How to cut costs
Video: 10 Extreme Ways to Cut Costs 2024, July
Throughout the course of doing business, it is impossible to get enough profit if production costs get out of hand. This is especially important for companies that are just starting out. There are many ways to reduce costs.
You will need
- - Business plan;
- - analysis of the enterprise.
Instruction manual
1
Pay special attention to your expenses for the purchase of materials, consumables and components for production, its manufacturing process (manual labor or automation, costly or duplicate operations), household needs in the form of rent, light, Internet, communications, tea, stationery, etc. D., payment of taxes. Their regulation will have a significant impact on reducing costs.
2
Designate areas of control over the enterprise, organize cost accounting for each of your areas, conduct a constant analysis of the data received over a specified time. The last step at the initial stage must be carried out every month of the month, that is, take fairly short periods. Form proposals based on the results of data analysis.
3
Reduce your payroll. This may be a completely justified step if, when analyzing the data on the salary fund and personnel, it was revealed that the staff has “double” positions without special need, there is no at least partial interchangeability of personnel, and there is clearly an underload of employees. In this case, the staff must urgently review, reduce official duties, "understudies", etc.
4
Be careful when changing suppliers. To conduct production, you most likely purchase materials from a regular distributor, following a deferred payment agreement that provides for free delivery, etc. In order to carry out work to reduce costs, you can try to find another supplier with similar materials and a lower price. You make the transition to it, but it may turn out that, for example, it has paid delivery, some materials are not suitable for certain properties, and you can receive a deferred payment only after some time (usually up to 1 year) and at a certain volume of monthly purchases. Therefore, think well if the current supplier is comfortable with you before looking for a new one.
