Any enterprise is profitable when its income is greater than its expenses. But sometimes the profit level starts to fall. To prevent the enterprise from becoming unprofitable and not going bankrupt, it is necessary to reduce costs. This is a forced measure that will allow the organization to continue its work.
Instructions
Step 1
If incoming employees are doing work at the enterprise, the first thing to do is refuse their services. Train staff on staff to do this work and make it their responsibility. You may need to send employees to courses or seminars, but these costs will soon pay off.
Step 2
If there are employees who do their job poorly or they are not fully loaded at work, fire them. Distribute job responsibilities to other workers with a slight increase in their salary. This will significantly reduce the costs of the enterprise and well motivate the remaining employees for better work.
Step 3
If you're renting space, try talking to landlords to get your rent down. Perhaps they will meet you halfway if you negotiate long lease terms. Try to find premises cheaper. If you find with a significant difference, move the production to a new location.
Step 4
Try to find suppliers of raw materials with more favorable terms. Or negotiate with existing ones. At the meeting, let us know that you have found a partner with better prices. But you already have established cooperation. And if the supplier lowers the price, you will not terminate the contract.
Step 5
Consider changing the quality of raw materials and consumables. For example, if you use cardboard in production, then you can switch to a version with a lower density without compromising product quality. Reduce your packaging costs.
Step 6
Control expenses for household needs. Cut them down. For example, purchase a cheaper floor cleaner. Or buy simpler stationery. Teach employees to save energy and water. Try to reduce manufacturing waste. To do this, you can approve penalties for employees, through whose fault it was admitted.
Step 7
Control the consumption of office supplies, household goods. It's no secret that in some organizations, some of the things go home with the employees. Do not allow such situations. If employees are paid for mobile communications, check their bills. If a violation is found, reduce these costs.
