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Cost Management Strategies for Business

    • 355 posts
    December 21, 2011 2:04 PM EST

    Another cost that needs to be controlled is waste.  Typical example, workers in a florist shop may throw away up to a spool of wire a week.  The wire is used to tie floral arrangements together.  And, it usually only takes six inches of wire.  But workers often cut off twelve to eighteen inches of wire.  What isn’t used on the floral arrangement gets tossed in the trash. 

    Or, how many times have you seen someone waste copy paper.  One or two sheet may not seem like much.  But, multiply that by hundreds of times in a month and your throwing a lot of paper in the trash.

    As a business owner, you should be taking a regular audit of the waste taking place in your business.  Think of waste in the same context as a 401k contribution. A single contribution doesn’t add up to much.  Done over weeks, months and years though those contributions add up to a lot of money.  Same thing happens with uncontrolled waste.

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    The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

    • 39 posts
    December 27, 2011 11:01 AM EST

    Another way to effectively cut cost is outsourcing. It will free you from having to rent office spaces, computer and other equipment costs, and employee benefits. You just need to be smart about it because not all outsourcing companies are good. I was very lucky to find a company that delivers when I was building my business. 



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    Account Manager

    • 344 posts
    December 20, 2011 6:30 PM EST
    • Reduce Utility Costs

      • For a long-term cost management strategy, reduce the utility costs for your office or business facility. Cut electricity costs by putting timers on your lights, asking employees to turn off their computers at the end of the day and setting equipment on a power strip that you can turn off to prevent power leakage. Reduce water usage by installing low-flow faucets and toilets. Go paperless in the office to cut costs for paper, ink and printer maintenance. As an added benefit, these changes are environmentally friendly and can help the reputation of your company.

      Update Technology

      • With advances in technology, you can save on business costs. By installing a video conferencing and screen-sharing system, you can meet with clients on a regular basis and reduce travel costs. Replace your current phone system with a better Internet connection so you can install a voice-over IP system that uses the Internet connection and allows individual phone extensions without adding extra phone lines. You can also improve customer service and reduce the time your staff spends putting out fires by adding instant messaging services for quick communication and questions.

      Shop Smart

      • Manage your costs at work by changing the way you shop. Work with your office manager or the person in charge of ordering supplies to find ways to reduce costs on products you buy regularly or in large quantities. Choose off-brands for products that are not as important to save money over time, or switch to a supplier that can give you a better deal. When you are purchasing new equipment, shop around for the best deal and maintenance plan.

      Retain Employees

      • To keep a handle on the time and money that are required to seek out and train new employees and to avoid lost productivity when an employee leaves, focus on retention. Maintain open communication with your staff, provide cross-training, listen to their concerns and keep the workplace fun and friendly. By making an effort now to keep employees happy and challenged, you can extend the time they spend with your company.



     

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    Global buy sell B2B trade marketplace