50 Ways To Save Business Cost
by AFFUAN
There are countless ways to save your business money. Unfortunately, many businesses are overlooking them, or simply don’t have the time to go searching them out. Buyer’s remorse is not a new idea. You may have experienced it right after a friend revealed he’s paid $100 less for his state-of-the-art golf clubs than you did. But what’s $100 between friends? Better luck next time, you think.
Now consider how you’d feel if the same friend told you he was saving $100,000 a year on running costs for his business. Suddenly, buyer’s remorse takes on a much serious face. Cost cutting may not be glamorous, but it is vital to ensure the stability and progress of every business in today’s competitive world. Scrutinize the “little things” that are often overlooked, and yet add up to big costs – tings like stationery, printing, telecommunications, couriers… you get the picture. Once scrutinized, they offer a solution tailor-made to that company.
Starting with the big picture
01. Centralise purchasing
You may be buying the same goods from different suppliers! Coordinate the spending different departments to maximise discounts through bulk purchasing power.
02. Cut the paperwork
Request monthly consolidated invoices to improve cash flow and reduce administration costs.
03. Ask for a reason
Don’t accept a price increase without challenge.
04. Get a second opinion
Obtain alternative quotes – on everything. Advise existing suppliers that the business is being tendered, and give them a chance to reduce their prices.
05. Call in a negotiator
Never allow the person in daily contact with a supplier to negotiate price. Use the good cop/ bad cop approach, calling in someone else, so that emotion is not involved in the process. This allows the day-to-day relationship to remain unaffected.
06. A beautiful relationship
Building good relationships with suppliers can result in reductions in costs. Ask them for suggestions on how to improve the way in which you work together. Could ordering weekly instead of daily allow them to reduce their own admin costs and enable them to pass the saving on?
07. Improve cash flow
Reduce your stock levels, and encourage suppliers to hold stock.
08. Review product specification
Ensure that products being used do not exceeds requirements. Can you use second-hand pallets for transportation? Recycled toner cartridges?
09. Establish a caring culture
Caring is a pre-requisite to effective cost-management. If staff and executives are complacent, it’s difficult to implement savings.
10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.
And now for the details..
11. Advertising
Don’t just their word for it: conduct regular search to ensure that your advertising budgets are being used effectively.
http://affuan.net
There are countless ways to save your business money. Unfortunately, many businesses are overlooking them, or simply don’t have the time to go searching them out. Buyer’s remorse is not a new idea. You may have experienced it right after a friend revealed he’s paid $100 less for his state-of-the-art golf clubs than you did. But what’s $100 between friends? Better luck next time, you think.
Now consider how you’d feel if the same friend told you he was saving $100,000 a year on running costs for his business. Suddenly, buyer’s remorse takes on a much serious face. Cost cutting may not be glamorous, but it is vital to ensure the stability and progress of every business in today’s competitive world. Scrutinize the “little things” that are often overlooked, and yet add up to big costs – tings like stationery, printing, telecommunications, couriers… you get the picture. Once scrutinized, they offer a solution tailor-made to that company.
Starting with the big picture
01. Centralise purchasing
You may be buying the same goods from different suppliers! Coordinate the spending different departments to maximise discounts through bulk purchasing power.
02. Cut the paperwork
Request monthly consolidated invoices to improve cash flow and reduce administration costs.
03. Ask for a reason
Don’t accept a price increase without challenge.
04. Get a second opinion
Obtain alternative quotes – on everything. Advise existing suppliers that the business is being tendered, and give them a chance to reduce their prices.
05. Call in a negotiator
Never allow the person in daily contact with a supplier to negotiate price. Use the good cop/ bad cop approach, calling in someone else, so that emotion is not involved in the process. This allows the day-to-day relationship to remain unaffected.
06. A beautiful relationship
Building good relationships with suppliers can result in reductions in costs. Ask them for suggestions on how to improve the way in which you work together. Could ordering weekly instead of daily allow them to reduce their own admin costs and enable them to pass the saving on?
07. Improve cash flow
Reduce your stock levels, and encourage suppliers to hold stock.
08. Review product specification
Ensure that products being used do not exceeds requirements. Can you use second-hand pallets for transportation? Recycled toner cartridges?
09. Establish a caring culture
Caring is a pre-requisite to effective cost-management. If staff and executives are complacent, it’s difficult to implement savings.
10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.
And now for the details..
11. Advertising
Don’t just their word for it: conduct regular search to ensure that your advertising budgets are being used effectively.
http://affuan.net
MOHD ADHA MOHD ZAIN (ADHA ZAIN)
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