CUTTING COSTS IN YOUR BUSINESS
Do
you know where to start? You know when something big goes wrong in your business
when a contract isn't renewed, or a product line doesn't sell. But not every
business owner knows when little things go wrong. little expensive things, that
have a big impact on the bottom line.
When business is good, it can be easy to ignore the little things and spend your
energy on the bigger picture. but when the economy takes a downturn, it really
pays to take a good hard look at every aspect of your business.
CUSTOMERS
Which of your customers are actually costing your money? I'll bet there are more than you think. Customers who require a lot of support, who aren't satisfied with the work you do, who demand large discounts or special deals, who never seem to appreciate your service or product. Find out who they are - it may be time they looked elsewhere, and you concentrated on the customers that value your company.
SUPPLIERS
Don't take things for granted, While it's true that long standing relationships
with trusted suppliers can make things smoother and easier, you need to be aware
of competitors' prices and services. you want to be sure you're getting the very
best deal you can on every transaction. And don't be afraid to ask for a
discount.
EMPLOYEES
Got a feeling that someone's not pulling their weight? Think you might have to downsize, but don't know where to make the cuts? Keep track. Get people to write down what they do each day. Find out who's doing what and how long it's taking them. Because without that knowledge, you'll end up hiring and firing on a hunch. And you might just lose your most valuable employees.
OVERHEADS
Negotiate, reduce, cut. But first, find out how much you're paying now. What
does your phone cost per month - is there a cheaper plan out there? How many
color copies, faxes, printed and bound reports does your company produce each
month? Do you track and charge for them? What about travel expenses? Stationary
supplies? Rent? Before you start cutting, you've got to know where to cut. If
you're not keeping track and recovering this type of cost, you're loosing money.
BIG
PICTURES PAINTED WITH SMALL BRUSHSTROKES
Being successful during difficult economic times means paying attention to each
small brushstroke that makes up the big picture of your profitability. Because
what you don't know will hurt you. And what you do know will help you build a
stronger, leaner, more profitable company.
If we can assist further, please email McLean and Co as follows:
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