Cutting Business Costs… now!
Welcome! I would like my blog to be of practical help and assistance to you, so I intend to feature simple advice and tips on improving and growing your business. This first blog is about the importance of developing a cost cutting review programme…
Cut Your Costs Now!
When it comes to successfully running, any business one must focus not just on bringing money in through the front door but stemming the tide of expenses going out the back. That has been part of my key responsibilities at Enigin. I have seen many a good company flounder and fail due to a lack of attention to costs. Is that something you need to pay attention to in your business perhaps? How do we go about it I here you say? Follow this simple series of questions to guide you through your review:
1. On what is the money being spent? - Capture all cost headings
2. Why do we need to spend this money? – Is it essential, beneficial, or just nice to have?
3. Is it possible to eliminate this cost?
4. If not can we reduce the cost?
5. Can we obtain the same products/services from a different source at better rates?
6. Do we need to do things differently in order to save costs? - Look at your processes in detail.
7. What impact will making such savings have on the business? – Positive or negative?
8. What is the level of potential savings for this particular expense? – becomes additional profit!
9. What is the likelihood that the directors/owners will endorse this cost cutting action?
It can be a little time consuming but believe me it can really pay dividends. Go on give it a go and if you like let me know how you get on.