We live in hard times that favor lean and mean organizations. Naturally that means that even if you do not have a crisis just yet, your very future survival may hinge on how good you are at constantly reducing business costs and keeping them as low as possible.
1.Time is always the biggest culprit
Most folks already know that it costs you big every time you have to repeat a shoddily done job. This tends to attract attention quickly and gets fixed right away. But what about your written-in-stone delivery time? It is unlikely that you will be able to cut it down by a day but have you ever tried to reduce it by a couple of minutes or even an hour? Mere minutes cut down from every single job will always end up giving you huge savings. This is the reason why the much maligned Chinese seem to be taking over the world. They are constantly looking for ways to get things done much faster.
2.Look in the least obvious places
The mistake most entrepreneurs make is to stop when they have made huge cuts in the most obvious places. That includes your payroll and those costs you are not quite sure how you got yourself into in the first place. However effective cost cutting goes much further than that. It will call for you to look at many small daily costs that ultimately accumulate into a big number.
Do you really need all that ink and paper?
Some documents have to be printed out besides you are so used to it that looking at the pennies per unit may at first appear to be a waste of time. But hold on a minute. Pennies do tend to add up rather quickly. What is your monthly cost? And what is your annual cost? What would happen if you were to find a way of cutting back a mere 10 per cent from that number? Print only what really needs to be printed and do it the right way. You can find a lot of great tips how to reduce printing costs on various blogs.
Change the way you advertise
Advertising isn’t as effective as it used to be and the truth is that this is costing you much more money than you think. Take another look at how best you can reach your prospects and customers more cheaply. Social media sites like Facebook provide amazing new opportunities that never existed before and you can even go for PPC ads and get to easily monitor precisely what kind of returns you are getting for each dollar spent.
Stop buying in bulk
Everybody screams out that buying in bulk saves cash. But does it? Chances are that you will find the huge purchases you make just to get to the discount threshold will usually force you to order much more than you will ever need or use. Organizations like Toyota that have made the just in time manufacturing process famous have proven that creating a process where you order only what you need for the day can save tons of cash.
The devil as they say is always in the small details. You are bound to surprise yourself by simply taking your business apart one small detail at a time. There are countless ways that you can bring down your costs even if you are already sure that waste in most departments is limited. Yes it may take time and effort but it will definitely be worth your while.