Throughout the course of a business, it is impossible to generate sufficient profit if production costs get out of control. This is especially important for companies that are just starting out. There are many ways to reduce costs.
It is necessary
- - Business plan;
- - analysis of the activities of the enterprise.
Instructions
Step 1
Pay special attention to your expenses for the purchase of materials, consumables and components for production, its technical process (manual labor or automation, costly or duplicate operations), household needs in the form of rent, electricity, Internet, communications, tea, stationery, etc. etc., payment of taxes. It is their regulation that will have a significant impact on reducing costs.
Step 2
Outline the areas of control over the enterprise, organize cost accounting for each of your areas, conduct a continuous analysis of the incoming data for a set time. The last step at the initial stage should be carried out every month of the month, that is, take fairly short periods. Generate suggestions based on the results of data analysis.
Step 3
Reduce your payroll. This can be a completely justified step if, when analyzing the data on the salary fund and personnel, it was revealed that there are “standby” positions in the staff without special need, there is no at least partial interchangeability of personnel, there is clearly underutilization of employees. In this case, the staff urgently needs to be revised, job responsibilities, "understudies", etc. should be reduced.
Step 4
Be careful when changing supplier. For production, you most likely purchase materials from a regular distributor, following a deferred payment agreement, which provides for free shipping, etc. In order to carry out work to reduce costs, you can try to find another supplier with similar materials and a lower price. You make the transition to it, but then it may turn out that it has, for example, paid delivery, some of the materials do not suit you for certain properties, and you can get a deferred payment only after some time (usually up to 1 year) and with a certain the volume of monthly purchases. Therefore, think carefully about whether you are comfortable with the current supplier before looking for a new one.
