end of this economic tug-of-war. But all is not lost: By evaluating one's operation, streamlining existing systems and implementing new procedures, those cracks into which money once fell can be paved over.

In the past, companies might have thought a few dollars unaccounted for here or there would not make a difference, but today that is certainly not the case. Executives are aware that when certain actions are repeated over and over, the money adds up and can cause irreparable damage to their bottom lines. During times like these, every cent counts and to weather the current storm, business owners need to figure out exactly where their money is going and, if possible, how they can limit unnecessary spending.

Little Cracks, Big Money

Begin by taking a close look at your company's infrastructure. Visualize your company headquarters as one of your stores and apply anything you are doing in your stores on the corporate level. It's scary how fast seemingly small expenses-like leaving the lights on all day in the restroom, keeping computers running all night, sending packages overnight or having a service come in each week to water the plants--can multiply into huge, unnecessary costs.

Consider installing motion-sensitive lights in restrooms, conference rooms and other areas that aren't in constant use throughout the day. In terms of computers, select one night per week to leave them on for updates, but power them down at the end of every day except the most crucial one.

Costly shipping nightmares can be avoided by staying organized throughout each project and shipping items in bulk well in advance instead of at the last minute.

If employees want to have plants in the office, encourage them to bring them in from home for their desks and water them as necessary instead of contracting a service to complete the same task. If your company is looking for easy ways to cut costs, these small adjustments will definitely help you do so.

Real Work or "Make Work?"

Next, evaluate your current staff: Is everyone doing the work they were hired to do? Are they willing to go above and beyond if additional assistance is needed? If not, it may be time to make some calculated cuts and eliminate employees who aren't pulling their weight.

Downsizing staff can be risky, as tasks fulfilled by one employee have the potential to fall by the wayside once they leave the company, so take time to retrain existing staff members to complete the jobs their former co-worker once handled.

After an employee is terminated, compare their job description to the work actually completed to determine if there was any "make-work" that filled hours in a day, but did nothing to further the success of the company.

Another solution to keep costs down is to hire part-time or temporary workers; not only do you gain the necessary support at a lower rate than a full-time employee, but the pool of workers to choose from has grown significantly over the past year. In fact, the Bureau of Labor Statistics reports there are currently over 25.5 million part-time workers in the United States, due in large part to the many former executives that have been laid off over the past year. These individuals, which also include stay-at-home morns and retirees needing to return to the work force, are looking for any work they can get so the quality of candidates you have to choose from will far exceed the level of candidates available in the past.

Move on to how you do business. If clients and vendors seldom come into your office or you rarely visit them at their facilities, consider ramping up Web or video conferencing to keep the lines of communication open. Most providers offer these services at relatively inexpensive rates and this form of communication seems more personal than a phone call. Also, each party can see the other and can present information visually that may be misconstrued in a strictly verbal form. Money will be saved on fuel, as well as vehicle maintenance and since your employees will not be on the road as much, they will have more time to dedicate to their work in the office.

At Cousins Subs, a franchised restaurant concept specializing in East Coast-style submarine sandwiches, I re-evaluated our operation from a number of standpoints to continue operating as successfully as we have since my father and his cousin founded Cousins in 1972. To continue their legacy, I knew some things had to change. Here are the most effective initiatives we've implemented, starting with the initial problem and detailing its solution.

Problem: Wasted energy

Solution: We've put our store lights on timers, motion-sensitive lights in restrooms and have installed energy-efficient light bulbs anywhere we can and let me tell you that the bills have gone down because of it. We've also replaced standard thermostats with programmable ones so that the stores are kept at a set temperature during business hours and a lower or higher temperature depending on the time of year when the business is closed. For those unsure of the most effective ways to conserve, consult your local energy provider: many will come out and perform an audit free of charge.

Problem: High rent costs

Solution: Right now, landlords are seeing how hard it is to attract new tenants and are doing whatever they can to keep the ones they have. That said, it's the perfect time to negotiate lower terms for the remainder of your lease. Start with a lower offer than you think your landlord would agree to and use it as a jumping-off point toward an acceptable rate for both parties. Landlords know that lowering their rent a bit to appease an existing, reliable tenant is a much better move than losing them and having to start over.

Problem: Increased commodity costs

Solution: We refuse to sacrifice quality so we're constantly working with our suppliers to secure economically-sound, long-term contracts. Sourcing the same item from multiple vendors creates a healthy competition that results in lower costs to us which, in turn, helps us to keep our food costs in line during a time of commodity volatility. Though commodity costs have leveled out in recent months and food inflation is expected to reach between just 3 percent and 7 percent in this year compared with 10 percent and 12 percent in 2008, according to Morgan Stanley research, we will continue to negotiate lower rates with our suppliers and funnel the savings into other aspects of our business. We also offer constant training to our franchisees and include tips on how they can educate their employees on accurate portioning and correct use of products to combat waste, which also keeps costs down.

Problem: Inefficient communication

Solution: We've developed Subnet, a communications portal for our corporate employees, as well as our franchisees. It has proved to be an excellent way to reduce the cost of printed materials; by logging in, employees and franchisees are able to look up manuals, implementation guides, HR documents and other materials that used to be printed out and distributed in three-ring binders. Not only does this portal eliminate the production of these items, the material is more easily updated so our associates always know the information they are getting is completely up to date and located in one place. We are always striving to be as efficient as possible and I believe we've achieved that through technological advancements like Subnet.

Although the news has been dominated with stories of companies in trouble, there are several companies maintaining their current operations and some that are even experiencing growth. It's never too early to take a closer look at your operation; learning from the mistakes of others will allow them to continue building upon the company's positive trends. By evaluating existing systems and practices as soon as possible, cash that once fell or could fall through the cracks can be recovered and channeled back into the areas of the company where it's needed most.

Christine Specht is president and COO of Cousins Subs. She can be reached at 262-253-7700 or [e-mail].