How to reduce costs
Video: How to reduce costs in your business 2024, July
It is not possible to make a constant profit when doing business if you cannot control production costs. This is especially important for enterprises that have just started their activities. There are many ways to reduce costs.
You will need
- - Business plan;
- - analysis of the company.
Instruction manual
1
Choose a method of control over the enterprise, start accounting for costs in all of your areas, constantly analyze the incoming data for a set time. The analysis at the initial stage should be carried out every month, that is, take a fairly short period. Form proposals according to the results of data analysis.
2
Pay serious attention to your expenses for the purchase of components, consumables and materials for production, the entire technical process (in the form of manual labor or automation with costly or duplicate operations), household needs and payment of rent, electricity, Internet, communications, tea, stationery, etc. D., payment of taxes. It is their regulation that can have a significant impact on cost reduction.
3
Reduce your payroll. This can be a completely justified step if, when analyzing personnel and salary data, it was revealed that the staff has “double” positions without special need, there is no interchangeability of personnel, and there is a clear underload of employees. In this case, it is urgent to reconsider the staff, reduce the “understudies”, official duties, etc.
4
Be careful if you decide to change the supplier. To lead the production you are most likely supplied by a regular distributor. See if he fully follows a deferred payment agreement, which includes free shipping, etc. To reduce costs, you can try to find another supplier with similar materials, but at a lower price. You’ll make a transition to it, but it may turn out that it, for example, provides paid delivery, some of its materials do not suit you for certain properties, and a deferred payment can only be obtained after some time (up to 1 year or more) and with certain volumes of monthly purchases. Therefore, think carefully about how you are comfortable with the current supplier before looking for a new one.
