How to succeed in business - a list of the most important factors
I am not writing this article “How to succeed in business” at all. The other day, I accidentally stumbled upon a list of success factors in business with which I…

Continue reading →

How to succeed in business - a list of the most important factors
I am not writing this article “How to succeed in business” at all. The other day, I accidentally stumbled upon a list of success factors in business with which I…

Continue reading →

How to do a SWOT analysis (part 1)
SWOT analysis is a very important tool for opening, planning and running a business, respectively, and the question “how to do SWOT analysis” is of particular importance in the life…

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Reduce business expenses – a way to increase profits №5

So, dear undertook, we got to the fifth, last in our list of ways that increase profits in our business. This will reduce costs in your business. Prior to this, we talked about the need to constantly attract potential buyers, how important it is to complete a larger number of sales, how to sell goods and / or services for a larger amount, and how important it is to make repeat sales.

All of these methods will undoubtedly increase profits in the business. But, you see, to reduce costs also means to increase profits, albeit “on the other hand,” of course, not to the detriment of marketing and the quality of work. It’s just possible to reduce business costs without compromising the business itself. And they must be used.

Reduce business expenses
We reduce expenses in business – a way №5 to increase profit

Where and how to reduce business expenses?
Business expenses can be reduced a lot where, you just need to follow this and not neglect the opportunities. Below I will list several ways to do this, but the most important thing is to understand that this can and should be done. That this is no different from the fact that you earn more for the same amount, and sometimes it’s even harder to earn than to save.

I have already said, but I repeat again: I do not think that it is necessary to reduce business costs at any cost. Here we are talking about how to reduce costs only when it does not harm your own business. There are a lot of such situations, believe me, and it’s silly not to use them. Okay, let’s look at a few specific tips from the same book “More money from your business” by Levitas.

Do not overpay. It seems to be very simple, but who likes to overpay? Maybe they don’t like it, but they overpay. For example, for packaging, for delivery, for a brand or year of production … I do not urge you to buy the cheapest raw materials or goods, but you must do this carefully and prudently. Brands, for example, sometimes cost several times more, and the quality is not so much different from “ordinary” manufacturers. Well, you get the point …
Trust but verify. Also an easy way to save in business (and not only in business, of course). Check, really check. You never know who and when can make a mistake, be dishonest or just take the matter seriously. This does not mean that you should personally check EVERYTHING, but you can establish this process, transfer such powers and responsibilities.
To bargain! Why not. Many suppliers, and not only suppliers, will give you a discount if you just ask them. And to pay the full price, you always have time, do not worry :-).
Exchange services and / or goods. Always think about whether it is possible to get what you need at a particular moment without paying a dime. Just learn to think before each purchase. Can you offer something in return for what you need? You will be surprised how many opportunities you have. This can not always be used, but from time to time it will work. But nothing is worth it :-).
Acquire only the necessary. Really think about whether you need what you are going to buy. Is it really necessary? For a long time? Or maybe it’s worth renting? Or can you do without it?
Use outsourcing. It seems to many beginning entrepreneurs that this is an additional cost item for the business. If the budget is very, very limited, it may be so. But overall, it reduces expenses in your business, friends. Trying to do everything yourself, you do not save, but rather the opposite. Moreover, you cannot be a professional in everything. Remember that. And use outsourcing: delegate tasks to freelance specialists and offices of various professional fields.
Part of the cost is per client. This is a twofold moment, and it can just sometimes harm your business. But, if possible, be sure to take advantage. A good example is IKEA. They buy furniture there, and assemble it yourself. They made detailed instructions for assembling their furniture instead of containing additional workers. And this does not contradict their proposal: inexpensive, decent furniture for every home. At least no one complains that he collects it himself :-). Or the same pickup points – this is also an example of how a client himself can do part of your work with a competent approach.
Control over personnel costs. This is not about paying less. On the contrary, if possible, pay good workers more. But you need to keep track of who and what to pay for. Agree, if someone does the same job for half the money, what’s the point of keeping the first employee. Or he does the same amount of work for the same amount of money. Nothing personal, this is business, friends!

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