10 Ways to cut costs

10 Ways to cut costs

nick

This week we have a Guest Blog provided by Nick Beaumont-Jones of Auditel – Experts in finding ways to improve business profit

  1. Keep staff on board. Cost cutting measures are often unpopular, but when staff understand that their jobs may depend on them, they’ll play along
  2. Improve business forecasting. When you have a clearer picture of future trading conditions, you can make more reliable resourcing decisions on everything from staff levels to materials and marketing spend
  3. Analyse spending. Map outlay on goods and services along a horizontal axis and criticality of purchses up a vertical axis. Divide box into four quadrants. Focus on purchases that fall into the top right-hand quadrant
  4. Review utility costs. Typically, these represent the second or third biggest single controllable costs. Shop around to cut utility charges.
  5. Control business travel. Some journeys aren’t really needed. Look at the purpose of long trips and whether you can get what you need another way through a conference call, videoconference or webcam meeting for example
  6. Cut the cost of debt. It’s excessive (and sometimes expensive) debt that sinks many businesses. Look at reducing the cost of debt by injection of equity
  7. Automate routine processes. Provide more information on your website. Ask customers to order online
  8. Explore offshore manufacturing. Consider whether all or parts of your products can be manufactured in the Far East or eastern Europe
  9. Use consultants sparingly. Sometimes they save you money. More often they cost. Consider asking them to work on a contingency basis.
  10. Cut directors’ perks. It’s tough to start at the top but it sets the right example to the rest of the company
Auditel are able to help with many of the issues above. Feel free to look at their website. Nick can be contacted directly by email on nick.beaumont-jones@auditel.co.uk

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