How to reduce costs in the enterprise

Any enterprise is profitable when its income is more than expenses. But sometimes the profit level begins to fall. That the company did not become unprofitable and did not go bankrupt, it is necessary to reduce costs. This is a necessary measure that will allow the organization to continue working.

Instruction manual

1

If incoming employees do the work at the enterprise, first of all refuse their services. Train staff on the job and do the job for them. You may need to send employees to courses or seminars, but these costs will soon pay off.

2

If there are employees who do poor work or are not fully loaded at work, fire them. Distribute job responsibilities to other workers with a slight increase in their salary. This will significantly reduce the costs of the enterprise and well motivates the remaining employees to work better.

3

If you rent premises, try to talk with landlords and achieve a reduction in payment. Perhaps they will meet you if you negotiate a long rental period. Try to find premises cheaper. If you find a significant difference, move the production to a new location.

4

Try to find suppliers of raw materials with more favorable conditions. Or negotiate with existing ones. At the meeting, inform that you have found a partner with better prices. But you have already established cooperation. And if the supplier reduces the price, you will not terminate the contract.

5

Consider changing the quality of raw materials and supplies. For example, if you use cardboard in production, then you can switch to the option with a lower density without sacrificing product quality. Reduce packaging costs.

6

Control expenses for household needs. Cut them. For example, buy cheaper powder for mopping. Or buy simpler stationery. Teach employees how to save energy and water. Try to reduce the amount of marriage in the workplace. To do this, you can approve penalties for employees through whose fault he was allowed.

7

Control the flow of stationery, household goods. It is no secret that in some organizations some of the things go home together with employees. Do not allow such situations. If employees are paid for mobile communications, check their bills. If a violation is found, reduce these costs.

note

Do not reduce the quality of manufactured goods. Otherwise, customers may stop purchasing them. And to restore demand is very difficult.

Useful advice

Take a comprehensive approach to reducing costs. Then the result will appear very soon.

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• cost reduction in the enterprise